It is not the responsibility of the consumers to buy meters, poles – NERC

The terms under which electricity customers can purchase transformers, meters, poles or any other assets for Electricity Distribution Companies have been outlined by the National Electricity Regulatory Commission (NERC) (DisCos).

A consumer must sign a contract with the DisCos outlining when and how they would be reimbursed for the cost of the transformer or other bought asset if they purchase any electricity-related equipment, according to the power sector regulator.

NERC’s Commissioner of Consumer Affairs, Aisha Mahmud, made this announcement in Abuja during the three-day meeting with the Abuja Electricity Distribution Company (AEDC) to resolve customer complaints.

She made it clear during the discussion that purchasing transformers or any other assets for DisCos was not the duty of electricity consumers.

A dispute resolution clause and any other provisions that are typical of a standard agreement should be included, according to Mahmud.

“It is not the responsibility of the consumers to buy meters, poles, or any assets for the DisCos because we have already provided for that in the tariff of the utilities.

“But under any circumstances that you have to purchase this item and you cannot wait for the DisCos to make that investment, we have made provision for that under our “Investment Regulation.’’

She did, however, note that the commission had developed an “investment regulation” that required a client to get into a contract in order to purchase a transformer. She expressed:

“The agreement should contain a dispute resolution clause and all other items that are expected of a standard agreement.

“What we expect from the DisCo is to use their Internally Generated Revenue (IGR) to buy those assets or rather use shareholders’ investment or borrow from the banks to purchase those assets. In the event that they are not able to buy those assets, customers can come in and they have to be refunded.

“So what the consumers don’t know is that regulation exists and they go about making all sorts of investment which DisCos say is a donation to them because there is no agreement.’’

READ MORE: Discos remit N291bn to CBN in eight months

The commissioner added that it was NERC’s duty to inform customers of their legal rights and responsibilities in relation to the power market.

She expressed shock at the commission’s realization that the majority of consumers are unaware of the presence of the regulator.

“They don’t know their right, they have a lot of rights that they are not aware of. It was our duty to tell them that it is their right to get a meter as Discos are not doing you any favour to issue you a meter.’’

According to Mahmud, NERC’s responsibility includes educating consumers about their obligations, such as the problem of meters, bypassing, or tampering with meters.

“They should know that the Discos are just merely collection agents and the revenue they collect is not entirely their own as they have to pay gas suppliers.

“Pay the Transmission Company (TCN) and the generation companies so customers should know that once they touch the utilities they are also sub-charging themselves.’’

Electricity users are not compelled to pay directly for meters provided to them under the National Mass Metering Programme, which the power sector regulator, NERC, has consistently maintained in previous policy announcements (NMMP).

NERC remarked that although it was claimed that it was the DisCos’ obligation, consumers might choose to purchase a meter through the Meter Asset Programme (MAP).

NERC emphasized that the regulatory framework adopted by the commission under MAP/NMMP Regulation calls for a customer to get energy credits at the time of electricity supply in order to cover the cost of the meter.