The Ibadan Electricity Distribution Company (IBEDC) has said it will begin implementation of a tarrif review from July 1.

This, the company said, is part of its plans and efforts to deliver what it described as “excellent services” to its customers.

The distribution company, while speaking through the Chief Operating Officer, Mr John Ayodele, said the tax review is imperative in view of the needs 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.

He assured the new tarrif regime will ensure that those who enjoy more supply will pay more than those who have lesser access while appealing for the support and understanding of its customers.

He said: “The objective of the review is to ensure that IBEDC adjusts its tariff in line with the current economic realities. 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.

“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.”

Ayodele also explained the company 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.