Ikeja Electric has revealed plans to commence a reduction of 50 per cent on monthly fixed charges on its consumers.
Managing Director, Mr. Abiodun Ajifowobaje disclosed this at the Stakeholders Consultative Forum presentation on cost reflective tariff in Lagos.
He said the distribution company had submitted the reduction proposal to the Nigerian Electricity Regulatory Commission, NERC, for approval.
He said there is a reduction on the fixed charge of 50 per cent from customer bills by increasing the energy charge (KW/h).
According to him, “Customer number and the percentage growth rate as been determined based on the anticipated outcome of the enumeration project currently in progress.
“Billed customer numbers would double in the next two – three and will thereafter increase by about 3.5 per cent.
Ajifowobaje said consumers within the zone should embrace cost reflective tariff to enable the company to serve them better adding that the company was being constrained by the present tariff regime which was not cost reflected.
He explained that the new proposed tariff would address some of the lingering challenges in customers billing, adding that residential had been groped into R1, R2, R3 and R4 respectively.
Ajiwofobaje said that customers will no longer be billed based on uniform categorisation but based on the electricity consumption in particular locations.
The Ikeja Electricity boss said that the company in the next five years plans to Install 600,000 new meters connect 592,000 new customers and reduce losses in our area from 33 per cent to 14 per cent as part of its metering investment plans.
He urged customers and community leaders to support the company in spreading the information on the need for energy conservation in their respective locations and always switch off their appliances to avoid wastage.