Ikeja Electric, one of the Electricity Distribution Companies (DISCOs) in Lagos, has issued a stern notice to electricity consumers regarding the upcoming new tariff set to commence on July 1. The company has advised customers who use pre-paid meters to make a bulk purchase of electricity units before the end of June in order to have a stock of units before the new rate takes effect.
The sharp and significant increase in energy tariff has been attributed by Ikeja Electric to the exchange rate of the Nigerian naira to the dollar. The company explained that the previous rate was based on an exchange rate of N441/$1, but the current exchange rate has risen to N750/$1.
Ikeja Electric also informed consumers to expect a tariff base of N100 per kWh for Band C, which represents supply hours of 12-16 per day. Additionally, Bands A (20 hours and above) and B (16-20 hours) will have even higher tariffs.
Meanwhile, this recent increase in electricity tariff comes amidst other challenges faced by Nigerian citizens, including the sudden removal of subsidies and the significant rise in fuel prices. These hardships have occurred within a month of President Bola Tinubu’s administration, while the citizens are still recovering from the Naira redesign and money scarcity crisis.
Moreover, the government’s promise to rehabilitate the country’s refineries and reactivate their capacities for local oil processing remains unfulfilled, and the Tinubu administration has terminated the subsidy regime, resulting in high petrol prices. As a consequence, citizens are experiencing the cumulative effects of mismanagement within just one month of the Tinubu administration, now with the emergence of higher electricity tariffs.
Furthermore, while the implementation of the promised student loan scheme is yet to commence, universities are already announcing increased school fees, placing an additional financial burden on supposedly disadvantaged students.
The notice from Ikeja Electric regarding the new tariff warns consumers of the impending changes and advises them to purchase as many electricity units as possible before July 1 to potentially save costs. For post-paid (estimated) billing customers, a significant increase in monthly bills is expected to take effect starting from August.
As the new electricity tariff looms, consumers are urged to prepare for the anticipated 30-40% jump in electricity unit prices within a short period.
The Ikeja Electric notice to consumers on the new tariff reads:
“Dear Customers, electricity tariffs are set to go higher on July 1st due to the floating exchange rate.
“MYTO 2022 set the exchange rate at N441/$1, which may now be adjusted to about N750/$1.
“We may be looking at a base tariff of N100 per kWh for Band C (12 – 16 supply hours per day).
“Bands A (20 hours and above) & B (16 – 20 hours) will be much higher.
“If you have a prepaid meter, buying bulk energy units for your home or office before the end of the month may help you make some savings before you have to buy at the new rate.
“For those on post-paid (estimated) billing, a significant increment is imminent in your monthly billing, starting from August.”
“Please take note.
“Electricity units are set to jump by 30-40% in just over a week. You are best advised to buy as many units as you can before July 1.”