Ikeja Electric PLC To Implement New Tariff July 1


Ikeja Electric PLC today stated that it would begin the implementation of the new tariff July 1 .

This is just as the organization stated that the implementation of new tariff was subject to the approval of the regulator but that it is necessary for performance improvement expected by customers.

The intention to implement the new tariff was disclosed in a statement signed by its Head of Corporate Communications, Mr Felix Ofulue.

Ofulue explained that the Ikeja Electric Plc’s new tariffs that 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 is in line with our Performance Improvement Plan (PIP) across the entire network in the coming months and years.

“The different service levels to all categories of electricity consumers will also be accompanied by a change in tariff which has taken into cognisance changes in macroeconomic indices in the country.

”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,” Ofulue said in the statement.

The Ikeja Electric spokesman further stated that the plan was for the sector to gradually transit to a full cost-recovery market, where the cost of services provided would be fully recovered. Services, he pointed out were also expected to improve within a very short time in customer service delivery, infrastructural upgrade, metering and technological solutions.

Ofulue added that will be based on the level of investments that will be attracted, going forward.

According to him, “For the purpose of customer classification, customers will now be categorised into maximum demand customers (MD) and non-maximum demand (Non-MD) customers, and will no longer be 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. ”

He continued, “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.Customers who are within the lower band and are not receiving optimal services will be expected to pay a much lower tariff pending improvements in services and the movement to a higher tariff band reflecting improved service delivery.”

Ikeja Electric, the spokesman noted was committed to bridging the metering gap and reducing the incidence of estimated bills.

“In recent times, we have doubled our efforts to realise our objective of metering our unmetered customers within the shortest possible time.

“We also note that complaints resolutions by customers have been a concern in the past but this is set to improve as we move forward with this new tariff regime.

IE’s announcement came a day after the management of the Ibadan Electricity Distribution Company (IBEDC) said it will begin the implementation of a tariff review beginning from Wednesday, July 1.

IBEDC said the tariff review is part of its plans and effort to deliver what it described as “excellent services” to its customers.


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