Electricity consumers are set for war against electricity distribution
companies DISCOs, over lack of meters and high bills. UDEME AKPAN reports that
the swift intervention of NERC may assist to achieve stability in the sector.
companies DISCOs, over lack of meters and high bills. UDEME AKPAN reports that
the swift intervention of NERC may assist to achieve stability in the sector.
The
Chairman of the Nigerian Electricity Regulatory Commission, (NERC), Dr. Sam
Amadi has, at different occasions, expressed his concern for consumers of
electricity in the nation. This is based on at least a reason. Amadi believes
that consumers should be kings, particularly because without them, operators would
not be in business.
Chairman of the Nigerian Electricity Regulatory Commission, (NERC), Dr. Sam
Amadi has, at different occasions, expressed his concern for consumers of
electricity in the nation. This is based on at least a reason. Amadi believes
that consumers should be kings, particularly because without them, operators would
not be in business.
Contrary to
his great expectation, the electricity distribution companies, DISCOs continue
to exploit consumers through sharp practices, including what has come to be
known as crazy billing and provision of meters. These exploitative ways and
means got to climax a few weeks ago when PHCN virtually stopped the issuance of
new pre-payment meters to consumers in all parts of the nation as well as
raised its estimated tariff by over 150 per cent without any explanation.
Consequently,
consumers who live in two-bedroom flats that used to pay about N5,000 monthly
tariff now pay between N12,000 and N15,000, depending on the policies and
practices of the distribution companies. Consumers who live in three-bedroom
flats and duplexes pay between N16, 000 and N20, 000 per month against about
N7, 000 they used to pay.
consumers who live in two-bedroom flats that used to pay about N5,000 monthly
tariff now pay between N12,000 and N15,000, depending on the policies and
practices of the distribution companies. Consumers who live in three-bedroom
flats and duplexes pay between N16, 000 and N20, 000 per month against about
N7, 000 they used to pay.
These bills
include Value Added Tax and “meter maintenance charge” even
though most consumers do not have meters. Industry sources remarked that PHCN
officials had deliberately stopped the
issuance of pre-payment meters after a noticeable drop in revenue as consumers
adopted measures to reduce their tariff.
include Value Added Tax and “meter maintenance charge” even
though most consumers do not have meters. Industry sources remarked that PHCN
officials had deliberately stopped the
issuance of pre-payment meters after a noticeable drop in revenue as consumers
adopted measures to reduce their tariff.
Many
consumers who have been waiting for months to get the new meters are compelled
to continue to pay estimated bills which are based the guesswork of PHCN
personnel. This, however, does not take cognisance of consumers, who for days
or weeks or those who do not have high-power consuming appliances. Besides,
many consumers are compelled to pay additional N100 for a token in order to pay
bills under a “cashless” policy being introduced by PHCN in partnership
with a local firm in some Lagos districts.
consumers who have been waiting for months to get the new meters are compelled
to continue to pay estimated bills which are based the guesswork of PHCN
personnel. This, however, does not take cognisance of consumers, who for days
or weeks or those who do not have high-power consuming appliances. Besides,
many consumers are compelled to pay additional N100 for a token in order to pay
bills under a “cashless” policy being introduced by PHCN in partnership
with a local firm in some Lagos districts.
Expectedly,
the angry consumers have not been mute. While some groan, others have taken to
the streets, protesting the massive exploitation of the DISCOs. For instance, a
few days ago, the youths of Omu-Aran, Irepodun Local Government Area of Kwara
State took to the streets, protesting alleged extortion by the PHCN.
the angry consumers have not been mute. While some groan, others have taken to
the streets, protesting the massive exploitation of the DISCOs. For instance, a
few days ago, the youths of Omu-Aran, Irepodun Local Government Area of Kwara
State took to the streets, protesting alleged extortion by the PHCN.
The protest
could have got out of control without the timely intervention of the police.
The youths, who carried placards with various inscriptions, were protesting
what they termed illegal billings and extortion by the PHCN officials. The
protesters, who had gathered in front of the community’s Post
Office reportedly, took to the
streets, chanting war songs and holding placards with different inscriptions.
Some of the inscriptions on the placards read: “We are tired of crazy bills”, “Stop this
extortion now” and “Omu-Aran
no go gree.” The
policemen, along with some officers of
the National Security and Civil Defense Corps (NSCDC), it was learnt had to
form a barricade to prevent the youths from entering the building.
could have got out of control without the timely intervention of the police.
The youths, who carried placards with various inscriptions, were protesting
what they termed illegal billings and extortion by the PHCN officials. The
protesters, who had gathered in front of the community’s Post
Office reportedly, took to the
streets, chanting war songs and holding placards with different inscriptions.
Some of the inscriptions on the placards read: “We are tired of crazy bills”, “Stop this
extortion now” and “Omu-Aran
no go gree.” The
policemen, along with some officers of
the National Security and Civil Defense Corps (NSCDC), it was learnt had to
form a barricade to prevent the youths from entering the building.
