- Ikeja Electricity Distribution Company on Tuesday said it had reduced the monthly fixed charges on its consumers by 50 per cent.
- Managing Director of the company, Abiodun Ajifowobaje, disclosed this at a Stakeholders Consultative Forum and presentation of cost reflective tariff in Lagos.
- Ajifowobaje said that the company had submitted the reduction proposal to the Nigerian Electricity Regulatory Commission (NERC) for approval.
- According to him, Ikeja electric has reduce fixed charge of 50 per cent from customers bills by increasing the energy charge (KW/h).
“Customer number and the percentage growth rate has been determined based on the anticipated outcome of the enumeration project currently in progress.
Billed customer numbers would double in the next two to three years and will thereafter increase by about 3.5 per cent,” he said.
- The CEO urged the consumers within the zone to embrace cost reflective tariff to enable the company to serve them better.
- He said that the company was being constrained by the present tariff regime which was not cost reflected.
- Ajifowobaje said that the new proposed tariff would address some of the lingering challenges in customers billing, adding that residential charges had been grouped into R1, R2, R3 and R4 categories.
- He said that customers would no longer be billed based on uniform categorisation but based on the electricity consumption in particular locations.
“We cannot have zero charges; there is no place in the world that pays zero charges on fixed charges,” the CEO said.
