FCCPC Orders DisCos to Refund Customers for Transformer Investments
The Federal Competition and Consumer Protection Commission has directed the Ibadan Electricity Distribution Company to reimburse customers for any funds they spend on purchasing transformers, poles, cables, and other equipment.
At the FCCPC Electricity Consumer Forum held in Ota, Ogun State, Tunji Bello, who serves as the CEO/Exective Chairman of FCCPC, issued this instruction.
Bello, represented by Commission official Mrs. Bridget Etim, stated that it is not the responsibility of consumers to purchase transformers, cables, or electric poles. He emphasized that these investments should be reimbursed by the Disco when they are made.
During a gathering in Ilogbo, within the Oju-Ore section of the Ado-Odo/Ota Local Government Area in Ogun State, representatives from different Community Development Committees and associations claimed that the IBEDC has not addressed their grievances even though they have sent multiple letters to the relevant authorities.
Mr. Olatunji Onaolapo, the Chairman of the Ado-Odo/Ota Zonal CDC, expressed his dissatisfaction with the indifferent approach displayed by the IBEDC officials towards matters within the local government area.
As he puts it, customers purchase all the items that ought to be supplied by the Disco, but numerous communities still lack electricity.
"In just Itele Ota, our community has purchased as many as 80 transformers. Not a single one was bought by IBEDC. We would be willing to cover the costs for activation; we’d essentially plead with them to come and set up the transformer they're meant to acquire. This situation is unjustified," Onaolapo claimed.
In response, the head of IBEDC in Ogun State, Abdulrasaq Jimoh, attributed the issue to the communities purchasing transformers without involving the Disco.
Jimoh stated that the communities should notify the Nigerian Electricity Regulatory Commission about their plan to acquire transformers and other necessary equipment for power supply in their regions prior to making such purchases.
Nevertheless, FCCPC representative Etim cut off IBEDC’s Jimoh, stating, "I beg to differ."
Etim advised the Ibadan DisCo to take lessons from Jo’s Disco, which recently returned money to its customers without any intervention from either NERC or FCCPC.
We will not accept this as a commission. Regarding the incidents that occurred previously, we were unaware of them. We informed the IBEDC earlier that for future investments in network zones, profits should be returned to the investors (consumers). The past instances were inadequately recorded on our end; however, any future occurrences must result in refunds.
I am making these corrections since the Disco states that you must use NERC. Should you inform the Disco about your intention to invest, they are responsible for escalating this to the regulatory body, as this is how the community is proceeding.
"In reality, allow me to inform IBEDC that Jos DisCo has been forced to reimburse a community that committed funds into their infrastructure without notifying either NERC or FCCPC. I expect IBEDC to make changes and improve," stated Etim.
Moving ahead, she advised Nigerians to notify the FCCPC about their intentions to invest in the DisCos infrastructure to secure refunds via energy credits.
During her presentation of the EVC’s opening remarks, the head of the FCCPC mentioned that the three-day symposium was organized pursuant to Sections 17, 127, 130, and 151 of the Federal Competition and Consumer Protection Act of 2018.
She stated that the forum aimed to close the gap between consumers and service providers within the electricity sector.
Electricity goes beyond being just another product; it serves as an essential utility driving economies, enterprises, and advancement. Nonetheless, the sector faces ongoing problems like inadequate measurement systems, incorrect charges, and infrastructural hurdles, necessitating prompt and joint efforts for solutions.
This event offers a platform for constructive conversation without opposition. Participants will receive clear insights into their rights and duties, while representatives from the Ibadan Electricity Distribution Company will be present to handle complaints immediately. This initiative supports our primary mission to guarantee that consumer protection is effective, readily available, and prompt.
At the core of the FCCPC's efforts lies the understanding that electricity customers have a right to fairness, transparency, and accountability," she stated, citing the executive vice-chairman. "Our mission as outlined in the FCCPA involves educating and informing consumers regarding their rights; assisting with complaint resolution and remediation; promoting ethical business conduct among service providers; and fostering cooperative interactions aimed at enhancing overall service provision within the industry.
During the event, representatives from the IBEDC were present to promptly address customers' concerns and ensure they were resolved instantly.
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