THE ATTITUDE OF DISCO FIRMS: WHEN TENANTS GHOST THEIR BILLSESV Kelechi K.Agu, MNIVS, RSV,NIM
Knowing fully well that the cost of power is increasing by the day and the effect on property management, it raises critical queries:
Why is it that the electricity companies are not quick to follow up when a tenant vacates a property with unpaid bills?
When will they start routine checks for By-Pass on post-paid meters?
Why change a functioning meter and then mount it outside where weather elements affect it?
What is the basis of exorbitant estimated bills and what are the parameters in billing?
Why mount pressure on property owners/managers and new tenants?
DISCOS RESPONSE – The easy way is for Property Owners/managers or the new tenants are made to clear the outstanding bills and the cycle continues to next property.
WHY THE NONCHALANCE BY THE DISCOS?
-Cost‑benefit analysis – Going after the ghost tenant is more costly than the unpaid bill, so it is cheaper for the utility to write it off as a loss of which is never done.
-Meter tampering “by‑passes” – When a tenant bypasses the meter, the Disco may not even know the exact consumption, so they can’t prove the loss.
WHO BEARS THE BRUNT OF THIS NONCHALANCE?
- Property Owners: They are saddled with unpaid electricity charges,reconnection fees,reduced income and very high outgoings.
- Property managers: They are called negligent, with administrative hassle, potential liability and strained relationships with owners
- New occupants: Security deposits are higher, they bear embarrassment from the discos for outstanding bills and most times are forced to clear the bills.
THE RIPPLE EFFECT
- Higher rents – To cover the gap, landlords often raise rent or add a utility surcharge.
- Trust – Property Managers scare honest renters with high cost rents.
- Service strain – Discos are now raising rates to band A and other hidden bills so as to offset the outstanding.
HOW CAN THIS BE CURBED?
- PROFILING OF PROSPECTIVE TENANT – Due diligence should be carried out, check the guarantors and increase the Caution/Refundable deposits.
- Digitalization all the process and reduce interface .
- Create a database system nationwide that Estate Surveyors could report any defaulter .
- Ensure periodic updates and and followups to avoid lapses.
- Employ adequate staff for up to date reports.
- Use BVN to track defaulters
- Legal reforms – Expedite legal processes for litigations in this regard
- Digital metering – Systemic plan to detect and forestall any bypass and track and prosecute defaulters.
PENALTIES FOR NON-COMPLIANCE
- Disconnection: After due notice, supply can be cut.
- Fines: Significant fines for meter-related offenses (theft, tampering).
In essence, while you must pay for electricity, you have rights against unfair disconnection and debt transfer, enforced by NERC regulations.
CONCLUSION
Discos should rise up to the task and use all the tools necessary to curb this menace and protect property owners and users.
Kelechi, a registered Estate Surveyor and Valuer, wrote from Abuja,FCT,Nigeria
