Despite N700bn revenue boost in 2024, consumers groan under power supply, metering, charges burdens

• 11 Discos received 203,116 complaints in H2, 2020

• Members spent N1.11trn on alternative energy in 2024 —MAN

• Available infrastructure inadequate for nation’s growing population —IBEDC

• Complaints from electricity consumers overwhelming —FCCPC

DESPITE the recent boast about the nation’s power sector recording a surge in its revenue generation, by an additional N700 billion, in 2024, checks by the Nigerian Tribune among consumers in the sector revealed that all is still far from being well in this critical industry.

For instance, while the 70 per cent increase in revenue, year on year, recorded last year, may indicate an enhancement in the fortunes of the operators in the nation’s power sector, the same cannot be said of electricity consumers, especially businesses.

The complaints from these unhappy consumers over exploitative billing, unlawful disconnection, non-metering of customers, absence or overload of transformers, have continued to rise.

In one of its bulletins, released recently, the Federal Competition and Consumer Protection Commission (FCCPC) put the number of complaints received in the second half of Year 2020, alone, by the 11 distribution companies, DisCos, at 203,116. Interestingly, market watchers believe this must have doubled over the years, considering the number of interests the issues have continued to generate in public discourse.

In one such platform, organized recently by the FCCPC in Ado-Odo Ota, Ogun State, the Zonal CDC Chairman, Ado-Odo Ota, Prince Olatunji Onaolapo, expressed the frustrations of thousands of residents in the area.

According to him, discussions around electricity issues have always taken the lion’s share of the committee’s time at meetings, since almost all residents are affected. He told Nigerian Tribune that despite all efforts by residents to address some of those issues, such gestures had not received the necessary support from the DisCo, Ibadan Electricity Distribution Company (IBEDC), in charge of the area.

For instance, in the past few years, he stated, over 200 transformers had been purchased by residents and donated to IBEDC to improve power supply without a commensurate result.

Onaolapo, therefore, expressed residents’ frustrations with IBEDC, adding that they might be forced to look beyond the DisCo if the situation persisted.

Corroborating Onaolapo’s claim, a resident in the area, Mr. Abel Ukpebor, told the Nigerian Tribune that the DisCo, as of the time of writing this report, was yet to fix the complaint he had lodged with it since 2023.

Ukpebor had his new meter retrieved on August 6, 2023, when it failed to work immediately after installation.

“The strange thing about it is the fact that despite being a new meter, it never worked for a second. They promised the issue would be looked into, but till now, it has not been resolved. One would have thought since it was a new meter, and it was glaring the fault came from them, I would have no issue getting this sorted out within days. But till now, almost two years after, what I keep getting are assurances from the DisCo that it will be resolved,” he stated.

Interestingly, businesses are having their fair share of the issue. Not too long ago, the umbrella body of the nation’s manufacturers, the Manufacturers Association of Nigeria (MAN), lamented that the actions and inactions of operators in the sector were having telling effects on their businesses.

For instance, the association’s latest 2024 Economic Review Report revealed manufacturers’ total expenditure on alternative energy sources, in 2024, surged by 42.3 per cent to N1.11 trillion in 2024 from N781.68 billion in 2023.

The Report also indicated electricity tariffs surged by over 200 per cent for Band ‘A’ consumers, a development, it stated, significantly increased manufacturing costs.

For instance, in the Food, Beverage & Tobacco sector, a whopping N229.41 billion was spent on alternative energy in the year, representing a surge from the N182.76 billion spent in 2023; while Chemical & Pharmaceutical energy costs doubled to N208.68 billion.

“The Non-Metallic Mineral Products sector’s energy costs increased by 33.7 per cent to N118.49 billion, and the Textile, Apparel & Footwear industry saw a fourfold increase, reaching N26.45 billion in 2024, compared to N6.97 billion in 2023,” the Report stated.

However, as gloomy as the picture looks, one of the operators in the sector, Ibadan Electricity Distribution Company, said the company is unrelenting in addressing the knotty issues.

Speaking with Nigerian Tribune on the sidelines at the TownHall Meeting the company had with its customers in the Sango-Ota axis of Ogun State, the Zonal Head, IBEDC, Ogun Region, Engr. Abdulrazak Jimoh, identified infrastructure inadequacies as a key challenge operators in the system continue to grapple with.

“For instance, we can only distribute what we get. I remember we’ve been on the 4,000 Megawatts of electricity since my university days, and that was many years ago. Today, we generate a little bit above that figure, despite our population explosion.

“So what it means is that it can’t go round, hence our decision to resort to rationing,” he stated.

On the issue of the DisCo not compensating customers that invested in its facilities, Engr. Jimoh explained that IBEDC has not been refunding such customers because guidelines are not always adhered to when such investments are being consumed by the customers.

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“For instance, people always complain that they don’t get refunds for investments, such as buying transformers, poles, and even meters on their own.

“The challenge is that though investments into the company’s facilities are recoverable, such recovery can only be achieved when the procedures for investments are properly followed,” he stated.

As a way of checking that, he added, the company is now taking it upon itself to handle any issue regarding transformer repairs or replacements.

The Executive Vice Chairman, FCCPC, Mr. Tunji Bello, described the number of complaints being received by the Commission from ‘unhappy electricity consumers’ as overwhelming. He lamented that despite electricity being critical to livelihoods, businesses, and progress, the sector still continues to grapple with persistent issues.

The FCCPC boss, however, assured of the Commission’s resolve, through collaborative efforts, to find solutions to those knotty issues by serving as a bridge between the Nigerian consumers and their service providers.