The leader
of the youths, Mr. Wasiu Awoniyi, explained that they embarked on the warning
protest after several meetings to resolve the issue with PHCN proved abortive.
As he puts it: “We have been looking up to the elders and elites
in the community for a peaceful resolution of this ugly phenomenon without any
breakthrough. That is why we took it upon ourselves to embark on this awareness and warning protest.”
of the youths, Mr. Wasiu Awoniyi, explained that they embarked on the warning
protest after several meetings to resolve the issue with PHCN proved abortive.
As he puts it: “We have been looking up to the elders and elites
in the community for a peaceful resolution of this ugly phenomenon without any
breakthrough. That is why we took it upon ourselves to embark on this awareness and warning protest.”
Awoniyi
remarked that: “Our resolve is that no monthly PHCN bill should go
beyond N1, 500 for an apartment and N2, 000 for artisans and other skilled
persons. We are giving PHCN management up till February to make necessary adjustment and correct the situation in the
interest of peace.”
remarked that: “Our resolve is that no monthly PHCN bill should go
beyond N1, 500 for an apartment and N2, 000 for artisans and other skilled
persons. We are giving PHCN management up till February to make necessary adjustment and correct the situation in the
interest of peace.”
The cries
of consumers have not fallen on deaf ears. NERC has stepped in to tackle these
and other concerns. From all indications, electricity consumers may be in a position
to heave a sigh of relief as NERC has directed electricity distribution
companies to meet the yearnings of consumers or be sanctioned.
of consumers have not fallen on deaf ears. NERC has stepped in to tackle these
and other concerns. From all indications, electricity consumers may be in a position
to heave a sigh of relief as NERC has directed electricity distribution
companies to meet the yearnings of consumers or be sanctioned.
The
commission has started considering some options capable of assisting to boost
availability of electricity meters in the nation. The options include customer
financing and the use of accredited meter vendors. NERC also resolved to ensure
standardization and efficiency in the deployment of the meters and to that end
a public notice will soon be issued for all vendors of meters to apply for
certification of their products in line with the metering code. The commission
also plans to send a letter to the Bureau of Public Procurement, (BPP), in
order to fast track a No Objection Certification for various vendors.
commission has started considering some options capable of assisting to boost
availability of electricity meters in the nation. The options include customer
financing and the use of accredited meter vendors. NERC also resolved to ensure
standardization and efficiency in the deployment of the meters and to that end
a public notice will soon be issued for all vendors of meters to apply for
certification of their products in line with the metering code. The commission
also plans to send a letter to the Bureau of Public Procurement, (BPP), in
order to fast track a No Objection Certification for various vendors.
Investigations
showed that although the nation has two meter manufacturing firms in Lagos and
Kaduna, they have not been able to flood the local market with adequate meters.
Minister of State for Power, Hajia Zainab Ibrahim Kuchi, who encouraged
consumers to pay for the new meters explained that they would be compensated in
future. She remarked that such customers would get energy credit and reduction
in their fixed charges over time.
showed that although the nation has two meter manufacturing firms in Lagos and
Kaduna, they have not been able to flood the local market with adequate meters.
Minister of State for Power, Hajia Zainab Ibrahim Kuchi, who encouraged
consumers to pay for the new meters explained that they would be compensated in
future. She remarked that such customers would get energy credit and reduction
in their fixed charges over time.
This
voluntary option seems to be a good development, particularly for Small and
Medium Enterprises (SMEs) whose operations were to a great extent crippled as a
result of many factors, especially irregular supply and crazy billing.
Consequently, NASME has called for the creation of separate classifications,
specifically for NSMEs, to enable them to reduce the high operational cost. It
also called for the elimination of all fixed charges. “In the
medium to long term, NASME recommends that the fixed charge is completely
eliminated and all charges become variable based on consumption,” it said in the report.
voluntary option seems to be a good development, particularly for Small and
Medium Enterprises (SMEs) whose operations were to a great extent crippled as a
result of many factors, especially irregular supply and crazy billing.
Consequently, NASME has called for the creation of separate classifications,
specifically for NSMEs, to enable them to reduce the high operational cost. It
also called for the elimination of all fixed charges. “In the
medium to long term, NASME recommends that the fixed charge is completely
eliminated and all charges become variable based on consumption,” it said in the report.
The
organisation explained that this would ensure that its members only pay for
what they consume and ultimately, encourage energy conservation in the nation.
It also made a case for the introduction of a unified standard for information
shown on payment receipts, explaining that the minimum information requirements
for each distribution company to be the same, in order to improve transparency.
NASME added: “Distribution
companies should be mandated to set up structured and effective complaint and
resolution channels with
stipulated resolution timelines.
organisation explained that this would ensure that its members only pay for
what they consume and ultimately, encourage energy conservation in the nation.
