Electricity Tariff Takes Effect from July 1 - AEDC Director


Mr Ernest Mupwaya, The Management of Abuja Electricity Distribution Company (AEDC), Director announced in a statement issued in Abuja on Friday that, following measures aimed at  improving its  performance  level in power supply within its jurisdiction, a new electricity tariff will take  effect  from July 1, 2020.

The managing director made this statement and emphasized that its necessity was even Pre COVID and became necessary in view of radical changes in the macro-economic indicators such as inflation and foreign exchange.

In his statement, “Called the Service Reflective Tariff, he said in the release that five  tariff bands have been created and listed the band’s as Bands A – E.

“While Band A are customers who have to 20 hours of supply and above, Band B is made up of customers who enjoy elrctricity supply for at least 16 hours but do so for less that 20 hours daily.

“Bands C & D are customers who enjoy electricity supply for a minimum of 12 hours but not up to 16 hours and a minimum of 8 hours but not up to 12 hours respectively.

“Band E are customers who receive electricity for less than  eight hours,” he said.

The director added that customers within Bands A – D will experience a marginal upward adjustment in the cost of electricity,

He said that those in B and E will have their tariff frozen until the company could show an improvement in the level of service to the customers within the cluster.

“We have structured the new tariff regime in such a way that there can be fairness and equity both to the service provider and the customer.

“Embedded in the new tariff regime is an incentive for the service provider to speedily ramp up performance to 24 hours in all clusters

“So that it can draw from the benefit of economics of scale associated with numbers, volume and other parameters within its geography,” he said.

He noted that the role of customers was a critical element in the transformation journey, ers, which comes in the form of accurate and consistent payment for energy received.

The managing director said that the electricity value chain – Gas Companies, Generation Company , Transmission Company of Nigeria (TCN) and Distribution Companies could only improve where investment and recovery were at par.

 “And the investor has the opportunity for a marginal compensation for his investment,” he said.

Economy , Local News , Band , Tarrif , Aedc