Checking Corruption in Service Delivery in the Distribution of Electricity In Nigeria

Checking Corruption in Service Delivery in the Distribution of Electricity In Nigeria

Onakpoberuo Onoriode Victor

18/10/2022

Introduction

Electricity is that critical need of society, which its inadequate provision can significantly retard growth in all key sectors of the economy. Just as corruption is threatening other sectors of our economy, it has also limited the delivery of adequate electricity service to our communities. According to the World Banks 2014 report on Electric power consumption (kWh per capita) for Ghana, Nigeria, Cameroon, Togo and South Africa, the data revealed Nigeria to have the least power per capita. The report shows Ghana had 351Kwh per capita, Nigeria 145Kwh per capita, Cameroon 275Kwh per capita, Togo 155Kwh per capita, South Africa 4198Kwh per capita.

It is a global fact that corruption is a major threat to economic, social and political security and development of any society where it thrives. Issues of budget non-performance, dearth of public infrastructures, apathy towards good governance by citizens, the drive for self-gain over collective interests and nonchalance towards societal norms and values are all the various faces of the threat of corruption in our society today.

?Lack of Transparency and Accountability in the course of service delivery is a key indicator of prevalence of corruption. Indeed the subject of #Transparency and #Accountability is one which its impact cuts across all sectors of personal as well as National life. Corruption is therefore a global challenge that requires the collective effort of all stake holders in the society to ensure its eradication. The modern approach to addressing issues of threats to security, ranging from corruption, theft, treason and other prohibited conducts and practices, has shifted from a single line policing strategy to the deployment of multi-layered systems- incorporating the use of smart identity technologies and specialized Law Enforcement agencies with specific policing functions, such as the ICPC, EFCC , CCB etc. It is also noteworthy that Law Enforcement has for a long while now moved from an Incidence-Response mode to a more proactive-preventive mode. This is because, it is much more cost effective to anticipate and prevent a crime than actually responding to one already in existence. Intelligence-driven policing is the outcome of this modern preventive approach to crime management.

World over, the public outcry is for the recognition of human rights and enthronement of democratic ideals of openness and equality of rights across gender, religious and ethnic divides. This common trend has helped in deepening the call for more Transparency and Accountability in service delivery as well as in governance globally. In our world today, values of Transparency and Public accountability are now revered norms, and they form a common baseline used in determining the Sincerity and Legitimacy of a government. The challenge for law enforcement agencies in Nigeria today is how to ensure that the Federal Government of Nigeria in the enforcement of laws, retains a status of being transparent and accountable which is expected to positively impact service delivery for the common man in the society.

Brief History of Reforms in the Power sector

The history of Electricity generation in Nigeria began in 1898 with the generation of a few kilowatts to serve the colonial Administration in Lagos (Isola, 2012 cited in Titus K. O; Abdul-Ganiyu A. J and Phillips (2013). By an Act of Parliament in 1951, the Electricity Corporation of Nigeria (ECN) was established and in 1962, the Niger Dams Authority (NDA) was set up to develop hydroelectricity. In 1972 both the ECN and NDA were merged into a new body called the National Electric Power Authority (NEPA). Due to population expansion, the available power generated could not meet the rising demand. This over the years created a negative reputation for the then National Electric Power Authority and triggered wide spread call for its reforms.

In 2001 the Federal Executive Council (FEC) approved the National Electric Power Policy (NEPP), which proposed institutional changes in the areas of ownership, control and regulation of the power sector. The NEPP actually put forward the strategy for Nigeria’s power sector reforms. In 2005 the NEPP was signed into law as the Electric Power Sector Reform (EPSR) Act of 2005. By this Act, NEPA was transformed into the newly incorporated Power Holding Company of Nigeria (PHCN) Plc., comprising of 18 separate successor companies that took over the assets, liabilities and employees of NEPA, and responsible for the generation (which now had 6 companies), transmission (a company) and distribution (11companies).

Rationales For The Power Sector Reforms As Highlighted By The Bureau Of Public Enterprises (2011) Are As Follows:

• Limited access to infrastructure.
• Inadequate power generating capacity.
• Inefficient usage capacity.
• Lack of capital for investment.
• Ineffective regulation.
• High technical losses and vandalism.
• Insufficient transmission and distribution facilities.
• Inefficient use of electricity by consumers.
• Inappropriate industries and market structure

Aims of the Reforms;

• Improve efficiency and performance
• Ensure transparent and responsible management
• Limit political interference
• Eliminate government’s involvement in utility management
• Promote Private Sector Participation
• Management and technical operations
• Encourage private investment in generation to address inadequate supply
• Ensure level playing field for all investors
• Release government funds to finance core activities

Where are we today with the on-going Power Reforms?

