IBEDC to implement tariff review July 1

The Management of Ibadan Electricity Distribution Company (IBEDC) Plc, says as part of efforts to deliver excellent services to its esteemed customers, it will be implementing a tariff review beginning from July 1.

Its Chief Operating Officer, Mr John Ayodele said on Thursday, that the objective of the review was to ensure that IBEDC adjusted 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 infrastructure and other parameters necessary for improved service delivery,” Ayodele said in a statement.

He said the new tariff design was based on quantity of power supplied as customers would only pay based on availability of supply.

“For example, the tariff design is based on the service delivery, such that those receiving 20 hours supply daily will pay more than those getting 10 hours,” he said.

Ayodele also explained that, the company was very mindful of the challenging economic situation occasioned by the global pandemic COVID-19.

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 him, with this tariff, the company amongst other things will be in a better position to roll out more meters, upgrade ageing 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.