The House of Representatives is proposing that money spent by electricity consumers to acquire and maintain electrical facilities connected to the national grid be refunded by the distribution company.
The distribution companies will be solely responsible for the purchase and maintenance of facilities in the electricity distribution network, as being proposed by the House.
It is common to see electricity consumers, under the umbrella of community development association, contributing money to acquire facilities, particularly transformers, cables and poles.
When the bill is passed into law, consumers will be able to file claims for refund by the service providers.
The legislation is coming about same time when the House considered and passed a bill to criminalise estimated billing, also known as ‘crazy bill.’
The House is now considering the Electric Power Sector Reform Act (Amendment) Bill, 2019, which was sponsored by a member, Mr Benson Igbakpa. It passed the first reading in July.
The proposed law, titled ‘A bill for an act to amend the Electric Power Sector Reforms Act to provide for the electricity distribution company to reimburse any power consumer who incurs expenses in the acquisition and maintenance of electricity apparatus connected to the national grid in Nigeria and for related matters.’
In the explanatory note, Igbakpa said, “This bill seeks to amend the Electric Power Sector Reform Act to provide for the electricity distribution company to reimburse any power consumer who incurs expenses in the acquisition and maintenance of electricity apparatus connected to the national grid.”
The Nigerian Electricity Regulatory Commission will be responsible for the enforcement of the proposed law, according to the bill.
The proposed amendment to Section 100 (1) of the Act defines “apparatus” as “machines, equipment and fittings associated with the generation, transmission, distribution and utilisation of electrical energy, e.g. cables, transformers, etc.”
It also defines “consumer installation” as “the consumer’s wiring together with any apparatus upon the premises connected to or intended to be connected thereto and situate upon the consumer’s side of the licensee’s supply terminals.”
Among other amendments in Section 32 of the Act, a new ‘Paragraph G’ will be introduced in Subsection 1, which reads, “…to ensure that consumers who incur expenses in lieu of distribution licensees in the acquisition and maintenance of electricity apparatus connected to the national grid are adequately compensated.”
Subsection 2(c) of the Act will also be deleted and replaced to “establish appropriate consumer rights and obligations regarding the provision and use of electric services as well as compelling the distribution company to refund any consumer who incurs expenses in the course of electric services.”
A new ‘Paragraph H’ would also be introduced to “determine the appropriate compensation accruing to a consumer pursuance to Subsection 1(g) in the event of dispute with the distribution company.”
