Consumers kick as IBEDC hikes energy cost

The Ibadan Electricity Distribution Company is under fire for raising its minimum energy credit purchase requirement for Band A customers to N5,000.

The Disco also capped the minimum energy credit for customers on other bands at N2,000, sparking outrage and condemnation from various consumer groups.

In a message to its customers, the IBEDC said, “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.”

The PUNCH reports that before now, customers were allowed to purchase energy credit of any amount and this still operates in other Discos except the IBEDC.

The spokesperson of the Ibadan Disco, Busolami Tunwase, said this new policy was to curb energy theft, but she did not give further details about how this will be achieved.

“It’s part of efforts at curbing energy theft,” she tersely replied when our correspondent contacted her.

Defending the initiative, a top official of the company who did not want to be mentioned, said currently, while reviewing the vending platform, it was discovered that some customers were vending low amounts which they use for a whole month, wondering if this could be possible.

“If a Band A customer vends 50 units, the amount to pay is N10,450 exclusive of VAT. So, this means the customer is using less than two units a day for one month? We think this is practically impossible,” the official stated.

He noted that some customers were engaging in meter bypass, thereby paying little to enjoy a stable power supply.

Speaking on the matter, the National Coordinator of All Electricity Consumers Forum, Adeola Samuel-Ilori, noted that the policy has to be reversed to avoid backslashes.

Samuel-Ilori said it is against consumers’ right to choice and this may trigger litigations.

“It’s unacceptable to take away the right of people to choose what their purchasing power can afford. Electricity is not a privilege but a right under the constitution and power sector law of operation. A reversal will be required in my official letter to the IBEDC this week. And after the ultimatum, we may engage litigations to compel reversal,” he told The PUNCH.

Also, the Convener of PowerUp Nigeria, Adetayo Adegbemle, remarked, “I don’t think there’s anything in the Nigerian Electricity Regulatory Commission’s regulation that supports such limitations from IBEDC. I understand IBEDC is trying to raise its collections, but it needs to be careful not to incur further penalties from the regulators.”

Adegbemle maintained that the policy will not curb energy theft, but it will rather encourage it if people are not able to vend according to their pockets.

The President of the Nigeria Consumer Protection Network, Kola Olubiyo, told our correspondent that the Federal Competition And Consumer Protection Commission and the Nigerian Electricity Regulatory Commission are already investigating the allegations.

He said, “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.”

Similarly, the Executive Director of the Electricity Consumer Protection Advocacy Centre, Princewill Okorie, lamented that the power sector is increasingly becoming oppressive and anti-consumer friendly, reeling out policies that are not in line with realities.

Okorie wondered why a customer would be compelled to buy the quantity of product he is not ready for.

Okorie stressed, “The Federal Competition and Consumer Protection Commission should be approached to do its job of protecting consumers in line with the provisions of their Act.

“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.”