In the three months ending September 2018, electricity customers in Nigeria continued to complain about not having pre-paid meters, escalating estimated billing and service interruption.
Metering and billing featured most accounting for 68, 749, that is, 53 percent of the total customer complaints, the Nigerian Electricity Regulatory Commission stated in its 2018 third quarter report.
“The Eko Electricity Distribution Company reviewed my monthly electricity bill downwards in December to N7, 600 from N23, 000 for a three bedroom apartment, after many months of complaints” Moses Akuyili, a trader who lives on 07 Okey Ufoh Street, Kirikiri Town said.
Since 2013, ineffective regulation has been the blight of the power sector. So far, NERC has been unable to enforce sanctions. Tariff is not cost reflective and DisCos abuse market rules.
In the second quarter (three months ending June 2018) metering and estimated billing were among the most significant concerns of consumers. Metering and estimated billing dominated customer complaints, accounting for 68 percent that is, 103, 636 of the total complaints.
Shortage of prepaid meters and estimated billing are like Siamese that have constrained efficient service delivery in the sector.
The electricity distribution companies (Discos) have been fattening on estimated billing and deterring them, which is the objective of Metering Asset Provider (MAP) regulation, is similar to attempting to dissuade a dairy farmer from milking his most productive cow.
The NERC in March 2018 issued a deadline of August 1, 2018 to the 11 Discos to engage the services of MAP, stressing that the move is aimed at achieving the three-year target prescribed by the Commission. However, five months after the deadline less than 50 percent of Discos have fully complied.
“The MAP programme has not commenced but will” Chantelle Abdul, managing director of Lagos-based Mojec International Limited, an indigenous prepaid meter manufacturer and MAP approved contractor exclusively told BusinesDay on a phone interview.
“Over 50 percent of the Discos did not understand the terms and conditions of the MAP regulation. Only four or five Discos have provided impressive progress report to the Commission” a source at NERC with first-hand information of the deliberations told BusinessDay on phone.
The total number of electricity consumers with prepaid meters increased by 2.26 percent to 1.50 million in the third of quarter of 2018 in comparison to 1.62 million customers in the preceding quarter, according to the National Bureau of Statistics (NBS). However, players in the meter industry have said that the rate of distribution by the electricity distribution companies (DisCos) is still low to bridge the close to 7 million metering gap in Nigeria.
While the Commission insists meters are to be installed free of charge, the practice is different. “Unfortunately, a marketer of EKEDC in charge of my area demanded for the sum of N50, 000 in payment before a pre-paid meter will be supplied to me” Akuyili said.
The commission had earlier announced the introduction of the MAP Regulation, which it said would become effective on April 3, 2018, emphasising that the policy thrust is meant to ensure that electricity customers only pay what they actually consume.
“A measure of how successful the regulation has been is how many meters have been provided and how many Discos have entered into agreements with contractors for this purpose” Pedro Omontuemhen, partner, PricewaterhouseCoopers Nigeria told BusienssDay.
