Indiscriminate Billings: Group Threatens To Sue NERC Over DISCOs’ Poor Services To Electricity Consumers 

The All Electricity Consumer Protection Forum, has faulted the new tariff being introduced without commensurate service.

The group through its president, Comrade Adeola Samuel Ilori in a letter dated 15th February, 2023 and addressed to the chairman of the Nigerian Electricity Regulatory Commission deplored the treatment meted out to electricity consumers in Nigeria.

Comrade Ilori in a letter titled; “Re:Service Based Tariff, Inherent Fraud, Illegality and Non Implementation of Capping Order”, stated that; “In response to your reply letter to the above subject matter which you referenced

NERC/REG/AECPF/GEN/2706/21/11/AI.

“We waited this long to reply to your response because we want to observe the implementation further and see if we are hasty in our initial observation of being seen as an attempt to fleece and continue robbing the consumers of their hard earned money but obviously our earlier letter and demand never a misplaced priority or crying wolves where none existed, and that it would have been a timely call and intervention if truly your obligation to both consumers and NESI members as an unbiased umpire pursuant to Section 32 of Electric Power Sector Reform Act 2005.

“In your referenced letter paragraph (3) you quoted thus “Section 32 and 76 of the Electric Power Sector Reform Act (ESPRA) empowers the Commission to approve tariffs for the power sector to address amongst other objectives, the provision of cost effective tariffs for Nigerian Electricity Supply Industry (NESI) Thus, ensuring that the prices charged by licenses are fair to consumers and are sufficient to allow licenses that operate efficiently to recover the full cost of their activities including a reasonable return on the capital invested end of quote”.

“Further, the paragraph 7 said and I quote “It’s expected that Disco will bill their metered customers guided by the caps for the various feeders in their network Discos are further expected to provide details of business unit/feeders/distribution transformer have tariff class and rates on all bills and receipts issued to customers”.

“The two quoted paragraphs in your last referenced letter indicates that you are just trying to justified your goof in the approved of the service based tariff even though it’s in violation of many provisions of both section 76 you claimed empowered you and the MYTO order 2014 which allows periodic major increase in tariff to an efficient Discos to recovered investment in the business.

“As we earlier pointed out in our previous letter of 27th may 2022 the above subject matter its unambiguous that some section 76 (2) (b) and (7) was literally jettison being the prerequisite steps before tariff can be approved on request by the NESI members. Rather, you ignored all objections including your quoted inherent power in Section 32 to make some that Discos continue to press the next of consumers due to the burden of indiscriminate billings without correspondent value for money.

Its common knowledge that an average generation for distribution in the country roved between 3000 Megawatts and a little above 5,000 megawatts without into account, the may grid collapsed witnessed at the same time but discos still keep increasing the bills of consumers and tariff rates outside the approved capping for all categories of consumers as stated in review order on capping 2022. And your agency has done nothing to protect the interest of consumers as empowered you in Section 32 of ESPRA 2005 rather you want hapless ones to go thru the complaint mechanism process with its tortuous journey. Therefore , making them helpless and frustrated and our office become their save haven of intervention some of the time and where we are handicapped, the consumers result to self helps on the field officers of the discos.

We have observed enough and we have been inundated enough with the complains so numerous from consumers all over the country the Criminal disobedience of Discos to the approved service based tariff as well as the respective capping orders that are meant to guide the issuance of units and tariff rates on monthly consumptions of consumers, chief among them are Ikeja Electric, Eko Distribution Company Plc, Ibadan Electricity Company, Abuja Electricity, therefore willfully and flagrantly violates Section 63 of ESPRA 2005 without consequence because like we said in our letter of 27th May, 2022, your letter headed paper is like tissue or servette paper to them hence, nothing you wrote or instructs them to do as long as it affect consumers will be obey and there will be no consequences and sanction thereinto hence turn you to a dog that can bark but not bite to the detriment of hapless Nigerians who are the unfortunate consumers.”

Below is the full text of the letter.

IALL

ELECTR CITY

CONSUMER

PROTECTION FORUM

INCORPORATED TRUSTEE NO. 123650

Chairman

Nigerian Electricity Regulatory Commission Plot 1307 Cadastrial Zone AOO

CBD Abuja Garki Abuja

33, Ogunnusi Road, Opposite Airtel office, Aguda, Ogba Lagos.

