IBEDC to reflect new VAT rate on transactions

IBADAN, Oyo, Nigeria – 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.

Mrs Angela Olarenwaju, Head, Branding and Corporate Communication of IBEDC made the disclosure 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 percent.

The IBDC staff 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 that this will be reflected during bill payment and vending for postpaid and pre-paid customers respectively.