IBEDC to implement tariff review July 1

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IBEDC
IBEDC

AS part of efforts to deliver excellent services to its esteemed customers, the Ibadan Electricity Distribution Company, IBEDC Plc, has announced that it will be implementing a tariff review beginning from July 1. John Ayodele, chief operating officer, IBEDC, said the objective of the review was to ensure that the Disco adjusted its tariff in line with the current economic realities.

In a statement on Thursday, June 25, Ayodele explained that this is required to meet the new Performance Improvement Plans, PIP, for electricity distribution companies in Nigeria. He said the review would enable the company 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 infrastructure and other parameters necessary for improved service delivery,” he said.

According to Ayodele, the new tariff design is based on the quantity of power supplied as customers will only pay based on the availability of supply. “For example, the tariff design is based on service delivery, such that those receiving 20 hours supply daily will pay more than those getting 10 hours.”

He also explained that the company is very mindful of the challenging economic situation occasioned by the COVID-19 pandemic. He said the microeconomic 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,” he said.

According to Ayodele, with this tariff, the company amongst other things 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,” he said.

– Jun. 26, 2020 @ 15:12 GMT |

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