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CHEATERS: How DisCos Over-bill Customers By N105bn In 9 Months
The Nigerian Electricity Regulatory Commission, NERC, has imposed a N10.5 billion fine on electricity distribution companies, DisCos, for over billion customers without meters to the tune of 105.05 billion in the first nine months of 2023.
The Commission in separate Orders issued to the DisCos on Friday said the utilities were in breach of an Order it issued in 2020 on capping of electricity billed to unmetered customers by the DisCos.
A selected check on the orders showed that Abuja Electricity Distribution Company, AEDC, over-billed its customers without meters to the tune of N17.874 billion while Eko Distribution Company, EKEDC, over-billed its unmetered customers by N13.137 billion.
Port Harcourt Electricity Distribution Company, PHEDC, over-billed its customers without meter by N14.187 billion with Kaduna Electric over-billing its customers by N1.145 billion.
NERC ordered the DisCos to refund the cheated customers in full and to ensure compliance in the future. To deter future occurrence, it imposed a 10 percent fine on the utilities.
The Commission explained that “The public may recall that in 2020, the Commission issued the Order on Capping of Estimated Bills (Order No: NERC/197/2020) and subsequently issued monthly energy caps which aimed to align the estimated bills for unmetered customers with the measured consumption of metered customers on the same supply feeder.
“A review of the Electricity Distribution Companies billing of unmetered customers for 2023 has revealed non-compliance with the monthly energy caps issued by the Commission.
“In response to this and in a bid to safeguard unmetered customers from arbitrary billing by DisCos, the Commission, pursuant to Section 34(1)(d) of the Electricity Act 2023 (“EA 2023”), has issued the Order on Non-Compliance with Capping of Estimated Bills (Order No: NERC/2024/004-014) which stipulates the following: “Credit Adjustment to Customers: DisCos are to issue credit adjustments to all overbilled unmetered customers for the period January to September 2023 by the March 2024 billing cycle.
“Public Notice: DisCos have been directed to publish the list of credit adjustment beneficiaries in two national dailies and on their website no later than 31st March 2024.
“Regulatory Sanctions: The Commission shall deduct a sum of N10,505,286,072 from the annual allowed revenues of the eleven (11) DisCos during the next tariff review, to deter future non-compliance with the energy caps approved by the Commission”.
Specifically, for Eko DisCo, the Commission said: “To forestall further non-compliance, a deduction of N1,413,766,176 which is equivalent to 10% of the Naira value of the total over-billing for the period January – September 2023 shall be applied to EKEDC’s annual OpEx over a rolling 12-month period during the next tariff review.
“Notwithstanding the provisions of section (11B)(i), and pursuant to the provision of section 34(2)(f) of the EA 2023, the Commission may deduct a greater percentage of the total over-billing from EKEDC’s admin OPEX where a non-compliance with capping Orders persists”.
News
Telecoms subscribers threaten to sue NCC over 50% tariff hike
By Francesca Hangeior
The National Association of Telecoms Subscribers (NATCOMS) says it will sue the Nigerian Communications Commission (NCC) over the 50 percent tariff hike.
On January 20, the NCC approved the request of telecommunications companies (telcos) to increase tariff.
The adjustment came after the Association of Licensed Telecommunications Operators of Nigeria (ALTON) and the Association of Telecommunications Companies of Nigeria (ATCON) raised several concerns and asked the NCC to review call tariffs upwards.
Karl Toriola, the chief executive officer (CEO) of MTN Nigeria, said telcos wanted a 100 percent increase in tariffs.
But in approving the operators’ request, the NCC capped the tariff increase at 50 percent — lower than the telco’s demand by half.
Reacting to the development, Deolu Ogunbanjo, president of NATCOMS, said the NCC did not carry subscribers along in the arrangement.
Ogunbanjo said NATCOMS understood the dilemma faced by the telecoms industry and had suggested a 5 percent to 10 percent marginal increase in tariff.
He said the federal government’s approved 50 percent tariff hike is unacceptable.
“This will affect everyone from the biggest industry to the smallest company, such as the Point of Service (POS) operators,” Ogunbanjo said.
“It will increase operational costs.”
Ogunbanjo said economic experts had x-rayed the telecoms sector and said it was in intensive care, meaning that it needed to be attended to.
“We now depend on telecoms for our meetings, for the banks, everybody depends on it even the education sector, yes, a lot of things depend on it,” he said.
“So, that is why we painfully agreed that, look, a moderate or marginal five per cent to 10 percent increase will be fine.
“You know, we do not mind an increase if it is to salvage the industry that is helping us, that means so much to us and that is also contributing double-digit to Nigeria’s gross domestic product (GDP).
“So, we appreciate that. It’s painful, but we agreed. We said, okay, we will not mind if it is just a five percent to 10 percent increase.”
Ogunbanjo said if the operators need funds, they should explore the Nigerian exchange for options for financing.
“The industry operators can opt for an Initial Public Offer (IPO) for Nigerians to buy shares in their companies as a way of raising funds,” Ogunbanjo added.
“However, a situation where a whole 50 percent is granted for tariff hike is not cheap and it is a no! no! from us subscribers.
“I mean, for what we are already going through, no for us, we will challenge this in court.”
On January 16, Bosun Tijani, the minister of communications, innovation, and digital economy, said a hike in telecom tariffs would not exceed 60 percent.
Tijani had said a 100 percent increase would hurt Nigerians and hamper the country’s economic growth.
News
SAD: FCT commissioner of police loses son in car accident
By Francesca Hangeior
The Federal Capital Territory (FCT) Commissioner of Police has lost his son in a car accident that reportedly happened on Monday.
Although the circumstances surrounding the young man’s death remain unclear, family sources have described the loss as heartbreaking.
CP Disu was on a condolence visit to CSP A.A. Sambo, the Divisional Police Officer (DPO) of Ushafa Division, whose son had recently passed away when he received the news of his own son’s death.
News
6.4 magnitude earthquake rattles Taiwan, injures 27
By Francesca Hangeior
At least 27 people were reportedly wounded after a 6.4 magnitude earthquake has struck the south of Taiwan.
The country’s Central Weather Administration (CWA) said the quake had a depth of 9.4 kilometres (6 miles) with its epicentre in Dapu township in Chiayi county, and hit shortly after midnight on Tuesday.
The full extent of the damage is still being assessed. The main tremor was followed by several smaller quakes.
CWA said there have been dozens of aftershocks, including two with a magnitude of five or higher, mostly in Tainan, adjacent to Chiayi.
The National Fire Agency (NFA) added that several buildings in disaster-stricken areas of southern Tainan City collapsed, trapping some individuals who were later rescued.
The fire agency said 15 people were sent to hospital for minor injuries. Among them were six people, including one child, who were rescued from a collapsed building.
The NFA also reported cases of road and infrastructure damage, along with power outages impacting parts of the country.
Taiwan lies along the Pacific ‘Ring of Fire’, the line of seismic faults encircling the Pacific Ocean where most of the world’s earthquakes occur.
Last April, a 7.2-magnitude quake struck eastern Taiwan, claiming at least 18 lives and injuring more than 1,000 people.
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