Editorial

October 3, 2024

DISCOs’ compulsory migration of consumers

Commotion as high tension cable snaps in Lagos

A rash of protests has been erupting in parts of the country over the draconian posture of power service providers towards their customers. Consumers gather with placards and banners to publicly decry their ordeals at the hands of the various Electricity Distribution Companies, DISCOs, the end-user providers of electricity.

About two weeks ago, the Ajegunle People’s Movement, APM, protested against their alleged multiple and unjustified billing by Eko Distribution Company, EKDC. They submitted a petition calling for an end to unconscionable estimated billings and surcharges regularly slammed on consumers.

Also, a group of residents of Aboru in Alimosho area of Lagos, as well as Kubwa and Lugbe in Abuja, in separate moves, protested against the compulsory migration of consumers to the elite Band “A” by power providers. In April this year, the Federal Government had classified power consumers from Band A to E for tariff payments under its policy of gradual pull out from the subsidy of electricity consumption.

Under this policy, consumers in Band “A” pay N225 per kilowatt hour instead of the former N65. They are, however, entitled to between 20 to 24 hours of power supply per day. Others are: Band “B” – 16-20 hours, Band “C” – 12-16 hours, Band “D” – 8-12 hours and Band “E” – 4-8 hours.

Band “A” customers who enjoy premium power supply are not entitled to the residual power subsidy still paid by the Federal Government. The economic hardship in the country which has drained the pockets of middle to lower income groups has forced consumers arbitrarily migrated upwardly to Band “A” to call for their return to the subsidised bands.

The Nigerian Electricity Regulatory Commission, NERC, has been imposing punitive fines on defaulting power providers. Only last month, Abuja DISCO was fined N1.6 bn for overbilling customers. NERC disclosed that it had fined DISCOs a total of N9.1bn for various contraventions.

While we commend the industry regulator’s efforts, we urge it to do more. It should open a direct line to the public to enable it investigate the dictatorial excesses of the DISCOs.

The issue of reluctance on the part of power providers to provide metres for their customers remains largely unsolved. Records show that there are still up to 10 million consumers without the digital metres or still using the obsolete, analogue NEPA metres.

What has happened to the Central Bank of Nigeria, CBN’s, Framework for Mass Metering Programme, FMMP, 2020 and the Nigerian Electricity Market Stabilisation Fund of 2015, both meant to make private operation of power supply seamless in Nigeria?

The DISCOs are suffocating their customers because of the monopolies each of them enjoys in its service area. This is unacceptable. All consumers must be metered, and no DISCO has the right to force any consumer into a category they cannot afford.

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