Friday, August 22, 2014

Review tariff before removing fixed electricity charge – IBEDC


Some unwieldy electricity cables on Yaya Abatan Road, Ifako, Lagos State... on Wednesday
The Managing Director, Ibadan Electricity Distribution Company, Mr. Fortunato Leynes, has said the plan by the Bureau of Public Enterprises to remove fixed charges from customers’ bill will have a huge impact on its revenue, calling instead for a review of the tariff structure before such a step should be taken.
Leynes, who spoke at an event held to mark the partnership initiative between IBEDC and University of Ibadan on how to improve on service delivery, training of human resources and accommodation of students of the institution by the company for industrial training in Ibadan on Thursday, said the company had written to the National Electricity Regulatory Commission on the tariff issue and would meet with the relevant authorities to iron out areas of concern.
The Vice Chancellor of UI, Prof. Isaac Adewole; Deputy Managing Director, IBEDC, Mr. John Darlington and other stakeholders were present at the event.
Leynes said, “We have sent our position to the NERC on the plan to remove the fixed charges on the bills of customers that are not getting electricity for up to 360 hours in a month. Unfortunately, we are at the tail end of the distribution chain.
“The fixed charge is included in tariff determination. Just removing it without proper review of the tariff structure will leave a great impact on our revenue. We do not totally agree with the concept of fixed charge removal.”
On the partnership between his company and UI, Leynes said it would provide an avenue for the IBEDC to test-drive its commitment to providing 24-hour electricity supply to customers.
He said, “We want to establish a partnership with the UI on human capital development and talent sourcing and development. We are looking up to it for some of our recruitments. The partnership will also represent a pilot project in providing 24-hour electric power. The partnership will be developed by the technical team we have chosen to work on this area.
“The result of this partnership will be determined by the complexity of the situation and assessment of the technical team from both parties. The institution is upgrading its electrical network, which is a bit complicated.”
Adewole said it was the first time the university had partnered with a major player in the nation’s economy, stressing that the union would result in gains for the parties.
The VC said, “We are looking forward to 24-hour electricity supply. We want to showcase this to other sectors and show them that it can work. We are going to be testing the integrity of our network and assist the IBEDC in the training of its human resources.
“We will also send our students to the company for industrial training. We will assist the company on quality assurance and quality delivery. So, we are looking at a comprehensive model for public-private partnership. The cost of implementation will be determined by the technical committee, whose members are from the two parties.”


@punchng.com

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