Migration to Band ‘A’ billing and FCT residents’ lamentations

Residents of the Federal Capital Territory (FCT) have thumbed down the impromptu migration to Band ‘A’ billing by the Abuja Electricity Distribution Company (AEDC), amid epileptic power supply; PAUL OKAH reports.

For residents of the Federal Capital Territory (FCT), the management of the Abuja Electricity Distribution Company (AEDC) is courting their ire and adding insult to injury in an already harsh economy.

This is as a result of the impromptu decision of the disco to migrate electricity consumers in the FCT to band A billing system, where residents pay N209.5 Kilowatts (KWh) per hour for electricity supply.

At every corner you turn in the FCT, it would be one resident or the other complaining about a purchased electricity unit not lasting for more than two or three days, despite the careful use of appliances, all because of the unilateral decision of the DisCo to migrate consumers to Band ‘A’ billing system.

Band classification

Blueprint’s investigations revealed that the Nigerian Electricity Regulatory Commission (NERC) classified electricity consumers into different bands (A to E), according to hours of power supply available in an area and according to NERC Service-Based Tariff (SBT).

SBT is a scheme introduced by the Commission on the 1st of November, 2020, to improve service delivery to end-user customers and ensure that electricity tariffs paid by end-user customers are a reflection of the services delivered by Discos based; on the number of hours of electricity supply per day.

The regulatory scheme is also designed to support investments towards the improvement of power infrastructure and consequently improvement in quality of supply.

Band ‘A’ customers are those who receive 20-24 hours of electricity supply daily, while subscribers under Band B enjoy 16 to 20 hours of power supply. In the same vein, those in Band ‘C’ receive 12 to 16 hours daily, while Band D subscribers benefit from eight to 12 hours of power supply each day, and Band ‘E’ subscribers only receive four to eight hours of electricity supply daily.

The electricity tariff is indicated on electricity bills issued by the DisCo or electricity vending receipts for customers on prepaid meters.

Lamentations

Expectedly, residents of the FCT are not finding it funny that they get less electricity units for more amounts, compared to what was obtainable in the past for prepaid meter users.

Speaking with Blueprint Weekend, an entrepreneur in Dutse-Bmuko, Clement Oyelade, said the “exploitation” by AEDC is outrageous, adding that he struggles to pay for being charged more than N1, 000 for daily use of electricity by his estimation.

He said, “This country is becoming very frustrating for Nigerians. It seems there is a conspiracy by those in positions of authority to stifle people and make sure the poor cannot breathe freely. We are suffering different issues everywhere you turn to, be it insecurity, economic hardship, fuel issues and now electricity.

“Can you imagine that I spend more than N1, 000 on electricity on a daily basis, despite being careful with the usage of my prepaid meter? It is like this: I get 8 kilowatts of electricity when I recharge N2, 000 and 21 kilowatts when I recharge N5, 000. The N2, 000 unit of electricity doesn’t last more than two days, while N5, 000 electricity doesn’t even last up to five days. So, on the average, it means I spend N1, 000 alone on electricity on a daily basis.

“Mind you, the highest electricity consuming item I use in the house is my refrigerator. I switch off my fan because I catch cold easily, while I only watch television while at home. So, tell me, what is the justification for such high electricity consumption? We are being exploited by AEDC and it is not funny. It is not as if the power supply is steady in my area because I often return home to darkness. Government should sincerely call the AEDC to order.”

Similarly, a civil servant in Kubwa, Israel Chukwu, said he has been having squabbles with his fellow tenants because of the sudden migration to Band A and the financial implication.

He said, “We are passing through trying times in this country and only God knows AEDC is trying the patience of Nigerians. Last month, I was shocked to find out we have been migrated to Band A billing, without any notice from AEDC. This is even a power supply shortage because we don’t have up to 20 hours a day electricity supply stipulated by NERC.

“For instance, I share the same meter with another flat in our compound. We usually spend, highest, N10, 000 monthly on electricity units. However, I didn’t believe him when he said he recharged N5, 000 last Sunday, because we were in darkness by Thursday night. In fact, I had to recharge N2, 000 as an emergency, with the meter still blinking red and shouting. Then we were plunged into darkness the following day. That’s when I knew we were in deep trouble.

“I mean, how much salary will I be spending more than N30, 000 alone on electricity every month? It’s not only disheartening but a matter of concern. I urge AEDC to look into it. We are really going through a lot in this country and shouldn’t be subjected to more suffering by AEDC. Let them remigrate us to the Band B we were because this Band A migration is exploitative. This is one of the reasons many consumers engage in meter bypass if they are not using estimated billing.”

By-pass imminent

Electricity bypass refers to the unauthorized diversion or rerouting of electrical energy around a meter or other monitoring device, often for illegal purposes such as theft of electricity, tampering with meter readings and avoiding payment for consumed energy.

This reporter gathered that AEDC and other Discos regularly fine or even prosecute consumers caught engaging in electricity bypass.

However, with complaints of exploitation by AEDC, many residents of the FCT confided in our reporter that it is an option they may have to consider and risk, saying they can hardly afford the high tariff by AEDC as a result of the emergency migration to Band A.

As a result of the impromptu migration to Band A, it won’t be a surprise if many electricity consumers in the FCT opt to engage in bypass of electricity prepaid meters as the price of units has hit the roof.

NERC fines AEDC overbilling

On September 12, in a document titled, ‘2024 Supplementary Order to the Multi-Year Tariff Order 2024 for AEDC’, released on its website, NERC slammed a N1.69 billion fine on AEDC for overbilling customers.

Interestingly, in April 2024, NERC also fined AEDC, N200 million over tariff violation. This comes after an investigation of AEDC’s billing practices by NERC revealed that it overcharged customers from January to September 2023, leading to the imposition of a fine, which is equivalent to 10 percent of the overbilled amount, while NERC attributed the fine and adjustments to AEDC’s revenue requirements and tariffs.

The development comes in the face of several complaints by Abuja residents and customers of AEDC over the company’s inability to meet its Service Level Agreement of a minimum of 20 hours of daily electricity supply for Band ‘A’ feeders.

The Commission stated that it had “approved the deduction of N1.69bn from the total annual OpEx of AEDC effective September 2024, being 10 per cent of the overbilled amount by AEDC for the period covering January-September 2023.”

In addition, AEDC was urged to ensure the continuous monitoring of its service levels, particularly regarding electricity supply to Band ‘A’ feeders.

“Where AEDC fails to deliver on the committed level of service on a Band A feeder for consecutive two days, AEDC shall on the next day by 10 am publish on its website an explanation of the reasons for the failure.”