Ikeja Electric Plc and Ikeja GRA Residents Association have signed a power purchase agreement that will enable the estate to have up to 24 hours of supply daily.
The contract entails that the IE will invest in electricity infrastructure in the estate as well as provide reliable and quality electricity supply to the residents, while the customers agree to pay a cost-reflective tariff.
The Chief Executive Officer, Ikeja Electric, Dr Anthony Youdeowei, said at the signing ceremony that the discussion for the power supply deal started in 2016.
According to him, the power firm has all the infrastructure and competent manpower required to deliver on the agreement.
Youdeowei said, “It was based on an approach by the Ikeja GRA Residents Association but what we decided to do at the time was to use Ikeja GRA to showcase to the country and to Lagos State that this sector can work if we have the right mix of customers who are willing to pay for the power they are consuming using the same infrastructure that exists from generation to transmission all the way through distribution.
“Of course, there was a slight deviation where we had to prove through another group of our customers and that helped because it showed the residents of GRA that Ikeja Eletric has all the competence and skills to do it.
“For us, this is just the beginning of the journey because signing is one thing; being able to deliver and maintain the agreement that we are signing is what is important to us because that is our business – to supply the product.”
The CEO assured the estate that the firm’s Premium Power Team would response quickly to calls to resolve any issues.
He said, “But also more important is to ensure that there is regular maintenance so that we are actually reducing the occurrence of those faults by making sure that those machines are well maintained.
“I want to give the residents the assurance that we are committed to this exercise. Where we are today in the power industry is good. We know that there is a lot of cynicism in the system; people are waiting to see what is happening.”
“But again, the wonderful thing about this engagement is that we have a group of customers who are willing to trust and just believe that we should be given a chance to demonstrate that we have the capability. The good news is that this partnership is demonstrating to the industry, to the regulator that we can actually make things work in this country.”
The Chairman, Ikeja GRA Residents Association, Dr. Muiz Banire, said the power purchase agreement between the residents and the Ikeja Electric was geared towards providing premium service to them.
“Our expectation is that we will have power supply practically all round the day. At least we cannot certainly rule out some challenges occasionally, for example, transmission problem or some major technical issues. But, basically, we will have substantial provision of electricity for the residents.”