NATIONAL CONFERENCE ON

ELECTRICITY CONSUMERS IN NIGERIA

TOPIC:

EXISTING STRUCTURES FOR THE

PROTECTION OF CONSUMER RIGHTS IN
THE NIGERIAN ELECTRICITY MARKET .
HOW EFFECTIVE ?

A PAPER PRESENTED BY
ENGR. O.C.AKAMNONU.
CEO. ENUGU ELECTR. DIST.COMPANY.
OUTLINE
1. INTRODUCTION

2. HISTORICAL EVOLUTION OF CONSUMER RIGHT PROTECTION

3. MAIN FEATURES OF THE ELECTRICITY INDUSTRY PRE - 2001

4. TURNING POINT

4.1. POST 2001 SCENARIO

5.0 CONSUMER RIGHT STRUCTURES IN ENUGU DISTRIBUTION

COMPANY

6.0 GAP ANALYSIS

7.0 SUMMARY

8.0 CONCLUSION
2
INTRODUCTION
In keeping with global trends and expectations under the
Reform Program, structures for Consumer Rights
Protection need to be reviewed and reinforced for
effectiveness where necessary.

Since the electricity market is undergoing development,

Service Providers as part of their development
strategies must recognize Customer Rights and put in
place structures for protection of these Rights,
constraints notwithstanding.

This subject is discussed with the Nigerian Market in

view and Enugu Distribution Company as main focus
3
HISTORICAL EVOLUTION OF CONSUMER RIGHTS
PROTECTION IN THE ELECTRICITY INDUSTRY
The enactment of Decree 24 of June 1972, resulted in the merger of the
Electricity Corporation of Nigeria (ECN) and Niger Dams Authority (NDA)
to form the National Electric Power Authority (NEPA).

The Industry was a big monopoly shielded from liability through an

immunity clause contained in section 12(2) of the Decree. This section
provides as follows:

“The Authority shall in no case be under any obligation to pay damages

or compensation for loss, damage or inconvenience caused to any
consumer through any suspension,failure,discontinuance in whole or
partial interruption of the supply of electricity howsoever caused”

NATIONAL ELECTRIC POWER DECREE NO 24

OF 1972 NOW CAP 256 LFN 1990.

From 2001 when internally driven Reforms started, emphasis shifted to the
consumer as the main focus of Business
4
MAIN FEATURES OF THE ELECTRICITY INDUSTRY
PRE - 2001
Monopoly
Market was guaranteed
Efficiency and profitability were non-issues
Vertically integrated administrative structure
Salaries and overheads were guaranteed
Capital projects funded by Federal Government through
annual budgetary provisions.
Customer care was not the main focus of business
Quality of service delivery was poor
Billing operation was manual and characterized by
inefficiencies.
Enabling Decree (Act) still in force and immunity
therefore still in place.
Contract of power supply for electricity was tilted in
favour of the service provider.
5
TURNING POINT

The economic recession which became obvious in

1982,saw the continued funding of NEPA, NITEL
& other parastatals in the face of scarce resources
as uneconomical.

In 1991,there was a paradigm shift from total

dependence on Government to self sustenance
powered by the concept of partial or quasi
commercialization of the then NEPA.

Restructuring of business operations shifted

emphasis to consumer satisfaction.

6
POST 2001 SCENARIO

National Electric Power Policy launched in March 2001, recognized

the need for fundamental reforms at all levels of the sector.

EPIC (Electric Power Sector Reform Implementation Committee)

was empowered to chart a policy direction for the Power Sector.

Privatization as deliberate choice for solving the problem of the

sector was made.

In 2003 the government went a step further to build a Consumer

Right Structure by launching the Service Compact (SERVICOM)

The Customer Service Charter follows in the wake of SERVICOM

The document set Service Delivery benchmark and defined the

rights and obligations of the customer, the Service Provider and the
Government.
7
Decree No 24 of 1972 which established NEPA was
repealed in March 2005 and replaced with Electric Power
Sector Reform Act.

