Ibadan Electricity Distribution Company (IBEDC) Plc has disclosed that it would implement new electricity tariffs on July 1, 2020 as part of its efforts to deliver excellent services to its esteemed customers.
In a statement issued yesterday, the Chief Operating Officer of the company, Mr. John Ayodele, said the objective of the review is to ensure that IBEDC adjusts its tariffs in line with the current economic realities.
According to him, 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," he said.
The company added that the new tariffs' design is based on quantity of power supplied as customers will only pay based on availability of supply.
"For example, the tariff design is based on the service delivery, such that those receiving 20 hours' supply daily will pay more than those getting 10 hours," he added.
Ayodele also explained that, the company is very mindful of the challenging economic situation occasioned by the global pandemic COVID-19, adding however, that the macroeconomic facts of rising inflation rates and a volatile foreign exchange market compelled the implementation of the new tariff design.
"The tariffs' review is to reflect macroeconomic indices in Nigeria and the global harsh economic realities facing the power sector," he said.
He said, with the new tariffs, the company amongst other things would be in a better position to roll out more meters, upgrade aging infrastructure and be more responsive to the complaints of its customers.
He appealed for the understanding and cooperation of the company's esteemed customers, stressing that IBEDC is poised to serve the customers better.