Romanus Okoye
No doubt, electricity can transform people’s lives, not just economically but socially, also. For years, fixing the Nigeria power sector has remained major attraction in every political campaign. Yet, Nigerians still grapple with either darkness, over billing or disconnection.
Generally, there is limited knowledge or ignorance about the enabling laws and legal options, open to the parties.
Three consumers recounted their experiences. Ibro, in Ayobo, Lagos shared this: “I do not support attacking electric distribution company staff. The gave us crazy estimated bills, we refused to pay and they caught our light.
They had thought we would attack their staff that came for the disconnection but we did not. Rather we engaged a lawyer who petitioned them, to demand for prepaid meters, stop over estimation and illegal disconnection. We also published it in the newspapers. They have reconnected us and the bills are slightly better than before.”
An angry consumer said: “Imagine a mini-flat, I mean mini-flat without AC getting a bill of N21,000. Then these agents will insist you pay, if you don’t, they come and disconnect you. That’s enough to make one want to beat the hell out of the fraudsters. The way some of them reason infuriates me. You bring bill of N15,000 to someone in a two bedroom flat without AC. You lodge complain numerous times and nothing is done. I do hustle pay N8,000 monthly and one vagabond will come from nowhere to tell me to go and pay N40,000 on top or else they will disconnect me. Gosh. I asked the mofo how much his salary was and if he has ever used his hard earned N5,000 for electricity in his life? Even if you work for electricity company, you are also a Nigerian and common sense should tell that paying N15,000 monthly will never happen in a two bedroom flat residence. Those guys need orientation or else their beating never even start.”
Ahead of the reforms, Dr. Yemi Oke, Department of Jurisprudence and International Law, University of Lagos, stated: “The ongoing power sector reform had a huge potential to stimulate national growth and economic development in Nigeria. The role of energy as a catalyst for development is undeniable but a dangerous precedent capable of undermining sustainable electricity, particularly consumers had been inadvertently laid down in Amadi versus Essien.”
Dr. Oke had stated that several years after the case, the precedent is yet to be reversed apparently because Nigerians have lost confidence in the institutional frameworks of electricity sector. The case is a reflection of the brutish and unprogressive regime of electricity governance under the defunct National Electric Power Authority (NEPA) and the old Electricity Act. Although the monopoly hitherto enjoyed by the erstwhile NEPA for several decades has been abrogated as the new regime aims to liberalize the sector; the plight of electricity consumers in Nigeria might continue on the negative trends with little or no judicial respite apparently due to the existing case law on consumer protection which tilts in favour of electricity providers. More worrisome is the fact that the trends might continue under the unfolding regime after the Act.
He suggested that a clear link must be established between subscribers and consumers of electricity, as lack of definition of the terms under the NEPA regime formed the basis of the decision in the case of Amadi v Essien. The case illustrates the point that subscribers of electricity may not be accorded the same right as that of a consumer. The appellate court had held that the notion of a consumer for the purpose of suing NEPA was beyond registered consumers. He concluded that unlike the NEPA regime, establishment of effective electricity regulatory frameworks and enforcement of such matters as performance standards, consumer rights and obligations and matter connected with or incidental thereto is the central objective of the EPSR Act of 2005.
Consumer Rights
The Electric Power Sector Reform (EPSR) Act, 2005 empowers NERC to ensure an efficiently managed electricity supply industry that meets the yearnings of Nigerians for stable, adequate and safe electricity supply. The Act mandates the Commission to ensure that electricity operators recover costs on prudent investment and provide quality service to customers.
To ensure quality service delivery, it is pertinent that electricity customers know their rights as follows: All new electricity connections must be done strictly based on metering before connection. That is, no new customer should be connected by a DisCo without a metre first being installed at the premises. All customers have a right to electricity supply in a safe and reliable manner. All customers have a right to a properly installed and functional metre. All customers have a right to properly informed and educated on the electricity service. All customers have a right to transparent electricity billing. All un-metered customers should be issued with electricity bills strictly based on NERC’s estimated billing methodology.
