Nigeria is making slow but steady progress in the policy arena to improve the power situation. These “incremental” efforts come from a variety of sources and players. They deserve support and progression.
One of the foremost steps is the proposed legislation outlawing estimated billing. The Electricity Power Reform Act (Amendment) Bill 2018 passed by the House of Representatives in January 2019 prohibits estimated billing and makes it a criminal act. It proposed a one-year jail term and a fine of N1m for defaulters. The bill also directs electricity distribution companies to ensure that customers get prepaid meters within 30 days of application. It also bars the Disco from disconnecting a consumer after the 30 days unless they have provided the meter.
The proposed bill stands on a sound philosophical footing. We agree with its chief proponent, Hon Femi Gbajabiamila, who asserted that, “Any regulation that allows estimation of bills when the actual consumption can be ascertained is against natural justice and equity and should not stand.”
Sections 68 to 72 capture the amendments to the Principal Act. Section 68 prohibits estimated billing methodology in Nigeria. In part two, Section 68 states the obligations of the parties. Consumers should apply to the Disco, pay the regulated fee for a prepaid meter for installation in his premises while the Disco is obligated to provide the meter in 30 days. Other sub-sections add:
“(3) Customers who elect to buy their prepaid meters through credit advancement metering implementation must state in their applications and such customers must be metered within 30 days of the receipt of their application.
“(4) All electricity charges or billings to the premises of the consumer shall be based strictly on prepaid metering and no consumer shall be made to pay any bill without a prepaid meter first being installed in the premises of the consumer.”
Further, the Disco must inform the customer of the nature of meter it has installed for her, tariff methodology and the services available to the customer.
We call on the Senate to concur and pass the bill for presidential assent. We further call on the President to ensure he assents to the bill within this legislative calendar.
Before this, the Nigerian Electricity Regulatory Commission and the Ministry of Power unveiled the Meter Asset Provider regulation (Regulation No Nerc-R-112)) and the subsequent approval of 87 firms as initial licensees. It is almost a year to the date (March 2018) when they announced this measure. Customers need to see the implementation of this regulation through real term service provision.
There is also the Eligible Customer regulation that would open up supply lines and enable Gencos and independent power producers (IPPs) to bypass the Nigerian Bulk Electricity Trading Plc (NBET) to sell electricity directly to eligible customers. It specifies four categories of eligibility.
Eligible firms are those who
- consume not less than 2MW/hr/r in one month and are connected to a metered 11KV or KV point on a distribution network or licensee under a distribution use of system (DUoS agreement
- Consume more than 2MW/hr/h every month and are connected directly to a metered 33kv delivery point on the transmission network under a Transmission Use of System (TUos) agreement
- Consume more than 2MW/hr/h within a month, connect directly to the metering facility of a Genco and enters a bilateral agreement to build its distribution line with licensee over the area
- A user connected to a metered 132kv and 330kv delivery point on the transmission network under a TUoS agreement.
Then there is the Solar Power Project under which the Power Ministry would concession the rooftops of Ministries Departments and Agencies of the Federal Government to private solar power developers to generate electricity. The PPP arrangement envisages that the solar power firms would supply 750kw day time and 75kw nighttime electrical energy to the Ministry of Power as test case. The Federal Executive Council approved this proposal with ten years tenure.
There are extant opportunities for investment in the Nigerian power sector. Areas include gas, coal to power, transmission and distribution network and renewable energy of hydro, solar, and wind. Local and international investors need to take up the opportunities.
We commend the policies on ground. We note, however sadly, that they are yet to take off or to translate to deliverables for the consumer. The test of policies lies in execution and outcomes. The various well-intentioned policies on power need to become action points for the consumer, eye-marked rather than the traditional ear-marked projects of Nigerian officialdom. Bring on the power, please.
Editorial
