The Nigerian Electricity Regulatory Commission, NERC, has approved a review of electricity tariff for Ibadan Electricity Distribution Company, IBEDC, increasing electricity cost for consumers under the franchise area.
IBEDC franchise area includes Oyo, Ogun, Osun, Kwara and parts of Niger, Ekiti and Kogi states.
The NERC in an order signed by its Chairman, Sanusi Garba and Commissioner Legal, Licensing and Compliance, Dafe Akpeneye signed on the last day of 2020, the tariff increases will commence from July 1, 2021.
According to the order, tariff for customers in Band A with minimum supply of 20hrs daily will increase by #6.85 to N69.18 per kilowatt, a #10.98 percent rise.
Customers in Band B minimum supply of 16hrs daily will increase by #7.65 to N66.04/kilowatt from the present N58.9/kilowatt.
For customers in Band C with a minimum supply of 12hrs daily, the increase is N14.19 to N62.92/kilowatt.
The highest tariff increase will be for consumers in Band D with a minimum supply of 8hrs daily with N32.79 hike to N55.76/kilowatt from N26.97/kilowatt.
The NERC explained that the review was necessary following changes in inflation rate, foreign exchange, available generation, gas price, collection losses from ministries, departments and agencies of government, and Capex adjustments.
The NERC ordered that IBEDC shall be liable for service improvements in accordance with commitments under its universal service obligations for providing an electricity supply to customers.
The commission added that where there is a failure to deliver on committed service level over a period of 60 days, the rates shall be adjusted in line with the service delivered over the same period, upon verification by the Commission.
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