Emphasis shifted to efficient service delivery with customer

satisfaction as the main focus of business.

Consciousness to the provisions of the Customer Service

Charter was re-awakened.

Customer Rights are adequately embedded in the

Customer Service Charter, crafted in the principles of
Common Law and internal policies of NEPA.

8
CONSUMER RIGHTS PROTECTION -
UNDER SERVICOM
The concept of Consumer Rights Protection is contained in the
Customer Service Charter summarized as follows:

™ Right to adequate and quality electricity for at least 15hrs daily when
not on load shedding.
™ Right to credible bills within the billing month.
™ Right to be appropriately metered and connected to the network.
™ Right to periodic information on tariff.
™ Right to adequate notice prior to disconnection.
™ Right to rapid response to fault / complaints
™ Right to proper identification of visiting field officers
™ Right to prompt attention
™ Right to free access to Customer Care Centres
™ Right to be issued with receipt for all payments

9
STRUCTURE FOR CONSUMER RIGHTS PROTECTION
IN ENUGU ELECTRICITY DISTRIBUTION COMPANY

Customer Care
Project care
Personalized marketing
High profile debt reconciliation & management
Rural complaints & Debts management
Special purpose customer Management
Data Analysis & Forecast
On-Site meter maintenance Unit
Anti corruption & transparency Unit
Customer complaints
Prepayment Metering Tech
10
CUSTOMER COMPLAINS HANDLING FAULTS

STRUCTURES MAIN FEATURES EFFECTIVENESS / REMARKS

ON GROUND ACHIEVEMENT
CUSTOMER ƒ Documentation of reports ƒ Restoration of ƒOperational
CARE ƒManagement of report to customer
point of clearing confidence through
prompt response
to faults
ƒMaintenance of Data on
faults received & action
taken ƒ Above 90%
success on LV
faults clearing
ƒSystem & network within 6 hrs
information collation and
management.

ƒDeployment of faults
clearing and rapid
response vans
11
STRUCTURE ON MAIN FEATURES EFFECTIVENESS / REMARKS
GROUND ACHIEVEMENT

PROJECT CARE ƒTakes conventional customer ƒQuick response ƒOperational

UNIT care operations to higher level and better faults
management
ƒ 24hrs help desk operation
with multiple phone line (30 ƒCustomer
lines at main hub) satisfaction in
service delivery
ƒRobust faults clearing
operation backed by field ƒCustomer
based fault Units Information
management is
ƒ24hrs response to faults now IT Based
reports guaranteed

ƒOnline, real time customer

accounts information
provided.

ƒSMS broadcast facility for

customer information and
feedback. 12
STRUCTURE ON MAIN FEATURES EFFECTIVENESS / REMARKS
GROUND ACHIEVEMENT
PERSONALISED ƒ Total customer management ƒ Tremendous ƒOperational
MARKETING initiative by designated marketers improvement in
ƒAssignment of zones to customer
marketers for management of satisfaction
monthly meter reading, bill ƒDrastic
distribution, disconnection when reduction of
necessary, and reconnection. billing errors
ƒ Proper tariff compliance, ƒRegular meter
identification and regularization of reading and
illegal connection prompt bill
ƒBills carry name and phone distribution
numbers of managing marketers ƒRestoration and
for interactive business reinforcement of
relationship bill credibility
ƒPhones officially procured for ƒImprovement of
marketers who are also provided response
with recharge credit

13
STRUCTURE ON MAIN FEATURES EFFECTIVENESS / REMARKS
GROUND ACHIEVEMENT
HIGH PROFILE ƒThoroughly investigate aged debts ƒRestoration of ƒOperational
DEBTS
RECONCILATION ƒInvestigation and reconciliation faith in the
AND customer complaint on huge debts company as a ƒGuaranteed
MANAGEMENT business partner
ƒReduces cases of doubtful billing and source of
encourage payment ƒImprovement in about 9% of
ƒReaches out to customer caught in collection zonal monthly
huge debts and proposes payment plan ƒHuge reduction in revenue
aged debt profile

