Ikeja Electric (IE) Plc says it is targeting a total revenue of N170 billion in 2020 with the implementation of the increment in various classes of electricity tariff.
The electricity Distribution Company (Disco) says it intends to create a new tariff class called Bilateral for customers it had signed Power Purchase Agreement (PPA) under a willing-buyer-willing-seller arrangement.
The company gave the projection in its Addendum Performance Improvement Plan (PIP) and Application for Extraordinary Tariff Review of Multi Year Tariff Order- 2015 signed by its Chief Executive Officer, Mr Anthony Youdeowei.
A copy of the document, which was addressed to the Nigerian Electricity Regulatory Commission (NERC), was obtained by the News Agency of Nigeria (NAN) on Saturday.
The report said the objective of the extraordinary review was to ensure that IE adjusts its tariff in line with the commission’s directive that current average allowed a Disco tariffs shall be grossed-up by 50 per cent from April 1.
According to the report, this is in order to meet the tariff shortfall funding target for 2020 by the Federal Government of Nigeria.
It said: The creation of the bilateral tariff class is aimed at providing an efficient and reliable service to customers under the tariff class because cost-reflective tariffs are required to cover the cost at service delivery.
The report said the collected energy sales based on the 50 per cent tariff increase in MYTO was 3,955 GWh, while that of bilateral sales was 161 Gwh.
