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Deploy Customer Engagement Platform, NERC orders DisCos

by ANAYO EDE
written by ANAYO EDE

Electricity Distribution Companies (DisCos) in Nigeria has been reminded of the importance to comply with the Order on Deployment of Customer Engagement Platforms, in accordance with regulatory framework established by the Nigeria Electricity Regulatory Commission (NERC). 

Speaking at the training for Heads of Corporate Communications of DisCo Companies on NERC Capacity Strengthening for DisCos on Communication and Responsiveness to Consumers, held in Kano, Mrs. Olubusayo Femi-Oyewo, NERC PM, Legal, Licensing and Compliance told the gathering that “All DisCos were mandated to deploy customer engagement platforms within 3 months with the deadline of December 1,2023.If you do not do that, it will be a compliance issue.” 

The participants were asked to be aware of the dispute resolution mechanism put in place, so as to avoid “working to repair damage, but to prevent it from happening.” She further stressed on various mechanisms in the Customer Protection Regulation such as all DisCos being required to establish customer complaints units, having customer complaint procedures, resolving complaints within fifteen days and complaints on meter accuracy and reconciliation of bills within one month. 

In his contribution, Mr Michael Faloseyi, NERC AGM, Public Affairs, advised DisCos on how to improve their communication and responsiveness to customers, which is by spending time to build relationship with customers and customer groups. He charged them to get informed about the sector in order to develop the capacity to interact with the customers in the best way possible, “Be honest and ready to listen to customers no matter the pressure.”  

The training was also an opportunity to highlight on the various rights of electricity consumers as encapsulated in NERC Regulations, the need for the DisCos to observe such rights and adhere strictly with the regulations, thereby establishing a good working relationship with the consumers. 

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Opinion

Criticism over Penalties for Offences Released by NERC

by ANAYO EDE
written by ANAYO EDE

The recent release of the list of offences and the penalties by the Nigeria Electricity Regulatory Commission (NERC) has drawn wide reactions from Nigerians. Many people have come down hard on NERC, accusing them of insensitivity in light of the current state of the economy and the challenges faced by citizens.

Some industry watchers, who preferred to remain anonymous, described the penalties attached to the offences as stringent and draconian. They stressed the need to protect and maintain sanity in the power sector, but they also picked holes with the present arrangement where consumers are left at the mercy of the distribution companies (DISCOS), the last link in the chain with direct dealings with consumers.

More persons interviewed decried the situation, saying that consumers have been highly disadvantaged. They argue that the provisions of the new Electricity Act did not put into contemplation the continuous dwindling state of the economy, and that the law has emboldened the DISCOS to behave as they so wish.

On social media, Nigerians have expressed their anger and frustration with the new law. @sneaksdblings posed the following questions: “What are the penalty for discos that refuse to attend to genuine customer complaint after a week? What is the fine for discos that refuse to meter their customers? what is the fine for discos that deliberately overcharge customers against the NERC act?”

@EricScent said: “What happens when a licensee (Disco) fails to comply with NERC forum rule/decision? Will NERC implement any of these penalties as prescribed in the electricity act of 2023 due to non-compliance? Our community awaits your response on this.”

@homizegba asked: “Please, what the penalty under the law for discos who send bills for power not supplied or unusable power due to poor voltage? You make laws against the people in favour of shylocks. Tell Discos to do the needful.”

@cyberbook asked: “What is the penalty for Discos that inflate the meter reading and issue exorbitant estimated bills?”

These reactions reflect the widespread dissatisfaction among Nigerians with the performance of the power sector. For close to three decades, the sector has been plagued by serious challenges, including poor infrastructure, systemic corruption, and mismanagement. These challenges have had a significant negative impact on the socio-economic development of the nation.

The new Electricity Act 2023 is intended to address some of the challenges inherent in the power sector. The Act repeals the Electricity and Power Sector Reform Act 2005 and establishes a thorough legal and administrative framework for the operation of Nigeria’s fully privatized electricity market. The Act also empowers states, companies, and individuals to generate, transmit, and distribute electricity.

Experts believe that the new regime, if fully implemented, will go a long way in addressing the numerous challenges and anomalies in the system. However, many Nigerians are skeptical about the government’s commitment to implementing the law effectively. They are also concerned that the penalties prescribed for the various offenses are not stringent enough to deter the DISCOS from engaging in unethical and exploitative practices.

The following are some of the urgent issues that need to be addressed by NERC:

  • Non-metering of consumers by the DISCOS
  • Undue delays in issuing meters, even after the consumer has paid and finalized the processing
  • Crazy and overestimated billing
  • Poor and delayed response to fixing or replacing faulty transformers, cables, etc.
  • The practice of asking the consumers to contribute towards the buying of transformers, poles, and cables
  • The nefarious activities of some field staff of DISCOS
  • Over delays in resolving consumers’ complaints or grievances, even by NERC

Nigerians are eagerly expecting to see definite changes and improvements in the power sector as a result of the new Electricity Act. However, it is important to note that the success of the new law will depend on the government’s commitment to its implementation and the willingness of NERC to hold the DISCOS accountable for their actions.

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Business

DisCos’ Debt Hits N2tn – GenCos

by Yvonne ONUAH
written by Yvonne ONUAH

The Association of Power Generation Companies has blamed the Distribution Companies for the low power generation in the country.

Speaking at an event in Lagos on Thursday, the Executive Secretary of the association, Dr Joy Ogaji, said the DisCos have also refused to pay up the N2trn debt owed them.

Ogaji revealed that the GenCos were owed N2trn and not N500bn as being reported, adding that its members also owe suppliers N1trn.

She added that the GenCos had not been able to make power available due to the huge debts being owed them by the Nigerian Bulk Electricity Trading Plc (NIBET)

Ogaji further explained that although the GenCos currently had enough power generating capacity, the market was not available as the DisCos had not been able to take all power generated.

“Nigerians don’t want power because there is no demand for it. For instance, Egbin, which has over 1000 capacity, has not been able to generate 800MW because there’s no demand,” she said.

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