The Nigeria Electricity Regulatory Commission explains why only maximum demand customers should not pay estimated electricity bills

THE Nigeria Electricity Regulatory Commission, NERC, has exempted only customers within the threshold of 45KVA consumption and above from paying estimated bill.

“The Commission wishes to clarify that the affected electricity customers are those within the threshold of 45kVA consumption and above. The directive to exempt maximum demand, MD, customers from estimated bills was sequel to an earlier directive of the commission to the 11 distribution companies, Discos, to completely meter all their MD customers on or before 31st November, 2016. However, the Discos sought for and were granted extension to 1st March, 2017,” NERC said in a statement.

The NERC had on Sunday, June 11, directed that no MD customer should henceforth be billed based on estimation to further validate the confirmation and assurance given by the Discos that all such customers are now metered.

It was further stated that the Discos were directed not to disconnect any MD electricity customer that was not metered by March 1, 2017, on the basis of the customer’s refusal to pay a bill issued after the compliance deadline, on the basis of estimated billing methodology.

Any maximum demand electricity customer so affected was also advised to promptly report any attempt to disconnect him on the basis of refusal to pay estimated bill issued after March 1, to the Commission. The underlying rationale to this directive is the effect that since this category of customers have been completely metered as directed by the commission and reported by the Discos, no MD customer should be issued with estimated bills.

However, the Electricity Meter Manufacturers Association of Nigeria, EMMAN, has appealed to the NERC to extend the directive of “no meter no payment” to all electricity consumers nationwide.

Muyideen Ibrahim, executive secretary of the association, made the call in an interview, against the backdrop of NERC’s directive that all MD customers not provided with meters to stop paying estimated bills presented by distribution companies.

The maximum demand customers are commercial and industrial customers, who consume high levels of electricity and contribute substantially to the revenues of distribution companies. The EMMAN scribe said that effective metering of customers would eradicate estimated billing and also boost the revenue of the Discos.

Ibrahim said most distribution companies have resorted to estimate billing to generate more revenue to their pulse at the expense of their customers. According to him, NERC should not limit the directive to maximum demand customers but rather to all consumers because it’s really embarrassing for the Discos billing without a metre.

“Consumers had been complaining over the years that Discos should install a metre at their premises for effectiveness and accountability but they refused. There is no sense for consumers paying for services not rendered. There is the need for NERC to checkmate the excess of the Discos. If every consumer is properly metered it will reduce energy theft and waste. It will also increase the revenue of the Discos if not compromised. Most of the electricity distribution companies have refused to deploy meters to Nigerians, a situation leading to exploitation of electricity consumers across the country.”

Ibrahim, however, raised the alarm over Discos neglect to patronise local meter manufactures, adding that over 10,000 meters had been produced by members of the association without patronage.

Besides, he urged the federal government to put in place enabling laws that would restrict DISCOs from importing meters that can be produce in-country.

According to him, the demand for meters by the distribution companies patronising us is very low. “Most of the Discos which are importing meters are complaining that they do not have money to purchase the meters locally; this is funny. Government should intervene without delay in order to prevent the meter-producing industry from collapse.”

Ibrahim said most of their members had to lay off some of their staff because of the poor patronage. He urged the distribution companies to stop importing meters, saying importation will only boost and develop the economies of foreign countries at Nigeria’s expense.

“Government can compel the Discos to buy meters from us (the local manufacturers) because we produce quality meters.

“By doing this, the government will be promoting local content initiatives introduced to promote the growth of indigenous businesses. At the same time, government will be helping to conserve foreign exchange. The multiplier effects are industrial growth, technological advancement and mass employment, among others. We will be able to contribute to the Gross Domestic Product.”

The EMMAN boss said the manufacturers had the capacity to produce at least 25,000 meters monthly.

—  Jun 26, 2017 @ 01:00 GMT