IBEDC to reflect new VAT rate on electricity transactions

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By  Olabode Jegede

Ibadan Electricity Distribution Company (IBEDC) has announced that from Feb. 1, 2020, there will be an upward review in the prices of meters sold to customers under the Meter Asset provider scheme (MAP) introduced in 2019.

Head, Branding and Corporate Communication, IBEDC, Mrs. Angela Olarenwaju, made the disclosure in a said in a statement on Monday.

Olarewaju said that the management said the increase is necessitated by the federal government’s increase in the value added tax (VAT) from five per cent to 7.5 per cent.

She said that, in the light of the above, a single-phase meter which used to cost N38,325.00 (VAT inclusive) will now cost N39,237.50 (VAT inclusive), while the a three-phase Meter which used to cost N70,350.00 (VAT inclusive) will now costs N72, 025.00 ( VAT inclusive) .

The IBEDC spokesperson said that subsequently, the meter service charge on MAP payment by installments will also be reviewed to accommodate the new VAT charge.

IBEDC management pointed out that the VAT on tariff has been adjusted to accommodate the new 7.5 per cent rate.

The company appeals to its esteemed Customers to take note of these aa this will be reflected during bill payment and vending for postpaid and pre-paid customers respectively.

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