Consumers Protest IBEDC’s Energy Credit Hike

The Ibadan Electricity Distribution Company (IBEDC) is facing backlash from consumers after announcing a significant hike in the minimum energy credit purchase requirement for its customers. Band A customers now face a mandatory N5,000 minimum recharge, while customers in other bands are required to pay at least N2,000, a move that has sparked outrage and criticism from consumer groups.

In a notification to its customers, IBEDC stated, “Please be informed of a recent update regarding IBEDC electricity recharge. Users on Band A must now make a minimum recharge purchase of N5,000. Users in other bands must make a minimum purchase of N2,000. Kindly note that this new payment structure is effective immediately and applies exclusively to IBEDC customers.”

A senior official from IBEDC, speaking anonymously, defended the decision, stating that the review of the vending platform revealed that some customers were purchasing low amounts that seemed insufficient to cover their monthly usage. The official argued that for a Band A customer to use 50 units, they would need to pay N10,450, excluding VAT, questioning how a customer could use fewer than two units a day for a whole month. The official also suggested that some consumers may be engaging in meter bypass practices, paying lower amounts while still receiving stable power.

However, this explanation has not calmed the growing frustration among consumers and advocacy groups. Adeola Samuel-Ilori, National Coordinator of the All Electricity Consumers Forum, condemned the policy, asserting that it violates consumers’ rights to choose what they can afford. Samuel-Ilori expressed concern that this move could lead to legal challenges, stating, “It’s unacceptable to take away the right of people to choose what their purchasing power can afford. Electricity is a right under the constitution, not a privilege.”

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Adetayo Adegbemle, Convener of PowerUp Nigeria, criticized the policy, suggesting that the Nigerian Electricity Regulatory Commission (NERC) regulations do not support such limitations. He argued that IBEDC’s decision may lead to further energy theft, as it forces consumers to purchase more than they can afford.

The President of the Nigeria Consumer Protection Network, Kola Olubiyo, confirmed that both the Federal Competition and Consumer Protection Commission and the Nigerian Electricity Regulatory Commission are investigating the matter. Olubiyo emphasized that the move undermines the competitive electricity market and consumers’ freedom of choice.

Princewill Okorie, Executive Director of the Electricity Consumer Protection Advocacy Centre, described the policy as oppressive and unfriendly to consumers. He questioned why customers should be compelled to purchase energy they may not need, and called for action from the Federal Competition and Consumer Protection Commission to protect consumers.

With rising discontent, IBEDC’s decision has become a focal point for ongoing debates about consumers’ rights and the state of Nigeria’s power sector. The company’s move may face further scrutiny and potential legal action unless a reversal or adjustment is made.