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Abuja Electricity abandons labour-government deal, hikes tariff from November 1

The new rates did not appear to have a broader consensus amongst electricity regulators, distributors and labour unions.

• November 1, 2020
AEDC staff
Photo of AEDC staff used to illustrate the story (Photo Credit: Abuja electricity)

The Abuja Electricity Distribution Company on Sunday jerked up its rates for residents across the nation’s commercial capital from November 1.

“This is to inform our customers that with effect from Nov.1, AEDC has effected a revised Service Reflective Tariff as approved by the regulatory agency,” AEDC spokesman Oyebode Fadipe said in a statement Sunday.

The release did not disclose in specific terms, what the “revised service tariff” would cost customers but said customers on pre-paid platforms would be the first to experience the new regime when they buy energy from November 1.

A similar hike in electricity tariff by power distribution companies went as high as 100 percent in September. The tariff regime was reversed when organised labour threatened a strike action, prompting the government to go into negotiation.

Federal energy regulator NERC also threatened to sanction AEDC for keeping rates high for customers last month. It also warned the distributor not to implement a unilateral hike in tariff. AEDC did not mention that its decision today had the agreement of NERC or labour unions.

“The tariff is divided into five bands and based on hours of supply to the customers,” Mr. Fadipe said. “While customers on bands D and E have their tariff frozen, those on bands A, B and C will see some level of reduction in their tariff.”

He said that the AEDC was committed to the improvement of service to customers in all its franchise areas.

Mr. Fadipe said that the table of the payment for the new tariff would soon be released.

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