BACKGROUND
Since the enactment of the Electric Power Sector Reform Act (EPSRA) in 2005 and the establishment of the Nigerian Electricity Regulatory Commission ("NERC" or the "Commission"), the Commission has published multiple regulations, codes, standards and rules cutting across various aspects of the Nigerian Electricity Supply Industry ("NESI") in a bid to promote a viable electricity market.
On the 20th of April 2023, NERC published its Customer Protection Regulations 20231 (the "new Regulations") whose objectives2 are to provide a regulatory framework for the:
- Consolidation of extant regulatory instruments on customer protection in the NESI into one instrument;
- Reinforcement of frameworks for the protection of end-use customers in the NESI;
- Alignment of NESI's customer service standards with international best practices; and,
- Protection of the rights of end-use customers of distribution licensees by specifying the minimum standards of service delivery.
In furtherance of these objectives, the following regulatory instruments were slightly modified and merged to form Chapters II-V of the new Regulations and then Abrogated. They are the:
- Nigerian Electricity Regulatory Commission's Customer Complaints Handling Standards and Procedures, 2006 (hereinafter referred to as "Connection Handling Procedures");
- Nigerian Electricity Regulatory Commission's Meter Reading, Billing, Cash Collections and Credit Management for Electricity Supplies Regulations, 2007 (hereinafter referred to as "Metering Regulations");
- Nigerian Electricity Regulatory Commission's Connection and Disconnection Procedures for Electricity Services, 2007 (hereinafter referred to as "Connection and Disconnection Procedures");
- Nigerian Electricity Regulatory Commission's Customer Service Standards of Performance for Distribution Companies, 2007 and,
- Nigerian Electricity Regulatory Commission's Methodology for the Determination of Connection Charges for Electricity Supply Regulations, 2012.
In the successive paragraphs, we shall highlight some of the modifications introduced by the new Regulations to improve convenience and the overall interactions between Distribution Companies (DISCOs) and their customers. It is worthy of note that the new Regulations apply to both distribution licensees, mini-grid permit holders and end-use customers who have contracted to receive electricity from distribution licensees.3
- Shortening Prescribed Timeframe
While the repealed Connection and Disconnection Procedures4 prescribed that there be a minimum of 10 working days between the date of delivery of electricity bills and the date for payment, the new Regulations shortens this timeframe to a minimum of '10 days'.5 Also, the minimum timeframe between the date for payment of the bill and the date scheduled for disconnection in event of non-payment has been reduced from 3 months6 to 2 working days.7
- Elimination of Undue Delay
By Regulation 24(1)(d) of the new Regulations, where a DISCO disconnects electricity supply to a customer's premises, it is mandated to give the customer a notice containing, amongst other things, the contact address and phone number of the DISCO's team responsible for reconnection. This would help cut down any unnecessary delay that would have been encountered by the customer in contacting the DISCO first before being connected to its reconnection team, as was prescribed under the Connection and Disconnection Procedures.8
- Administrative Convenience
By the combined reading of Regulation 20(2)(b) and 31(1) of the new Regulations, electricity bills may now be delivered by a DISCO via text messages, email or other electronic means as may be agreed to by the customer.9 Furthermore, for the purpose of administrative convenience, Regulation 43(1) of the new Regulations empowers DISCOs to establish Customer Complaint Units (CCU) across their areas of operation. This is noteworthy as it will bring the CCUs closer to the customers thereby making them more accessible. The repealed Complaint Handling Regulations only empowered DISCOs to establish CCUs within their premises.10 Furthermore, while the Complaints Handling Regulations required complaints to be lodged in writing,11 the new Regulations allow for complaints to be lodged via phone call, SMS or other media such as call centres and social media platforms.12 However, these alternative practices of lodging complaints have been in practice for quite a while prior to the publication of the new Regulations.
Also, in a bid to promote administrative convenience as well as customer convenience, NERC's Forum Office is now empowered to conduct virtual meetings and hearings of complaints where necessary.13
- Electricity Theft
Commendably, Regulation 63 of the new Regulations empowers an authorised agent of a DISCO to inspect the premises occupied by a customer for possible meter tampering and bypass during routine post-paid meter readings. Unfortunately, this provision does not extend to pre-paid meters which are also commonly being bypassed and tampered with.
