A recent survey by The Electricity Hub (THE) Reports that 60 percent of low-income consumers are unaware of legal rights and redress available to them as electricity consumers. A much fewer percentage are aware of basic consumer rights but ignorant of complaint processes and procedures. Other consumers seem aware of their consumer rights and basic complaints procedures but are reluctant to pursue the avenues for redress. In most part, for reasons of poor finances and time constraints. Very few consumers in this category had, at some point, pursued a complaint with their electricity suppliers. Majority of them report unfavourable and unsatisfactory resolution of their complaints.
The above-noted survey highlights the dissatisfactory state of consumer rights and protection in the Nigeria electricity supply industry. Ignorance and erosion of public trust in the efficient operation of the power utility, have deterred the pursuit of consumer protection interests. This state of affairs has often led to resort to self-help, in the enforcement of consumer rights. Instances of lock-outs of electric power officials from consumer premises, assaults of electric power officials, illegal reconnections after an official disconnection, to name a few, teem in the electricity sector.
Consumer rights and protection in Nigeria are primarily the responsibility of the Federal Consumer and Competition Council (formerly the Consumer Protection Council). However, the Electric Power Sector Reform Act (ESPRA) authorises the Nigerian Electricity Regulatory Commission (NERC), amongst other things, to establish appropriate consumer rights and obligations regarding the provision and use of electric services. A variety of these rights have been developed but largely unused by most electricity Consumers.
Context
Historically, electricity production and supply had been a state-run utility. Consumer Protection laws were heavily relaxed to avoid multiplicity of litigations against the federal government. This situation heightened the incompetence of the public utility and dominated the rights of electricity consumers. Courts habitually struck out litigation suits against the defunct-NEPA over property destruction and death caused by defects in its electricity supply. There were no laid down administrative rules for complaint redress, and lawyers deterred clients from pursuing legal actions against the state entity. Over an extended period, the average Nigerian was conditioned to accept the sanctity of the electricity supply industry as a non-accountable entity.
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Subsequent reforms introduced private participation in the Nigerian Electricity Supply Industry. The ESPRA, in line with the reforms, creates consumer protection as one of the functions of NERC. The Act mandates the Nigerian Electricity Regulatory Commission to develop Regulations for Performance Standards and Codes to be followed by Distribution Companies (DisCos) in dealing with consumers.
Your Rights as an Electricity Consumer in Nigeria
Following its mandate to develop regulations for the protection of the rights of electricity consumers, NERC has made various regulations on the rights of electricity consumers. One of such regulations is the Connection and Disconnection Procedures for Electricity Services, 2007. The regulation stipulates governing procedures for the disconnection of an electricity customer’s electric power supply. The rights of a Consumer per regulation include:
• Right not to be disconnected except for non- payment of a correctly billed charge following laid down procedures. The procedures require a written notice or warning of disconnection given between 10 working days to 3 months from the bill delivery date. The payment date must also be indicated on the electricity bill, and the bill must be verified not to have been paid or payments made under a payment arrangement before actual disconnection.
• Right to a notice of disconnection stating the particulars and reason for the disconnection. It should state actions to be taken to have the electric supply reconnected and contact details for reconnection.
• Right not to be disconnected where – the amount owed by the customer is less than the value of his regular monthly usage, or the customer has a pending complaint in that regard in line with the Commission’s Customer Complaints Procedure, or the customer only owes the meter maintenance charge not a charge for the sale of energy.
• Right not to be disconnected from electricity supply in premises where a life support machine is in use.
• Right to reconnection within 24 hours where a customer who was rightfully disconnected has paid all outstanding charges, and requested reconnection.
• Where a distribution company unlawfully disconnects a customer’s electricity supply, the company shall be liable on conviction to pay the customer a penalty in line with the regulation for each day of the violation.
