existing structures for the protection of consumer rights in the nigerian electricity market

8/8/2019 Existing Structures for the Protection of Consumer Rights in the Nigerian Electricity Market

1/25

NATIONAL CONFERENCE ON

ELECTRICITY CONSUMERS IN NIGERIA

EXISTING STRUCTURES FOR THEEXISTING STRUCTURES FOR THE

PROTECTION OF CONSUMER RIGHTS INPROTECTION OF CONSUMER RIGHTS INTHE NIGERIAN ELECTRICITY MARKET .THE NIGERIAN ELECTRICITY MARKET .

A PAPER PRESENTED BYA PAPER PRESENTED BY

ENGR. O.C.AKAMNONU.ENGR. O.C.AKAMNONU.CEO. ENUGU ELECTR. DIST.COMPANY.CEO. ENUGU ELECTR. DIST.COMPANY.

TOPIC:TOPIC:

HOW EFFECTIVE ?


2/25

2

1. INTRODUCTION

2. HISTORICAL EVOLUTION OF CONSUMER RIGHT PROTECTION

3 . MAIN FEATURES OF THE ELECTRICITY INDUSTRY PRE - 2001

4. TURNING POINT

4.1. POST 2001 SCENARIO

5.0 CONSUMER RIGHT STRUCTURES IN ENUGU DISTRIBUTIONCOMPANY

6.0 GAP ANALYSIS

7.0 SUMMARY

8.0 CONCLUSION

OUTLINE


3/25

3

INTRODUCTION

In keeping with global trends and expectations under theReform Program, structures for Consumer RightsProtection need to be reviewed and reinforced for

effectiveness where necessary.

Since the electricity market is undergoing development,

Service Providers as part of their developmentstrategies must recognize Customer Rights and put inplace structures for protection of these Rights,

constraints notwithstanding.

This subject is discussed with the Nigerian Market in

view and Enugu Distribution Company as main focus


4/25

4

HISTORICAL EVOLUTION OF CONSUMER RIGHTS

PROTECTION IN THE ELECTRICITY INDUSTRY

The enactment of Decree 24 of June 1972, resulted in the merger of theElectricity Corporation of Nigeria (ECN) and Niger Dams Authority (NDA)to form the National Electric Power Authority (NEPA).

The Industry was a big monopoly shielded from liability through animmunity clause contained in section 12(2) of the Decree. This sectionprovides as follows:

The Authority shall in no case be under any obligation to pay damagesor compensation for loss, damage or inconvenience caused to anyconsumer through any suspension,failure,discontinuance in whole orpartial interruption of the supply of electricityhowsoever caused

NATIONAL ELECTRIC POWER DECREE NO 24

OF 1972 NOW CAP 256 LFN 1990.

From 2001 when internally driven Reforms started, emphasis shifted to theconsumer as the main focus of Business


5/25

5

MAIN FEATURES OF THE ELECTRICITY INDUSTRY

PRE - 2001

MonopolyMarket was guaranteedEfficiency and profitability were non-issues

Vertically integrated administrative structureSalaries and overheads were guaranteedCapital projects funded by Federal Government throughannual budgetary provisions.Customer care was not the main focus of businessQuality of service delivery was poorBilling operation was manual and characterized by

inefficiencies.Enabling Decree (Act) still in force and immunitytherefore still in place.Contract of power supply for electricity was tilted infavour of the service provider.


6/25

6

TURNING POINT

The economic recession which became obvious in1982,saw the continued funding of NEPA, NITEL

& other parastatals in the face of scarce resourcesas uneconomical.

In 1991,there was a paradigm shift from totaldependence on Government to self sustenancepowered by the concept of partial or quasicommercialization of the then NEPA.

Restructuring of business operations shiftedemphasis to consumer satisfaction.


7/25

7

POST 2001 SCENARIO

National Electric Power Policy launched in March 2001, recognizedthe need for fundamental reforms at all levels of the sector.

EPIC (Electric Power Sector Reform Implementation Committee)was empowered to chart a policy direction for the Power Sector.