- Debt Recovery
According to Regulation 29(3) of the new Regulations, in no circumstance shall an electricity bill debt be transferred to a new customer occupying a premises. It shall be the duty of the DISCO to recover the debt from a customer who has moved out of the premises.
- Informed Decision Making
Under the new Regulations, NERC's Forum Office is now constituted by a mix of technical,14 financial,15 legal16 and regulatory17 experts to enable the Forum Office arrive at well informed decisions on complaints tabled before it.
- Penalties for Unlawful Disconnection
Where a customer's electricity supply has been disconnected in a manner that contravenes the new Regulations, the customer shall be compensated with energy credits.18 Compensation under the old Regulations19 was according to prescribed penalties.
Area of Conflict
Under the repealed Connection and Disconnection Procedures, before a DISCO could be entitled to disconnect electricity supply to the premises of a customer where the customer has, by any act or omission, made a meter located within his premises inaccessible to the DISCO for the purpose of reading such meter, for a period of 3 consecutive bills, the DISCO was mandated to (i) inform the customer via a 'notice', of the difficulty encountered in accessing the meter, (ii) request for access to be granted and, (iii) issue a warning against failure of the customer to grant access.20
Under the new Regulations, a DISCO may disconnect electricity supply to a customer's premises 'without giving notice' where the DISCO has not been granted access to read a meter located within such premises.21 It is important to note that unlike the Connection and Disconnection Procedure which specifies a period of 3 consecutive bills as one of the conditions entitling the DISCO to exercise the power to disconnect electricity supply, the new Regulations does not specify the timeframe which must expire before the DISCO exercises this power. This suggests that the DISCOs can now disconnect electricity supply to a premises without issuing notice where they are unable to access and read any meter located within such premises on first attempt.
However, this position seems to be contrary to Regulation 28(2) of the new Regulations which mandates a DISCO, unable to undertake a meter reading at a customer's premises to leave a notice at such premises detailing the challenge encountered in attempting the meter reading exercise.
Other Modifications
It is pertinent to note that the following are no longer acceptable grounds a customer can raise to prohibit a DISCO from disconnecting electricity supply to his premises where he fails to make payment for electricity bills:
- That the amount owed by the customer is less than the value of his one month's usage;
- That the customer has applied for assistance from the Power Consumer Assistance Fund or some other customer welfare mechanism recognised by NERC and a decision has not been reached on the application; and,
- That the only charge which the customer has not paid is a charge other than for the sale of energy, such as meter maintenance charge. 22
Lastly, the new Regulations now require that DISCOs translate the new Regulations into widely spoken local languages within their areas of operation.23
CONCLUSION
In conclusion, although the new Regulations has certain commendable aspects such as the electronic delivery of bills, virtual hearing of complaint at the Forum Office etc, more could have been done in harmonizing all 5 abrogated regulatory instruments to prevent conflicts. Nevertheless, it is great to have all NERC's customer protection regulatory instruments in a single instrument.
Footnotes
1. https://nerc.gov.ng/index.php/library/documents/Regulations/Customer-Protection-Regulations-2023/ (accessed on May 8th, 2023)
2. Regulation 2 of the new Regulations
3. Regulation 3 of the new Regulations
4. See Regulation 5(1)(b) of the Connection and Disconnection Procedures
5. Regulation 20(2)(b) of the new Regulations
6. Regulation 5(1)(d) of the Connection and Disconnection Procedures
7. Regulation 20(2)(c) of the new Regulations
8. See Regulation 9(d) of the Connection and Disconnection Procedures
9. Regulation 4(1) of the Metering Regulations required DISCOs to issue electricity bills at each customer's supply address.
10. Regulation 3(1) of the Complaints Handling Procedures
11. Regulation 3(4) of the Complaint Handling Procedures
12. Regulation 43(5) of the new Regulations
13. Regulation 50(1)(d) of the new Regulations
14. Regulation 44(4)(c) of the new Regulations
15. Regulation 44(4)(b) of the new Regulations
16. Regulation 44(4)(a) of the new Regulations
17. Regulation 44(4)(d) of the new Regulations
18. Regulation 26 of the new Regulations
19. Regulation 11 of the Connection and Disconnection Procedures
20. Regulation 6(1)(c) of the Connection and Disconnection Procedures
21. Regulation 21(1)(c) of the new Regulations
22. Regulation 10(1) (c), (e) and (f) of the Connection and Disconnection Procedure
23. Regulation 47(5) of the new Regulations
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