As we approach the vision 2020, where can we say we are right now in the delivery of adequate electricity service to Nigerians? To what extent have the Electric Power Sector Reforms Act, 2005 improved generation, transmission and distribution of Electric Power in Nigeria?

What is the level of public awareness of these reforms, in terms of expected inputs and participation?

What we must have in mind as we sit here deliberating is that across the value chain of Power generation to distribution, you will need people (Nigerians) to be fully committed to the smooth implementation of the reforms. It is not necessarily the technical or logical soundness of a policy that guarantees its effectiveness, because ideas do not run themselves! ?We have for long been distracted by technical jargons in the research into corruption and corrupt practices; failing by that act to perceive corruption from its behavioural roots . This means that a corrupt mind engenders corrupt output. It is this corrupt mind that naturally would seek to exploit available corrupt opportunities or create such opportunities to engage in corrupt practices!

The Human Element of Corruption

1. Corruption is a Human activity!

2. Corruption is any act, commission, attempts (including acts of conspiracies) aimed at or capable of undermining the rule of law governing service delivery, laid down operational provisions or ethical regulations. The Corrupt Practices and other Related Offenses Act, 2000, defines it as: “includes bribery, fraud and other related offenses”. This definition provides the Law enforcement Agency an almost inexhaustible space to expand the concept of corruption in Nigeria by continuously scrutinizing human activities having the essence or similitude of bribery, fraud and the likes.

3. Corruption does not occur in a vacuum; it is not a naturally occurring phenomenon as day and night. If ever an act of corruption is observed, it is always a direct consequence of the choices made by a person or group of persons with the intent of preserving selfish interests in clear conflict with those of the collective as expressed in established norms and values on such matters. Usually such self-driven choices are made either to;

• Accelerate a process
• Show gratitude
• Access opportunities/service, without necessarily complying with the due process
• Compromise standards as a strategy for maximizing profit
• Solicit gratification from end users of a government service
• Publicly demonstrate superiority and influence over statutory provisions of law etc.

4. Corruption is a Human behaviour; a learnt pattern of conduct that has its roots in the perceptual frame of the individual(s) concerned. That is;

• How he as a citizen sees and understands his country,
• His role as a citizen there (*see section 23 and 24 of 1999 constitution)
• His thought about the governance of his country
• His knowledge of, and allegiance to the norms/values of his country (*the constitution)
• His personal allegiance to the sovereign direction of the government of his country.
• His knowledge and understanding of regulatory statutes (EPSR Act, 2005) etc.

5. Every nation must certainly have a set of beliefs or guiding principles, which should reflect the people’s unique view or appraisal of life, its purpose and how they collectively wish to govern themselves in the course of their existence. The constitution and administration of any government system will always be by Humans and for Humans! Men will always be needed to conceive ideas, design work processes, commit to work ethics and forecast future needs and challenges, in the course of the development of any society. In did society is defined not in terms of its physical attributes, but in terms of its people. No work process no matter how technically structured will drive its self. The Electric Power Sector Reforms Act, 2005 will certainly require people to run it for the dividends to reach the target beneficiaries! Governance as a system deployed to provide foresight and leadership in the management of the shared resources of a people will only produce the desired outcome if the humans who constitute that shared experience of governance are sincerely at one with the thoughts and motive of providing a rewarding living experience to the people for whom that government was created. This simply means the Power Reform Act, 2005 will not live up to its expected intent, if the right men (Nigerians) are not in place to drive it, right from generation to distribution.

?Why Corruption is a Security Threat?

