Abuja Disco to increase tariff from July 1st due to ‘fluctuating exchange rate’

Abuja Disco to increase tariff from July 1st due to ‘fluctuating exchange rate’

 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.

 

In a  statement on
Sunday, 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.”

Source: Abuja Disco to increase tariff from July 1st due to ‘fluctuating exchange rate’

 - NigerianEye

The story behind the headline — analyzed by 10 AI models, updated 4x daily. → drux.space/hub