By Prince Okafor
LAGOS—IKEJA Electric has dismissed insinuations that it hiked electricity tariff to prepaid meter residents in Magodo Estate without agreement.
The DISCO’s reaction came against the backdrop of claims by some Magodo residents that IKEDC increased electricity tariff from N22 to N50 per kilo watt hour, KWh, without providing adequate power supply to them.
The prepaid meters Residents in Magodo cried out on the sudden alleged increase of tariff from 22-50naira, saying there was no stable power supply, government regulation and any prior agreement by individual residence to warrant that.
But in a swift reaction, the management of IKEDC debunked the allegation saying neither IE nor members of the MRA were consulted by the media platform to get the right representation of the story.
The company’s head, Corporate Communication, Felix Ofulue, said: “Our attention has been drawn to a negative publication in the media regarding the power supply agreement between Ikeja Electric, IE and Magodo Residents Association, MRA.
“Ikeja Electric and the Magodo Resident Association recently signed a Power Purchase Agreement under the Willing Buyer, Willing Seller initiative issued by the Nigerian Electricity Regulatory Commission, NERC. We will like to state categorically that due process was followed in accordance with the constitution of the Association, a legal entity registered under the law, in executing this contract.
“The discussion commenced in December 2018 and we are aware that several meetings and presentations were held to address this subject during the MRA open house meeting.
“Within this period, the Association further engaged the services of power consultants to conduct a due diligence on the Power proposal by IE and after several sessions to vigorously interrogate and review the proposition, the contract was finally approved and executed by MRA Board of Trustees.”
6000 residents agreed on N47/KWh – MRA boss
Reacting, the Chairman of MRA, Mr. Jade Niboro said: “In January, we met with the first team from IE, and I concluded that we have a test run of this development if it can work in our estate, and they gave us uninterrupted supply for one month, from January 20, to February 21, after which we went back to the usual supply of eight to twelve hours a day.”
“After the presentation, the general house agreed for us to continue with the negotiation, and give us feedbacks. We set up a technical committee made up of 10 professionals. We also have some independent persons who also did their findings on the outcome of the negotiation. We signed the agreement on the 9th of August, 2019.”
“On tariff, our committee did their research up from Transmission Company of Nigeria, TCN to NERC, which we agreed at our general meeting in April, that we will pay N47 per KWh. The PPA went through a rigorous process, as there were many front and back movement with several clauses added and removed, we almost cancelled the agreement, but we finally came back to the table.”