DID YOU KNOW? It is illegal for Ikeja Electric, AEDC to disconnect customers’ power without prior notice – Newstrends
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DID YOU KNOW? It is illegal for Ikeja Electric, AEDC to disconnect customers’ power without prior notice

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A serving distribution company (DisCo) is obliged by the law to notify its customers in writing prior to the disconnection of electricity service in Nigeria. Surprised, right?

This is according to the Nigerian Electricity Regulatory Commission (NERC) regulation on Connection and Disconnection Procedures for Electricity Service (CDPES).

The NERC, empowered by the Electric Power Sector Reform (EPSR) Act, 2005,  has an obligation to ensure that the electricity supply industry is efficiently run to satisfy electricity needs of Nigerians.

According to the EPSR Act, NERC is vested with the power to ‘establish appropriate consumers rights and obligations regarding the provision and use of electricity services amongst others.

WHEN A DISCO CAN DISCONNECT CUSTOMERS’ ELECTRICITY SUPPLY 

According to the CDPES regulation, a DisCo can disconnect supply when the customer refuses to pay the amount correctly billed, at the payment date.

This is dependent on the following factors:

  • The payment date must be clearly indicated on the bill for a DisCo to be eligible to disconnect its customer’s power supply.
  • The bill must have been delivered 10 working days before the payment deadline.
  • A DisCo must ensure that the payment date has not been superseded by a subsequent payment date issued to the same customer.

That’s not all.

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The distribution company must have checked its records to be sure that the bill had not been paid.

Also, the regulation stated that electricity supply could be disconnected if the customer refuses to provide acceptable identification or security deposit, after the DisCo’s prior written notice.

HOW SHOULD A WARNING BE ISSUED BY A DISCO?

It is unlawful for a DisCo to barge into a customer’s premises to disconnect electricity without first writing to the supply address, even though the customer had outstanding bills before the disconnection date.

The regulation said that before disconnection, the DisCo must have issued a written warning, stating specifically that the customer’s electricity supply will be disconnected, if the payment is not remitted at the appropriate date.

The written warning must contain the date it was delivered to the customer’s address and a telephone number or address where the customer could call for assistance to pay the outstanding bill.

WHEN CAN A DISCO DISCONNECT CUSTOMERS’ ELECTRICITY SUPPLY WITHOUT NOTICE?

The provision stated that a customer’s electricity supply can be disconnected without notice only on three grounds.

When a customer is illegally connected to the DisCo’s network, the company could disconnect the power supply without notice.

Also, when the customers’ installation is deemed to be dangerous to the DisCo’s network, the quality of supply to other customers, it would be justifiable to cut off the electricity supply of such customers.

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WHAT A DISCO SHOULD DO WHEN A CUSTOMER’S METER CANNOT BE ACCESSED 

According to NERC’s provision, due to omission by the customer, a meter in the premises of a customer cannot be read for three consecutive times, the serving DisCo could disconnect power supply.

The regulation stated further that this could be done only after the customer has been informed of the meter inaccessibility by written notice or telephone contact. This notification must include a request for the client to provide an access arrangement.

Furthermore, the provision said that the DisCo should proceed to issue a warning notice to the customer, stating that unless access is granted, in not less than 10 working days, electricity will be disconnected.

WHAT HAPPENS WHEN A CUSTOMER’S ELECTRICITY SUPPLY IS DISCONNECTED 

The Act noted that the DisCo has an obligation to notify its customer in writing — stating the date, time and reason for the disconnection. Also, the DisCo should inform its client about steps to take for reconnection.

FINE FOR WRONGFUL DISCONNECTION 

The Act stated that if a DisCo wrongfully disconnects its customer’s power supply, it would have to pay a penalty fee every day or part of a day for the period of wrongful disconnection.

The DisCo would be mandated to pay a daily fee of N1,000 for residential buildings, N1,500 for commercial buildings and N2000 for industrial and special customer classifications.

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Stopping fuel importation will create monopoly, sustain fuel crisis  – Marketers

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Stopping fuel importation will create monopoly, sustain fuel crisis  – Marketers

Three major oil marketers in the country, yesterday, asked the Federal High Court in Abuja to stop what they described as plot by Dangote Petroleum Refinery and Petrochemicals FZE, to monopolise the energy sector of the economy.

The marketers, including AYM Shafa Limited, A. A. Rano Limited and Matrix Petroleum Services Limited, maintained that allowing Dangote Refinery to takeover the oil sector would spell doom for the country.

