A Review of the Nigerian Energy Industry

Ikeja Electric to cut fixed charges by half

30 September 2015, Lagos – Ikeja Electric has moved to reduce the fixed charges for power consumption being paid by its customers by 50 per cent.

Ikeja electricThe firm said in a statement on Tuesday that its managing director, Mr. Abiodun Ajifowobaje, disclosed this at a stakeholders’ consultative forum on cost-reflective tariff in Lagos.

Household consumers under Ikeja Electric and the other power distribution companies currently pay N750 as fixed charge monthly. If the proposal to reduce the charge is approved, customers will be paying N375.

Ajifowobaje said the company had submitted the reduction proposal to the Nigerian Electricity Regulatory Commission for approval.

When our correspondent contacted the Chairman, Nigerian Electricity Regulatory Commission, Dr. Sam Amadi, on the development, he said he was aware that the power distribution companies were reviewing their fixed charges.

According to him, the distribution companies are independent entities and can do whatsoever they wish with their tariffs.

But he noted that most of the tariff reviews being talked about at the moment were still at the proposal stage.

According to Ajifowobaje, Ikeja Electric has actually reduced the fixed charges by 50 per cent from customers’ bills but has increased the energy charge per kilowatt/hour.

He urged the consumers within the zone to embrace cost-reflective tariff to enable the company to serve them better.

Ajifowobaje said that the company was being constrained by the present tariff structure, which he noted was not cost-reflected.

He noted that the proposed new tariff would address some of the lingering challenges in customer billing, adding that residential customers had been grouped into R1, R2, R3 and R4 categories.

The Ikeja Electric CEO said that customers would no longer be billed on uniform categorisation but based on the electricity consumption in particular locations, stressing, “We cannot have zero charges; there is no place in the world that pays zero charges on fixed charges.”


  • Punch
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