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IBEDC must refund customers for purchasing transformers – FCCPC

Customers oppose Discos' plan to recover prepaid meters

The Federal Competition and Consumer Protection Commission has directed the Ibadan Electricity Distribution Company to refund consumers for expenses incurred in purchasing transformers, poles, cables, and other electrical infrastructure.

The order was announced by FCCPC Chief Executive Officer and Executive Vice-Chairman, Tunji Bello, during the FCCPC Electricity Consumer Forum held in Ota, Ogun State.

Represented by FCCPC official Mrs. Bridget Etim, Bello emphasized that it is not the responsibility of consumers to fund such infrastructure.

He stated that IBEDC must reimburse consumers for any such investments made, reinforcing the commission’s commitment to protecting consumer rights in the electricity sector.

During a forum held in the Ilogbo, Oju-Ore area of Ado-Odo/Ota Local Government Area, Ogun State, community leaders under various Community Development Committees and Community Development Associations accused the IBEDC of failing to address their complaints, despite having sent multiple letters to its officials.

“In Itele Ota alone, our people have bought up to 80 transformers. IBEDC did not buy a single one. We will even pay for energisation, we will beg them to come and install a transformer that they are supposed to buy. It is uncalled for,” Onaolapo alleged.

In response, the IBEDC head in Ogun State, Abdulrasaq Jimoh, attributed the issue to the communities for purchasing the transformers without involving the electricity distribution company.

Jimoh emphasized that the communities should have informed the Nigerian Electricity Regulatory Commission of their intent to procure transformers and other necessary equipment before proceeding with the purchase.

Etim urged the Ibadan DisCo to take a cue from Jos DisCo, which recently refunded its customers without any intervention from the NERC or FCCPC involvement.

“We are not going to accept that as a commission. For the ones that had happened before, we were not aware. We told the IBEDC before that for subsequent investments in network areas, returns must be given to the investors (the consumers). The previous ones were not properly documented with us, but subsequent ones must be refunded.

“I am correcting this because the Disco is saying you have to write NERC. If you tell the Disco that you want to invest, the Disco has the responsibility to escalate it to the regulator, that this is what the community is doing.

“In fact, let me tell IBEDC that Jos DisCo has had to compensate a community that invested in their network without informing NERC or FCCPC. I want IBEDC to change and learn,” Etim said.

She advised Nigerians to always notify the FCCPC before investing in the DisCos’ network, to enable them to secure refunds through energy credit.

While delivering the Executive Vice Chairman’s opening remarks, the FCCPC boss explained that the three-day forum was convened under Sections 17, 127, 130, and 151 of the Federal Competition and Consumer Protection Act, 2018.

She said the forum was designed to bridge the gaps between consumers and service providers in the electricity industry.

“Electricity is not merely a commodity. It is a vital service that powers livelihoods, businesses, and progress. However, the industry continues to grapple with persistent issues such as insufficient metering, billing inaccuracies, and infrastructure challenges, all of which require urgent and collaborative resolution.

“This event presents a non-adversarial forum for dialogue. Consumers will gain clarity on their rights and responsibilities, while Ibadan Electricity Distribution Company’s caseworkers will be available to address grievances on the spot. This aligns with our core mandate to ensure that consumer protection is practical, accessible, and responsive.

“At the heart of the FCCPC’s interventions is the recognition that electricity consumers are entitled to fairness, transparency, and accountability. We are guided by our commitment under the FCCPA to inform and educate consumers about their rights; facilitate complaint resolution and redress; encourage fair trade practices among service providers, and promote collaborative engagement that ultimately improves service delivery across the sector,” she said, quoting the executive vice chairman.

During the forum, IBEDC officials were present to promptly address and resolve consumers’ complaints on the spot.

 

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