Privatization as deliberate choice for solving the problem of the

sector was made.

In 2003 the government went a step further to build a ConsumerRight Structure by launching the Service Compact (SERVICOM)

The Customer Service Charter follows in the wake of SERVICOM

The document set Service Delivery benchmark and defined therights and obligations of the customer, the Service Provider and theGovernment.


8/25

8

Decree No 24 of 1972 which established NEPA wasrepealed in March 2005 and replaced with Electric PowerSector Reform Act.

Emphasis shifted to efficient service delivery with customersatisfaction as the main focus of business.

Consciousness to the provisions of the Customer Service

Charter was re-awakened.

Customer Rights are adequately embedded in theCustomer Service Charter, crafted in the principles ofCommon Law and internal policies of NEPA.


9/25

9

The concept of Consumer Rights Protection is contained in theCustomer Service Charter summarized as follows:

Right to adequate and quality electricity for at least 15hrs daily whennot on load shedding.

Right to credible bills within the billing month.

Right to be appropriately metered and connected to the network. Right to periodic information on tariff. Right to adequate notice prior to disconnection. Right to rapid response to fault / complaints

Right to proper identification of visiting field officers Right to prompt attention Right to free access to Customer Care Centres Right to be issued with receipt for all payments

CONSUMER RIGHTS PROTECTION -

UNDER SERVICOM


10/25

10

STRUCTURE FOR CONSUMER RIGHTS PROTECTION

IN ENUGU ELECTRICITY DISTRIBUTION COMPANY

Customer Care

Project carePersonalized marketing

High profile debt reconciliation & management

Rural complaints & Debts managementSpecial purpose customer Management

Data Analysis & Forecast

On-Site meter maintenance UnitAnti corruption & transparency UnitCustomer complaints

Prepayment Metering Tech


11/25

11

CUSTOMER COMPLAINS HANDLING FAULTS

STRUCTURES

ON GROUND

MAIN FEATURES EFFECTIVENESS /

ACHIEVEMENT

REMARKS

CUSTOMER

CARE

Documentation of reports

Management of report topoint of clearing

Maintenance of Data on

faults received & actiontaken

System & network

information collation andmanagement.

Deployment of faults

clearing and rapidresponse vans

Restoration ofcustomerconfidence throughprompt responseto faults

Above 90%success on LVfaults clearingwithin 6 hrs

Operational


12/25

12

STRUCTURE ON

GROUND


ACHIEVEMENT

REMARKS

PROJECT CARE

UNIT

Takes conventional customercare operations to higher level

24hrs help desk operationwith multiple phone line (30

lines at main hub)

Robust faults clearingoperation backed by fieldbased fault Units

24hrs response to faultsreports guaranteed

Online, real time customeraccounts informationprovided.

SMS broadcast facility forcustomer information andfeedback.

Quick responseand better faultsmanagement

Customer

satisfaction inservice delivery

CustomerInformationmanagement isnow IT Based

Operational


13/25

13

STRUCTURE ON

GROUND


ACHIEVEMENT

REMARKS

PERSONALISED

MARKETING

Total customer managementinitiative by designated marketers

Assignment of zones tomarketers for management ofmonthly meter reading, billdistribution, disconnection whennecessary, and reconnection.

Proper tariff compliance,

identification and regularization ofillegal connection

Bills carry name and phonenumbers of managing marketersfor interactive business

relationshipPhones officially procured formarketers who are also providedwith recharge credit