However, efforts made to reach the Group Head, Communications, Dangote Group, Mr. Anthony Chiejina, last night, were unsucces-sful as several calls made to his known mobile phone were unanswered, while text and WhatsApp messages were not also responded to at press time.
The companies took the position in a reply they filed to challenge the competence of the suit Dangote’s firm filed to nullify licenses they secured to import refined petroleum products into the country.

The marketers were cited as defendants in the suit marked: FHC/ABJ/CS/1324/2024, which also has the Nigeria Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, and the Nigeria National Petroleum Corporation Limited, NNPC, as defendants.

It will be recalled that Dangote Refinery had, in its suit, queried the propriety of licences issued to other key oil marketers to bring refined petroleum products into the country when it has not recorded any shortfall in its own operations.

According to the plaintiff, NMDPRA acted in breach of Sections 317(8) and (9) of the Petroleum Industry Act, PIA, by issuing licenses for the importation of petroleum products to the defendants.

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The plaintiff told the court that the licences were issued to the defendants, “despite the production of AGO and Jet-A1 that exceeds the current daily consumption of petroleum products in Nigeria by Dangote Refinery.”

It, therefore, prayed the court to award N100billion in damages against the NMDPRA for allegedly continuing to issue import licenses to NNPCL and the other defendants for the import of petroleum products, such as Automotive Gas Oil, AGO, and jet fuel (aviation turbine fuel) into Nigeria.

Specifically, Dangote Refinery, among other things, applied for an order of injunction, restraining the 1st defendant (NMDPRA) from further issuing and/or renewing import licenses to the 2nd to 7th defendants or other companies for the purpose of importing petroleum products.

It further sought an order of court directing the 1st defendant to seal off all tank farms, storage facilities, warehouses, and stations used by the defendants for the storage of all refined petroleum products imported into Nigeria.

“An order of mandatory injunction directing the 1st defendant to withdraw immediately all import licenses issued to the 2nd-7th defendants and other companies other than the plaintiff and other local refineries for the purpose of importing refined petroleum products into Nigeria.

“An order of injunction restraining the 1st defendant from imposing and demanding a 0.5% levy meant for off-takers of petroleum products directly and an additional 0.5% wholesale levy in favour of MDGIF or any other levy or sum against the plaintiff.”

However, in their reply to the suit, dated November 5, 2024, the three marketers told the court that the plaintiff does not produce adequate petroleum products for the daily consumption of Nigerians, saying there was nothing before the court to prove the contrary.

The defendants told the court that they were well qualified and entitled to be issued a licence by the 1st defendant to import petroleum products into the country within the provisions of Section 317(9) of the PIA.

They argued that vesting the plaintiff with the power of monopoly in Nigeria’s petroleum industry, as it was seeking through the legal action, would kill competitive pricing of petroleum products in the country, further deteriorate Nigeria’s critically ailing economy “and unleash untold hardship on Nigerians, all of which constitute a recipe for disaster in the polity.

“That if Nigeria puts all her energy eggs in one basket by stopping importation of petroleum products and allowing the Plaintiff to be the sole producer and supplier of petroleum products in Nigeria, with liberty to determine the prices at which it supplies the products, the prices of petroleum products in Nigeria will continue to rise and energy security will elude Nigeria.

“That in the event of any breakdown in or obstruction to the production chain of the plaintiff which stops it from producing, Nigeria will be thrown into energy crises as Nigeria does not have the reserves that would last it for the at least 30 days that it would need to order, pay for, freight and import refined products into tanks in Nigeria.

“That amid the glaring absence of any credible and demonstrable proof that the Plaintiff refines and supplies adequate petroleum products for the daily use/consumption of Nigerians, giving the plaintiff judicial imprimatur to be the sole supplier of refined petroleum products to Nigerians, thereby encouraging monopoly in a major aspect of Nigeria’s oil industry, is a recipe for disaster in Nigeria’s energy sector,” the defendants added.

They insisted that granting the reliefs sought by the plaintiff, which is aimed at making it a monopolist in Nigeria’s petroleum sector, would leave Nigeria and Nigerians at the mercy of the olaintiff, with respect to availability and cost of purchasing petroleum products in the country.
More so, the defendants told the court that they were fully qualified for the import licences issued to them by the 1st Defendant, as they duly met all the legal requirements.

