TheCable

The Abuja Electricity Distribution Company (AEDC) says it will increase tariffs due to the fluctuating exchange rate in the country. 

AEDC is one of the 11 power distribution companies in the country and it has a franchise for the distribution and sale of electricity across an area of 133,000 km2 in the federal capital territory (FCT), Niger, Kogi and Nassarawa states.

According to a Daily Trust report, the distribution company said the upward review is needed due to the fluctuation of the naira in the exchange rate market.

Last week, the naira, Nigeria’s legal tender, traded at N756 per dollar at the investors and exporters (I&E) window.

The I&E foreign exchange (FX) window is the country’s official exchange rate window.

The development comes after the Central Bank of Nigeria (CBN) officially floated the naira and directed commercial banks to sell forex freely at market-determined rates.

For the first time in years, the local currency was allowed to trade at a rate determined by market forces.

“Effective July 1st 2023, please be informed that there will be an upward review to the electricity tariff influenced by the fluctuating exchange rate,” the statement reads.

“Under the MYTO 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.

“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.

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