IKEJA Electric has plans to reduce the fixed charges for power consumption being paid by its customers by 50 percent. The firm said in a statement on Tuesday, September 29, issued by by Abiodun Ajifowobaje, its managing director, at a stakeholders’ consultative forum on cost-eflective tariff in Lagos.
Based on the old tariff, household consumers under Ikeja Electric and the other power distribution companies currently pay N750 as fixed charge monthly. If the proposal to reduce the charge is approved, customers will be paying N375. Ajifowobaje said the company had submitted the reduction proposal to the Nigerian Electricity Regulatory Commission, NERC, for approval.
According to Ajifowobaje, Ikeja Electric has actually reduced the fixed charges by 50 percent from customers’ bills but has increased the energy charge per kilowatt/hour. He urged the consumers within the zone to embrace cost-reflective tariff to enable the company to serve them better. He said that the company was being constrained by the present tariff structure, which he noted was not cost-reflected.
He noted that the proposed new tariff would address some of the lingering challenges in customer billing, adding that residential customers had been grouped into R1, R2, R3 and R4 categories. The Ikeja Electric CEO said that customers would no longer be billed on uniform categorisation but based on the electricity consumption in particular locations, stressing, “We cannot have zero charges; there is no place in the world that pays zero charges on fixed charges.”
— Oct 12, 2015 @ 01:00 GMT