Tremendousimprovement incustomersatisfaction

Drasticreduction ofbilling errors

Regular meter

reading andprompt billdistribution

Restoration andreinforcement of

bill credibilityImprovement ofresponse

Operational


14/25

14

STRUCTURE ON

GROUND


ACHIEVEMENT

REMARKS

HIGH PROFILE

DEBTSRECONCILATION

AND

MANAGEMENT

Thoroughly investigate aged debts

Investigation and reconciliationcustomer complaint on huge debts

Reduces cases of doubtful billing andencourage payment

Reaches out to customer caught inhuge debts and proposes payment plan

Restoration offaith in thecompany as abusiness partner

Improvement in

collectionHuge reduction inaged debt profile

Operational

Guaranteedsource ofabout 9% of

zonal monthlyrevenue

RURAL

COMPLAINTS AND

DEBT

MANAGEMENT

Enforces improved supply delivery andequitable power allocation to ruralcustomer

Introduction of new metering strategyincluding bulk metering whereacceptable

Introduction of scientific estimationusing load and feeder availability as

factors to the delights of customer Reconciliation of rural debts andencouragement of phased payment

Drastic reductionof customer apathy.

Response

improved by over100%

Restoration ofconfidence in thecompany

Operational


15/25

15

STRUCTURE ON

GROUND


ACHIEVEMENT

REMARKS

SPECIALPURPOSE

CUSTOMER

MANAGEMENT

Identification of customer in specialbusinesses like restaurants, supermarkets, filling stations for special care

Assigning of marketers for regularinteraction and resolution of theirmetering and billing complaints

Attention is personalized.

Restoration ofbilling integrity

Over 95%response to bills

Restoration ofconfidence in thecompany

Operational

DATA ANALYSIS

AND FORECAST Analysis of field data for managementinformation

Building historical data bank

Sanitizing customer data base byidentifying and expunging uncollectable

debts Fast tracking the process of customercomplaints handling

speedy correction of wrong bill

Improve the quality of customer billsand encourage payment

Improve accountability for energyimportation by improving the billingefficiency

Restoration ofcustomerconfidence in ourbills

DCU has assistedin speedyadjustment ofcustomer recordsand accounts

Reliable customerstatistics nowmaintained

Operational in 3business unitsextension toother businessunit will becompleted by the

end of the 1st qtr


16/25

16

STRUCTURE

ON GROUND


ACHIEVEMENT

REMARKS

ON SITE METERMAINTENANCE

UNIT

Rehabilitating faulty and tamparedmeters on site

Improving quality of meter reading

Improving metering and energymeasurement

Increasingcustomerconfidence in thebills raised onactual

consumption

Pilot schemeon-going inOnitshaBusinessUnits

ANTI

CORRUPTION

AND

TRANSPARENCY

UNIT

Tracks anti customer behaviourand investigates fully

Conducts investigation speedily

and hands out sanctions wheredeserved.

Checkcorruptiontendencies amongstaff

Defining ethicaldirection of thecompany

Hasdrasticallyreducedcorruptiontendenciesespeciallyextortion fromcustomers


17/25

17

STRUCTURE

ON GROUND


ACHIEVEMENT

REMARKS

CUSTOMER

COMPLAINTS

Complaints boxes positionedstrategically for receiving customerscomments / complaints

Risk free methods of encouragingaggrieved customers to speak out

Exposes fraud andevil tendencies

Opened up easyavenue for complaintshandling

Operation

PREPAYMENT

METERING

TECHNOLOGY

Eliminates meter reading forcustomer affected.

Eliminates billing errors

Eliminates estimations

Improved customersatisfaction

No more payment forunused energy

Helps the customerto manage energyconsumption and thebills

Operational


18/25

18

CUSTOMER INFORMATION AND EDUCATION

CUSTOMERFORUM

Enlarged consumerconsultative meetingopen to the generalpublic and held monthly

in every business unit. provides avenue forinteraction with the publicon all issues relating tooperations

Provide opportunityfor all embracingdiscussion

Promotes mutual

understanding Resolved issuescaused bymisunderstanding

Operational in allBusiness units

RADIO AND TVPROGRAM

SPONSORSHIP

Live phone-in programused to discuss current orimportant issues relating

to power distribution &marketing

Very popular forinformation andeducation of

customers

Accessible andaffordable platformfor resolution ofissues

Operational


19/25

19

RADIO AND TVPROGRAM

SPONSORSHIP

Audience participants cleartheir doubts while listeners

are better educated. Regular feature in Allbusiness units. The HQ hasbeen sponsoring such for 3years

Very popular forinformation and

education ofcustomers

Operational

SMS broadcastfacilities for

mass

communication

Deployment of SMSbroadcast facility forinformation on localized

outagesProject care initiativederiving efficiency fromcustomer data bank .

