MOMOH: WE ARE ELIMINATING ESTIMATED BILLING
at NERC, but it has been there before we came on board. We have reviewed the issue of estimated billing and we are eliminating it. But for that to happen, we are creating a technology called Meter Asset Provider (MAP). This will allow new businesses for meter manufacturing in Nigeria, meter installation, and meter merchandising, which of course mean customers who want power can go to any store, not to the DISCOs anymore and buy their own meter. That will ensure it is the power used that is being paid for. So, that is ongoing at the commission. We have received over 100 letters of no objection from those who want to be involved in that franchise business. This will bridge the metering gap currently existing in the country. Currently, DISCOs do not have the resources to meter every house. Recognising that, we took it upon ourselves to also contribute to the solution space. So this is a sure way to addressing issues around it.
But why are the power companies hoarding meters?
That will be a thing of the past. To move forward, I am saying our duty is not just to put rules on paper and there is no strategy to encourage the enforcement. We can’t say don’t hoard meters when we have not put strategies in place to stop it and enforce the right thing. So to be sure of enforcement, we said let us open the market for new meter providers. If you have access to meter, it means it is no longer a meter challenge. Once that is solved, Nigerians will now know how to manage the energy they consume. I use a prepaid meter in my home. For two weeks I know what it cost me. I know what to turn off when going to bed. Every customer will then be energy wise once they have meters, so it is a win-win situation. By the end of this month (October), our deadline for opening all bids would have been done. Those who are qualified through the no objection qualification will go to particular disco of their choice and get their details published by that Disco. Soon, you will start seeing announcements of people selling meters. That would help everybody because the Discos are looking forward to a lot. That is because that burden of extra cost, overhead cost, worrying about raising capital to buy meter for all its customers would be over. Customers should also be aware, that if they are residential customers, there is a class of billing that the Discos are supposed to charge you. If you are a commercial customer, you are in a different class and therefore your billing would be different. And residential customers are in a different class. And therefore their billings are different. For instance, when I moved to Abuja, I realised I was paying too much for light, but I didn’t call DISCO. I didn’t run to NERC. What I did was go check my meter and I realised I was on commercial class (C Class). So, lucky for me, I called an engineering colleague and told him, he then helped me get on to the residential category. I then called my neighbours and told them to go change theirs to ‘R class’, So Nigerians can do the same.
How do we address capping issues in Nigeria?
We realised that the capping issue is not working, so we have just written a position paper which will be announced and available to DISCOs and customers. Within the next three months, we will be able to say this is the total amount you can charge someone with four bedrooms, or rooms in ‘face me I face you’ houses. We will make sure everybody is aware that this is what should be charged. Anything above that, customers should raise their flag and call me or any of our commissioners. And if customers have questions, they are free to contribute to the discussion. We would take advantage of their concerns about capping going forward, so that within the next three months, we should know the total amount that can be charged by the Discos on this. So, going forward, nobody would be cheated. Our first regulatory requirement is that we are governed by law and they call it a quasi-judiciary responsibility they gave us. We would make sure we are always within the law when we talk and when we act, so that customers are protected and the Discos too are fairly treated. This is because at the end of the day, we need the Discos’ business. If I don’t have the Discos to buy my power, what am I going to regulate?
Are you planning to increase tariff?
There is a plan to do cost reflective tariff, but we will not do it by fiat or by just waking up one day to say the rate will change by 10 per cent or so. Before then, we hope the issue of metering will be resolved, because we can’t increase tariff without justification. If you are being charged for black out or erroneous billing, the rate will just be unacceptable.
All these will give us the benchmark to say since we have improved efficiency, and losses have been reduced, and that there is better quality of service and 247 electricity. When all these are in place, Nigerians will be willing to pay. We don’t want both customers and DISCOs to be ripped off. We don’t want to also hear that DISCOs buy a product for five naira and sell it for two naira, it will not make sense. That is why we are having a human face to everything. We will make sure everybody is happy. The rate increase is conditional; efficiency and performance has to be higher. So we cannot increase tariff while efficiency is down. I can’t defend that.
Under president Buhari, we have been charged to make sure we do the right thing. We will not give tariff increase to the point customers will be mad with me. We will do what will make everyone happy at the end of the day.