The Ibadan Electricity Distribution Company (IBEDC) Thursday declared that it will begin the implementation of a tariff review from July 1, 2020.
Disclosing this in Ibadan through its Chief Operating Officer, Engr John Ayodele , IBEDC stressed this was part of its plans and effort to deliver “excellent services” to its customers.
Engr Ayodele pointed out that the “tax review is imperative in view of the need for the company tariff to be in line with current economic realities as well as ensure the financial and fiscal sustainability of the company in the Nigerian power sector.”
“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,” he said.
Engr Ayodele added, “The tariff review is to reflect macroeconomic indices in Nigeria and the global harsh economic realities facing the power sector.With this tariff, the company amongst other things will be in a better position to roll out more metres, upgrade aging infrastructure and be more responsive to the complaints of customers. We appeal for the understanding and cooperation of our esteemed customers as we are poised to serve you better.”
The Chief Operating Officer stressed further that, “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.”
He maintained that “this new tariff design is based on quantity of power supplied as customers will only pay based on availability of supply”, saying, “for example, the tariff design is based on the service delivery, such that those receiving 20hrs supply daily will pay more than those getting 10hrs.”
Engr Ayodele noted that, the company “is very mindful of the challenging economic situation occasioned by the global pandemic Covid-19, but the macroeconomic facts of rising inflation rates and a volatile foreign exchange market compelled the implementation of the new tariff design.”