08062347252, 08026332917, 08029484655

diollarsammy@gmail.com consumerprotectionforum@gmail.com Facebook: Consumer Protection Forum Twitter: @consumerprotection

15th February, 2023

  RE: SERVICE BASED TARRIF, INHERENT FRAUD, ILLEGALLITY AND NON IMPLEMENTATION OF CAPPING ORDER

The above named group is a form for electricity consumers. The group was formed and registered with CAC under Part C of CAMA 2020 with registration number 123658 to defend the rights of Electricity Consumers; create atmosphere of service delivery that enhance opportunity of getting value for money and eradicate sharp practices, unethical behavior of consumers and service providers on estimated bill, electricity tariffs, illegal disconnection and any other vices. It also helps in sector’s policy formulation, implementation and serve as watchdog to both regulator and service providers.

The above group is an accredited affilated group with Federal competitive Consumer Protection Commission (FCCPC) and Partner with Nigerian Regulatory Commission (NERC) on policy formulation and consumers forum meetings.

In response to your reply letter to the above subject matter which you referenced

NERC/REG/AECPF/GEN/2706/21/11/AI.

We waited this long to reply to your response because we want to observe the implementation further and see if we are hasty in our initial observation of being seen as an attempt to fleece and continue robbing the consumers of their hard earned money but obviously our earlier letter and demand never a misplaced priority or crying wolves where none existed, and that it would have been a timely call and intervention if truly your obligation to both consumers and NESI members as an unbiased umpire pursuant to Section 32 of Electric Power Sector Reform Act 2005.

In your referenced letter paragraph (3) you quoted thus “Section 32 and 76 of the Electric Power Sector Reform Act (ESPRA) empowers the Commission to approve tariffs for the power sector to address amongst other objectives, the provision of cost effective tariffs for Nigerian Electricity Supply Industry (NESI) Thus, ensuring that the prices charged by licenses are fair to consumers and are sufficient to allow licenses that operate efficiently to recover the full cost of their activities including a reasonable return on the capital invested end of quote”.

Further, the paragraph 7 said and I quote “It’s expected that Disco will bill their metered customers guided by the caps for the various feeders in their network Discos are further expected to provide details of business unit/feeders/distribution transformer have tariff class and rates on all bills and receipts issued to customers”.

The two quoted paragraphs in your last referenced letter indicates that you are just trying to justified your goof in the approved of the service based tariff even though it’s in violation of many provisions of both section 76 you claimed empowered you and the MYTO order 2014 which allows periodic major increase in tariff to an efficient Discos to recovered investment in the business.

As we earlier pointed out in our previous letter of 27th may 2022 the above subject matter its unambiguous that some section 76 (2) (b) and (7) was literally jettison being the prerequisite steps before tariff can be approved on request by the NESI members. Rather, you ignored all objections including your quoted inherent power in Section 32 to make some that Discos continue to press the next of consumers due to the burden of indiscriminate billings without correspondent value for money.

Its common knowledge that an average generation for distribution in the country roved between 3000 Megawatts and a little above 5,000 megawatts without into account, the may grid collapsed witnessed at the same time but discos still keep increasing the bills of consumers and tariff rates outside the approved capping for all categories of consumers as stated in review order on capping 2022. And your agency has done nothing to protect the interest of consumers as empowered you in Section 32 of ESPRA 2005 rather you want hapless ones to go thru the complaint mechanism process with its tortuous journey. Therefore , making them helpless and frustrated and our office become their save haven of intervention some of the time and where we are handicapped, the consumers result to self helps on the field officers of the discos.

We have observed enough and we have been inundated enough with the complains so numerous from consumers all over the country the Criminal disobedience of Discos to the approved service based tariff as well as the respective capping orders that are meant to guide the issuance of units and tariff rates on monthly consumptions of consumers, chief among them are Ikeja Electric, Eko Distribution Company Plc, Ibadan Electricity Company, Abuja Electricity, therefore willfully and flagrantly violates Section 63 of ESPRA 2005 without consequence because like we said in our letter of 27th May, 2022, your letter headed paper is like tissue or servette paper to them hence, nothing you wrote or instructs them to do as long as it affect consumers will be obey and there will be no consequences and sanction thereinto hence turn you to a dog that can bark but not bite to the detriment of hapless Nigerians who are the unfortunate consumers.

