Sweet Crude

February 7, 2012

Electricity companies to defend performance – NERC

By Oscarline Onwuemenyi
The Nigerian Electricity Regulatory Commission, NERC, has insisted that service delivery and compliance with industry regulations and orders will be major indicators for electricity billing by distribution companies under the planned tariff regime expected later in the year.

Chairman of the NERC, Dr. Sam Amadi, who said this when members of the House of Representatives Committee on Power visited the Commission as part of their oversight functions, in Abuja, also warned Chief Executive Officers of electricity distribution companies to ensure improved service delivery to their customers.

Amadi said, “The new tariff regime will be distribution company-specific and will be based on the level of efficiency each company is able to achieve between now and the take off of the new tariff later in the year.”

He added that, “The Commission hereby reminds CEOs of electricity companies of the responsibilities owed to their customers particularly as regards its guidelines on Customer Complaints Handling, Connection and Disconnection Procedures, Customer Service Standards of Performance and Meter Reading.

“We will be resolute and uncompromising in ensuring compliance and imposing sanctions on Chief Executive Officers and Managers of companies that fall short of the required standards.”

Some of the areas earmarked to determine these efficiencies, Amadi stated, are the compliance in the removal of MMF and estimated billing of yet to be metered consumers.

He said that the Commission will enforce its order regarding the cancellation of the meter maintenance fee (MMF) by calling on consumers that were charged the fee after the November 2011 billing circle to submit their claims to the Commission.

According to Amadi, “We will ensure that defaulting distribution companies refund any customer with genuine claims.” Genuine cases include customers who were charged MMF as from December billing circle, except debts owed the distribution companies.”

Earlier in his comments, the Committee Chairman, Hon. Patrick Ikhariale, said that the Commission had a vital role to play in the power sector reforms.

He advised the Commission on the need to achieve a favourable public perception, especially with the backdrop of the negative perception of the power sector and the belief by some members of the public that electricity is a public good to be consumed for free.

Ikhariale said some of the country’s socio-economic problems could be traced to the power sector and that the Federal Government was keen on addressing the challenges in the sector with some of the bold steps taken already.

NERC recently inaugurated a committee to investigate corrupt, exploitative and illegal practices through inadequate or poor metering by staff of Distribution Companies (DISCOs), as part of the Commission’s public inquiry into the Nigerian Electricity Supply industry.

The Committee is also charged with the mandate to determine the extent of metering of electricity customers in the country, as well as factors which delay the procurement and installation of meters in accordance with rules and regulations in the industry.

Amadi, who spoke to journalists at the inauguration, stated that the rational for the inquiry is “to arrest the scourge of complaints which centre on the experiences of customers with regards to metering, billing and consumer care.”

He added that, “The inadequate supply of energy is most important technical issue but is not the priority social or human issue. The corruption of staff of utilities who exploit customers in many ways is the major challenge in the sector. This assertion, however, needs to be verified and stopped.

“This event is therefore very important in the Commission’s data gathering process aimed at addressing the perennial problems of metering in the Nigerian electricity supply industry.”

The committee is expected to recommended remedial actions to deal with lapses and corrupt practices with regards to metering and customer care in the industry, as well as suggest how NERC can ensure effective and quick metering of customers in the industry.

It would also suggest a framework for the effective implementation and monitoring of metering and billing activities to take effect after the Multi-Year Tariff Order, MYTO, which is expected to kick off next year.