NEPA, PHCN and currently DisCos i.e. Distribution Companies. These are all the names that represent electricity generation in Nigeria.

Due to the enactment of the Electricity Act, 2023 which repealed the Electric Power Sector Reform Act, 2005, this article has been updated to reflect the current Act and our previous 2019 article on “Your Rights Regarding PHCN/ NEPA” is no longer available.

Introduction

For decades the Nigerian Government have struggled to figure out a lasting solution to the electricity problem faced by millions of Nigerians all over the Country. In order to make due with an already abysmal situation, Nigerians have opted for other alternatives of electricity generation like Solar power, Inverter and the nosiest of them all, Generators.

However, despite these alternatives , many Nigerians still depend on the DisCos because of the high cost of purchasing and maintaining these alternatives. In this article, we will look at the laws regulating electricity in Nigeria, our rights as citizens as well as a few decided cases.

Laws Regulating Electricity Generation in Nigeria

When discussing electricity generation in Nigeria, it is important to consider the following laws;

1. The Electricity Act, 2023 which replaced the Electric Power Sector Reform (EPSR) Act, 2005;
2. Federal Competition and Consumer Protection Act, 2018
3. The Customer Protection Regulation, 2023 for Nigerian Electricity Regulatory Commission (NERC)
4. The 1999 Constitution (For an easy explanation of the entire 1999 Constitution, see our Know Your Constitution Series).

Regulatory Body – The Nigerian Electricity Regulatory Commission (NERC)

The Organization created to regulate electricity in Nigeria is the Nigerian Electricity Regulatory Commission (NERC). It was established by Section 33 of the Electricity Act, 2023 in order to ensure an efficiently managed electricity supply industry that meets the yearnings of Nigerians for stable, adequate and safe electricity supply. It acts as a checkmate towards the powers of DisCos and any of every Electricity/ energy generation company. 

Whenever a person has an issue regarding any of the DisCos in the different States of Nigeria, they can easily lay a complaint before the NERC and they will resolve it.

Customer Protection Regulations, 2023

In order to regulate the various DisCos due to the enactment of the Electricity Act, 2023, NERC has established guidelines/ regulations called “Customer Protection Regulations, 2023” (CPR), to ensure that the rights of customers of electricity are protected and safeguarded. You can download the regulation here.

Some of these regulations include;

1. Disconnection of Electricity

A DisCo can disconnect power supply to a customer’s premises when the customer fails to pay the amount billed to the customer by the payment date. This is provided for under Section 20 of the Customer Protection Regulations, 2023 for NERC.

Before a DisCo can disconnect the electricity supply to a customer for failure to pay their bill, the following conditions specified under Section 20 (2) must be met;

1. The payment date must be clearly stated on the bill;
2. The payment date must be at least 10 days from the date of the delivery of the bill to the customer;
3. The period between the payment date and date of scheduled disconnection for non-payment is not less than 2 (two) working days after the payment date; and
4. The DisCo must verify from its records that payment has not been made by the customer.

When DisCos Can Disconnect Electricity without Notice

DisCos can disconnect electricity without notice in the following situations as stated under Section 21;

1. Where the customer is connected to the DisCo’s network in an unauthorized manner;
2. Where the customer’s connection is considered to be dangerous to the integrity of the network and/ or affects the quality of supply to other customers; and
3. Where the DisCo is not granted access to read a meter that is located within the customer’s premises.

2. Right to Compensation

Section 26 of the Customer Protection Regulations, 2023 for NERC provides that customers shall be compensated by the DisCo where the DisCo has gone against the provisions of the Regulations.

3. Right to Review of Bill

Section 36 of the Customer Protection Regulations, 2023 for NERC has provided for customer’s right to have their bill reviewed by the DisCo upon request by the customer.

4. Option for Payment Arrangement

Section 41 of the CPR, 2023 for NERC has also envisioned situations where customers anticipate difficulty in fully paying their electricity bills by the due date, customers are to immediately contact their DisCo and after the DisCo has determined the customer’s capacity to pay the outstanding bill can offer the customer a payment arrangement.

How to File a Complaint

The CPR, 2023 of NERC has established Customer Complaints Units (CCU) across the DisCos operational area. The CCU has the primary responsibility of receiving and resolving customer complaints.

A Customer who has complaints concerning their electricity should first make a complaint before the CCU of the DisCo responsible for supplying electricity to their area. You can view your DisCo’s CCU here.

If the Customer is dissatisfied with the outcome of the CCU or encounters delays or failures, they can then refer their complaint to the NERC Consumer Forum. You can view your NERC Consumer Forum here.

If a Customer is dissatisfied with the ruling of the Forum, they can escalate their complaint to NERC by submitting a ticket here or submitting your complaint and all supporting documents to the NERC HQ.

View NERC’s Complaint and Redress Procedure here.

The Electricity Act, 2023

The Electricity Act, 2023 repealed the Electricity Power Sector Reform (EPSR) Act, 2005 in an effort to consolidate the laws relating to the Nigerian Electricity Supply industry in order to create a robust legal framework for the power sector in Nigeria in the areas of electricity generation, system operation, distribution, employment of consumer rights and obligations and also create policies that recognize all sources for generation, distribution and transmission of electricity including the integration of renewable energy to Nigeria’s energy mix and attract investments etc.

