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Home Sectors Energy

NERC explains conditions for purchase of transformers, meters, others

Chike Olisah by Chike Olisah
December 8, 2022
in Energy
NERC explains conditions for purchase of transformers, meters, others
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The National Electricity Regulatory Commission (NERC) has outlined the conditions under which electricity consumers can purchase transformers, meters, poles or any other assets for Electricity Distribution Companies (DisCos).

The power sector regulator said that if a consumer buys any electricity asset, he/she has to sign an agreement with the DisCos stating when and how they will be refunded the cost of the transformer or the purchased asset.

This was disclosed in Abuja by NERC’s Commissioner of Consumer Affairs, Aisha Mahmud, at the 3-day NERC/Abuja Electricity Distribution Company (AEDC) Customer Complaint Resolution Meeting.

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Not customers’ responsibility: During the meeting, she clarified that it was not the responsibility of electricity consumers to buy transformers or any other assets for DisCos.

Mahmud added that the agreement should contain a dispute resolution clause and all other items that are expected of a standard agreement.

“It is not the responsibility of the consumers to buy meters, poles or any assets for the DisCos because we have already provided for that in the tariff of the utilities.

  • “But under any circumstances that you have to purchase this item and you cannot wait for the DisCos to make that investment, we have made provision for that under our “Investment Regulation.’’

Investment regulation: She, however, added that the commission came up with an “investment regulation” which specifies that if a customer has to purchase a transformer, it has to be done through an agreement. She said:

  • “The agreement should contain a dispute resolution clause and all other items that are expected of a standard agreement.
  • “What we expect from the DisCo is to use their Internally Generated Revenue (IGR) to buy those assets or rather use shareholders’ investment or borrow from the banks to purchase those assets. In the event that they are not able to buy those assets, customers can come in and they have to be refunded.
  • “So what the consumers don’t know is that regulation exists and they go about making all sorts of investment which DisCos say is a donation to them because there is no agreement.’’

Consumers’ rights and obligations: The commissioner also explained that it was part of NERC’s responsibility to educate customers on their rights and obligation regarding the electricity market.

She noted, with dismay, that the commission realised that most consumers do not know about the existence of the regulator.

  • “They don’t know their right, they have a lot of rights that they are not aware of. It was our duty to tell them that it is their right to get a meter as Discos are not doing you any favour to issue you a meter.’’

Mahmud said that NERC’s mandate is also to educate the consumers on their responsibilities such as the issue of meters, bypass or tempering with meters.

  • “They should know that the Discos are just merely collection agents and the revenue they collect is not entirely their own as they have to pay gas suppliers.
  • “Pay the Transmission Company (TCN) and the generation companies so customers should know that once they touch the utilities they are also sub-charging themselves.’’

For the records: The power sector regulator, NERC, has always maintained in its earlier policy statements that electricity consumers are not required to pay directly for meters issued to them under the National Mass Metering Programme (NMMP).

  • While it stated that it is the responsibility of the DisCos, NERC, however, noted that consumers may elect to acquire a meter from the Meter Asset Programme (MAP).
  • NERC pointed out that the regulatory framework approved by the commission under MAP/NMMP Regulation provides for a refund of the cost of the meter through energy credits to the customer at the time of supply of electricity.

 


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Tags: DISCOSElectricity distribution companiesNational Electricity Regulatory CommissionNERC
Chike Olisah

Chike Olisah

Chike was a banker with over 11 years experience in retail and commercial banking, risk management, treasury portfolio management and relationship management. He also acquired some experience in financial management and do have some special interest in investment analysis and personal finance. He had stints with financial institutions like the former Intercontinental Bank and Fidelity Bank.

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Comments 8

  1. Musa musawa says:
    December 8, 2022 at 10:33 pm

    NERC ARE YOU FOREIGNERS IN NIGERIA? YOU ARE HYPOCRITE PRETENDING NOT TO KNOW THE EVILS OF DISCOS. DISCOS TELL YOU THEY HAVE DISTRIBUTED METERS HAVE YOU GONE OUT TO CONSUMERS INVESTIGATE IF THIS IS TRUE. HOW DO YOU PUNISH DISCOS

    Reply
  2. Prince says:
    December 9, 2022 at 7:24 am

    There is a programme on metering through MAP online whereby customer apply for meter and it was asses and approved that the customer should made a payments of #63,675 in Bank, Please under this arrangement how would the customer get he/her money back ?

    Reply
  3. Rozy says:
    December 10, 2022 at 8:20 am

    What about we that are paying estimated bills and we have gone to the office to complain for them to
    give us meter but up till now nothing as be done. And if you refuse to pay your light we be disconnected and you have to pay a reconnecting fees of 3k to BEDC agent personal pocket.
    Whereas the Bedc official are the ones causing the problem because they are some customers that give them 3k tips every month because that money does not go into Bedc pocket.
    We that are paying estimated bills are feeling the pain mostly.
    Too bad !

    Reply
  4. Stephen says:
    December 10, 2022 at 10:22 am

    NERC should be ashamed that they have such agreements and the so call customers you’re protecting are not aware!!
    1. NERC should enforce the use of this agreements and in cases where it wasn’t use customers should be refunded through meter credit. You can’t continue to leave customers out in the cold!!
    So bad that even when you have money the meter is not available until NERC intervene that’s just less than 2wks meter I bought from EKEDC.

    Reply
  5. Matthew Simpa says:
    December 10, 2022 at 4:42 pm

    A few weeks ago, I was told by a shop Owner in the NEPA area of Abeokuta that he and others using a transformer that got bad were asked to contribute N2000 each to fix the transformer. NERC has to do more than just tell us what they are telling us. They should go to work and stop this practice.

    Reply
  6. Kehinde says:
    December 10, 2022 at 11:10 pm

    These sayings are just mere saying. Consumers who supposed to be given free meters are buying meter and before getting the prepaid meter, they request for ₦10,000 each per prepaid meter for fast tracking it and after that, you keep recharging it for them before you can get light. Somethings are happening in this country that amazed me and looked evil.

    Reply
  7. Grace Anchor says:
    December 12, 2022 at 1:03 pm

    I don’t want to believe that NERC is a toothless bulldog. Discos, to the awareness of NERC, have continued to fraudulently afflict financial burdens on poor Nigerians. One of the Discos has continued to charge bills for over 4 months for a meter not supplied nor installed, why? Even though the matter has been reported to them and a petition was written to NERC, nothing has been done but bill keeps coming. What a country are we in?

    Reply
  8. Olusola Akanbi says:
    January 7, 2024 at 8:18 am

    Which yeye NERC?
    They are just a group of hypocrite !
    Are they not in Nigeria?
    Each and everyone of them will pay for their evil deeds at the appropriate time.
    If I was made to buy an electric meter, poles and cables and one nerc is saying all these rubbish ,it shows that they lack consciousness of what is happening in this country.

    Reply

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