Home SOCIETY GIST COMMUNITY GIST ELECTRICITY TARIFF TO INCREASE BY 50% IN APRIL – IKEJA ELECTRIC

ELECTRICITY TARIFF TO INCREASE BY 50% IN APRIL – IKEJA ELECTRIC

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Ikeja Electric Plc has announced that electricity tariffs will increase by 50% commencing from April 1.

In a report by Punch Newspapers, the distribution company disclosed this in a letter to Nigerian Electricity Regulatory Commission dated February 12, 2020 on its performance and improvement plan and application for extraordinary tariff review of the Multi-Year Tariff Order 2015.

It said, “In this application, we intend to create a new tariff class, called bilateral; a class that is being created for customers that IE has signed Power Purchase Agreement with under a willing-buyer-willing-seller arrangement.

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“In order to provide an efficient and reliable service to customers in this tariff class, cost-reflective tariffs are required to cover the cost of service delivery.”

The Disco said the 50 per cent tariff increase was expected to raise the average tariffs from the current level of N27.30 per kilowatt-hour to N40.95 per kilowatt-hour.

“The objective of the extraordinary tariff review of MYTO 2015 is to ensure Ikeja Electric adjusts its tariff in line with the commission’s directive that current average allowed Disco tariffs shall be grossed up by 50 per cent from April 1, 2020 in order to meet the tariff shortfall funding target for 2020 by the Federal Government of Nigeria,” Ikeja Electric said in the letter.

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