The Federal Competition and Consumer Protection Commission (FCCPC) has commended the recent decision by the Nigerian Electricity Regulatory Commission (NERC) sanction 11 Electricity Distribution Companies (DISCos) for non-compliance with the regulatory order on capping of estimated bills for unmetered customers in the country.
In announcing the sanctions, the electricity sector regulatory authority said all the 11 DISCOs would have to forgo about N10.51bn from thewiir annual allowed revenues during the next tariff review for violating its February 2020 Order No. NERC/197/2020) on Capping of Estimated Bills.
Under the Order, DISCOs were required to follow a standard methodology introduced by NERC for estimated billing in the NESI, to ensure customers were not issued arbitrary bills that were unrelated to actual consumption or any other metric for estimating their energy consumption.
Customers with faulty meters, or those whose meters could not be read as well as existing customers without meters were to be issued monthly energy caps aimed at aligning the estimated bills for with the measured consumption of metered customers on the same supply feeder.
Under the Order energy caps of unmetered end-use non-maximum demand customers were supposed to be computed based on weighted averages of prepaid and postpaid metered end-use customers based on actual consumption data of those customers from feeder and distribution transformers, while all unmetered non-MDD customers were to be billed for the consumption of energy beyond the cap stipulated in the order.
Also, non-MD customers under the tariff bands D and E whose tariffs were frozen were to have their tariffs computed using corresponding tariff rates of R2 and C1 under the previous tariff classification.
However, NERC said a review of the DISCos billing of unmetered customers for 2023 revealed serious non-compliance with the monthly energy caps issued by the Commission, resulting in the sanctions.
In his reaction to the sanctions, the Ag. Executive Vice Chairman/ Chief Executive Officer of FCCPC, Adamu Abdullahi, said on Monday in Abuja that the action aligned with the Commission’s mandate outlined in the Federal Competition and Consumer Protection Act (FCCPA) 2018, particularly Section 17(s), which empowers the Commission to protect consumers from obnoxious practices or unscrupulous exploitation by companies, firms, trade associations or individuals, and to demand redress on their behalf.
“We stand in solidarity with NERC in its commitment to safeguard unmetered customers from arbitrary billing by DISCos. The capping regulation was a significant step towards ensuring fairer treatment for those without meters, and the FCCPC fully supports its enforcement,” Adamu said.
Urging NERC to consider even stronger measures to deter future violations, the FCCPC boss said such measures could include increased financial penalties, stricter enforcement mechanisms, and even the revocation of operating licenses for persistent offenders.
The Commission restated its unwavering commitment to ensuring a better deal for electricity consumers in Nigeria, adding that apart from its routine resolution of electricity consumer complaints, it would continue to organize electricity consumer platforms across the country.
These platforms, he noted, have provided invaluable opportunities for consumers to voice out their complaints and receive instant responses and redress from DISCos and regulators, including the FCCPC.
He said FCCPC’s existing Memorandum of Understanding (MoU) with NERC was aimed at ensuring more effective protection for electricity consumers through information sharing, joint investigations, and coordinated enforcement actions.
The Commission, he pointed out, believes that fundamental reforms were necessary to address the systemic challenges facing the sector, including metering gaps, billing malpractices, and inadequate customer service.
“We encourage consumers who have been shortchanged by estimated bills to come forward and lodge complaints with their respective DisCos, and escalate such complaints to NERC or the FCCPC, when not satisfactorily resolved. We are committed to investigating all legitimate complaints and securing redress for consumers.
The FCCPC will persistently collaborate with NERC to work tirelessly to ensure that Nigerian electricity consumers receive fair treatment, accurate billing, and quality service. We stand united in ensuring a fair and just electricity market for all consumers in Nigeria,” he said.
