Despite Govt Efforts, Electricity Customers on Estimated Billing Jump to 6.03m

Emmanuel Addeh in Abuja

Despite recent efforts by the federal government to reduce electricity customers on estimated billing, the number of Nigerians who are still billed under the controversial policy hit 6.03 million in the third quarter of 2023, data from the National Bureau of Statistics (NBS), has shown.

Generally, estimated billing is a system of charging unmetered electricity consumers for electrical energy consumed based on their previous usage, without, in most cases, scientifically considering the actual quantity of energy consumed.

A poll in May last year by NOI, a polling research and analytics agency, showed that at least 57 per cent of consumers connected to the national grid were still being overcharged with the deployment of estimated billing.

However, the NBS report indicated that estimated customers during the quarter were 6.03 million, higher by 0.53 per cent from 6.00 million in Q2, 2023.

On a year-on-year basis, estimated customers increased by 2.02 per cent in Q3 2023 from 5.91 million in Q3, 2022, despite recent efforts by the federal government to rev up meters’ penetration.

A report by the Nigerian Electricity Regulatory Commission (NERC), recently, stated that since the privatisation of the power sector in 2013, several initiatives of the commission as well as the federal government mass metering resulted in deployment of 2.4 million meters.

It added that less than 10 per cent of meters post-privatisation,  that is, 212,553 had been funded by the Distribution Companies (Discos).

On the other hand, various schemes by government, including the credit advanced payment, showed that 410,796 meters were installed under that programme while meter asset providers scheme saw the installation of 1.082 million meters.

In addition, under the national mass metering programme, 882,675 were installed, totalling 2.58 million meters since 2013 when the sector was privatised.

But according to the NBS report, total customer numbers in the quarter stood at 11.71 million from 11.47 million in Q2 2023, showing an increase of 2.08 per cent.

On a year-on-year basis, customer numbers in Q3, 2023, it said, rose by 7.09 per cent from 10.94 million reported in Q3, 2022.

“Similarly, metered customers stood at 5.68 million in Q3 2023, indicating a growth of 3.77 per cent from 5.47 million recorded in the preceding quarter. On a year-on-year basis, this grew by 13.07 per cent from the figure reported in Q3, 2022 which was 5.02 million,” it said.

Revenue collected by the Discos during the period was N260.16 billion from N263.08 billion in Q2 2023. But on a year-on-year basis, revenue generated in the reference period rose by 28.40 per cent from N202.62 billion recorded in Q3 2022.

Electricity supply was 5,731.60 (Gwh) in Q3 2023 from 5,909.83 (Gwh) in the previous quarter, a reduction in the power made available to Nigerians. However, on a year-on-year basis, electricity supply increased by 14.09 per cent compared to 5,023.96 (Gwh) reported in Q3 2022, the statistics office stated.

Many unmetered consumers, have at various times said the estimated billing system in the power sector is exploitative and is allegedly designed primarily to rip them off their money.

Yet, a number of them insist that efforts to get a prepaid meter for their houses and businesses had failed severally, expressing frustration that the power suppliers probably gain more by deploying the estimated billing system.

But the Executive Director, Research and Advocacy of the Association of Nigerian Electricity Distributors (ANED), Sunday Oduntan, said at the weekend that estimated billing was not in the interest of the Discos, stressing that there is a “methodology” to it.

“Whoever said Discos make more money from estimated billing is speaking out of ignorance. When people have meters, they can calculate their consumption, and they can on their own know what they are consuming,” Oduntan said.

On its part, NERC stated that if unsatisfied, customers can escalate issues to the NERC Forum Office or appeal decisions by petitioning the commission.

Last year, the House of Representatives directed the NERC to prevail on distribution companies to stop the estimated billing of electricity consumers across the country.

The House also urged NERC to sanction the Discos for their poor supply of power to consumers and devise means of working out compensation packages for individuals, communities private, and public entities for the investment in the distribution network. No action was taken on the resolution.

However, in all, according to the NBS data, Ibadan led the Discos with the highest number of estimated customers with 1.32 million customers, followed by Enugu Disco 694,330 with unmetered customers.

The two were trailed by Benin Disco with 651,564 customers, then Kaduna Electric with 630,141 unmetered Nigerians and Abuja Disco, which had 546,770 customers without metering devices as of Q3, 2023.

During the period under review, Yola Disco had a 510,370 deficit, Jos was 482,045, Kano had 465,440, Eko Disco had 254,904 unmetered customers while Port Harcourt and Ikeja had 240,137 and 227,062 unmetered customers respectively to hit 6,032, 138 Nigerians without meters out of a total of 11.713 customers.