Disco Explains Reasons Customers May Not Get Refunds For Investment In Transformers, Cables, Others
- The Federal Competition and Consumer Protection Council (FCCPC) directed Discos to refund customers for investment in infrastructure
- The announcement triggered happy reactions from the customers, but this may no longer be the case
- Discos have explained why some customers may not get their money refunded despite the FCCPC directive
Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.
The Federal Competition and Consumer Protection Council (FCCPC) has declared that electricity distribution companies must refund Nigerian consumers for any money invested in electricity infrastructure, such as transformers and cables.
The consumer protection agency stated that it is not the responsibility of customers to make such purchases. If they have, the distribution companies must refund the money.
The FCCPC boss said this at a town hall meeting at Ado-Odo, Ota, Ogun state, with consumers, industry stakeholders and Disco representatives in attendance.
Source: Twitter
However, the Discos have now explained why customers may not be able to get refunds.
Disco staff explains why customers may not get refunds
The Zonal Head, Ibadan Electricity Distribution Company (IBEDC), Ogun Region, Engr. Abdulrazak Jimoh explained that even though there is a directive for Discos to compensate customers who invest in electricity infrastructure, such as transformers, not all customers may get refunds.
After the town hall meeting with customers in Sango Ota, Ogun state, Jimoh told the Nigerian Tribune that customers do not receive refunds for meters, poles, and transformers they purchase because they fail to adhere to the guidelines.
He said:
“The challenge is that though investments into the company’s facilities are recoverable, such recovery can only be achieved when the procedures for investments are properly followed.”
He noted that the IBEDC had started taking on the repairs or replacements of transformers where they are needed.
Commenting on the state of the power supply, Engineer Jimoh stated that the Disco could only distribute what it had received from the generation companies.
He added that the power generation in Nigeria had not grown fast enough to match the population explosion, hence the decision of the Discos to ration power supply.
Power supply worsens despite N1.7 trillion Disco revenue
Electricity distribution companies have seen a 70% increase in revenue, amounting to N700 billion, following the tariff hikes for Band A consumers.
Despite the increased income from higher tariffs, power supply remains low, with unresolved complaints about metering, inflated bills, unlawful disconnections, and other issues.
Recall that the Manufacturers Association of Nigeria (MAN) recently released its 2024 report to show that alternative energy costs grew by 42.3% compared to the previous year.
By implication, manufacturers spent over N1.1 trillion on alternative energy costs due to the poor power supply from the grid.
Source: Twitter
Legit.ng earlier reported that several companies and manufacturers are moving off the grid to generate their own power needs.
FCCPC directs Disco to refund Nigerian consumers
In related news, Nigerian electricity consumers no longer have to bear the responsibility of providing core infrastructure like transformers and poles.
This is according to a recent directive from the Federal Competition and Consumer Protection Commission.
The commission has insisted that the Discos must step up to their responsibilities and refund customers when they provide such critical infrastructure.
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Proofreading by Nkem Ikeke, copy editor at Legit.ng.
Source: Legit.ng