• It corrupts the process of service delivery in governance, creating a situation of limited/sectional access to the deliverables of governance (a condition capable of inciting social unrest and violence)
• It gives room for the abuse of power
• It only promotes exclusive interest and undermines the aspiration of the collective
• It is actually the enthronement of a lawless anti-people system
• Does not support values of, Integrity, accountability and transparency
• It encourages wastage
• It increases the divide between the rich and poor
• It creates room for self-help, usually in contravention of stipulated rules and processes
• It creates unnecessary delays
• It increases frustration and motivates people to seek quicker alternatives

6. The list above shows a cycle of Corruption as follows:

1. Dis-loyalty to Rules
2. Erection of?a Parallel culture to laid down processes
3. Disruption of service delivery
4. Frustration, social unrest, conflict
5. Corruption

Corruption in the Power Sector

We shall now broadly look at the distribution aspect of the power sector to identify areas likely to create opportunities for engaging in corruption. There are three broad component ?areas from which corrupt practices may likely arise in the delivery of Electricity in Nigeria. The National Electricity Regulatory Commission (NERC), which is the agency of government charged with the responsibility of providing rules/guidelines of operations and service delivery for Distribution Companies (DISCOS), has developed guidelines to ensure that these three areas do not give opportunities for any one to engage in corrupt practices.

?????i.???????Consumer Participation Component

????ii.???????In service Process Component of DISCOS

???iii.???????Out service Process Component of DISCOS

1. Consumer Participation Component

This component characterizes the responsibilities of Consumers in the chain of Electricity Service delivery. A consumer of Electricity is expected to comply with these guidelines for adequate service delivery and to eliminate the likelihood of incidences of corrupt practices.

• Compliance with due process in the application for Electricity Service as stipulated in the Electricity Reform Act, 2005 ; which includes forwarding of an application for service to the DISCO, agreement by the DISCO to provide service, inspection by the DISCO, payment of connection charges, security deposits etc.(*see: Consumer Service Standards of Performance for Distribution Companies, 2007)
• ?Avoiding illegal routes to engaging electricity services
• Prompt channeling of Complaints on disruption of Service, metering problems, unusual electrical supply, reconnection of service after payment of bills, to Distribution Companies. Under the Electricity Reform Act, 2005, Consumers are not permitted to seek self help in the resolution of issues of disruption of service. The distribution companies are bound by law to work towards restoring service between 24hrs-5 working days or 15 working days depending on the issue at hand.
• Prompt payment of bills and connection fees to authorized agents of the DISCO
• A customer is expected to make responsible use of electricity supply, by adhering to product specification/Voltage ratings for given electrical appliance/equipment
• A customer is expected to request for Meter and accurate meter reading when ever he/she suspects that he may have been over billed by the DISCO or under billed
• A customer is expected to fully acquaint himself with the Customer Service Standards for Distribution Companies.
• Vigilant protection of Electricity installations
• Participation in the NERC Consumer Forum?

2. In service Process Component (DISCOS)

These are the internal administrative service performed by the distribution companies to ensure effective delivery of electricity service in compliance with the Electric Power Sectors Reforms Act, 2005 and by that to ensure Transparency and Accountability.

• Recruitment of Competent Personnel of proven record of Integrity. These are the men and women who will help the distribution Companies in the delivery of effective electricity service to consumers, in areas of handling Customer complaints, billing, installation, connection of service, meter reading etc.
• Accurate computing of bills. Discos are expected to provide the consumer with accurate bills reflecting actual consumption of electricity
• Interfacing with Consumers. DISCOs are expected to have a dedicated desk for customer compliant. This is what will ensure the prompt relay of information from consumers to the DISCOs. This is what will eliminate self help and the backdoor option.
• Capacity Building of Personnel. The DISCOs should ensure to conduct regular training for their staff, to bring them up to speed with extant regulations in the power sector, especially as it relates to consumer protection/satisfaction and the provisions of Electric Power Sector Reforms Act, 2005 and extant circulars.

3. Out-service Process Component.

These are the out of office services rendered by DISCOs to electricity consumers. DISCOs are expected to fully comply with the Electric Power Sector Reform, Act N0.6, 2005: The Customer Service Standards of Performance for Distribution Companies, 2007: Meter Reading, Billing, Cash Collections and Credit Management for Electricity Supplies Regulations, 2007: Customer Complaints Handling and Procedure2006: Connection and Disconnection Procedures for Electricity Services, 2007.

Routine Meter Reading. The Act, specifies that a monthly reading of meters by DISCOs and when a reading is not done, to notify the consumer of such, requesting him to forward his reading to the DISCO within a stipulated period, without which an estimated bill will be made. Estimate billings however are expected to reflect actual consumption and should not be artificially inflated. In situations where a customer has no meter, the DISCO shall base the customers consumption on an estimate arrived at by a method approved by NERC.