RURAL ƒEnforces improved supply delivery and ƒ Drastic reduction ƒOperational

COMPLAINTS AND
DEBT equitable power allocation to rural of customer apathy.
MANAGEMENT customer ƒResponse
ƒ Introduction of new metering strategy improved by over
including bulk metering where 100%
acceptable ƒ Restoration of
ƒ Introduction of scientific estimation confidence in the
using load and feeder availability as company
factors to the delights of customer
ƒ Reconciliation of rural debts and
encouragement of phased payment 14
STRUCTURE ON MAIN FEATURES EFFECTIVENESS / REMARKS
GROUND ACHIEVEMENT
SPECIAL ƒIdentification of customer in special ƒ Restoration of ƒOperational
PURPOSE businesses like restaurants, super billing integrity
CUSTOMER
markets, filling stations for special care
MANAGEMENT
ƒ Assigning of marketers for regular ƒ Over 95%
interaction and resolution of their response to bills
metering and billing complaints
ƒAttention is personalized. ƒ Restoration of
confidence in the
company

DATA ANALYSIS ƒ Analysis of field data for management ƒ Restoration of ƒOperational in 3

AND FORECAST information customer business units
ƒBuilding historical data bank confidence in our extension to
ƒSanitizing customer data base by bills other business
identifying and expunging uncollectable unit will be
debts ƒDCU has assisted completed by the
in speedy end of the 1st qtr
ƒ Fast tracking the process of customer
complaints handling adjustment of
ƒ speedy correction of wrong bill customer records
and accounts
ƒ Improve the quality of customer bills
and encourage payment
ƒImprove accountability for energy ƒReliable customer
importation by improving the billing statistics now
efficiency maintained 15
STRUCTURE MAIN FEATURES EFFECTIVENESS / REMARKS
ON GROUND ACHIEVEMENT
ON SITE METER ƒ Rehabilitating faulty and tampared ƒIncreasing ƒPilot scheme
MAINTENANCE
UNIT meters on site customer on-going in
ƒ Improving quality of meter reading confidence in the Onitsha
ƒ Improving metering and energy bills raised on Business
measurement actual Units
consumption

ANTI ƒ Tracks anti customer behaviour ƒ Check ƒHas

CORRUPTION and investigates fully corruption drastically
AND
TRANSPARENCY ƒ Conducts investigation speedily tendencies among reduced
UNIT and hands out sanctions where staff corruption
deserved. tendencies
ƒ Defining ethical especially
direction of the extortion from
company customers

16
STRUCTURE MAIN FEATURES EFFECTIVENESS / REMARKS
ON GROUND ACHIEVEMENT

CUSTOMER ƒ Complaints boxes positioned ƒ Exposes fraud and ƒOperation

COMPLAINTS strategically for receiving customers evil tendencies
comments / complaints
ƒ Opened up easy
ƒ Risk free methods of encouraging avenue for complaints
aggrieved customers to speak out handling

PREPAYMENT ƒEliminates meter reading for ƒImproved customer Operational

METERING customer affected. satisfaction
TECHNOLOGY
ƒEliminates billing errors ƒNo more payment for
ƒEliminates estimations unused energy
ƒHelps the customer
to manage energy
consumption and the
bills
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CUSTOMER INFORMATION AND EDUCATION
CUSTOMER ƒ Enlarged consumer
FORUM consultative meeting
open to the general
public and held monthly
in every business unit.
ƒ provides avenue for
interaction with the public
on all issues relating to
operations
RADIO AND TV ƒ Live phone-in program
PROGRAM used to discuss current or
SPONSORSHIP important issues relating
to power distribution &
marketing
ƒ Provide opportunity ƒOperational in all
for all embracing Business units
discussion
ƒ Promotes mutual
understanding
ƒ Resolved issues
caused by
misunderstanding
ƒ Very popular for ƒOperational
information and
education of
customers
ƒAccessible and
affordable platform
for resolution of
issues
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RADIO AND TV ƒAudience participants clear Very popular for ƒOperational
PROGRAM their doubts while listeners information and
SPONSORSHIP are better educated. education of
ƒ Regular feature in All customers
business units. The HQ has
been sponsoring such for 3
years

