Ikeja Electric Implements Revised Electricity Tariff July 1


Ikeja Electric (IE) Plc has said that it is implementing its revised electricity tariff effective July 1, 2020.

It said 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.

In a statement by its Head, Corporate Communications, Felix Ofulue, IE said the new tariff is in line with its Performance Improvement Plan (PIP) across the entire network in the coming months and years, adding that: “The different service levels to all categories of electricity consumers will also be accompanied by a 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.”

The company also disclosed that the new tariff would enable it to gradually make a transition to a full cost-recovery market where the cost of services provided will be fully recovered, adding that 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 stated that with the new tariff, 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, as all customers have now been clustered into different bands depending on the level of service currently being enjoyed.

According to the statement, “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.

“As usual, the company remains committed 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.”

It also noted that complaints resolution by customers have been a concern in the past, but added that this is set to improve as it moves forward with the new tariff regime.

However, Ikeja Electric said the tariff implementation is subject to the approval of the regulator, but necessary for performance improvement expected by customers.