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Bill to compel Discos to reimburse electricity consumers passes second reading in House of Reps

Reps lament Nigeria’s $30bn annual loss from revenue leakages in 14 years

The House of Representatives has passed for second reading, the Electric Power Sector Reform Act (Amendment) Bill, 2019 which seeks to amend the Electric Power Sector Reform Act to provide for the Electricity Distribution Company (DISCOS) to reimburse any power consumer who incurs expenses in the acquisition and maintenance of electrical apparatus connected to the national grid.

Sponsored by Ben Igbakpa (PDP, Delta) the bill which was passed on Tuesday at plenary proposed the amendment of Section 32 of the Principal Act by deleting the word “consumer” immediately after the word “licensees” under subsection 1(f) and adding a new paragraph (g) as follows:

“To ensure that consumers who incur expenses in lieu of Distribution licensees in the acquisition and maintenance of electrical apparatus connected to the National grid are adequately compensated”.

Section 32 subsection 2 (c) of the Principal Act is amended by deleting the entire paragraph (c) and replacing same with a new paragraph (c) as follows:

“Establish appropriate consumer rights and obligations regarding the provision and use of electric services as well as compelling the distribution company to refund any consumer who incurs expenses in the course of electric services”.

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Section 32 subsection 2 of the Principal Act is amended by adding an entire paragraph (h) as follows: “determine the appropriate compensation accruing to a consumer pursuance to subsection 1(g) in the event of a dispute with the distribution company”.

Section 62 subsection 6 of the Principal Act is amended by creating paragraphs, paragraph (i) as follows:

“The Commission shall have the power to compel a distribution licensee to pay compensation to a consumer who incurs expenses in the acquisition or maintenance of electricity apparatus hitherto the responsibility of the distribution licensee”.

Section 67 subsection 2 of the Principal Act is amended by inserting immediately after the last word “licensee” the proviso “provided that where a consumer in lieu of the distribution licensee incurs expenses in the acquisition or maintenance of electrical apparatus connected to the national grid, the consumer shall be reimbursed accordingly”.

Section 74 subsection 2 of the Principal Act is amended by adding immediately after paragraph (d) a new paragraph (e) as follows: “the licensee after receiving verified demand after thirty days, yet failed, refused and or neglected to reimburse the consumer that incurs expenses on its behalf in the acquisition and maintenance of electrical apparatus connected to the national grid in its jurisdiction”.

Section 80 subsection 1 of the Principal Act is amended by adding immediately after paragraph (g) a new paragraph (h) as follows: “Procedures for verification and assessments of claims by a consumer seeking reimbursement for verified expenses incurred in lieu of a distribution licensee’s responsibility of acquisition and maintenance of electrical apparatus connected to the national grid”.

Section 80 subsection 3 of the Principal Act is amended by adding immediately after the last word “supply” with the following sentence: “and or incur expenses in lieu of distribution licensees in the acquisition and maintenance of electrical apparatus connected to the national grid”.

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