The Ibadan Electricity Distribution Company is facing backlash for implementing a new policy that raises the minimum energy credit purchase for Band A customers to N5,000.
Customers in other bands are now required to purchase a minimum of N2,000 worth of energy credit. This policy has sparked outrage among consumer groups.
In a notice to its customers, IBEDC stated, “Please be informed of a recent update regarding IBEDC electricity recharge. Users on Band A must now make a minimum recharge purchase of N5,000. Users in other bands must make a minimum purchase of N2,000. Kindly note that this new payment structure is effective already and applies exclusively to IBEDC customers.”
Prior to this change, customers were allowed to purchase energy credit in any amount, a practice still allowed by other distribution companies, unlike IBEDC.
IBEDC spokesperson, Busolami Tunwase, defended the move, stating that the policy aims to curb energy theft but did not elaborate on the measures involved.
“It’s part of efforts at curbing energy theft,” Tunwase simply remarked when contacted by the media.
An anonymous IBEDC official explained further, asserting that a review of the vending platform revealed that some customers were purchasing minimal amounts that lasted them an entire month, which seemed unrealistic.
“If a Band A customer vends 50 units, the amount to pay is N10,450 exclusive of VAT. So, this means the customer is using less than two units a day for one month? We think this is practically impossible,” the official pointed out.
They also suggested that some customers may be bypassing meters, paying less for a stable power supply.
National Coordinator of the All Electricity Consumers Forum, Adeola Samuel-Ilori, expressed strong opposition to the policy, urging IBEDC to reverse the decision to avoid potential legal action.
“It’s unacceptable to take away the right of people to choose what their purchasing power can afford. Electricity is not a privilege but a right under the constitution and power sector law of operation. A reversal will be required in my official letter to the IBEDC this week. And after the ultimatum, we may engage litigations to compel reversal,” Samuel-Ilori said.
Convener of PowerUp Nigeria, Adetayo Adegbemle, also criticized IBEDC’s policy, questioning its compliance with Nigerian Electricity Regulatory Commission regulations.
“I don’t think there’s anything in the Nigerian Electricity Regulatory Commission’s regulation that supports such limitations from IBEDC. I understand IBEDC is trying to raise its collections, but it needs to be careful not to incur further penalties from the regulators,” Adegbemle remarked.
He added that the policy would not address energy theft but might exacerbate the problem if customers are unable to purchase credits that align with their financial means.
President of the Nigeria Consumer Protection Network, Kola Olubiyo, confirmed that both the Federal Competition and Consumer Protection Commission and NERC are investigating the allegations.
“The very essence of promoting a competitive electricity market and the right to choice and freedom of the end-user customers in these particular circumstances are being undermined. It is an absurdity and an unthinkable monopolistic conscription of the demand side of the market,” he said.
Executive Director of the Electricity Consumer Protection Advocacy Centre, Princewill Okorie, shared concerns that the policy is detrimental to consumers and does not align with their realities.
“The power sector is increasingly becoming oppressive and anti-consumer friendly, reeling out policies that are not in line with realities,” Okorie lamented.
He further questioned why consumers would be forced to buy more energy than they need, adding, “The Federal Competition and Consumer Protection Commission should be approached to do its job of protecting consumers in line with the provisions of their Act. Why will a consumer be forced to buy the quantity of product he is not ready for? This administration needs to explain if they are here to protect the welfare and security of the people or to oppress them. Civil liberty and civil rights need to be protected.”