Objectives of the Electricity Act, 2023

The primary objective as stated in Section 1 of the Act, is to provide a comprehensive legal and institutional Objectives of the framework to guide the operation of a privatized, contract and rule-based competitive electricity market in Nigeria and attract through transformative policy and regulatory measures, private sector investments in the entire power value chain of the Nigerian Electricity Supply Industry (NESI).

Another objective of the Act is to develop the Nigeria Electricity Supply Industry (NESI) as the privatization phase established under the previous Act has come to an end.

Key Takeaways from the Electricity Act, 2023

The following are important additions brought about by the Electricity Act, 2023;

1. Licensing

Section 63 of the Electricity Act, 2023 made it possible for people who are interested in the business of electricity generation, distribution, supply, trade, system operation to apply and be granted licensing to do such.

Licensing was further broken down into different parts like; Generation License, Distribution and Supply License, Transmission License, System Operation License and Trading License.

A person who is desirous of applying for a license must apply through NERC – Section 71 of the Electricity Act, 2023

2. Establishment of the National Hydroelectric Power Producing Areas Development Commission (N-HYPPADEC)

This Commission was created in order to regulate any State in Nigeria that generates hydroelectric power supply and its Headquarters is in Minna, Niger State. Section 82 (2) of the Electricity Act, 2023 grants automatic membership to any State which generates Hydroelectric power and goes further to list Member States. They are – Benue, Kebbi, Kogi, Niger, Kwara, Plateau, Gombe, Kaduna, Nasarawa, Taraba and any other State that generates hydroelectric power.

3. Power of Nigerian Electricity Management Services Agency (NEMSA)

The Electricity Act, 2023 granted NEMSA the power to carry out the functions of enforcement of Technical Standards and Regulations, Technical Inspection, Testing and Certification of all Categories of Electrical Installations, Electricity Meters, and Instruments, to ensure the Efficient Production and Delivery of Safe, Reliable and Sustainable Electricity Power Supply and Guarantee Safety of Lives and Property in the Nigerian Electricity Supply Industry, and other allied industries/ workplaces/ premises in Nigeria.

NEMSA was previously established by the NEMSA ACT, 2015 and now by Section 172 of the Electricity Act, 2023.

4. Establishment of the Power Consumer Assistance Fund (PCAF)

The Electricity Act, 2023 created the PCAF to subsidize underprivileged power consumers . The class of consumers who fall under this category is to be determined by the Minister in consultation with NERC. Consumers in these category will be made to pay a subsidized tariff for electricity supplied to them.

5. Establishment of the Rural Electrification Agency (REA)

Some of the objectives of the REA as stated in Section 127 of the Electricity Act, 2023 include;

1. create an enabling channel for entry into markets for rural, unserved and underserved elecification services, and to coordinate corporate bodies wishing to supply such services and facilities;
2. ensure that rural, unserved and underserved electrification services are provided efficiently, economically and at such performance standards
   Objectives of the Agency which reasonably meet social, industrial and agricultural needs of rural communities;
3. promote universal access to affordable and sustainable electricity thereby improving the quality of life and economic opportunities for rural, unserved and underserved communities;

6. Renewable Energy

The Electricity Act, 2023 has also made provisions to support the development and utilization of renewable energy in Nigeria.

7. National Power Training Institute of Nigeria

This institute was established by Section 185 of the Electricity Act, 2023. It was created to ensure continuous development of human resources, research centers and workforce capacity building regarding electric power in Nigeria.

They’ll offer engineering and technical training certifications and programs while collaborating with both foreign and local institutes for both professionals and practitioners in the power sector and serve as pupillage center and finishing school for graduates of Engineering.

What are Our Rights Regarding the Electricity Act, 2023?

The Electricity Act, 2023 has empowered NERC to ensure that electricity is managed efficiently and its supply is able to meet with Nigerians desire for stable, adequate and safe electricity supply.

Our rights include;

1. All new electricity connections must be done strictly based on metering before connection. That is, no new customer should be connected by a DisCos without a meter first being installed at the premises.
2. All customers have a right to electricity supply in a safe and reliable manner.
3. All customers have a right to a properly installed and functional meter.
4. All customers have a right to properly informed and educated on the electricity service.
5. All customers have a right to transparent electricity billing.
6. All Un-metered customers should be issued with electricity bills strictly based on NERC’s estimated billing methodology.
7. It is the customer’s right to be notified in writing ahead of disconnection of electricity service by the DisCos serving the customer in line with NERC’s guidelines.
8. All customers have a right to refund when over billed.
9. All customers have a right to file complaints and to the prompt investigation of complaints.
10. All complaints on electricity supply and other billing issues are to be sent to the nearest business unit of the DisCos serving the customer.
11. If a complaint is not satisfactorily addressed, customers have a right to escalate the issue to the NERC Forum Office within the coverage area of the DisCos.
12. Customers have the right to appeal the decision of the NERC Forum Office by writing a petition to the Commission.
13. It is the customer’s right to contest any electricity bill.
14. Any un-metered customer who is disputing his or her estimated bill has the right not to pay the disputed bill, but pay only the last undisputed bill as the contested bill go through the dispute resolution process of NERC.
15. It is not the responsibility of electricity customer or community to buy, replace or repair electricity transformers, poles and related equipment used in the supply of electricity.

Conclusion

The Electricity Act, 2023 which repealed the Electric Power Sector Reform (EPSR) Act, 2005 captured a lot more instances and areas. It is far more encompassing and makes provisions for renewable energy, training institutes and electricity supply for rural areas.

Hopefully the new Act will enable the development of electricity in Nigeria and essentially, a more stable and efficient electricity sector.