In a decisive move towards ensuring transparency and fairness in the nation’s power sector, the Minister of Power, Adebayo Adelabu, has announced the federal government’s commitment to eliminating estimated billing by the end of the year.
The controversial practice, predominantly employed by Distribution Companies (DisCos) for revenue generation, has sparked discontent among consumers, who view it as exploitative.
Minister Adelabu made this declaration during his working tour of power facilities in Nigeria, with a specific focus on the Ibadan Electricity Distribution Company (IBEDC). The visit aimed to foster increased collaboration with key stakeholders to explore avenues for advancing the power sector.
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Highlighting the widespread metering gap in the country, the minister revealed that approximately 50% of customers within the IBEDC’s coverage area still lack proper metering. He expressed concerns about the negative implications of estimated billing, stating, “Citizens are tired of estimated billing because it always leads to cheating between consumers, staff, and the company.”
“Citizens are tired of estimated billing because estimated billing always leads to cheating between consumers, staff and company,” he added.
“Before the end of this year, we are looking at the possibility of ending estimated billing because we want transparency and objectivity in our billing system.”
Assuring Nigerians of the government’s commitment, Adelabu disclosed that President Tinubu has established a Presidential Metering Initiative to address the metering gap. The initiative aims to close the gap of eight million meters within three to five years, requiring an annual acquisition of two million meters. The minister said that achieving this target is crucial for citizens to enjoy a stable power supply.
“We have up to eight million meters gap in Nigeria and what the initiative seeks to achieve is to close this gap within three to five years,” he said.
“This means that an average of two million meters is required on a yearly basis and achieving the target is compulsory for citizens to enjoy a stable power supply.’’
In addressing concerns about potential electricity tariff reviews, Adelabu stressed the need for a gradual and cautious approach. He vowed that any tariff adjustments would undergo thorough sensitization and public enlightenment to ensure minimal impact on low-income earners and those in areas with limited power supply duration.
The minister also criticized the practice where communities pool funds to procure transformers, cables, and other electrical equipment, pledging a halt to such practices.
Will it work this time?
Despite previous efforts, over 50% of Nigerian electricity consumers remain unmetered, and the Meter Asset Provider (MAP) initiative, launched in 2018, has not effectively bridged the gap.
The Nigerian Electricity Regulatory Commission (NERC) approved the MAP regulation, allowing approved third parties to supply, install, and maintain end-user meters to fast-track the closure of the metering gap and encourage independent and competitive meter services in the electricity industry.
However, nearly six years since the initiative kicked off, Nigerian electricity consumers are still groaning under the extortive pains of estimated billing.
However, as consumers continue to grapple with the challenges of estimated billing, the Ministry of Power has yet to provide detailed plans for the implementation of its latest consumer protection initiative. Nigerians will have to wait until the end of 2024 to witness the fruition of the government’s commitment to ending estimated billing and promoting a more equitable and transparent billing system.