Prompt distribution of bills to consumers.

Prompt response to consumers compliant: The DISCOs are expected to respond promptly to issues raised by consumers. A 15 working days is specified in the Act, after written compliant would have been forwarded to Customer Compliant Unit of the DISCO.

Adjustment of Bills: A DISCO is required under the Act to review a customers bill when requested to do so by a customer.

Arrangement to Pay Future Bills: DISCO are expected to work out a payment plan with customers who express inability to fully meet up with financial obligations. This should be done by assessing the customers ability to pay.

Disconnection of Service: Once a disconnection is made, DISCOs are required to discontinue billing of the premises until re-connection of service is made. Also the conditions under which a customer who has not paid his bill may be disconnected has been clearly provided for in the Act.*section 5(1) Connection and Disconnection Procedure, 2007.

Conditions OF SERVICE: A DISCO is expected to provide an electricity consumer with the terms and conditions of their service. A?DISCO is expected to connect power to a customer within 48hrs after payment have been made.

Restrictive Trade Practice. DISCOS are prohibited form engaging in these practices. i.e practices that impose on customers unjustifiable cost or restrictions

Conducting Monthly Standards of Service Monitoring. DISCOS are required under the EPSR Act, 2005 to carry out monitoring of their services to ensure compliance with the Customer Service Standards For Distribution Companies, 2007. The monitoring is expected to focus on :

1. The time of response to reported faults (a time frame of 24-48hrs is specified)
2. The time it takes to provide electricity supply and meter after request is made by a consumer. (a 10 working days period is specified)
3. Whether notice of planned supply interruption is given to consumers (3 working days notice is specified).
4. Voltage complaint issues (a visit within 24hrs of report and a substantive reply within 24hrs of visit is specified).

The Electric Power Service Reforms Act, 2005 and extant circulars are the legal frame work employed by NERC to ensure industry standards, fair play, Transparency ad Accountability in the delivery of electricity service in Nigeria. ?None adherence to these provisions is the only route through which corruption can have access into the service delivery chain of electricity in Imo State. This none adherence may either come from the consumer or DISCOS. To strengthen the regulatory effort of NERC, the public is enjoined to actively participate in ensuring adherence to these regulatory standards, through awareness creation and public advocacy. For it is only when you know your rights that you can tell if they have been violated!

Likely Corrupt Practices

• Customers engaging electricity services illegally, through seeking self help
• Refusal to pay bills
• Refusal to make report on standards of service to DISCOS
• Refusal of DISCOS to provide meters, electricity service, respond to faults, make?routine meter reading within the specified time frame
• Refusal of DISCOS to carry out the NERC orders, especially in conducting enlightenment on customer service milestone and others
• DISCO carrying out disconnection without complying with the Connection and Disconnection Procedures for Electricity Service, 2007

Challenges in the delivery of Electricity Service

The most impacting challenge currently inflicting pain to consumers of electricity service in Nigeria is the none availability of Meters. We believe the government is working to ensure that this challenge becomes a foregone issue. For this reason some consumers have complained of exorbitant electricity charges even for periods when service was disconnected. This clearly is in violation of the EPSR Act, 2005. Also the burden of repairs and maintenance in circumstances where cause of service disruption was due to failure in the distribution network of the DISCO have in some cases been transferred to the consumers. You often find communities coming together to pay for purchase of transformers, repair of circuit breaker panels, feeder cables etc. These communities in the end do not enjoy any form of incentive or rebate for such expenditures.

The EPSR Act, 2005 places huge priority on consumer protection /satisfaction, however an observation of current practices reveals a marked deviation from this guideline. The cycle of corruption in the service delivery chain of DISCOS may continue to hamper effective implementation of the EPSR Act, 2005, if premium attention is not given to the consumer as required by the law. The backdoor route to engaging electricity services actually thrives because customers feel helpless and frustrated going through the front door. In many instances there is actually no available dedicated customer complaint desk officer as required by the Act, and where you find one, the uncourteous treatment of some of these officers actually makes the consumer feel unwanted. However, on the part of the consumers, there is need to bridge the gap in knowledge of the ongoing institutional reforms, especially the periodic NERC circulars on rules /guidelines for administering electric power delivery in Nigeria. In other to maximize the consumer relationship with DISCOS, a consumer of electricity should make good effort to obtain these rules from the NERC website:?https://www.nercng.org/index.php/document-library/Regulations/.

