The Distribution Companies (DisCos) in the country have tripled the electricity charges following withdrawal of the power subsidy by the Federal Government.
Consequently, Nigerians will pay through their noses as President Bola Tinubu administration has withdrawn the much-debated electricity subsidy paid by successive governments in the country.
Already, electricity tariffs have tripled the energy prices as the government plans to revitalise the country’s energy sector and cut the about $2.3 billion spent on subsidy annually.
The new development aims to implement the 2024 Multi-Year Tariff Order (MYTO), which could raise the current tariffs by close to 200 per cent.
The new cost per unit of electricity (kWh) is expected to vary depending on the distribution company (DisCo) and the customer’s consumption level on the back of the increasing inflation rate and the impact of the foreign exchange rate and high cost of gas, which may push up the amount paid by customers without government’s subsidy.
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BusinessDay findings showed customers under Yola DisCo will pay between N234 and N179 per kWh, while those under Jos DisCo will pay between N166 and N101 per kWh.
Ikeja Electric customers will pay between N143 and N69 per kWh, while Abuja DisCo customers will be charged between N153 and N74 kWh. Eko DisCo’s rates range from N125 to N79 per kWh.
Benin DisCo’s charges fall between N137 and N100 per kWh. Enugu DisCo customers will pay between N154 and N95 per kWh, and Port-Harcourt DisCo’s rates range from N142 to N100 per kWh.
Kano DisCo charges vary between N159 and N90 per kWh depending on the customer’s band. In Kaduna DisCo, the rates range from N163 to N88 per kWh, while Ibadan DisCo’s charges are between N140 and N97 per kWh.
The Nigeria Electricity Regulatory Commission (NERC) waded in by hiking the tariff costs by 300 p er cent.
Straightnews learnt that the federal government spent N225 billion on electricity subsidy in 2015; N308 billion in 2016; N351 billion in 2017; N440 billion in 2018; N528 billion in 2019; N501 billion in 2020; N251 billion in 2021; N144 billion in 2022; N645 billion in 2023.
NERC fines AEDC N200 million
Meanwhile, the Nigerian Electricity Regulatory Commission (NERC) has fined the Abuja Electricity Distribution Plc (AEDC) N2oo million over tariff violations after overcharging customers.
In a statement on Friday, April 5, 2024, the agency said the decision follows a detailed review which revealed that AEDC had applied the new tariff to all customer bands, contrary to the Order, which was designed to ensure fair billing practices.
NERC therefore, directed AEDC to reimburse all customers in Bands B, C, D, and E respectively that were billed above the allowed customer categories/tariff bands provided in the Order.
“The Nigerian Electricity Regulatory Commission (“Commission”) has taken enforcement action against the Abuja Electricity Distribution Plc (“AEDC”) for non-compliance with the Supplementary Order to the April 2024 Multi-Year Tariff Order 2024 for AEDC (the “Order”). AEDC has been fined N200,000,000 (Two Hundred Million Naira) for failure to comply with the prescribed customer band classifications for the tariff billing,” the statement read.
“This decision follows a detailed review and customer feedback, which revealed that AEDC had applied the new tariff to all customer bands, contrary to the Order, which was designed to ensure fair billing practices.
“AEDC is therefore mandated to Reimburse all customers in Bands B, C, D and E respectively that were billed above the allowed customer categories/tariff bands provided in the Order.
“Reimburse through the provision of the balance of customer tokens that the affected customers would be entitled to receive at the applicable rates and all token reimbursements shall be issued to the affected customers by 11 April 2024.
“Pay the sum of N200,000,000 (Two Hundred Million Naira) as a fine for the flagrant breach of the Commission’s Order. File evidence of compliance with the directives in a & c with the Commission by 12 April 2024.”
“The action by the Commission underscores its commitment to protecting consumer rights and ensuring equitable practices within Nigeria’s electricity sector.
