The Ibadan Electricity Distribution Company (IBEDC) has said it will begin the implementation of a tariff review effective July 1st.
This is just as the company said the tariff review is part of its plans and effort to deliver what it described as “excellent services,” to its customers.
The Chief Operating Officer (COO) of the distribution company, Mr. John Ayodele, in a statement issued in Ibadan, said it was imperative for 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.
He assured that the new tariff regime would ensure that those who enjoy more supply would pay more than those who have lesser access, while appealing for the support and understanding of its customers.
According to him, “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.
“This new tariff design is based on quantity of power supplied as customers will only pay based on availability of supply.
“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.”
Ayodele also explained that, the company was mindful of the challenging economic situation occasioned by the global pandemic Covid-19, saying that 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.
“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 customers.
“We appeal for the understanding and cooperation of our esteemed customers as we are poised to serve you better”, he said.