Addressing the Frustration of Estimated Electricity Bills: FG Warns Discos

 Pushing for Fair Billing: Consumers Demand Meters

Electricity consumers are fed up with being charged based on estimated bills and are demanding a change. The Federal Government has issued a warning to power distribution companies, emphasizing the need to provide meters to consumers.

This issue came to light during a recent meeting between the Nigerian Electricity Regulatory Commission (NERC) and investors/owners of distribution companies in the Nigerian Electricity Supply Industry.

The Metering Dilemma: Consumers Speak Out

One of the persistent problems in the power sector is the insufficient availability of meters. This has led distribution companies to resort to over-billing consumers by issuing estimated bills, causing dissatisfaction among customers.

A recent report revealed that between January and September 2023, over 7.1 million unmetered electricity consumers were overcharged, resulting in power distribution companies making a staggering N105 billion through over-billing.

NERC, in response to this, conveyed a clear message to distribution companies during the Lagos meeting. The commission emphasized that providing meters is not just a consumer demand but a crucial step to address the financial crisis in the sector.

NERC’s Stand on Metering: A Path to Financial Stability

Sanusi Garba, the Chairman of NERC, highlighted the pivotal role of metering in resolving challenges within the Nigerian Electricity Supply Industry (NESI). He stressed, “Metering is an issue. Without metering, the issue of liquidity will not be resolved. Customers want to pay for what they consume. It is the single most prevalent complaint of consumers.”

During the same meeting, Eriye Onagoruwa, the Team Lead (Power) from the Office of the Special Adviser on Energy to the President, expressed concern about the significant metering gap in the power sector. She mentioned the Presidential Metering Initiative, which aims to bridge this gap through bulk procurement of smart meters, reducing losses, and engaging stakeholders to identify challenges.

Consumers’ Rights and Discos’ Responsibilities

With over seven million registered power users in the NESI still waiting for meters, the issue of customer rights regarding meter payment was discussed.

Nathan Rogers, the Commissioner of Finance and Management Services at NERC, emphasized that customers should not pay for meters if distribution companies don’t have them in stock. He stated, “If you collect customers’ money, then you have to install meters for them at no additional cost regardless of when you install them.” 

Rogers also reminded distribution companies that once a customer has paid for a meter, the price cannot be increased. This ensures fair and transparent dealings between consumers and power distributors.

NERC’s Expectations and Sanctions

Dafe Akpeneye, the Commissioner of Legal, Licensing, and Compliance at NERC, addressed the issue of communication between distribution companies and customers waiting for meters. He emphasized that NERC expects distribution companies to meter paid customers within 10 days and communicate installation dates promptly.

The failure of distribution companies to provide meters has led to regulatory interventions, including a cap on the amount they can bill customers in specific locations. Despite these regulations, recent sanctions have been imposed on power distribution companies by NERC.

The regulator declared it would deduct a substantial amount from their annual allowed revenues during the next tariff review as a penalty for non-compliance with the capping of estimated bills.

Protecting Consumers: NERC’s Order on Non-Compliance

In response to non-compliance with monthly energy caps for unmetered customers, NERC issued an order to safeguard consumers from arbitrary billing. The order includes:

1. Credit Adjustment to Customers: Discos are mandated to issue credit adjustments to over-billed unmetered customers for the period between January and September 2023 by the March 2024 billing cycle.
2. Public Notice: Discos must publish the list of credit adjustment beneficiaries in two national dailies and on their websites by March 31, 2024.

Conclusion: A Call for Fairness and Transparency

The ongoing battle between consumers and power distribution companies highlights the urgent need for a transparent and fair metering system. Customers are standing up for their rights, demanding to pay for what they consume and urging the government to ensure distribution companies fulfill their responsibilities.

NERC’s actions and sanctions underscore the commitment to enforcing regulations that protect consumers from unjust billing practices. As the power sector navigates these challenges, it is essential to prioritize the interests of consumers and work towards a more accountable and customer-friendly electricity distribution system.