DISCOs – charging for darkness

Although fully aware of the community’s predicament, the power distribution com-pany (DISCO) continued to send monthly estimated electricity consumption bills to the residents. As would be expected, most people ignored this “DISCO dancing” and didn’t pay. To their utter amazement, DISCO officials arrived with vehicles and ladders, serving disconnection notices and attempting to remove wires […]

Although fully aware of the community’s predicament, the power distribution com-pany (DISCO) continued to send monthly estimated electricity consumption bills to the residents. As would be expected, most people ignored this “DISCO dancing” and didn’t pay. To their utter amazement, DISCO officials arrived with vehicles and ladders, serving disconnection notices and attempting to remove wires for incurring “excessive debt”. In no time, community youths gathered, threatening to deal decisively with anyone removing any wires.
The timely intervention of the police calmed frayed tempers, and the Divisional Police Officer (DPO) accom-panied community leaders to the DISCO’s office to reconcile the parties. Officials of the DISCO agreed to suspend both the distribution of estimated bills and the process of mass disconnection, until such a time the electricity was restored.  Happy that the matter had been resolved amicably, the crowd dispersed.
A month later the community was again in uproar because more electricity bills were being distributed. Addressing an angry crowd, the DISCO officials denied going back on their words and pleaded that in line with the agreement, no one had been billed for electricity consumed; rather residents were only being asked to pay a N750 monthly “fixed charge”.  Customers had to come to terms with the fact that, quite incredulously, the law empowers DISCOs to collect fixed-charge irrespective of whether light is supplied or not.  To further add to their woes, residents were informed that despite the non-availability of electricity in the area, the amount of fixed charge was about to be doubled to N1,500. Fortunately for everyone concerned, the National Electricity Regulatory Commission (NERC) saved the day by not granting approval for the proposed increase.
Last week, the Chairman and CEO of NERC Sam Amadi paid a courtesy call on the editorial board of Daily Trust Newspaper to enlighten us on the activities of his organization. Although NERC’s primary duty is to protect consumer’s interests, in his presentation, the NERC chairman offered an explanation as to why consumers should be expected to pay even when the distribution company is not providing any light. Making reference to “complex macro-economic arguments which may not be easily understood by the layman”, what he said in effect was that consumers have to be highly educated before they can appreciate why they should pay for service that hasn’t been rendered! Sometimes highly educated people can find simple concepts difficult to grasp.
The truth is that first and foremost, it is quite simply indecent and immoral to force people to pay for a product or service which is not supplied, no matter the macro-economic justification.  The main focus of any democratically elected government should be socio-economics, the immediate welfare of citizens and the fulfilment of their legitimate desires for themselves. It is unimaginable that anyone would be able to conduct a referendum and get the majority to agree that continuing to pay a fixed-charge, irrespective of service rendered, is ultimately in their best interest. The consumer is definitely the loser in the way the system currently operates.
The main function of NERC is to protect our interests in terms of electricity generated and distributed as well as in affordable tariffs and safe, reliable, electricity. It is this responsibility matrix which means they must consider the interests of the power generating companies, power distribution companies and the consumers as equal to ensure the system doesn’t collapse completely.  The chairman expressed genuine concern, urging civil society and consumer protection groups to take more active interest in the operations of DISCOs.  
As far as consumers are concerned the real bone of contention is the vexed issue of fixed-charges. No matter what reasons are advanced in their support, the facts are very clear. Consumers pay for wire to connect their homes to the grid, they pay for an electricity meter, and they also pay for the installation of the meter. Consequently, there is no reason they should be expected to pay any further charges except for electrical power consumed. The argument that the DISCOs can’t cover their costs by billing for electricity supplied alone is disingenuous. Whatever their costs are, it is only fair that these costs should be recovered by producing light.
With their penchant for load-shedding, failing to repair transformers promptly and almost permanent low voltage, DISCOs appear to be in the business of making profit by managing darkness rather than by providing light. Under the current regime, it is hypothetically possible for them to collect billions of naira monthly without producing one “candle-watt” of electricity. The DISCOs can put up in their own defence which relates to the manner and circumstances under which they were licensed in the first place. However, they must understand that while no one disputes their right to make a profit, it is only fair that these profits should come as a result of charging an appropriate amount for electricity consumed, and not from charging for darkness!
The contentious fixed-charge also inconveniences the general public in less obvious ways.  The only reason consumers are still forced to go to DISCO offices to purchase credit units is so that the fixed-charge can be deducted at source.  All the unnecessary queuing, transport expense and inconvenience of not being able to purchase cards from vendors in the same manner as GSM cards is down to the collection of fixed-charge.
In many instances the public is faced with the ridiculous spectacle of petrol generators running in DISCO offices where staff are busy selling credit to, and collecting fixed-charge from, customers who have no light in their area!  It beggars belief that in the long run, the best interests of the public and the nation will be served by cushioning the DISCOs in this manner and effectively making the consumer subsidize the industry’s operational inefficiency.