Ikeja Electric (IE) Plc says it is a 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) with 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 in Lagos.
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.
“The expected MYTO 2020 and bilateral revenue requirement are N162 billion and N8 billion respectively, to give a total revenue requirement of N170 billion.
“The addition of the bilateral sales revenue requirement further increases the average tariffs to N41.31 per kilowatt in 2020 which is projected to rise to N44.24 in 2024.”