Additionally, there are the Customer Service Standards of Performance for Distribution Companies 2007. The NERC designed the regulation to outline the model conditions under which an electricity consumer should be served. It provides that:
• A Distribution Company (DisCo) shall within 24 hours of being notified of an electrical power outage, visit the premises of the customer within working hours to determine the cause of the problem and the support to be offered. The DisCo is expected to fix the fault and restore electricity between 24 and 48 hours of outage notification, depending on the type of problem.
• A consumer is entitled to a minimum of 3 days working notice of a planned supply interruption, for scheduled maintenance of its equipment.
• Where a customer suspects and reports an incorrect meter recording compared to normal monthly bills for the same customer, he is entitled to a have an official of the DisCo visit the customer’s premises and test the meter within three working days of the report. An official reply should be issued not more than five days after the report.
A consumer has a right to complain about high or low voltage supply of electricity, and the Disco shall visit the premises within 24 hours of the complaint.
NERC in furtherance of its mandate under the EPSRA developed the customer complaint handling standards and procedures. The regulation provides for a step-by-step conflict resolution mechanism for aggrieved customers. It requires DisCos to establish Customer Complaints Units (CCU) as the first conflict resolution channel with a stipulated time frame. Escalation from the CCU, where necessary, should be through appeals to the forum established for customer complaints, with a further right of appeal to the Commission.
The Meter Reading, Billing Cash Collection and Credit Management for Electricity Services regulation aim to address issues billing and payment. It provides that an
electricity consumer has a right not to be billed for the period within which he was disconnected for non- payment. It regulates estimated billing in instances of non-installation of the meter while electricity is being consumed.
The regulation gives an electricity consumer the right to apply for a review of his electricity bill where he is dissatisfied with his billing.
Who can Enforce These Rights?
In other words, who can sue? It has been often misconstrued to be the registered customer that has the sole right to sue an electricity distribution company. In the Nigerian parlance, the registered customer is often the property owner. However, any electricity consumer by paying his bills and charges can maintain an action against the DisCo whether he is the registered customer or not. The Courts have also held that the DisCos owe a public duty to all its consumers. Therefore, any end-user of electricity who pays for services provided is entitled to enforce these rights as a consumer.
Challenges with Existing Electricity Consumer Rights
Enforcement is a huge challenge to consumer protection in the electricity industry. The NERC regulations have commendable provisions to ensure security and protection of consumer rights; nevertheless, their implementation is delinquent. Ignorance and lack of enforcement of the existing rights have largely stalled the development of consumer rights in the Nigerian Electricity Supply Industry. It is hoped that as more consumers become aware of their rights as consumers of electricity, there will be an attendant increase in the pursuit of these rights.
Certain essential consumer rights are yet to be incorporated in the electricity sector. One of which is the right of energy choice. With the development of a privatised electricity market, the importance of the right of choice became heightened. This right remains largely constrained in Nigeria because of the monopolistic framework of the successor companies.
The operation of an inclusive market structure that encourages multiple market participation and competition is crucial to the safeguarding of consumers’ right of choice. The current EPSRA needs to be amended to create the legal framework that will unravel the monopoly and protect the consumer’s right to choose its electricity supplier.
The consumer’s right to be informed and heard requires that product and service providers provide their consumers with adequate information to make informed choices and seek redress where available. Electricity consumers in Nigeria are largely ignorant about their rights and obligations as consumers of electricity. The right to adequate information about a product significantly underlines other consumer rights and informs consumer behaviour. This right is largely overlooked and ignored in electricity sector administration in Nigeria.
Conclusion
The burden of creating a safe, legal regime for consumer rights is on policymakers and leaders. Still, the task of asserting these rights and enforcing them is largely on informed consumers. The sector regulator also has a huge role to play in ensuring that electricity consumer rights as enacted theoretically are being followed by the various electricity companies. Appropriate sanctions should apply where necessary.
Author: Onyi Iyizoba, Senior Legal and regulatory Consultant at Nextier Power
Editor: Osasu Eghobamien, Policy and Research Consultant