It also made a case for the introduction of a unified standard for information
shown on payment receipts, explaining that the minimum information requirements
for each distribution company to be the same, in order to improve transparency.
NASME added: “Distribution
companies should be mandated to set up structured and effective complaint and
resolution channels with
stipulated resolution timelines.
An
authoritative study conducted by the organisation showed that many industries
have closed shops as a result of poor supply of electricity which compelled
them to take to the use of generators at higher cost. The cost which is
reflected in the prices of various goods and services make them uncompetitive
at the global market.
authoritative study conducted by the organisation showed that many industries
have closed shops as a result of poor supply of electricity which compelled
them to take to the use of generators at higher cost. The cost which is
reflected in the prices of various goods and services make them uncompetitive
at the global market.
The NASME
stated that the high cost of the new Multi Year Tariff Order 11, introduced in
June last year was counter- productive on the operations of its members. The
Executive Secretary of the organisation, Mr. Eke Ubiji who confirmed the
development said NASME is ready to engage with relevant government
institutions.
stated that the high cost of the new Multi Year Tariff Order 11, introduced in
June last year was counter- productive on the operations of its members. The
Executive Secretary of the organisation, Mr. Eke Ubiji who confirmed the
development said NASME is ready to engage with relevant government
institutions.
The
organisation explained that this would ensure that its members only pay for
what they consume and ultimately encourage energy conservation in the nation.
It also made a case for the introduction of a unified standard for information
shown on payment receipts, explaining that: “The minimum information requirements for each distribution company to be the same, in
order to improve transparency.”
organisation explained that this would ensure that its members only pay for
what they consume and ultimately encourage energy conservation in the nation.
It also made a case for the introduction of a unified standard for information
shown on payment receipts, explaining that: “The minimum information requirements for each distribution company to be the same, in
order to improve transparency.”
NASME
further called for the restructuring as creation of complaint channels in
distribution firms so as to enable service providers respond to complaints. It
stated that: “Distribution companies should be mandated to set up
structured and effective complaint and resolution channels with stipulated
resolution timelines. Appropriate penalties should be established with
supervision by NERC.”
further called for the restructuring as creation of complaint channels in
distribution firms so as to enable service providers respond to complaints. It
stated that: “Distribution companies should be mandated to set up
structured and effective complaint and resolution channels with stipulated
resolution timelines. Appropriate penalties should be established with
supervision by NERC.”
It also
stated that; “There
should be awareness
campaigns and sensitisation on MYTO 11 to MSMEs using grassroots/practical
methods. NASME can provide input about appropriate consultation mechanism for
SMEs.”
stated that; “There
should be awareness
campaigns and sensitisation on MYTO 11 to MSMEs using grassroots/practical
methods. NASME can provide input about appropriate consultation mechanism for
SMEs.”
Stakeholders,
including the National President of Oil and Gas Service providers Association
of Nigeria, OGSPAN, Mr. Colman Obasi stated that there was a great need for the
various hurdles to be removed so as to enable small and medium scale business
operators have constant electricity at affordable cost to power their
operations.
including the National President of Oil and Gas Service providers Association
of Nigeria, OGSPAN, Mr. Colman Obasi stated that there was a great need for the
various hurdles to be removed so as to enable small and medium scale business
operators have constant electricity at affordable cost to power their
operations.
He stated that:
“Small and
medium scale businesses are very central to the economy of the nation,
particularly in terms of employment, technology transfer and capacity building.
These and other reasons explain why the government and others should ensure
they have access to
stable power supply
“Small and
medium scale businesses are very central to the economy of the nation,
particularly in terms of employment, technology transfer and capacity building.
These and other reasons explain why the government and others should ensure
they have access to
stable power supply
Obasi
stated that with stable supply at affordable cost, the operators would be in a
position to export their products and services to the global market, thereby
generating additional foreign exchange for into the nation. He stated that: “We should
not only be thinking about crude oil and gas, we should consider the small and
medium scale business in particular and non oil sector in general as an
instrument targeted at diversifying the economy of the nation.”
stated that with stable supply at affordable cost, the operators would be in a
position to export their products and services to the global market, thereby
generating additional foreign exchange for into the nation. He stated that: “We should
not only be thinking about crude oil and gas, we should consider the small and
medium scale business in particular and non oil sector in general as an
instrument targeted at diversifying the economy of the nation.”
The
National President who appreciated the step taken to tackle issues asked for
the cooperation of relevant people and organizations, especially the DISCOs.
This seems to be very important as they occupy a prime place in the sector.
Indeed the DISCOs should wake up to provide electricity with a human face,
knowing that the world is watching.
National President who appreciated the step taken to tackle issues asked for
the cooperation of relevant people and organizations, especially the DISCOs.
This seems to be very important as they occupy a prime place in the sector.
Indeed the DISCOs should wake up to provide electricity with a human face,
knowing that the world is watching.
