The Nigerian Electricity Regulatory Commission, NERC, has cautioned electricity consumers against self- procurement of transformers, cables, and accessories without formal agreement with distribution companies.
NERC Commissioner of Customers Affairs, Aisha Mahmud, gave the warning at the commission’s three-day Customers Complaints Resolution Meeting with Eko Electricity Distribution Company’s customers on Friday in Lagos.
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Customers at the forum were drawn from Lekki Business Unit which covers Lekki Phase, Ilasan, Ikota, Ikate, Ikate-Elegushi, Osapa, Chevron, Igbo Efon and Agungi.
According to her, lt is not the responsibility of the customers to procure transformers for the DisCos.
“In the event that such happens, the customers and the DisCos must sign an undertaking, so we still say do not buy the transformers,” she said.
The commissioner further explained that the Meter Asset Provider, MAP, offers vendor and DisCos financing options for prepaid meters.
Addressing the funding constraints within the Nigerian Electricity Supply Industry, NESI, particularly concerning the National Mass Metering Scheme, she underscored the ongoing financial struggles experienced by industry players.
She highlighted the critical need for adequate funding and financing mechanisms to support initiatives aimed at improving metering infrastructure and addressing the metering deficit in Nigeria.
Mrs Mahmud said, “The Minister of Power, Mr. Adebayo Adelabu, is actively engaged in efforts with the Presidential Metering Initiative, PMI, and with adequate funding, the government could potentially eliminate the metering deficit within one to two years, depending on the availability of funds.
“Customers often overlook their rights and entitlements; paying for electricity should guarantee not just power but a superior service experience, and customers should assert their rights to quality service when paying their bills.
“It is crucial for customers to understand that investing in the distribution network, including transformer purchases, is not their responsibility of consumers.
“While the cost is factored into the electricity tariff, if customers choose to invest in infrastructure like distribution transformers, the law permits DisCos to incorporate the investment into the tariff, enabling them to earn returns over the asset’s economic lifespan.
“If about N100 million, for instance, is invested in the purchase of the transformers by the DisCos, it is expected to be spread over fifteen years within the economic life of that asset, and recovery of the cost gradually deducted by customers’ billings.
“We expect the DisCos to use the IGR to fund whatever purchase or use credits to purchase the assets.
“But in the event that they cannot do that and given the liquidity crisis within NESI, the books of the DisCos are already in red.
”So that NERC came up with the regulations, customers can fund the purchase of the DT meters, and they will be refunded.
“In this case, what the regulation stipulates is that the customers have to sign an agreement with the DisCo stating that a certain amount of money has been used to purchase the transformer, and a refund will be made over a certain number of years based on the agreement with interest and dispute resolution clause.”
Mrs Mahmoud, therefore, cautioned that it was not the responsibility of the customers to procure transformers for the DisCos.
“The issue is that customers do not know their rights and duties on what they are supposed to do.
Also, Susi Eonwuka, Head, Lagos Office of the Federal Competition and Consumer Protection Commission, FCCPC, urged distribution companies to design effective feedback mechanism in responding to customers’ complaints.
Mrs Eonwuka, however, assured electricity consumers that the regulator through the forum, will address all concerned areas.
She said that the Customers Complaints Resolution forum was designed as one-stop-shop for addressing billing, metering, transformer, connection, disconnection, customer service and other electricity consumer issues within Eko Electricity Distribution Company franchise areas.
She said that the forum is an intervention to bring all the stakeholders together to listen to consumers’ complaint and resolve them.
She added that FCCPC would also get commitment from Discos on a time-frame within which these complaints have to be resolved.
“The major complaints received from all over the country is on over billing, community transformer problems, disregard of metering and regulations from NERC with respect to disconnection, energy tapping, and tariff band classification.
“Other issues also have to do with account reconciliation, adjustment bottlenecks, disconnection without notice, and billing before connection of the billed property with electricity.
“These are issues that are very serious for consumers, and when they request reconciliation most times the DISCOs are not forthcoming.
“That is why complaints are brought to the NERC and FCCPC, which is the last resort apart from the court,” she said.
NAN