Delivers apologies outagesnotices in a most thrillingmanner to customer(sometime in locallanguages)

Laid to restthe perceptionof the company

as insensitiveand uncaring

Operational


20/25

20

REDRESSAL MACHINERY

ANTI

CORRUPTION

CRUSADE

Investigates customers petitionagainst any staff on corruption orextortion

Disciplines erring staff

Restores customers confidence indoing business with us

A number of caseshave been treated bythe committee whichis present in allbusiness units.Proven cases of anticustomer behavioursor corruption fully

addressed and thecustomer notified.

COMLAINTS

BOX

For receiving letters from customerson anti customer behaviour of staff

Provides avenue for customers toexpress their grievances to highermanagement

Letter in this boxform source

information for theanti corruptioncommittee.

GAP ANALYSIS


21/25

21

GAP ANALYSISS/N CONSUMER RIGHTS EFFECTIVENESS

ATTAINED

NEXT STEP

1. Right to adequate and qualityelectricity for at least 15hrsdaily when not on loadshedding.

- Poorly addressed due toinadequate generation, weaktransmission and distributioninfrastructure, etc

- Improvement ofgeneration and otherinfrastructure

2. Right to credible bills within thebilling month

- Poorly addressed due to poormetering infrastructure,preponderance of obsoletemeters, etc

- Improvement ofmetering and billingtechnology &infrastructure

3. Right to be appropriately

metered and connected to thenetwork.

- Fairly addressed through local

initiatives.

- On-sight meter rehabilitation

- Temporary direct connection

- Improvement of

metering technologythrough replacement ofobsolete meters anddeployment ofprepayment meters

4. Right to periodic information ontariff.

- Adequately addressed

through local initiatives.

- Periodic publication of tariff

- Strengthen existingprogram on meterinstallation

5. Right to adequate notice prior

to disconnection.

- Fairly addressed through local

initiatives.- Use of disconnection notice

- Expand existing

program on regular meterreading and prompt billdistribution


22/25

22

S/N CONSUMER

RIGHTS

EFFECTIVENESS

ATTAINED

NEXT STEP

6. Right to rapidresponse to faults /complaints

- Fairly addressed through localinitiatives

- Rapid response teams

- Ultimate care project

There is room forimprovement with morefunding

7. Right to properidentification ofvisiting field officers

- Adequately addressed

- Insistence on use of ID cards

- Inclusion of names & GSM nosof officers on the bill [marketers]

- More funding requiredfor improvement

8. Right to promptattention

- Adequately addressed Sustenance ofperformance

9. Right to free accessto Customer Care

Centres

- Adequately addressed Sustenance ofperformance

10. Right to be issuedwith receipt for allpayments

- Adequately addressed - Sustenance ofperformance


23/25

23

SUMMARY

Consumer Rights protection is a global phenomenon whichawareness is growing.

Application of this phenomenon must take into account thestage of development of the electricity supply industry

Structures discussed are not perfect but can be improved

upon as the industry develops and private investment flowsin.

Expected inflow of resources will strengthen the system,

reinforce its risk bearing capacity as well as make themarket more competitive and efficiency driven.

Application of the global concept of Consumer Rights

protection especially its liability and compensatory aspectswill naturally crystallize.


24/25

24

No structure can be considered perfect. None cancapture unforeseen developments in a very dynamic

market like the electricity industry.

The service provider has high stakes and knows that

consumers whose Rights are adequately protectedwill be more willing to co-operate in ensuring sanityin the market.

Then, benefits will accrue mutually and we can say

CONCLUSION

Consumer, Service Provider


25/25

25

existing structures for the protection of consumer rights in the nigerian electricity market

Documents