NEW ELECTRICITY TARIFF: IKEJA ELECTRIC ANNOUNCES EFFECTIVE DATE
… Promises improved services, upgrading of equipment across its network
Ikeja Electric has announced July 1, 2020 as its effective date of the new electricity tariff, according to the electric distribution giant the new tariffs which are Service reflective, are end-user rates to be paid for electricity based on the level of service (including availability and reliability) provided to a cluster of customers.
According to the disco the new tariffs is in line with its Performance Improvement Plan (PIP) across its entire network in the coming months and years. The different service levels to all categories of electricity consumers will also be accompanied by this change in tariff which has taken into cognizance changes in macroeconomic indices in the country. This will enable all the market players (Generation, Transmission, Distribution and gas suppliers) in the Nigeria Electricity Supply Industry cover cost of their operations and ensure improved service delivery.
According to IE this plan is for the sector to gradually make a transition to a full cost-recovery market where the cost of services provided will be fully recovered. Services are also expected to improve within a very short time in customer service delivery, infrastructural upgrade, metering and technological solutions based on the level of investments that will be attracted, going forward.
It further stated that for the purpose of customer classification, customers will now be categorized into maximum demand customers (MD) and non-maximum demand (Non-MD) customers, and no longer the usual residential, commercial and industrial customer classes. All customers have now been clustered into different bands depending on the level of service currently being enjoyed.
Customers who are in the higher band currently being provided with good electricity supply will be expected to pay the true costs of the services being enjoyed while customers who are within the lower band and are not receiving optimal services would be expected to pay a much lower tariff pending improvements in services and the movement to a higher tariff band reflecting improved service delivery.
IE further stated its commitment to bridging the metering gap and reducing the incidence of estimated bills. In recent times, we have doubled our efforts to realize our objective of metering our unmetered customers within the shortest possible time.
We also note that complaints resolution by customers have been a concern in the past but this is set to improve as we move forward with this new tariff regime
Despite announcing its take off date of the tariff it remains subject to the approval of the Regulator but it is necessary for performance improvement expected by customers