For example, How can Ikeja Electric brazenly and criminally issued to an MDI customer consumption of 7050 units per month when the approved units in the capping order 215/2022 for the area is not more than 581 units and charging them with 56:76 Naira as against the approved periodic minor review tariff of 2020-2026 of September 2020 stipulate 53.60 kobo. There are many like that in their franchise area which we have the report in our office, same to Eko Electricity distribution company PLC as well as Ibadan among others. (Attached are evidences of bills from some of affected consumers that we received in our office).

In View of the above, here are the posers for your office to answer in the affirmative or otherwise and immediate action we will demand from you.

Questions

Is it honourable for your agency to still hold the believe that service based tariff albeit illegally approved in violation of Section 76 (2) (b) (7) of ESPRA 2005 still servicing the purpose of consumers paying for what they used?

(2) Is it still feasible to continue to support or going by the record throwed out in relation to 8m metering gap still existing in the industry bearing in that as at the time of privatization in 2013 November 3rd, 8.3million metering gap was the existing consumers not yet metered according to the performance agreement signed with NESI 2which they promised to clear within 18 month gestation period of taken over?

(3) Is it fair on your side to look the other way pursuant to Section 32 of ESPRA 2005 when Discos flagrantly disobey and disregards the directive from your office contrary to provision of Section 63 ESPRA, 2005 yet not sanction and or reprimanded by your office even when it’s obvious and unambiguous? For example,notice of your agency to sanction discos for failure to implement order 197/20/2020 of capping order issued in May 31st 2020 by your office and signed by Commissioner for legal, Mr. Edafe and Commissioner for Consumers Affairs Dr. Moses Arigu as he then was, no discos was sanctioned or reprimanded for such brazen affront to your office?

(4) Is it not expedient and lawful if any discos management found wanting in the new whistle blowing of their penchant disobedience to implement capping orders and MYTO review order 2022 on consumers billings and rates of tariff pursuant to Section 63 (1) with application of section 94 (1) of ESPRA 2005 which stipulate that anyone who violated any provision of this Act shall be liable to imprisonment of 1 year or 250,000 fine for first offenders and 3 years for subsequent ones?

Is still of natural justice for you to ask numerous consumers being cheated by this discos act of ignominy and economy banditry to go thru the complaints mechanism process instead for your office to be proactive and follow up on this letter and call for judicial panel of enquiry to holistically audit their bill issuance records or the 5% you are entitle to in the overall receivable in the collected tariff from consumers supersede the interest of Nigeria you are meant to serve?

As you provide answer to the above we hereby demand interalia,

(1) The affected discos not only be sanctions reprimand, and punish according to the quoted Section 94 (1) above but be made to refund all discrepancy in the approved capping units as against the one they charged consumers in their respective franchise areas.

(2) A letter to the effect that no discos must henceforth charge consumers above the approved methodology tariff capping order of units as well as tariff fares per unit approved.

(3) That your Agency should as matter of urgency set up monitoring committee to start monitoring the activities of discos in their franchise area especially in the instance of capping order and tariff charges on consumers. Members of such committees for monitoring shall be according to Section 76 (2)(7) on process involved in tariff increase which includes labour union members ,our group members (Electricity consumers registered groups among others)

(4) Letter to the effects that henceforth no communities or individual shall be responsible for buying his materials for repairs or damage poles and faulty transformers with attendant sanctions. Note that between you and your office it’s not rocket science that costs of this materials already embedded in the tariff charged on consumers upon your approval.

(5) This letter will serve as pre action notice , failure to meet the four demands above within 30 days of receiving this letter, we will approach court of competent jurisdiction for redress and provision of section 94 (1) shall be revoke on you too as a violation of the extant law of ESPRA 2005.

Note: All the letters to discos to the effect of our demand must be copy to our office. Yours Faithfully,

Thanks for your usual cooperation Yours, Faithfully,

Comrade Adeola Samuel Ilori

National Coordinator

All Electricity Consumers Protection Forum

Cc: The President, Federal Republic of Nigeria Minister of Power