Ikeja Electric begins implementation of revised service reflective tariff

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By Ikenna Omeje

Ikeja Electric has begun the implementation of the revised electricity service-based tariff, which earlier commenced on September 1, 2020, but was later suspended.

Following an approval by President Muhammadu Buhari, the DisCos had on September 1, 2020, began implementation of a new service-based reflective tariff (SRT) structure nationwide.


As a result, the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) protested against the new tariff and called for a nationwide strike, which was supposed to take effect on Monday September 28, but after a meeting with the Federal Government, a few hours to the protest on Monday, the NLC and TUC backed down on the proposed strike after reaching an agreement with the Federal Government to halt the electricity tariff increase until a technical committee set up to look into the justification for the new tariff comes up with a report.

In a notice to its customers, the electricity distribution company said that under the new tariff regime, Non-Maximum Demand customers in Band A, with a minimum of 20 hours daily will now pay N51.22/Kwh. Band B customers with minimum of 16 hours daily will be charged N46.93/Kwh; while Band C customers with a minimum of 12 hours daily will be charged N37.95/Kwh.

It, however, noted that customers in Bands D and E, with minimum of eight hours and four hours per day, respectively, are not affected by the revised tariff.

The notice reads: “This is to notify our esteemed customers that with effect from November 1, 2020, Ikeja Electric Plc has commenced implementation of the revised Service Reflective Tariff (SRT), as approved by the Regulator.

“This revision is further to the consultative review meetings held between the Federal Government, Labour Unions and other Stakeholders, following concerns raised about the basis of the MYTO 2020 SRT tariffs, which were earlier planned to be implemented from 1st September, 2020.

“Under the SRT, the tariff classification is based on quality of service and therefore, divided into 5 Bands (A-E); measured by the average availability of power supply over a month, interruptions (frequency and duration), voltage levels and other service parameters.

“With the revised tariff regime, Non-MD customers in Band A, with a minimum of 20 hours daily will now pay N51.22/Kwh. Band B customers with minimum of 16 hours daily will be charged N46.93/Kwh; while Band C customers with a minimum of 12 hours daily will be charged N37.95/Kwh.

“However, please note that customers in Bands D and E, with minimum of eight hours and four hours per day, respectively, are not impacted by the tariff revision. Their SRT tariffs have been frozen and consequently, they will continue to be charged the old tariff prior to the introduction of the SRT.

“Already, Prepaid Meter customers in Bands A – C, who vend from November 1, 2020 will be charged the new tariff while same will be implemented for Postpaid customers in these bands, during the November billing cycle.

“We want to use this opportunity to solicit the continued support and understanding of our customers as we move forward with this new tariff regime, which will enable the Nigeria Electricity Supply Industry cover cost of their operations and ensure improved service delivery.

“Lastly, we further wish to assure our customers of our commitment to service improvements in customer service delivery, infrastructural upgrade, metering and technological solutions, within the shortest possible time.”

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