Electricity consumers are now faced with rising and unexplained bills even as power supply is yet to improve substantially despite claims of increased generation in the past few months.

The situation has been blamed on a lack of understanding of the new tariff structure as spelt out in the Multi-Year Tariff Order II, which took effect mid-last year; pressure on the power distribution companies to generate revenue and nonavailability of pre-payment meters.

Investigations in Lagos and other parts of the nation showed that Power Holding Company of Nigeria, PHCN, had stopped the installation of pre-payment meters, which would have enabled consumers control their consumption and bills. Consequently, the monthly bills of consumers, including households and industries, have risen by over 150 per cent in the past six months as a result of guesswork.

Electricity consumers who live in two-bedroom flats that used to pay about N5,000 monthly tariff now pay between N12,000 and N15,000, depending on the policies and practices of the distribution companies, DISCOs. Consumers who live in three-bedroom flats and duplexes pay between N16, 000 and N20, 000 per month against about N7,000 they used to pay.

These bills include Value Added Tax and "meter maintenance charge" even though most consumers do not have meters. Industry sources said that PHCN officials had deliberately blocked the issuance of pre-payment meters after a noticeable drop in revenue as users would not need to pay for services not rendered as it is the case with the controversial estimated billing system.

The spokesman of Eko Electricity Distribution Company Plc, Mr. Godwin Idemudia, who expressed the commitment of the firm to meeting the yearnings of consumers, confirmed that the company did not have pre-payment meters in stock. Many consumers who have been waiting for months to get the new meters after upfront payment are compelled to continue to pay bills estimated based on the so-called "dynamic average" consumption in a particular locality. This, however, does not take cognisance of consumers, who travel for days or weeks or those who do not have high-power consuming appliances.

Besides, many consumers said they were compelled to pay additional N100 for a token in order to pay bills under a "cashless" policy being introduced by PHCN in partnership with a local firm in most Lagos districts.

Some of the senior PHCN officials who were asked to explain the N100 surcharge feigned ignorance of what was going on within their own premises, raising suspicions that this was a backdoor arrangement to fleece hapless consumers ahead of the imminent takeover of the discos by private investors.

An angry consumer, who did not want his name mentioned said: "I do not see why I should be made to pay additional N100 in the process of paying my normal monthly tariff. This is to say the least, most unwarranted; the EFCC should investigate what is going on in PHCN."

The Chief Executive Officer of Ikeja Electricity Distribution Company Plc, Mr. O. C. Akamnonu, said the various issues were being addressed. Already, small scale industries have sent petitions to the Nigeria Association of Small and Medium Enterprises, NASME complaining that the high cost of the new Multi Year Tariff Order II, introduced last June was impacting negatively on their operations. A recent NASME sponsored study confirmed several negative implications of the new tariff on small scale business operators, whose activities have assisted in various ways to reduce unemployment in the country.

The Executive Secretary of the organisation, Mr. Eke Ubiji, said NASME was ready to hold talks with relevant government institutions, especially Nigerian Electricity Regulatory Commission, NERC, to change the situation. Consequently, NASME has called for the creation of separate classifications, specifically for NSMEs, to enable them to reduce the high operational cost.

It also called for the elimination of all fixed charges. "In the medium to long term , NASME recommends that the fixed charge is completely eliminated and all charges become variable based on consumption," it said in the report.

The organisation explained that this would ensure that its members only pay for what they consume and ultimately encourage energy conservation in the nation.

It also made a case for the introduction of a unified standard for information shown on payment receipts, explaining that the minimum information requirements for each distribution company to be the same, in order to improve transparency. NASME added: "Distribution companies should be mandated to set up structured and effective complaint and resolution channels with stipulated resolution timelines.

Appropriate penalties should be established with supervision by NERC. "There should also be awareness campaigns and sensitisation on MYTO 11 to MSMEs, using grassroots/ practical methods. NASME can provide input about appropriate consultation mechanism for SMEs."

NERC Chairman, Dr. Sam Amadi, who disclosed that the commission had done a lot to address the problems, said in a telephone interview that the commission would look into these and other issues affecting consumers. Amadi, who said the nation’s power challenges were enormous when compared to other relatively small nations in Africa, including Ghana, challenged distribution companies to provide improved services, classify consumers properly as well as educate and inform them to reduce the present high level of misinformation and conflict.

"The consumers need to know why and how they are billed. Once they know that the companies are accurate in the billing mechanism, they would be willing to pay as when due, thus, assisting to boost investment and growth of the sector," the NERC boss said. Amadi condemned the excesses of the companies, stating that many of them were doing so because they did not understand the content of the new tariff order, popularly known as MYTO II.

He said the commission had been informed about the development and had cautioned the chief executives to desist from exploiting consumers through estimation of their bills.

The chairman said the commission had also directed that the DISCOs start the training of their personnel on MYTO II to enable them understand and bill consumers accurately. Meanwhile, youths in their hundreds yesterday in Omu-Aran, Irepodun Local Government Area of Kwara State took to the streets, protesting alleged extortion by the PHCN.

The protest nearly turned violent but for the timely intervention of the police. The youths, who carried placards with various inscriptions, were protesting what they termed illegal billings and extortion by the PHCN officials.

The protesters, who had gathered in front of the community’s Post Office as early as 7a.m. later took to the streets, chanting war songs and holding placards with different inscriptions. Some of the inscriptions on the placards read: "We are tired of crazy bills", "Stop this extortion now" and "Omu-Aran no go gree."

The situation became charged and almost got out of hand when the protesters got to the PHCN’s building at the city hall. The policemen along with some officers of the National Security and Civil Defense Corps, NSCDC, had to form a barricade to prevent the youths from entering the building.

The leader of the protesting youths, Mr. Wasiu Awoniyi, said that they were forced to embark on the warning protest after several meetings to resolve the issue with PHCN proved abortive.

His words: "We have been looking up to the elders and elites in the community for a peaceful resolution of this ugly phenomenon without any breakthrough. "That is why we took it upon ourselves to embark on this awareness and warning protest.

"Our resolve is that no monthly PHCN bill should go beyond N1,500 for an apartment and N2,000 for artisans and other skilled persons. "We are giving PHCN management up till February to make necessary adjustment and correct the situation in the interest of peace."

Secretary, Omu-Aran Development Association, ODA, Mr. Bidemi Olawuyi, said that the association had waded into the matter and had already scheduled a meeting for Wednesday for a resolution PHCN Business Manager in the district, Mr. Moses Oyewole, explained that the organisation was already meeting with the traditional ruler of Omu-Aran, Oba Charles Ibitoye, to resolve the issue amicably.