Estimated billing is to cover energy losses — ASERC

Frank Nwoye Okafor, Chairman of the Anambra State Electricity Regulatory Commission (ASERC), has said that estimated billing is designed to cover energy losses in the power sector.

Okafor made this known on Tuesday during the ASERC public consultation on the draft electricity regulation to shape the Anambra State electricity market, held in Awka, the State capital.

According to him, estimated billing is not intended to serve customers’ interests.

“I know that the purpose of estimated billing is not about making people pay for what they consume, but about accounting for energy losses.

“If these losses are left unmitigated, power losses could rise to about 40%”, he said.

Okafor also stated that ASERC was established to promote societal progress, emphasising that power is critical to a modern economy.

“We are here to check excessive tariffs. We know that power is expensive, but it must be provided at a minimum standard,” he said.

He noted that it is not enough for people to stay at home and complain about poor power supply, urging them instead to come forward and lodge complaints so that the challenges could be addressed.

Okafor further said that ASERC doesn’t provide electricity, but serves as a regulatory body to ensure minimum service standards.

He said the Commission’s main mission is to ensure that electricity is delivered at the most affordable rate possible.

“This is not coming from Abuja but from Anambra, and we must ensure minimum standards. We are not here to pull down any service provider, but to ensure that existing power services improve,” he added.

Responding, Okechukwu Okafor, Managing Director of First Power, said he believed the chairman was appealing to customers emotionally.

“We lose over 20% of energy, which we pay for, yet we do not charge customers for these losses. We actually absorb these losses. In this part of the world, we have not fully come to appreciate the true cost of energy, perhaps because we are coming from a subsidized regime.

“In other parts of the world, energy is very expensive. The energy business itself is capital-intensive,” he said.

Anosike Emmanuel, Executive Commissioner in charge of Customer Protection and Regulation, said that efforts in the electricity sector are geared towards customer satisfaction.

According to him, ASERC is empowered to regulate electricity in the state, though currently only one provider, First Power.

He explained that electricity distributors are required to connect customers within one week after payment. Customers who fail to pay their bills after connection risk disconnection.

He further stated that in cases of dispute between a customer and a DisCo, the customer may suspend payment until the issue is resolved, after which all outstanding bills must be settled.

He urged both First Power and customers to present their complaints to the Vommission, adding that customers are entitled to compensation in cases of wrongful disconnection.