• Connection and Disconnection Procedures
• Customer Complaints Handling Standards and Procedures
• Customer Service Standards
• Electricity Industry Enforcement Regulation
• Estimated Billing Methodology
• Meter Reading, Billing, Cash Collections and Credit Management for Electricity
• Electric Power Sector Reform Act, 2005

Also NERC Orders on sundry matters bordering on providing effective delivery of electric power to consumers can be obtained from;?https://www.nercng.org/index.php/document-library/NERC-Orders/. For example:

• NERC Order Abolishing Meter Maintenance Fee
• NERC Order to DISCOS on Electrocution
• NERC Order To Distribution Companies To Hold Sensitization Workshop On Customer Service Milestones
• NERC Order on Refund of Over billed Customers by AEDC

How Consumers Can Contribute in Improving Meter reading in Nigeria

1. Compliance: Consumers should believe in the system by complying with the EPSR Act, 2005 on the application for electricity service ( Consumers should apply for meters and request for meter readings)
2. Increased Public Awareness : Consumers should make effort to educate themselves on the industry standards/regulatory guidelines as provided by the NERC. It is only when a consumer is aware of these standards of service that he/she can tell when his right as an electricity consumer has been violated. This means consumers should move away from being passive consumers of electricity services to becoming active and vigilant in the monitoring of the service value chain. This should also include prompt payment of bills.
3. Making reports on service standards: consumers should ensure to make prompt report of service disruption of any kind to the DISCO. Every DISCO is expected to have a customer complaint unit. They should not seek for self help in the resolution of such matters. Also when an amicable solution is not reached after a complaint is made by a consumer, he can move a step further to the Forum. The DISCO is required to provide information on the existence and details of the customer complaint unit, Forum and procedures for lodging complaints.
4. A consumer should ensure to acquaint himself with the NERC website: www.nercng.org.

Conclusion

We have hinged this presentation on the fact that corruption is a Human behaviour problem. No matter the form in which it manifests, corruption remains a behaviour problem! Whether ?it is in the failure of DISCOS to provide meters, conduct routine meter reading, provide prompt response to customer compliant, they all stem from that root cause of none adherence to laid down ethical guidelines. For us to move from here to where we hope to be in the delivery of adequate electricity service, everyone would have to know, understand and commit to doing their part. The customer has his role, so also the DISCOS. The wheel of adequate power supply will not be complete until each stakeholder performs his role as required under the Act.

Thank you for listening.

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List of Distribution Companies

1. AEDC-Abuja Electricity Distribution Company
2. BEDC-Benin Electricity Distribution Company
3. EEDC-Enugu Electricity Distribution Company
4. EEDC-Eko Electricity Distribution Company
5. IEDC-Ikeja Electricity Distribution Company
6. IEDC-Ibadan Electricity Distribution Company
7. JEDC-Jos Electricity Distribution Company
8. KEDC-Kaduna Electricity Distribution Company
9. KEDC-Kano Electricity Distribution Company
10. PHEDC-Port Harcout Electricity Distribution Company
11. YEDC-Yola Electricity Distribution Company

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Reference

?????i.???????Electric Power Reform Act (2005). Nigeria; Nigerian Electricity Regulatory Commission (Circulars and Orders). https://www.nercng.org/index.php/document-library/Regulations/. https://www.nercng.org/index.php/document-library/NERC-Orders/.

????ii.???????Corrupt Practices and Other Related Offenses Act (2000). Nigeria; Independent Corrupt Practices and Other Related Offenses Commission

???iii.???????Bureau of Public Enterprises; Overview of the Nigerian Electricity Industry (Roles, Responsibilities,Structure, Expectation). Presentation at the Nigeria Power Sector Investment Forum - Lagos, Dubai, London, New York and Johannesburg, Abuja, Nigeria

??iv.???????Abba A. I (2014). Consumer protection in a privatized power industry. Workshop presentation. MIGEM, MNSE, PhD (Commissioner Govt & Consumer Affairs NERC)

???v.???????Titus K. O; Abdul-Ganiyu A. J and Phillips (2013): The current and future challenges of electricity market in Nigeria in the face of deregulation process. African Journal of Engineering Research, Vol. 1(2), pp. 33-39

Bolanle Ongoruwa (2011). Nigerian Power Sector Reforms and Privatization; A Presentation to the West African Power Industry Convention November, 2011.