Electricity Consumers Protest as DisCo Bans Prepaid Recharge Below N5,000
- Ibadan DisCo has sparked outrage from customers after it barred them from recharging their prepaid metre with amounts below N5,000
- This new policy has caused widespread complaints among customers who are already lamenting the poor power supply
- An energy expert argued that the policy is illegal, unconstitutional and violates existing laws regulating the electricity industry
Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology and the Stock Market.
Some low-income earners in the country are now living without electricity due to a new policy by the Ibadan Electricity Distribution Company (IBEDC).
The policy prevents prepaid customers from recharging less than N5,000.
Reports indicate that many Nigerians in IBEDC's service areas are being forced to recharge N5,000 or more, even if they would prefer to pay less.
Source: Getty Images
Recall that IBEDC has continued to urge customers to settle their outstanding debts in order to ensure the continuation of reliable services.
It recently issued a public notice to inform its customers about an update on electricity recharges.
It stated:
"Users on Band A are now required to make a minimum recharge purchase of N5,000. Users in other bands must make a minimum purchase of N2,000."
The IBEDC stated that the new payment policy applies only to its customers and is already in effect. Many customers find the policy stressful, especially as economic challenges make it hard to afford regular electricity purchases.
Some have had to adjust their budgets, while others borrow from family and friends to maintain electricity through the prepaid metering system. According to reports, those unable to meet the N5,000 recharge minimum are left without power. Meanwhile, some customers also struggle to pay the high electricity bills under the Band A system enforced by the electricity companies.
IBEDC, otherwise known as Ibadan DisCo, is one of the struggling electricity companies in Nigeria, hence, the Asset Management Corporation of Nigeria (AMCON) stating that the company can become more efficient if it is sold to viable investors.
Customers protest IBEDC's policy
Bolade Akindele, a resident of Ota, Ogun State, criticized the situation, calling it an unfair exploitation of people who are already struggling to meet their daily needs.
Akindele said:
“This policy is inhuman. Even though we are on Band A, consumers should not be subjected to these conditions. Afterall, we are not consuming for commercial purposes. We are still struggling to cope with Band A tariff and now the company is coming with this new recharge policy. It is really not fair."
Akindele told The Guardian that with this new policy, many people will see electricity available but won't be able to afford to use it.
However, lawyer and electricity expert Anthony C. Nwajuigo argued that the policy is illegal and goes against the Electricity Act as well as the Federal Competition and Consumer Protection Act of 2018 (FCCPA).
Nwajuigo said:
“Stating that customers under band A cannot procure less than N5,000 is absurd. Why other customers cannot procure less than N5,000. It is totally illegal.
And it is not just a breach of the NERC regulation on MYTO, it is also a breach of the provisions of the Federal Competition and Consumer Protection Act, 2018 (FCCPA)."
He stated that the order issued by IBEDC is not only unconstitutional but also illegal, as it violates two existing laws regulating the electricity industry.
Power minister summons Abuja, Ibadan DisCos
In related news, Legit.ng reported that the federal government has issued new warnings to electricity distribution companies in Nigeria.
This follows widespread complaints from the public about poor power supply in their service areas.
The Minister of Power, Adebayo Adelabu, specifically warned that the Abuja and Ibadan DisCos would face consequences if they did not improve their performance.
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Source: Legit.ng
