Estimated Billing: Fashola Warns of Increased Mistrust Between Discos, Consumers

Chineme Okafor

The Minister of Power, Works and Housing, Mr. Babatunde Fashola, has said there may be more distrust between the 11 electricity distribution companies (Discos) in the country and their customers across their networks over their continued use of estimated billing tariff method.

Speaking at the recent June edition of the monthly power sector operators’ meeting which held in Kaduna, the minister explained the country’s power generation and transmission levels were increasing.

This, he noted could result to consumers asking for meters to control their consumption levels to avoid estimated bills from Discos.

He explained that such development could also trigger consumers’ demand for improved service delivery to them, adding that there was already a distrust between both parties which could be aggravated.

According to him, the government was taking steps to address the metering gap in the sector, while the National Assembly sought to criminalise the practice of estimated billing through a new legislation.

“There is the bigger and compelling issue of estimated billing and lack of meters. Meter supply has become the big issue of the moment that consumers want us to resolve.

“As a government, we hear them loudly and clearly, and as service providers, we hope that you can hear them too,” Fashola said.

He added: “As power supply continues to increase in generation, transmission and distribution, the demand for meters will increase because more power supply and consumption will likely result in increased bills.

“Estimated billings in these circumstance will become a major cause of distrust and conflict between consumers and Discos, and meters are the easiest way to build the bridge of trust.”

Continuing, he stated: “On the executive side of government, we are responding by taking advantage of the Meter Asset Provider (MAP) Regulations to deploy a fund of N37 billion towards supplying meters through private sector.

“I urge all Discos who have not taken benefit of this opportunity to quickly do so, or make their own funding arrangements to contract their own meter providers to supply and install meters.”

He stated: “On the legislative side of government, there is a clear intention to intervene by legislation. The executive and legislative response show that government is committed to addressing this issue of meters.

“Let me be clear that every Disco is affected, and every Disco needs to respond by providing meters quickly and seeking to end estimated billing, which is subjective, discretionary, and prone to abuse.”