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IBEDC to effect cost-reflective tariff review from July 1st

As part of efforts to deliver excellent services to its customers, the management of Ibadan Electricity Distribution Company (IBEDC) Plc said it will be implementing a tariff review beginning from the 1st of July 2020.

The Chief Operating Officer, John Ayodele in a statement on Thursday 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,” Ayodele said, adding that the new tariff design is based on quantity of power supplied as customers will only pay based on availability of supply.

According to the COO, the tariff design is based on the service delivery, such that those receiving 20hrs supply daily will pay more than those getting 10hrs.

He also explained that, the company is very mindful of the challenging economic situation occasioned by the global pandemic COVID-19, but the micro economic 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,” Ayodele said.

With the reviewed tariff, the company said amongst other things it will be in a better position to roll out more meters, upgrade aging infrastructure and be more responsive to the complaints of its customers.

“We appeal for the understanding and cooperation of our esteemed customers as we are poised to serve you better,” it said.

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