On Meter Asset Providers MAP Scheme and Electricity Billing System – My Proposed Solution

SOLA SALAKO AJULO

 

NERC launched the MAPs Scheme two months ago yet metering is still comatose.

Last year, at a stakeholder’s meeting in Lagos, I expressed fears on the success of the Scheme as currently planned. My issues then included how the MAPs will recoup their investments.

The plan was for the DisCos to collect on their behalf via a “fixed” charge monthly. One, consumers are resistant to fixed charges especially on prepaid meters. Sometimes, consumers may not recharge for months since service is erratic. That means the fixed MAP charge will pile up waiting for the next recharge and may wipe out the funds available. Consumer dissonance highly likely!

Secondly, the issue of ownership of meters is yet to be clarified. Question: Who owns the meter?
NERC’s Answer: The MAP owns the meter
Question: So why are consumers paying for an asset that does not belong to them? Are they investors in MAPs businesses? