The Powers of NERC to

Regulate Electricity
Consumers’ Rights as
contained in the EPSR Act
2005.
By
Dr. Grace Eyoma
Commissioner, Government and Consumer Affairs
Nigerian Electricity Regulatory Commission
 Outline

„ Brief on NERC
„ Specific Mandates of NERC
„ Consumer Issues in Utility Regulation
„ What Does a Consumer Want?
„ Customer Protection under the EPSR Act 2005
„ Customer Service Standard
„ Electricity Consumer Rights
„ Overview of NERC Customer Complaints Handling Procedures
- Customer Complaints
- Customer Complaints Unit
- Forum – Establishment
- Notifying Customer
- Filing complaints to the Forum
- Forum Complaints Procedure
- Appeals
„ Conclusion

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 Brief on NERC
• NERC was set up under the Nigerian Electricity Power
Sector Reform Act 2005 to oversee the activities of the
power sector in Nigeria
• Appointment/Removal Procedures/Tenure
• Seven Commissioners head divisions with defined
portfolios.
Divisions:-
• Office of the Chairman & Chief Executive Officer
• Market Competition & Rates
• Government & Consumer Affairs
• Legal Support & Licensing
• Research & Development
• Engineering Standards & Safety
• Finance & Support Services 3
 SPECIFIC MANDATES OF NERC

„ Promote efficiency in the provision of electricity services

„ Maximise access to electricity services in rural and urban
areas
„ Ensure fair prices to consumers and earnings for
investors to cover cost of operations and reasonable
returns on investments
„ Ensure safety, adequacy, reliability and quality in the
production and supply of electricity to consumers
„ Ensure fair regulations for licensees, consumers,
investors and other stakeholders

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 Consumer Issues In Utility
Regulation
„ Consumer rights are defined in terms of
… Pricing/quality of service
… Access to utility services

„ Regulatory actions relating to consumers

… Protecting consumer interests
… Dealing with consumer complaints
… Raising consumer awareness of their rights
… Involving consumers in the regulatory process

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 WHAT DOES A CUSTOMER WANT ?

Quality &
Reliability
Of Service

Accuracy
Easy Payment CUSTOMER
Of Bill
Mechanism

Prompt
Complaint
Handling

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 Customer Protection Under The
EPSR ACT 2005
„ S(80) of the EPSR Act 2005 made the following provisions for Customer
Protection:
… Customer services standards
… Customer complaint handling standards and procedures
… Codes of practice for the provision of assistance to special needs customers,
such as the blind or disabled, the elderly or severely ill
… Procedures for dealing with, and assisting where necessary, customers who
have difficulty in paying bills
… Procedures for applying for electricity service
… Procedures for disconnecting non-paying customers or for those breach of other
terms and conditions of an applicable tariff or contract
… The information to be provided to consumers and the manner of its
dissemination
… Establishment of standards for compensation to consumers who do not enjoy
regular power supply

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 Customer Service Standards

„ NERC has developed minimum standards for distribution companies in

dealing with electricity customers.
„ Stakeholders’ input is being sought to ensure acceptance and uniform
application. These minimum standards are as follows;
„ Distribution companies must:
… visit customers in case of loss of supply due to equipment
failure within 24 hours
… make an appointment to connect a new customer within 10
working days after first receiving the request
… provide required estimates for connection charges within 3
working days of request
… provide customers with a minimum of three working days
notice of planned interruptions
… visit a customer’s premises within 24 hours of a report of
poor quality power supply (voltage drop)

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Customer Service Standards (Cont’d)
… visit a customer’s premises to test a faulty meter within three
working days of a problem being reported
… reconnect within 24 hours of all payments being made by a
customer after disconnection. All necessary reconnection
charges must be paid by the customer.
… complete work on repositioning of meter within five working days
of the request and payment of the amount quoted to carry out
the work
… where a customer reports a fault on a prepayment meter, visit
the customer’s premises within 24 hours to inspect and rectify
the fault or replace the meter
… carry out at least once every three months, an actual reading of
all meters installed within a distribution company’s network.

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 Electricity Customers’ Rights
„ Right to Electric Service
„ Right to Accurate Electric Meter (Credit/Prepaid); within prescribed
Error margin
„ Right to Properly Installed Meter
„ Right to Transparent Billing (itemized, actual readings)
„ Right to Refund of Overbillings
„ Right to Prompt Investigation of Complaints
„ Right to Information on Scheduled Power Interruptions
„ Right to a Notice Prior to Disconnection
„ Right to Due Process Prior to Disconnection of Electric Service
„ Right to Reconnection of Electric Service upon payment
„ Right to file Complaints

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 Overview of NERC Customer
Complaints Handling Procedures
„ Objectives:
… To establish institutional framework for
addressing customer complaints
… To ensure customer satisfaction by creating
other avenues of redressing complaints not
properly handled at distribution companies’
level.

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 Customer Complaints
„ “Complaint” means any allegation in writing made by a
complainant, which may include but is not restricted to, the
following: -

… there exists a defect or deficiency in the electricity service

provided by the Distribution Licensee;

… an unfair trade practice or a restrictive trade practice undertaken

by the Distribution Licensee in providing electricity services;

… the Distribution Licensee has for the electricity services

mentioned in the complaint, charged a price in excess of the
price fixed by the Commission, for supply of electricity and allied
services;

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 Customer Complaints (Contd.)

… the electricity service provided by the Distribution Licensee

may be unsafe or hazardous:

… recovery of expenses incurred in excess of charges approved by

the Commission in providing an electric line or electric plant.

… any other act that affects the fulfillment of the contractual relation
between the customer and the Distribution Licensee; or is in
contravention of the provisions of any Order of the Commission
or law for the time being in force;

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 Customer Complaints Unit
„ At Least One Established In Each Distribution Area

„ Headed By Senior Officer – “Customer Complaints Officer”

„ Staffed By Distribution Company Staff

„ Complaints Must Be Handled In Accordance With Distribution

Company’s Own Written Complaints Procedure As Approved By
Commission.

„ Complaints Must Be In Writing (Including E-Mail).

„ “Customer Complaints Officer” Will Write “Statement Of Complaint”

For Non-Literate Customers

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 Customer Complaint Unit
„ Complaints Must Be Resolved Within 15 Working Days But
Provision Exists To Extend If Required.

„ Customer Must Be Advised Of Progress At Least Every 15 Working

Days.

„ Any Customer Dissatisfied With Outcome Or Where Resolution Of

Complaint Delayed Can Appeal To “Forum”

„ Where A CUSTOMER IS DISSATISFIED with the Decision of the

CCU such Customer may Refer the Complaint To the “Forum”.

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 Forum
„ The Commission Shall Establish A Forum In The Operational Area
Of Each Distribution Company.

„ Secretary & Administrative Support Provided By Commission.

„ Office Space And Other Required Facilities Provided By Distribution

Companies

„ The Forum Shall Comprise Five Part-Time Members:

… Representative Of Household Customers

… Representative Of Commercial Customers
… Representative Of Industrial Customers
… Representative Of NGO Operating In Distribution Company’s
Area
… Qualified Electrical Engineer Based In Distribution Company’s
Area 16
 Notifying Customers
„ Distribution Companies Shall Notify Their Customers Through
Public Notices Of:
… Customer Complaints Procedure
… Customer Complaints Unit
… Forum
„ Distribution Companies Will Provide Customers With The Written
Complaints Procedure Free Of Charge.
„ Distribution Companies Will Publish The Forum’s Contact Details
And The Complaints Procedure At Regular Inervals.
„ Distribution Companies Will Obtain a Post Office Box For Both The
Customer Complaints Unit And The Forum.

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 Notifying Customers
„ Electricity Bills Issued To Customers Shall Contain The Following
Information For The Forum:
… the address,
… post office box number,
… telephone numbers
… e-mail address
„ Electricity Bills Will Also Contain The Following Statement:
… “Customers whose complaints are not satisfactorily addressed
by the Customer Complaints Unit of the Distribution Company
may approach the Forum established for customer complaints”

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 Filing Complaints To The Forum

„ All Complaints Submitted To The Forum

Must Be In Writing Including The Use Of
E-Mail

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 Forum Complaints Procedure
„ All Complaints Will Be Registered And Acknowledged Within 3
Working Days Of Receipt.

„ All Organisations Acting On Behalf Of Customers Must Provide

Written Authority From The Customer

„ Whether To Hear Or Reject A Complaint Must Be Made Within 10

Working Days Of Receipt

„ Complaints Will Be Rejected If The Forum Decides That They Are

Frivolous, Vexatious Or Lack Merit.

„ Customers Must Be Informed That Their Complaint Has Been

Rejected Within 5 Working Days And May:
… Re-Submit Complaint
… Appeal To Commission

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 Forum Complaints Procedure (Contd.)

Complaint Referred To Customer Complaints Officer Who Must

Respond Within 10 Working Days.
Complaint Considered By Forum & Decision Given Within 2 Months Of
Receipt.
Forum May Make Interim Decision But Final Decision Must Be Within 2
Months Of Receipt Of Complaint.
Where Complaint is Upheld The Forum may Instruct The Distribution
Company To:
…return to the complainant the wrongful charges paid by him;
…remove the defects/deficiencies in the services the subject of the complaint;
…discontinue the unfair trade practice or the re-strictive business practice or not
to repeat them;
…withdraw the hazardous electrical services being offered ; and
…provide for adequate costs to the claimant.

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 Forum Complaints Procedure
(Contd.)
„ Where Unproven The Forum May Reject Complaint

„ All Decisions By The Forum Will Be In Writing & Signed By the

Chairman

„ All Decisions Will Be Provided To Both Distribution Company And

Complainant

„ Where Necessary The Distribution Company Will Implement The

Decision Of The Forum And Confirm Implementation To The Forum
Within 5 Working Days Of The Instruction.

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 Appeals Procedure
„ Both The Distribution Company And The Customer Have
Right Of Appeal To The Commission.
„ Appeals Must Be Submitted Within 10 Working Days Of
The Forum’s Decision
„ The Commission Shall Not Entertain An Appeal By A
Complainant Who, In Terms Of A Decision By A Forum,
Is Required To Pay An Amount To A Distribution
Licensee Unless That Amount Has Been Paid.

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Additional Protection for Vulnerable Consumers in
The EPSR Act 2005

„ S 83 Provides for the Power Consumer Assistance Fund

… Introduction of ‘lifeline tariff’ (e.g. for consumers below
certain prescribed kw/hr per month)
… Funding to be sourced from customers.
„ S 88 Provides for a Rural Electrification fund
… Subsidy to investors to enhance electricity access to
rural consumers
… This would be administered through the Rural
Electrification Agency

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 CONCLUSION

„ Customer is king but must pay for

services.

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THANK YOU

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