SMS broadcast ƒ Deployment of SMS ƒ Laid to rest

facilities for broadcast facility for the perception ƒOperational
mass information on localized of the company
communication outages as insensitive
ƒProject care initiative and uncaring
deriving efficiency from
customer data bank .
ƒDelivers apologies outages
notices in a most thrilling
manner to customer
(sometime in local
languages)

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REDRESSAL MACHINERY
ANTI ƒ Investigates customers petition ƒ A number of cases
CORRUPTION against any staff on corruption or have been treated by
CRUSADE extortion the committee which
ƒ Disciplines erring staff is present in all
ƒ Restores customers confidence in business units.
doing business with us Proven cases of anti
customer behaviours
or corruption fully
addressed and the
customer notified.
COMLAINTS ƒ For receiving letters from customers ƒLetter in this box
BOX on anti customer behaviour of staff form source
ƒ Provides avenue for customers to information for the
express their grievances to higher anti corruption
management committee.

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 GAP ANALYSIS
S/N CONSUMER RIGHTS EFFECTIVENESS NEXT STEP
ATTAINED
1. Right to adequate and quality ƒ- Poorly addressed due to ƒ- Improvement of
electricity for at least 15hrs inadequate generation, weak generation and other
daily when not on load
shedding. transmission and distribution infrastructure
infrastructure, etc
2. Right to credible bills within the ƒ- Poorly addressed due to poor ƒ- Improvement of
billing month metering infrastructure, metering and billing
preponderance of obsolete technology &
meters, etc infrastructure
3. Right to be appropriately ƒ- Fairly addressed through local ƒ- Improvement of
metered and connected to the initiatives. metering technology
network. ƒ- On-sight meter rehabilitation through replacement of
ƒ- Temporary direct connection obsolete meters and
deployment of
prepayment meters
4. Right to periodic information on ƒ- Adequately addressed ƒ- Strengthen existing
tariff. program on meter
through local initiatives.
ƒ- Periodic publication of tariff installation
5. Right to adequate notice prior ƒ- Fairly addressed through local ƒ- Expand existing
to disconnection. initiatives. program on regular meter
ƒ- Use of disconnection notice reading and prompt bill
distribution 21
S/N CONSUMER EFFECTIVENESS NEXT STEP
RIGHTS ATTAINED
6. Right to rapid ƒ- Fairly addressed through local There is room for
response to faults / initiatives improvement with more
complaints ƒ- Rapid response teams funding
ƒ- Ultimate care project
7. Right to proper ƒ- Adequately addressed - More funding required
identification of for improvement
visiting field officers ƒ- Insistence on use of ID cards
ƒ- Inclusion of names & GSM nos
of officers on the bill [marketers]
8. Right to prompt ƒ- Adequately addressed Sustenance of
attention performance
9. Right to free access ƒ- Adequately addressed Sustenance of
to Customer Care performance
Centres
10. Right to be issued ƒ- Adequately addressed - Sustenance of
with receipt for all performance
payments

22
 SUMMARY
Consumer Rights protection is a global phenomenon which
awareness is growing.

Application of this phenomenon must take into account the

stage of development of the electricity supply industry

Structures discussed are not perfect but can be improved

upon as the industry develops and private investment flows
in.

Expected inflow of resources will strengthen the system,

reinforce its risk bearing capacity as well as make the
market more competitive and efficiency driven.

Application of the global concept of Consumer Rights

protection especially its liability and compensatory aspects
will naturally crystallize.
23
CONCLUSION
No structure can be considered perfect. None can
capture unforeseen developments in a very dynamic
market like the electricity industry.

The service provider has high stakes and knows that

consumers whose Rights are adequately protected
will be more willing to co-operate in ensuring sanity
in the market.

Then, benefits will accrue mutually and we can say

“ Consumer, Service Provider”

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