Many people would agree that consumer metering programmes have seen a resurgence over the past month. In August, the Chairman of the Nigerian Electricity Regulatory Commission (NERC) stated that President Muhammadu Buhari had issued a directive for the commencement of a mass-metering programme, with the president following it up with the suspension of import duties for imported meters. This directive was in part made to provide help consumers avoid predatory estimated bills, especially with the increase in Tariffs set to come into effect by September. This initiative has brought to the forefront one challenge that has always lurked in the background for Nigerian Electricity consumers.
Accumulated Electricity Bills
For many years, a majority of unmetered Nigerian consumers have paid their electricity bills strategically – meaning incompletely. High estimated bills coupled with poor service quality have meant consumers have had to withhold payments as a way to indicate displeasure with the electricity supply industry. More often than not, these debts are owed by tenants and become transferable to the subsequent tenants as they move out and are replaced. This debt accumulates over time, leaving consumers with staggering debts. These inherited bills are often not paid as consumers prioritise electricity payments they have consumed until they have no choice but to clear the backlog.
When Getting a Meter Becomes a Bad Idea
This is when many consumers are forced to reconcile the debts accumulated in their electricity accounts. When consumers get a meter, their total debt is moved to the meter limiting access to electricity until they have bought electricity units equivalent to the amount owed. Many consumers are not aware of this and only find out after they have bought meters, purchased and input the electricity units and are still left with no power.
This will have an impact on the metering goals as such situations would make consumers averse to buying prepaid meters. A homeowner may decide ‘what is the purpose of paying for a meter that serves as a debt collection tool?
What is the solution?
Many would agree that this is an issue for homeowners and landlords. The onus is on them to ensure that outgoing tenants pay outstanding bills and that incoming tenants are not saddled with accrued debts. This is often not the case. While some DisCos allow potential tenants to preview the electricity status of an intended abode, accessibility is quite limited, and requirements are often stiff, as consumers need details that the homeowner or previous tenant can only provide. An online electricity consumer database will make it easier for consumers to cross-reference potential addresses against electricity bill payment status. It would ensure that consumers do not fall prey to inherited electricity bills.
In a recent ruling, a judge ruled that the outstanding electricity bills of a previous consumer cannot be enforced on a new tenant. While consumers are expected to perform due diligence to find out liabilities on potential liabilities associated with any property, they are not responsible for the payment of these debts.
In terms of payment options, one solution that is available for many has been a mutual agreement with the respective DisCo on a structured payment system to settle the outstanding debt over time. While such a deal is fair, in cases where landlords/homeowners and not willing to pay/negotiate, what respite do the consumers have? Are DisCos willing to suspend payments till after the consumers’ time of habitation is over?
Listen to Bode Fadipe, General Manager of Corporate Communications, AEDC discuss how to resolve Inherited electricity bills on The Grid Code Podcast Here.