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IBEDC to implement tariff review

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IBEDC to implement tariff review, July 1

By Adeola Badru

THE Ibadan Electricity Distribution Company (IBEDC), has said it will begin the implementation of a tariff review effective July 1.

This, according to the company, was part of its plans and effort to deliver what it described as “excellent services” to its customers.

IBEDC, while speaking through the Chief Operating Officer, Mr. John Ayodele, said the tax review became imperative in view of the need for the company’s tariff to be in line with current economic realities as well as ensuring the financial and fiscal sustainability of the company in the Nigerian power sector.

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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.

He said: “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 the quantity of power supplied as customers will only pay based on the availability of supply.”

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

Ayodele also explained 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.

“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 stated.

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