The Ikeja Electric has proposed downward review of monthly fixed charges by 50 percent.
The Managing Director, Mr Abiodun Ajifowobaje said at the Stakeholders Consultative Forum presentation on cost reflective tariff in Lagos,that the company has already submitted the proposal to the Nigerian Electricity Regulatory Commission (NERC) for approval.
He therefore urged consumers within the zone to embrace cost reflective tariff to enable the company to serve them better.
He said that the company is constrained by the present tariff regime adding that the new proposed tariff would address some of the lingering challenges in customers billing, and that residential areas have been grouped 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.
`We cannot have zero charges; there is no place in the world that pays zero charges on fixed charges, he said.
He lamented inadequate energy accountability due to large scale unmetered customers, adding that less than 50 per cent of customers are metered and promise that the company in the next five years will Install 600,000 new meters, connect 592,000 new customers and reduce losses in its area from 33 per cent to 14 per cent as part of its metering investment plans.
He said that the Advance Metering Infrastructure (AMI) had been fully installed and commissioned, while the pilot smart meter installation of 2000 units has also been completed successfully.
He added that “Energy Accounting meter installation at feeders have been completed while mass meter roll out commenced in August with 6,000 units already installed.
Our target is to achieve monthly meter installation of 15,000 units,’’.
He said that the company has earmarked over two to three billion naira (N2billion) for all ongoing projects.
He however, advise customers and community leaders to support the company in canvassing for energy conservation in their respective locations, while appealing to customers to always switched off their appliances to avoid wastage.