“The import licences lawfully and validly issued to the defendants did not in any way whatsoever, cripple the Plaintiff’s business or its refinery.

“The import licences issued to the defendants by the 1st defendant are in line with the provisions of Petroleum Industry Act, 2021, the Federal Competition and Consumer Protection Act, 2018 and other relevant laws,” the defendants averred.

Justice Inyang Ekwo had earlier adjourned the matter till January 20, 2025, to enable the parties explore an out-of-court settlement of the dispute, even as the plaintiff expressed its readiness to withdraw the suit.

 

Stopping fuel importation will create monopoly, sustain fuel crisis  – Marketers

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Electricity: DisCos increase prices of prepaid meters by 28.03%

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Electricity: DisCos increase prices of prepaid meters by 28.03%

Electricity Distribution Companies, DisCos, have announced a rise in the price of various electricity meter models, making it the second price hike in four months.

According to the DisCos, the cost of a single-phase meter has risen from approximately N117,000 to as much as N149,800. This amount indicates an increase of 28.03 per cent or N32,800, depending on the distribution company and meter vendor.

The new prices posted on the official X handle of the Discos yesterday were scheduled to take effect on Tuesday, November 5, 2024. It also reflected the deregulation of meter asset providers as directed by the Nigerian Electricity Regulatory Commission, NERC.

It was learned that the upward revision followed an earlier increase in August 2024, further amplifying concerns among electricity consumers about affordability and accessibility.

An analysis of the documents revealed that meter prices vary across DisCos, influenced by vendors and meter models (single-phase and three-phase).

Eko DisCo pegged the price of its Single Phase Metre between N135,987.5 and N161,035, while a Three Phase Metre was pegged between N226,600 and N266,600.

Ibadan DisCo said customers will pay between a range of N130,998 and N142,548 for a single-phase meter and N226,556.25–NN232,008 for a three-phase meter.

Customers under Abuja DisCo will pay N123,130.53–NN147,812.5 for single-phase meters and N206,345.65–NN236,500 for three-phase meters.

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Kano Electricity Distribution said its customers will pay N127,925–N129,999 for a single-phase metre and N223,793–NN235,425 for a three-phase meter.

Kaduna DisCo said N131,150—N142,548.94 would be paid for single-phase meters and N220,375—N232,008.04 three-phase meters.

In April, the Nigerian Electricity Regulatory Commission introduced a significant policy shift by announcing the deregulation of meter prices under the Metre Asset Provider, MAP, scheme for end-user customers.

The move was targeted at addressing lingering issues surrounding meter supply and pricing transparency within the electricity sector.

According to NERC’s latest order, meter prices under the MAP scheme will now be determined through competitive bidding, rather than being centralised.

This shift is expected to foster greater competition among meter providers, ultimately improving cost efficiency and service delivery for end users.

The deregulation removes earlier operational restrictions, allowing MAP permit holders to provide metering services across all electricity distribution companies in Nigeria.

However, MAPs must meet specific regulatory requirements to ensure compliance and maintain quality standards in service delivery.

Recall that NERC regulated meter prices, which were often subsidised across all DisCos to reduce costs for customers. While this model aimed to make metering affordable, it inadvertently stifled competition and limited transparency in the supply chain.

As a result, DisCos and customers were unable to negotiate or explore better deals from meter vendors, contributing to inefficiencies in the system.

With deregulation now in place, NERC anticipates a more dynamic metering ecosystem where customers and DisCos can benefit from competitive pricing, improved service quality, and greater accountability among meter providers.

 

Electricity: DisCos increase prices of prepaid meters by 28.03%

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Naira exchanges for N1,720/$ in parallel market

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Naira exchanges for N1,720/$ in parallel market

The Naira yesterday appreciated to N1,720 per dollar in the parallel market from N1,725 per dollar on Monday

Similarly , the Naira appreciated to N1,671.32 per dollar in the Nigerian Autonomous Foreign Exchange Market, NAFEM.

Data from FMDQ showed that the indicative exchange rate for NAFEM fell to N1,671.32 per dollar from N1,676.9 per dollar on Monday indicating N5.58 appreciation for the naira.

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The volume of dollars traded (turnover) in the official market increased by 124.4 percent to $218.77 million from $79.47 million traded on Monday .

Consequently, the margin between the parallel market and NAFEM rate widened to N48.68 per dollar from N48.1 per dollar on Monday .

Naira exchanges for N1,720/$ in parallel market

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