The Abuja Electricity Distribution Company has stated that, contrary to media claims, it has not raised electricity pricing.
Nairametrics reported that some media outlets stated that AEDC had announced an upcoming tariff rise despite not having received NERC’s approval.
The announcement also coincided with energy experts’ expectations that electricity rates will rise as a result of the controlled float by the Central Bank of Nigeria and the austerity measures put in place by President Bola Tinubu’s administration.
The AEDC emphasized that no clearance has been given for tariff hikes and advised clients to ignore any notices implying otherwise.
They declared “Please disregard the media rumors on the review of electricity pricing. We regret any difficulty caused and would like to let you know that we have not received approval for such hikes.”
Energy Markets and Rates Consultants Director, Dr. Damilola Oluwole noted that the inflation rate has already been taken into account in the existing electricity tariffs.
The exchange rate of USD/NGN 467.53 suggests a slight increase compared to the present rate of USD/NGN 441.48, Dr. Oluwole continued, citing data from the CBN’s website.
“If we assume that the rate of USD/NGN 663 from the I&E window on Friday, June 16th, is used for December 2023 tariffs, and all other factors remain constant,” he continued, “we can expect an average increase of about 25-30% for some distribution companies (DisCos).”