Consumers Protest IBEDC’s Energy Cost Hike

The Ibadan Electricity Distribution Company (IBEDC) is facing widespread criticism after it raised the minimum energy credit purchase requirement for Band A customers to N5,000, with other bands set at N2,000. The new policy, effective immediately, has sparked outrage from consumer groups, who argue that it infringes on their rights and places undue financial strain on customers.

In a statement, IBEDC defended the move, claiming it was part of efforts to curb energy theft. However, the company did not provide specific details on how the policy would achieve this goal. A top IBEDC official explained that some Band A customers had been purchasing low amounts of energy credit, leading to concerns that they were engaging in meter bypassing or using less than what was necessary to cover their monthly consumption.

Consumer rights groups, including the National Coordinator of the All Electricity Consumers Forum, Adeola Samuel-Ilori, have strongly opposed the policy, stating that it violates consumers’ right to choose how much they can afford to purchase. Samuel-Ilori added that unless the policy is reversed, legal action could follow.

Critics, including the Convener of PowerUp Nigeria, Adetayo Adegbemle, argue that the policy could fuel energy theft rather than prevent it, as consumers may resort to illegal methods to meet their energy needs. The President of the Nigeria Consumer Protection Network, Kola Olubiyo, also condemned the move, emphasizing that it undermines consumers’ rights and contradicts efforts to promote a competitive electricity market.

The Federal Competition and Consumer Protection Commission and the Nigerian Electricity Regulatory Commission are reportedly investigating the policy. Similarly, the Executive Director of the Electricity Consumer Protection Advocacy Centre, Princewill Okorie, lamented that the power sector’s policies were becoming increasingly oppressive and disconnected from the realities of consumers. He called on regulators to protect consumers’ rights and welfare in accordance with the law.

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