Moreover, it is the customer’s right to be notified in writing ahead of disconnection of electricity service by the DisCo serving the customer in line with NERC’s guidelines. All customers have a right to refund when over billed and right to file complaints as well as prompt investigation of complaints. Complaints on electricity supply and other billing issues are to be sent to the nearest business unit of the DisCo serving the customer. If a complaint is not satisfactorily addressed, customers have a right to escalate the issue to the NERC Forum Office within the coverage area of the DisCo.
Also, customers have the right to appeal the decision of the NERC Forum Office by writing a petition to the Commission. It is the customer’s right to contest any electricity bill. Any un-metered customer who is disputing his or her estimated bill has the right not to pay the disputed bill, but pay only the last undisputed bill as the contested bill go through the dispute resolution process of NERC. It is not the responsibility of electricity customer or community to buy, replace or repair electricity transformers, poles and related equipment used in the supply of electricity.
Obligations of consumers
The consumer is under obligation to Pay bills for electricity consumed; Provide requirements for connection as stipulated by NERC and DisCo; Protection of electrical installations; Cordiality towards electricity workers; Compliance to the requirements of the distribution code; Pay for electricity used within the stipulated time frame;
Above all the consumer must ensure receipt of monthly electricity bills if not on prepaid metres and lodge a complaint to the DisCo if you did not get your bills; Ensure that metering and other electrical equipment within your premises belonging to the DisCo are not tampered with, or by-passed; Notify the DisCo serving you of any tampering or bypass of electricity installations and notify the DisCo serving you of any outstanding electricity bill before moving into new premises.
A Notary Public for Nigeria and Senior Associate with S.P.A. Ajibade & Co., Mr. Olaoye Olalere, explains issues militating against Metering by the DISCOS. In his observation, noted that the most dangerous challenge is the mindset of most Discos that the consumers will always be ready to pay estimated billing, and thus the lethargy in the implementation of the metering measures put in place to bridge the metering gap.
He explains: “The general impression in the NESI remains that the Discos are ‘gaming’ the system. Other challenges are that the Discos themselves have voiced out for their seeming reluctance to meter their customers include the massive unpaid bill at the time of takeover; the lack of proper data on the NESI; the significant electricity theft and meter bypass – mostly orchestrated by ad hoc or regular staff of the Discos or with their collaboration; lack of the required change in orientation of the consumers – a significant number of whom still think the Discos and former ‘NEPA’1 are the same and one does not have to pay or pay accurately for electricity.
“Again, the Discos have indicated also that the current tariff structure is not cost reflective; the level of the aggregate, technical, commercial and connection loss of each of the distribution companies is still high; the exchange rate is unstable; the inflation rate is high; the generation and transmission capacities are low; and gas price remains high.”
Metering obligations of Discos in their respective Performance Agreement (PA).
The obligation of the Discos to provide a specified number of meters under the terms of the PA executed between the respective core investors and the Federal Government of Nigeria (FGN) remains and all Discos are expected to continue to comply. These PAs have a 5 year lifespan, at the end of which a high rate of efficiency is expected to have been achieved with the metering gap significantly closed. The PAs commenced on 1st January, 2015 for most Discos, and is due for review in December 2019, with the exception of the Kaduna Disco.
Methodology for Estimated Billing Regulations in August 2012
This document published as Federal Government Official Gazette No. 113 in Volume 99 of 2012 sets out how the customers without or with faulty meters should be billed with a focus on ensuring that the consumers are not overcharged while the Discos are not cheated.
Credited Advance Programme for Metering Implementation (CAPMI)
This scheme afforded customers who wanted to pay upfront the meter cost and then have the Disco amortize the cost of the meter via electricity supplied to the customer over a period of time. The main idea behind this was to relieve the Discos of the burden of the huge financial outlay entailed in providing meters for customers by making willing customers provide the needed funding. By that order, any customer whose premises have been assessed and has paid money to the Discos’ designated account must be metered within 45 days. The feedback/impression was that the Discos did not quite embrace the scheme as they often asked willing customers not to pay into their designated account or they simply refused to issue the teller for payment into the said account. CAPMI has been discontinued.