The Ibadan Electricity Distribution Company has come under fire for increasing the minimum amount of energy credits that Band A consumers must purchase to N5,000.
Several consumer groups were outraged and condemned when the disco set a minimum energy credit cap of N2,000 for patrons of other bands.
The IBEDC wrote in a communication to its clients, “Please be informed of a recent update regarding IBEDC electricity recharge. Users on Band A must now make a minimum recharge purchase of N5,000. Users in other bands must make a minimum purchase of N2,000.
“Kindly note that this new payment structure is effective already and applies exclusively to IBEDC customers.”
Energy credits of any quantity could be purchased by consumers, and this still works at other discos besides the IBEDC.
Busolami Tunwase, the Ibadan Disco’s spokesman, stated that the new regulation was intended to reduce energy theft, although she did not elaborate on how this would be accomplished.
When contacted according to source, she curtly responded, “It’s part of efforts to curb energy theft.”
One of the company’s top officials, who wished to remain anonymous, defended the project by saying that, at the moment, when examining the vending platform, it was found that some customers were vending small quantities that they used for a whole month, raising questions about how this could be possible.
“A Band A buyer must pay N10,450, VAT excluded, for 50 units sold.Does this imply that for a month, the consumer is utilizing fewer than two units each day? “We believe that this is nearly impossible,” the official said.
He saw that some consumers were avoiding paying for a steady electricity supply by circumventing their meters.
Adeola Samuel-Ilori, the National Coordinator of the All-Electricity Consumers Forum, discussed the issue and pointed out that in order to prevent backlash, the policy must be changed.
According to Samuel-Ilori, it violates customers’ right to choose, which could lead to legal action.
“Removing people’s ability to pick what they can afford with their purchasing power is unacceptable. According to the constitution and the operating laws of the power sector, electricity is a right rather than a privilege.In my formal letter to the IBEDC this week, a reversal will be necessary. And we might file lawsuits to force a reversal after the ultimatum,” he told the media.
“I don’t think there is anything in the Nigerian Electricity Regulatory Commission’s regulation that supports such limitations from IBEDC,” added Adetayo Adegbemle, the Convener of PowerUp Nigeria. I am aware that IBEDC is working to increase its collections, but it must exercise caution to avoid future fines from the authorities.
Adegbemle insisted that if people are unable to shop according to their budget, the strategy will actually increase energy theft rather than reduce it.
Kola Olubiyo, the president of the Nigeria Consumer Protection Network, informed our reporter that the claims are currently being looked into by the Nigerian Electricity Regulatory Commission and the Federal Competition and Consumer Protection Commission.
He stated, “The very essence of promoting a competitive electricity market and the right to choice and freedom of the end-user customers in these particular circumstances are being undermined.
“It is an absurdity and an unthinkable monopolistic conscription of the demand side of the market.”
In a similar vein, Princewill Okorie, Executive Director of the Electricity Consumer Protection Advocacy Center, bemoaned the power industry’s growing oppressiveness and anti-consumer stance, introducing rules that are out of step with reality.
Okorie questioned why a consumer would be forced to purchase more merchandise than he was prepared to.
In accordance with the provisions of their Act, Okorie emphasized, “The Federal Competition and Consumer Protection Commission should be approached to carry out its duty of protecting consumers.
“Why will a consumer be forced to buy the quantity of product he is not ready for? This administration needs to explain if they are here to protect the welfare and security of the people or to oppress them. Civil liberty and civil rights need to be protected.”