A new rule by the Nigerian Electricity Regulatory Commission (NERC) requiring electricity distribution companies across the country, to first secure the approval of consumers before applying to it for tariff increase has turned out to be the game changer.

Empowered by this new rule, consumers have now started taking their own pound of flesh, after an age- long darkness occasioned by the ineffectiveness of the electricity utilities.

Consumers have suffered greatly from poor service, extortion and poor customer service.  Over the years, the consumer hardly mattered. But the decision to incorporate the consumers as part of the decision makers in the electricity market has positioned them for the ‘big fight.’

From Lagos to Abuja, to Enugu, to Ibadan, to Yola and to other parts of the country, the story is the same. Consumers have now positioned to retake the throne as the kings that they should be in the electricity industry. They want the distribution companies to show improve supply, issue them meters and generally provide efficient and reliable electricity before any discussions about increment can be entertained.

In Abuja, for instance, consumers are poised for a showdown with the Abuja Electricity Distribution Company (AEDC), over its recent plans to increase tariffs.

Relying on a newspaper publication where Abuja Disco placed a notice to that effect, the consumers said the utility had failed to provide efficient services and should therefore; suspend any efforts to increase what consumers currently pay.
Under the Electricity Consumers Association of Nigeria (ECAN), consumers have written to the management of Abuja Disco asking it to address what it described as customers dissatisfaction.

A letter by National President of ECAN, Chijioke James, also accused the utility of failing to meter over 50 per cent of consumers.
The letter obtained by newsmen in Abuja, noted: “After the emergency meeting of the Electricity Consumers Association of Nigeria (ECAN) convened to deliberate on your public notification as captioned above, ECAN wishes to register its objection to your intention to review tariffs upwards at this stage and time on the following grounds: that the constitution and the electric power Act 2005, which you relied on gives a DISCO responsibilities to the consumers upon which they can rely on to review tariffs as prescribed by relevant laws.
“That your persistent refusal to discharge your responsibilities to consumers within your jurisdiction makes it unjust, inequitable and impossible for you to rely on and or involve the provisions of the law to take advantage of your consumers within your jurisdiction; that we wish to remind you that over 50 per cent of consumers within your jurisdiction are unmetered.”

ECAN further accused Abuja DISCO of collecting fixed charges in addition to issuing estimated charges to consumers even when it had not provided the services for which it has continuously made members to pay.

NERC Chairman, Sam Amadi, who reeled out the new rules recently, noted that DISCOs must get consumers’ approval before any increase will be considered.

Amadi noted that even when they secure the approval of consumers, NERC would still conduct public consultations to validate such approvals before considering any request for tariff increase.

“Ultimately, NERC is the one who will give approval,” Amadi stressed.

This, he noted, is for transparency in energy management.  He said the approach would ensure that there is consultation and greater transparency in the way tariffs are set.”

Only last week, NERC came down hard on the Abuja Distribution Company (Abuja DISCO), imposing regulatory sanctions on it.

NERC also ordered the utility to immediately refund consumers monies said to have been overbilled them.
The Commission said that this followed the conclusion of investigations of grounds of misdemeanor leveled against it. The affected consumers are to be refunded through energy credit of all excess charges that they were billed.

The action followed NERC’s Notice of Enforcement and subsequent investigation of instances of overbilling perpetrated by the electricity distribution company.
In an Order Number NERC/139, which copy was obtained in Abuja, the Regulator noted: “AEDC shall with immediate effect from the date of this Order commence refund through energy credit of all excess charges billed its customers as a direct consequence of the adjustments.”

Abuja Disco was also ordered to, within five days, notify the affected customers of the overbilling in writing in line with Regulation 9 (7) of the Nigerian Electricity Regulatory Commission’s Meter Reading, Billing, Cash Collections and Credit Management for Electricity Suppliers Regulation 2007.

AEDC is also expected to take up spaces in a national newspaper and tender an apology to affected customers stating their business units and the amount of excess charges billed them during the period under review.
The electricity distribution company is expected to report back within two months beginning from June 15, 2015, to the Commission over its compliance with the sanctions meted on it.

NERC said AEDC was investigated for arbitrary imposition of random figures on clusters of its customers ranging from 18 to 28 per cent between October and December 2014 and in some cases 1,100 per cent increase, which resulted in spike in customers’ bills as against the provisions of the Methodology for Estimated Billing Regulations 2012.

The electricity distribution company was said to have tripled its customers bills issued in September 2014 and issued it as bills for October 2014, without evidence of a commensurate increase in electricity supply within the same period.

According to the Notice, AEDC failed to forward report of the estimated billings it issued in every billing circle as provided under section 9 of the Methodology for Estimated Billing Regulation 2012, in the format prescribed by the regulation.

Following AEDC’s failure to comply with NERC regulation over its continued issuance of “outrageous and unusually very high bills” to its customers and for not complying with stipulated format in its presentation to the Commission, the company was then given seven days to explain itself if it will escape sanctions.

The Abuja Electricity Distribution Company (AEDC) had in April requested the Nigerian Electricity Regulatory Commission (NERC) to give it more time to respond to a query it was issued on its alleged disregard to standing rules on estimated billing.