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The Ibadan Electricity Distribution Company (IBEDC) has said that it will begin the implementation of a new electricity tariff review from July 1, 2020.
The Chief Operating Officer of IBEDC, Mr John Ayodele, who disclosed this on Thursday, said the new electricity tariff review is part of the company’s effort to deliver “excellent service” to its customers.
He said the review is imperative in view of the need for the company’s tariff to be in line with current economic realities as well as ensure financial and fiscal sustainability of the company in the Nigerian power sector.
While appealing for the support and understanding of the company’s customers, Ayodele assured that the new tariff regime will ensure that those who enjoy electricity supply regularly pay more than those who does not.
He said: “The objective of the review is to ensure that IBEDC adjusts its tariff in line with the current economic realities. This is required to meet the new Performance Improvement Plans (PIP) for Electricity Distribution Companies in Nigeria, as well as to achieve financial and fiscal sustainability in the Nigerian power sector.
“In order to provide more efficient and reliable service to customers, cost-reflective tariffs are required to cover the cost of critical investment in infrastructures and other parameters necessary for improved service delivery. This new tariff design is based on quantity of power supplied as customers will only pay based on availability of supply.
“For example, the tariff design is based on the service delivery, such that those receiving 20hrs supply daily will pay more than those getting 10hrs.”
Ayodele stated that the company is very mindful of the challenging economic situation occasioned by the COVID-19 pandemic, adding that the macroeconomic facts of rising inflation rates and a volatile foreign exchange market compelled the implementation of the new tariff design.
“The tariff review is to reflect macroeconomic indices in Nigeria and the global harsh economic realities facing the power sector.
“With this tariff, the company amongst other things will be in a better position to roll out more meters, upgrade aging infrastructure and be more responsive to the complaints of customers. We appeal for the understanding and cooperation of our esteemed customers as we are poised to serve you better,” he said.