The threat by the Nigerian Electricity Regulatory Commission (NERC)to sanction distribution companies (DisCos) for failing to complete the migration of Token Identifier of Standard Transfer Specification (STS) meters of their customers from Key Revision 1 to Key Revision 2 is yet another manifestation of the deep distortions in public electricity supply. But there are many other problems that NERC needs to urgently address, if Nigeria is to join the league of nations with reasonable availability of power. The commission has given the Discosup toJuly 31, 2024 to complete the transition.

NERC issued this sanction threat at the recent Nigerian Electricity Supply Industry stakeholders meeting held in Abuja. The purpose of this threat is to hold the top management of each DisCo accountable for compliance with reporting requirements and the implementation of the commission’s directives in line with the terms and conditions of the utility.

To that effect, the NERC has directed that customers whose meters are not eligible for migration to STS will need to have their meters replaced to avoid being ruled out of the system. According to the NERC, STS provides a secure message system to transmit information from a point-of-sale to a meter, which helps to prevent fraudulent generation of tokens. The use of the STS standard prevents the fraudulent transfer of credit resulting from hit-and-miss attempts at entering the correct number into the meter; fraudulent generation of tokens from a stolen vending station; fraudulent generation of tokens from legitimate vending stations outside of the utility’s areas of operations; fraudulent reuse of tokens that have already been used; and tampering with legitimate tokens, which could result in changes to the values issued on them.

As a regulatory body, the NERC has the mandate to oversee the electricity industry in Nigeria, ensuring compliance with established regulations and standards. If the DisCos are failing to migrate to a new system or process mandated by NERC, the commission has the authority to enforce compliance, which can include sanctions.

However, the NERC has not been known to treat the DisCos with the strict measures expected, given that the DisCos are largely responsible for inflicting pain and suffering to the generality of Nigerians. In particular, the failure of the DisCos to provide pre-paid meters to all their subscribers has for years resulted in customers’ fleecing and indeed official violation of customers or subscriber’ rights. While it is on record that NERC has often threatened to sanction erring DisCos on this matter, it is not evident that any DisCo has been properly sanctioned. Indeed, there was a time the NERC asked subscribers not to pay if they were not provided with meters, but the subscribers concerned were left on their own when the chips were down. The subscribers were left at the receiving end, having to suffer light disconnection while protesting unjust estimated billings.

The NERC should beam its searchlighton protecting consumers.Sanctions could be necessary to ensure that DisCos adhere to regulations that might improve service delivery, efficiency, and overall system reliability.

However, the NERC should be mindful of sudden sanctions that could lead to operational disruptions, affecting the supply of electricity to consumers, especially considering that the deadline given to DisCos to comply with the migration, July 31, 2024, is too close. More importantly, some DisCos might divert resources to address compliance issues instead of focusing on improving service delivery. The DisCos should be made to invest more in infrastructure upgrades and maintenance, to avoid disruptions in their operations, which have been frequently affecting consumers, causing blackouts or unreliable electricity supply. This has broader economic impacts, especially on businesses reliant on stable electricity.

While NERC’s intention to ensure compliance and improve service delivery is crucial, it should consider extending the July 31 deadline. In the coming months, the NERC should take concrete steps to effectively address the failure of DisCos to migrate to the new system and ensure a more reliable and efficient electricity supply for consumers. The NERC could engage with stakeholders, including consumers, industry experts, and government bodies, to understand the challenges in power supply and collaboratively develop solutions. The NERC could, for instance, establish a feedback mechanism where DisCos can report challenges and suggest improvements to the migration process.

As regards the increase in electricity tariffs under Band A, which is causing a big stir in the polity, the NERC shouldrethink the increase, as it is crippling individuals and private corporate bodies as well asMinistries, Departments, and Agencies (MDAs) the debts of which have increased astronomically. This development is projected to worsen the liquidity crisis in the power sector and the economy.

So far, it is causing heated disagreements between the DisCos and many public institutions including the Lagos University Teaching Hospital (LUTH), many universities and industries, which argue that the increase in tariffs has further strained their debts and budgets.

The increase in electricity tariffs cannot be rationalized amid the consistent erratic power supply in Nigeria, and at such a critical time that both individuals and corporate bodies are financially stretched. If the epileptic power supply in Nigeria has destroyed the Nigerian economy beyond expectation, why should businesses be compelled to pay increased tariffs?

With her size and potential, Nigeriashould not suffer erratic electricity supply in the 21st century. This is the time to end frequent electricity outage in Nigeria. The migration issue between the NERC and DisCos notwithstanding, government should improve electricity supply. Without electricity, the country’s socio-economic, cultural, and political development will be stagnated, to say the least.