By; BAYO AKAMO, Ibadan
The Ibadan Electricity Distribution Company (IBEDC) Chief Operating Officer, Engineer John Ayodele on Thursday hinted that the distribution company is to begin implementation of a tarrif review as from next month.
Engineer Ayodele while dropping this hint said the implementation which starts on July 1 was part of IBEDC plans and effort to deliver “excellent services” to its customers.
According to Engineer Ayodele the “tax review is imperative in view of the need for the company tarrif to be in line with current economic realities as well as ensure the financial and fiscal sustainability of the company in the Nigerian power sector.”
Emphasizing that “the objective of the review is to ensure that IBEDC adjusts its tariff in line with the current economic realities”, the IBEDC Chief Operating Officer, said, “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.”.
“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 said.
Engineer Ayodele added, “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 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 20hrs supply daily will pay more than those getting 10hrs.”
He stressed that IBEDC “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. “