FCCPC orders IBEDC to refund consumers’ investment in transformers

The Federal Competition and Consumer Protection Commission (FCCPC) has directed the Ibadan Electricity Distribution Company (IBEDC) to refund consumers for investments made in purchasing transformers, poles, cables, and related infrastructure.

The Chief Executive Officer and Executive Vice-Chairman of the FCCPC, Mr Tunji Bello, issued the directive at the FCCPC Electricity Consumer Forum held in Ota, Ogun State.

Bello, who was represented by an official of the commission, Mrs. Bridget Etim, stated that it is not the responsibility of consumers to procure transformers, cables, or electric poles, and that such investments must be refunded by the DisCo whenever made.

At the forum, which took place in Ilogbo, Oju-Ore area of the Ado-Odo/Ota Local Government Area, community leaders under various Community Development Committees (CDCs) and Associations alleged that IBEDC had consistently failed to respond to their complaints despite several letters.

Chairman of the Ado-Odo/Ota Zonal CDC, Mr Olatunji Onaolapo, decried what he described as the nonchalant attitude of IBEDC officials.

According to him, consumers now bear the costs of infrastructure that should ordinarily be provided by the electricity company, yet many communities remain without power.

“In Itele-Ota alone, our people have bought up to 80 transformers. IBEDC did not purchase a single one. We even pay for energisation and beg them to install a transformer they ought to have provided. It is unacceptable,” he said.
Responding, the IBEDC Business Manager for Ogun State, Mr Abdulrasaq Jimoh, blamed the communities for purchasing transformers without consulting the company.

Jimoh said communities were expected to inform the Nigerian Electricity Regulatory Commission (NERC) of their intention to procure transformers or related items before proceeding.

However, Mrs Etim interrupted, saying, “I disagree.” She explained that consumers are not required to seek NERC’s permission directly, adding that it is the responsibility of the DisCo to escalate such matters to the regulator.

“We are not going to accept that as a commission. For previous investments, we were not aware. But going forward, IBEDC must refund consumers for any investments made in its network,” she said.

Etim cited Jos Electricity Distribution Company as an example, noting that it had refunded consumers who invested in network upgrades without prior notification to NERC or the FCCPC.

“I want IBEDC to change and learn from this,” she added. She advised consumers to inform the FCCPC whenever they intend to invest in DisCo networks, to facilitate refunds through energy credits.

Presenting Bello’s opening address, Etim said the three-day forum was convened under Sections 17, 127, 130, and 151 of the Federal Competition and Consumer Protection Act (FCCPA) 2018. She said the forum aimed to bridge the gap between consumers and service providers in the electricity sector.

“Electricity is not merely a commodity; it is a vital service that powers livelihoods, businesses, and economic progress. However, the industry continues to grapple with issues such as insufficient metering, billing inaccuracies, and infrastructure challenges, all of which require urgent and collaborative resolution.

“This forum presents a non-adversarial platform for dialogue. Consumers will gain clarity on their rights and responsibilities, while IBEDC caseworkers will be available to address grievances on the spot. This aligns with our mandate to ensure that consumer protection is practical, accessible, and responsive.

“At the heart of the FCCPC’s interventions is the recognition that electricity consumers are entitled to fairness, transparency, and accountability. We are guided by the FCCPA to inform and educate consumers, facilitate complaint resolution, encourage fair trade practices, and promote collaborative engagement to improve service delivery across the sector,” she stated.

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