Discos Dares Opposition, Insist On July 1 Tariff Hike

Indication has emerged that the Power distribution companies (Discos) and the Nigerians may be heading to a collision course and the Discos on Sunday night, dared and confirmed that the tariffs payable by electricity consumers across the country would increase from July 1, 2023, despite the opposition of the Nigeria Labour Congress.

Gentechnews gathered in different notices to their customers seen on Sunday night, the Discos announced that electricity tariffs would increase from July 1, 2023, as they provided reasons for this.

In a public service announcement from the Abuja Electricity Distribution Company, the AEDC said, “Effective July 1, 2023, please be informed that there will be an upward review to the electricity tariff influenced by the fluctuating exchange rate.

“Under the MYTO (Multi Year Tariff Order) 2022 guidelines, the previously set exchange rate of N441/$1 may now be revised to approximately N750/$1 which will have an impact on the tariffs associated with your electricity consumption.

“For customers within bands B and C, with supply hours ranging from 12 to 16 per day, the new base tariff is expected to be N100 per kWh while Bands A with (20 hours and above) and B (16 to 20 hours) will experience comparatively higher tariffs.”

The power firm stated that “for customers, with a prepaid meter, we encourage you to consider purchasing bulk energy units before the end of this month as this will allow you to take advantage of the current rates and potentially make savings before the new tariffs come into effect.”

It added that “for those on post-paid (estimated) billing, a significant increment is imminent in your monthly billing, starting from August.”

The Ikeja Electricity Distribution Company also confirming the hike, said, “Dear customers, electricity tariffs are set to go higher on July 1st due to the floating exchange rate.

“MYTO 2022 set the exchange rate at N441/$1, which may now be adjusted to about N750/$1.We may be looking at a base tariff of N100 per kWh for Band C (12 – 16 supply hours per day).

“Bands A (20 hours and above) & B (16 – 20 hours) will be much higher. If you have a prepaid meter, buying bulk energy units for your home or office before the end of the month may help you make some savings before you have to buy at the new rate.”

It stated that for those on post-paid (estimated) billing, a significant increment was imminent in your monthly billing, starting from August.

“Please take note. Electricity units are set to jump by 30 to 40 per cent in just over a week. You are best advised to buy as many units as you can before July 1.”

Recall, Gentechnews on July 23 reported that the Nigeria Labour Congress, (NLC) has kicked against the alleged plan to increase electricity tariff by 40 per cent on July 1.

The Congress described the move as insensitive and callous, adding that it reflected an organised indifference to the well-being of consumers, especially, the poor ones.

The NLC said this in a statement issued by its President, Comrade Joe Ajaero on Thursday in Abuja.

The statement reads: “The plan to increase electricity tariff by 40 by July 1st is both insensitive and callous and reflects an organised indifference to the well-being of consumers, especially, the poor ones.

“The massive increase is explained away as a response to the over 100 per cent increase in the pump price of premium motor spirit. Details reveal a movement in inflation from 16.9% to 22.41 (threatening to needle 30), and a shift in exchange rate from N441 to N750.We believe not even these figures are a justification for this reckless proposed tariff increase.

“The issue of capacity to pay and quality of service delivery are not only germane but superior to any rationalisation by market logic. The service providers in spite of sundry support have not been able to meet the threshold of 5000 megawatts.

“Coupled with this, there have been surreptitious increases without notice in violation of statutes. The inherent risk in the new regime of tariff is that there is no control, implying that by August, consumers will pay new rates.

“The other risk is that by the time other products or service-rendering entities come up with their new prices or rates, the ordinary person would have been compacted into dust. We would want to advise apostles of the market who have called NLC all sorts of names to check their conscience.

“The rate at which they are going is highly combative and combustible. With the contemplation of payment of school fees in tertiary institutions and increases in privately-owned ones in addition to other costs/tariffs on the way, life in Nigeria could truly be Hobbesian.

“The market economies which the Market Fundamentalists seek to emulate, have in place socio-economic safeguards which we do not have. In light of this, our advice is that this proposed tariff hike should be shelved for our collective safety.”