Latest Metro

Ikeja Electric begins implementation of new tariff July 1

The Ikeja Electric Plc said on Friday it would begin the implementation of its revised electricity tariff on July 1.

The firm’s Head of Corporate Communications, Mr. Felix Ofulue, who disclosed this in a statement, said the new tariffs, which are service reflective, are end-user rates to be paid for electricity based on the level of service.

He said: “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 had 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 to cover the cost of their operations and ensure improved service delivery.”

According to him, 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.

Ofulue said services are also expected to improve within a very short time in customer service delivery, infrastructural upgrade, metering and technological solutions.

READ ALSO: Ikeja Electrics, 7 other DisCos risk losing their licenses as NERC blows hot over poor service delivery

He, however, said this would be based on the level of investments the industry would attract going forward.

The IE spokesman added: “For the purpose of customer classification, customers will now be categorized 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.

“Customers who are in the higher band and currently being provided with good electricity supply will be expected to pay the true costs of services delivered to them.

“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.”

Join the conversation


About the author

Ripples Nigeria

We are an online newspaper, very passionate about Nigerian politics, business and their leaders. We dig deeper, without borders and without fears.

Do NOT follow this link or you will be banned from the site!