The Ibadan Electricity Distribution Company (IBEDC) is facing serious criticism after it announced a new policy that requires its Band A customers to purchase a minimum of N5,000 worth of electricity credit. This change has also affected customers in other categories, known as bands, who now have to buy at least N2,000 worth of electricity credit. This decision has sparked anger and backlash from various consumer groups.
In a message sent to its customers, IBEDC explained that these new minimum purchase amounts are already in effect and apply only to their customers. Previously, customers were allowed to buy any amount of electricity credit they wanted, which is still the case with other electricity distribution companies in Nigeria, except for IBEDC.
A spokesperson for IBEDC, Busolami Tunwase, stated that the reason for this new policy is to combat energy theft, although she did not provide specific details on how this would be accomplished.
Another official from the company, who chose to remain anonymous, explained that while reviewing their payment system, they noticed that some customers were purchasing very small amounts of electricity credit, which they used to last an entire month. For example, if a Band A customer bought 50 units of electricity, they would pay about N10,450 (excluding taxes). The official questioned how a customer could sustain their usage on such a small amount, suggesting that it might not be realistic for them to use less than two units of electricity each day for a month. They also pointed out that some customers might be bypassing their meters, which allows them to pay less while still enjoying a reliable electricity supply.
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In response to the new policy, Adeola Samuel-Ilori, the National Coordinator of the All Electricity Consumers Forum, argued that this change should be reversed to avoid backlash from consumers. He emphasized that consumers should have the right to decide how much electricity they want to buy based on what they can afford. He stated that electricity is a right under the law, not a privilege, and he plans to send an official letter to IBEDC demanding a reversal of this policy. If they do not respond, he hinted at the possibility of taking legal action.
Adetayo Adegbemle, the Convener of PowerUp Nigeria, also expressed concerns about the new policy, stating that there is no regulation from the Nigerian Electricity Regulatory Commission that supports such restrictions. He acknowledged that while IBEDC may be trying to improve its revenue collection, they need to be cautious to avoid penalties from regulatory authorities. He argued that the policy is unlikely to stop energy theft and might actually encourage it, as people may find ways to circumvent the new purchasing limits.
Kola Olubiyo, the President of the Nigeria Consumer Protection Network, mentioned that both the Federal Competition and Consumer Protection Commission and the Nigerian Electricity Regulatory Commission are already looking into the situation. He pointed out that the new policy undermines the competitive electricity market and the consumers’ right to choose.
Similarly, Princewill Okorie, the Executive Director of the Electricity Consumer Protection Advocacy Centre, criticized the power sector for becoming increasingly oppressive and unfriendly to consumers. He questioned why customers should be forced to buy more electricity than they need or can afford. Okorie urged the Federal Competition and Consumer Protection Commission to step in and protect consumers’ rights, emphasizing the need for transparency and accountability from the electricity providers.
