How Electricity Distribution Companies secretly increased power tariff

Electricity distribution companies (DisCos) in Nigeria have quietly increased tariffs by as much as 18.5 percent from December 1, 2022, leaving Nigerians confused.

Two Discos in Lagos, Eko Electricity Distribution Company and Ikeja Electric, have sent out the new electricity bills to postpaid consumers.

The Magodo Residents Association (MRA) sent a message a few days ago to its members notifying them of an increase of over 17 percent in tariff.

“It has come to our attention that Ikeja Electric effected an increase to the cost of tariff under the year review by the Nigerian Electricity Regulatory Commission,” the association’s publicity secretary said in a message seen on Twitter.

MRA said NERC had revised the Multi-Year Tariff Order, adding that the bilateral tariff of N61.75 chargeable for Ikeja Electric’s bilateral power agreements has been reviewed upwards to N72.40 (excluding VAT) effective from December 15, 2022 in line with the regulator’s directive.

NERC is yet to release an official statement on the tariff rate hike but for a consumer who pays N57.65 per kilowatt hours, the new rate effective December 1, 2022 was put at N68.30 for residential 3-phase MD (R4) service band A customers.

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A Twitter user, Oyibo Ediri also accused the Abuja Electricity Distribution Company of quietly increasing the tariff in December, alleging that the firm raised the rate for non-maximum demand customers by N12.65.

“AEDC has quietly increased the cost of electricity. Cost increased from N57.55 in December to N68.2 for tariff band A non-MD. No official statement from @aedcelectricity or @NERCNG on the increase. These people won’t stop to fleece us,” the Twitter user stated.

Replying to the tweet, the AEDC, via its official Twitter handle, @aedcelectricity, explained that the tariff hike was based on the order of NERC.

“Good day, please be informed that the increase in Tariff is in compliance with NERC order,” the Disco stated.

Also, reacting to the response of AEDC, Ediri asked the power firm to provide the current rates approved by the NERC.

“Kindly make the current rates available as ordered by @NERCNG. Thank you,” the Twitter user stated.

Another Twitter user, Justin David, who reacted to the request by Ediri, then said, “We await their response.”