Recent tarrif review by the National Electricity Regulatory Commission (NERC) may have intensified animosity between the Ikeja Electricity Distribution Company and some of its customers over estimated billings as well as growing frustration over acquisition of prepaid meters.
This is because the distraught consumers who are frustrated over cumbersome process of acquiring the prepaid meters with the attendant monthly rising estimated billings even as services deteriorate, are exploring options of petitioning the NERC or outright severance of relationship.
Thier anxiety is heightened by the perceived ineptitude of the regulator which is seen barking without action.
But, last week’s directive by NERC that electricity Distribution Companies (DisCos) must not increase tariffs of customers enjoying less than 12 hours of power supply daily may be causing some disquiet and uneasy calm in the industry.
There are 5 tariff class for Service Bands A-E for minimum daily supply of 20hours, 16hours, 12hours, 8hours and 4hours respectively.
Dafe Akpeneye, NERC Commissioner, Legal Licensing and Compliance, made the clarification during the regulatory agency’s online town hall meeting with customers on the new electricity tariff regime.
Indeed, the DisCos had on Sept. 1 announced the implementation of new Service Reflective Tariff Plan (SRT) across their franchise areas.
The DisCos said the classes of customers had been categorised into five bands with bands D and E who were not enjoying 12 hours daily power supply not affected by the new tariff plan.
However, Akpeneye, who was responding to claims by some customers that the DisCos were not adhering to the increment terms, maintained that those below 12 hours supply daily should not experience any increment.
He explained that the hours and bands were decided by the commission after consultations but customers were assigned to the bands by the DisCos.
Akpeneye said:”Anyone who is enjoying less than 12 hours of electricity must not have their tariffs increased.
“Customers who receive electricity service below the band they have been assigned can have the DisCos move them to the actual band of electricity service they receive.
He said in order to protect unmetered customers from exploitation by the DisCos, NERC came up with “Parity with Neighbours”.
“This is the principle we are applying with unmetered customers. It basically means as an unmetered customer, you cannot be charged more than your metered neighbour,”the commissioner said.
Akpeneye also disclosed that NERC had mandated all DisCos to invest in infrastructure in order to increase power supply to customers.
However, Ikeja Electric may have been caught up by the development as some of the residents in estates at the outskirts of Lagos, particularly on the Lagos, Ibadan axis, who reside in the city of excellence and Ogun State respectively are insisting that the implementation of the new service reflective tarrif can not and should not apply to them since the hours of serve do not near the requirement.
The DisCos said the classes of customers had been categorised into five bands with bands D and E who were not enjoying 12 hours daily power supply not affected by the new tariff plan.
However, Akpeneye, who was responding to claims by some customers that the DisCos were not adhering to the increment terms, maintained that those below 12 hours supply daily should not experience any increment.
He explained that the hours and bands were decided by the commission after consultations but customers were assigned to the bands by the DisCos.
Akpeneye said:”Anyone who is enjoying less than 12 hours of electricity must not have their tariffs increased.
“Customers who receive electricity service below the band they have been assigned can have the DisCos move them to the actual band of electricity service they receive.
He said in order to protect unmetered customers from exploitation by the DisCos, NERC came up with “Parity with Neighbours”.
“This is the principle we are applying with unmetered customers. It basically means as an unmetered customer, you cannot be charged more than your metered neighbour,”the commissioner said.
Akpeneye also disclosed that NERC had mandated all DisCos to invest in infrastructure in order to increase power supply to customers.
However, Ikeja Electric may have been caught up by the development as some of the residents in estates at the outskirts of Lagos, particularly on the Lagos, Ibadan axis, who reside in the city of excellence and Ogun State respectively are insisting that the implementation of the new service reflective tarrif can not and should not apply to them since the hours of serve do not near the requirement.
In what some of the customers feel as a ploy by the company to foist the new tarrif on them, IE recently allegedly moved from the one day on, one day off regime to two days on and one day off.
This was followed by promises of improved service delivery by the company to its customers.
Specifically, some residents in Arepo and it’s environs have recently commenced the process of petitioning NERC over epileptic power supply, while mobilizing members to sign the petition to be submitted to NERC and seven other federal government agencies.
In the petition for which the residents are overwhelmingly appending their signatures, they allege that
“IKEJA ELECTRIC PROMISED 16HRS/DAY SUPPLY (2Days ON, 1Day OFF) BUT GIVING US LESS DAY 6HOURS/DAY (1/2Day ON, 2Days OFF)
“IKEJA ELECTRIC PROMISED 16HRS/DAY SUPPLY (2Days ON, 1Day OFF) BUT GIVING US LESS DAY 6HOURS/DAY (1/2Day ON, 2Days OFF)
Important to note this is NOT a campaign against tariff increment but for RIGHT BILLING as Ikeja Electric only give my area (Arepo & Environs) less than 6hours/day supply (Half day ON, 2days OFF) against the 16hours/day (2Days ON, 1Day OFF) that they openly committed to.”
Consequently, they urge their colleagues to sign the petition to compel Ikeja Electric to improve service quality to the promised level of 16hrs/day while maintaining old tariff rate until this is done. Every household requiring metering must also be honoured for billing transparency and fairness!
Consequently, they urge their colleagues to sign the petition to compel Ikeja Electric to improve service quality to the promised level of 16hrs/day while maintaining old tariff rate until this is done. Every household requiring metering must also be honoured for billing transparency and fairness!
IE needs to commit to this acceptable service quality level for this area as we are willing to pay fairly for the service we enjoy!”
Expressing his frustration, another resident wrote on the estate’s platform, “Good morning. Since IE moved to this new arrangement and the announcement that they have resolved whatever issues and they are now ready to supply power seemlessly. I have noticed an even further deterioration of their service. What we now have indeed is less than a day ON and more than 2 days off.
My thought is this. The ONLY reason they announced the 2 days ON 1 day OFF is because of the impending service-reflective tariff then. It was deceptive. They did that so they can place us at a tarriff band of more than 12hours/day which is a higher tariff band.
If we are going to fight IE, we must be ready to go through a bit of inconvenience. Nothing venture, nothing gained.
Even those that have prepaid meters are now affected because you will be paying a rate higher than you should. We as a community must come together and square-off with them. First, let them take us off their miserable supply completely if you ask me. Then let’s see who blinks first in a case of zero-revenue from us.“
