FCCPC Urges Electricity Consumers to Report Unfair Billing Practices After NERC Fined DisCos N10bn

FCCPC Urges Electricity Consumers to Report Unfair Billing Practices After NERC Fined DisCos N10bn

  • The FCCPC has commended the NERC for applying sanctions on erring electricity distribution companies in Nigeria
  • The Commission stated that it is committed to safeguarding unmetered customers from arbitrary billing by DisCos
  • It, however, called on electricity consumers who have been shortchanged to lodge complaints with their respective DisCos

Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology and the stock market.

The Federal Competition and Consumer Protection Commission (FCCPC) has urged electricity consumers to inform authorities about distribution companies that have not adhered to the capping of estimated bills for unmetered customers.

This call was made in a statement where the FCCPC also applauded the Nigerian Electricity Regulatory Commission (NERC) for penalizing 11 DisCos for failing to comply with regulations.

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FCCPC, NERC
FCCPC affirmed its solidarity with NERC in their dedication to protecting unmetered customers from arbitrary billing practices by DisCos. Photo credit - BusinessDaily, FCCPC
Source: UGC

NERC fines DisCos N10.5bn for overbilling customers

Earlier, Legit.ng reported that the NERC announced on Friday its decision to deduct N10.5 billion from the annual allowed revenues of the 11 power distribution companies in the forthcoming tariff review as part of penalties for their failure to adhere to the capping of estimated bills for unmetered customers.

NERC revealed that during the billing cycle for 2023, unmetered customers across the franchise areas of these companies were billed in excess of the monthly energy caps set by the commission, indicating non-compliance.

The commission elaborated that the DisCos would be required to reimburse approximately 10% of the amount they overcharged their customers between January and September 2023.

FCCPC backs NERC's fine on DisCos

In response, the FCCPC affirmed that the action aligned with its responsibilities as delineated in the Federal Competition and Consumer Protection Act 2018, specifically referencing Section 17 (s).

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This section grants the commission authority to safeguard consumers from harmful practices or unethical exploitation by businesses, organizations, trade associations, or individuals and to seek remedies on their behalf.

Adamu Abdullahi, the Acting Executive Vice Chairman/Chief Executive Officer of the FCCPC, affirmed the commission's solidarity with NERC in their dedication to protecting unmetered customers from arbitrary billing practices by DisCos.

He emphasized the importance of the capping regulation as a pivotal measure toward ensuring equitable treatment for those lacking meters, stating that the FCCPC wholeheartedly backs its enforcement efforts.

He said:

“We encourage consumers who have been shortchanged by estimated bills to come forward and lodge complaints with their respective DisCos, and escalate such complaints to NERC or the FCCPC, when not satisfactorily resolved. We are committed to investigating all legitimate complaints and securing redress for consumers.”

The head of the FCCPC further recommended that NERC contemplate implementing more stringent measures to discourage future infractions.

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Such measures could encompass heightened financial penalties, more rigorous enforcement procedures, and, in extreme cases, the revocation of operating licenses for persistent offenders.

Speaking on FCCPC's directive, Tunde Omotolani, a social commentator, argues the possibility of the commission actually following through with the threat.

He said:

Hundreds of petitions are sent to the FCCPC regularly by consumers on different matters, but most Nigerians have yet to see their effectiveness.
Understandably the commission has a low-manpower challenge and is unable to investigate so many complaints.
So on this issue of reporting DisCos over unfair billing practices, I personally don't see it going anywhere if we are to go by the history of complaints made by Nigerians.
However, the penalty stated by NERC is commendable, but it is definitely not enough to deter them from repeating the illegal act.

NERC dissolves Kaduna DisCo's board over N110bn

In related news, Legit.ng reported that NERC dissolved the board of Kaduna DisCo over N110 billion debt.

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According to the regulatory agency, dissolution came following the company's inability to meet its obligations, which amounted to N182.16 billion in the last four years.

NERC said in a 9-page order signed by its chairman, Sanusi Garba, and vice chairman, Musiliu Oseni, that the dissolution took effect from January 1, 2024.

The amount includes N51.9 billion market remittance shortfall, N25 billion minimum capital expenditure requirements, and N11.46 billion operations expenses requirement for 2023.

Source: Legit.ng

Authors:
Victor Enengedi avatar

Victor Enengedi (Business HOD) Victor Enengedi is a trained journalist with over a decade of experience in both print and online media platforms. He holds a degree in History and Diplomatic Studies from Olabisi Onabanjo University, Ogun State. An AFP-certified journalist, he functions as the Head of the Business Desk at Legit. He has also worked as Head of Editorial Operations at Nairametrics. He can be reached via victor.enengedi@corp.legit.ng and +2348063274521.