Ikeja Electric Says New Tariff To Commence From July 1, 2020

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The management of Ikeja Electric Plc, on Friday, June 26, 2020, has announced that the implementation of the revised electricity tariff will take effect from July 1, 2020.

The new tariffs, according to a statement which was made available to Financial Edge by the head corporate communications, Felix Ofulue, are Service reflective, are end-user rates to be paid for electricity based on the level of service (including availability and reliability) provided to a cluster of customers.

This according to him is in line with their Performance Improvement Plan (PIP) across the entire network in the coming months and years.

He explained that, “the different service levels to all categories of electricity consumers will also be accompanied by a change in tariff which has taken into cognizance changes in macroeconomic indices in the country”.

Pointing out that this will enable all the market players (Generation, Transmission, Distribution and gas suppliers) in the Nigeria Electricity Supply Industry cover cost of their operations and ensure improved service delivery.

He said the plan is for the sector to gradually make a transition to a full cost-recovery market where the cost of services provided will be fully recovered. 

“Services are also expected to improve within a very short time in customer service delivery, infrastructural upgrade, metering and technological solutions based on the level of investments that will be attracted, going forward”.

Adding that “For the purpose of customer classification, customers will now be categorized into maximum demand customers (MD) and non-maximum demand (Non-MD) customers, and no longer the usual residential, commercial and industrial customer classes”.

“All customers have now been clustered into different bands depending on the level of service currently being enjoyed. Customers who are in the higher band currently being provided with good electricity supply will be expected to pay the true costs of the services being enjoyed while customers who are within the lower band and are not receiving optimal services would be expected to pay a much lower tariff pending improvements in services and the movement to a higher tariff band reflecting improved service delivery”.

Stressing that, the company remains committed to bridging the metering gap and reducing the incidence of estimated bills.

“In recent times, we have doubled our efforts to realize our objective of metering our unmetered customers within the shortest possible time. We also note that complaints resolution by customers have been a concern in the past but this is set to improve as we move forward with this new tariff regime”.

However, Ofulue noted that, “this tariff implementation is subject to the approval of the Regulator but it is necessary for performance improvement expected by customers”.

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