Transcript Consumer Protection

CONSUMER PROTECTION IN A PRIVATIZED
POWER INDUSTRY
Abba A. Ibrahim C.Eng, MIGEM,MNSE, PhD
(Commissioner Govt & Consumer Affairs)
CONSUMER PROTECTION AND PERFORMANCE STANDARDS
UNDER THE EPSR ACT 2005

S 80 provides for the development of the following, inter alia,
instruments for Customer Protection:

Customer Service Standards

Customer Complaints Handling Standards and Procedures

Codes of Practice to assist special needs customers (disabled,
elderly or severely ill)

Procedures for assisting customers with difficulty in paying bills

Procedures for applying for electricity service

Procedures for disconnecting non-paying customers

Information to consumers and the manner of dissemination

Standards for compensation to consumers who do not enjoy regular
power supply.

Standards on connection, safety, reliability of supply, technical
codes and manuals.
2
ADDITIONAL PROTECTION FOR VULNERABLE CONSUMERS IN
THE EPSR ACT 2005

S 83 Provides for the Power Consumer
Assistance Fund
 Introduction
of ‘lifeline tariff’ (e.g.
for consumers below 50 kw/hr per
month)

S 88 Provides for a Rural Electrification
fund
3
NERC’S CUSTOMER PROTECTION REGULATIONS

Customer Complaints Handling Standards and Procedures: Introduces a
process for redressing complaints by electricity consumers.

Connections & Disconnections Procedures For Electricity Services:
Establishes standards and procedures for providing customers with
electricity.

Customer Service Standards of Performance For Distribution Companies:
Standards expected from distribution companies in the provision of
electricity supply to customers.

Meter Reading, Billing, Cash Collection & Credit Management For Electricity
Supplies: Stipulates procedures concerning accurate meter reading by
distribution companies including payment plan.

Methodology for Estimated Billing: Provide standardization of method used
by DISCOs to estimate customer’s consumption under certain conditions
CONSUMER RIGHTS
The electricity consumer in Nigeria has the following rights
which are specific to the electricity consumer:
 Right to safe & reliable electric service
 Right to accurate electric meter;
 Right to refund of over billings
 Right to properly installed meter
 Right to prompt investigation of complaints
 Right to information; Scheduled power interruptions
 Right to transparent billing
 Right to Due process prior to Disconnection of electric
service
CUSTOMER RIGHTS CONT’D



Right to a Notice prior to Disconnection
Right to prompt reconnection of electric Service upon
payment
Right to file complaints before NERC
CONSUMER OBLIGATIONS





Pay bills for electricity consumed.
Pay security deposit requested by the Disco and other requirements for
connection stipulated by NERC.
Vigilant protection of electrical installations.
Cordiality towards electricity workers.
Use energy efficiently.
Expectations



The operators are expected to carry out massive enlightenment campaigns
to educate customers.
Roll out plans for print, electronic and customer sensitization programs on
various themes on billing, estimation, metering, e.t.c.
Provide information on Customer Complaints Units and Forum Office.
CUSTOMER COMPLAINTS HANDLING STANDARDS AND
PROCEDURES
Bottlenecks:

Current status of DISCOs Customer Complaints Units (CCUs) not in
consonance with the Regulation [Section 3]

Forum Offices yet to be established in some DISCOs. [Section 4
(10)].

Inadequate publicity of the Forum Offices activities by the DISCOs in
line with the Regulation. [Section 7 (4)].

Inefficient handling of complaints by front line Customer service
personnel
CUSTOMER COMPLAINTS HANDLING STANDARDS AND
PROCEDURES CONT’D
Expectations:

Establishment of functional Customer Complaints Units (CCUs) in all
the Business Units as a minimum.

Provision of conducive environment for customers lodging complaints.

Training of front line customer service personnel of CCUs.

Provision of Customer Relationship Management (CRM) systems
including customer complaints call centers.

Establishment of functional Customer complaints Forum offices

Compliance to monthly reporting requirements as stipulated in the
Regulation.
CUSTOMER SERVICE STANDARDS OF PERFORMANCE FOR
DISTRIBUTION COMPANIES.
Bottlenecks:
 Timely submission of monthly reporting obligations to
the Commission

Submission of inaccurate and manipulated data

Non Adherence to set Service level standards for
performance for Distribution Companies (High
frequency of power outages and long duration of
outages, Lack of notice to Customers on planned supply
interruptions)

Sharp practices by Disco staff

Non publication of standards of performance by DISCOs
Expectations:

The Commission expects strict adherence to Customer Service
Standards Regulation.

Adherence to reporting on Key Performance Indicators (KPIs)
deviations or exclusions on number of new service connections,
metering ratio, Rebicol Ratio, etc

Establishment and effective manning of Performance management
units.

Reporting on deviations or exclusions from Customer service
standards.
METER READING, BILLING, CASH COLLECTIONS &
CREDIT MANAGEMENT FOR ELECTRICITY SUPPLIES:
Concerns:
 Low ratio of metered customers due to non-adherence to Meter Roll
out plan.
 Inadequate information on Billing receipt (In line with Section 2.4 of
the above Regulation.
 Massive arbitrary billing of customers.
 Non adherence to Commission’s regulation on routine meter
readings where necessary.
 Controversy on Inherited bills
Expectations:
 Improved information dissemination on metering to Customers on
 Acquiring meters
 Faulty Meters
 Replacement of Faulty meters
 Frequency of Meter reading
METER READING, BILLING, CASH COLLECTIONS & CREDIT
MANAGEMENT FOR ELECTRICITY SUPPLIES:

Submission of comprehensive metering plan in line with loss
reduction strategy

Detailed submission of list of customers billed on estimation

Review of bill format to include information as contained in the
Regulation and others like Federal Government subsidy deductions,
Power Consumer assistance Fund (PCAF), etc.
CONNECTIONS & DISCONNECTIONS PROCEDURES
FOR ELECTRICITY SERVICES:
Concerns:



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Lopsided new connection agreement in favor of Operators (Form
74).
Delay in re-connection of supply to Customers after payment.
Wrongful disconnection of customers
Mass disconnection of paying and non-paying customers
Expectations:
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Urgent review of new service connection agreement document
between the Operator and Customers.
Communicate understanding of connection procedures and
technical requirements
Sensitization on Connection
Notification before disconnection
CRITICAL SUCCESS FACTORS

Effective funding of consumer protection efforts

Availability of resources to ensure prompt response to emerging
customer protection issues.

Implementation of effective enforcement provisions where noncompliance of Customer protection Regulations are identified.

Information sharing with other operational divisions of the Commission.

Training and twining exchanges with other regulatory bodies facing
similar challenges.
AREAS WHICH WE REQUIRE SUPPORT FROM
NARUC

Development of Call Centre Standards for the
Nigerian Electricity Supply Industry.

Training support and exchanges on how to
carry out effective data analysis.

Training support and exchanges on how to
effectively protect customer data.
Electricity on Demand
CONCLUSION
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THANK YOU
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Off Shehu Shagari Way,
Central Business District,
Abuja
Website: www.nercng.org
E-mail: [email protected]