Ikeja Electricity Company To Implement ‘Pay As You Use’ Tariff Bills

Ikeja Electricity Distribution Company (IEDC) has disclosed that it will start the implementation of the review of electricity tariff for all its customers.

Brandnewsday reports that the Ikeja Electricity stated that all its customers will start to pay the new tariffs based on the electricity level of service provided to a group of customers.

IKEDC in a press statement revealed that payment of bills will be in line with the Performance Improvement Plan (PIP) across the entire network in the coming months and years.

Ikeja Electricity’s Statement

The statement partly reads: ”This is to notify our esteemed customers that the implementation of the revised electricity tariff by Ikeja Electric Plc will take effect from July 1, 2020.

”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.

”This is in line with our Performance Improvement Plan (PIP) across the entire network in the coming months and years. 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.”

Speaking further, the statement stated that ”this will enable all the market players (Generation, Transmission, Distribution and gas suppliers) in the Nigeria Electricity Supply Industry cover the cost of their operations and ensure improved service delivery.

The 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.

Ikeja Electricity New Customers’ Categories

Consequently, the IEDC disclosed that as against its former classification of customers that are residential, commercial and industrial customer levels; consumers will now be classified in maximum demand (MD) and non-maximum demands (Non-MD).

The statement further reads: ”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.

”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.”

Ikeja Electricity Company reiterated that the tariff implementation is subject to the approval of the Regulator but it is necessary for performance improvement expected by customers.

What To do about Customers’ complaint

According to the company, ”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.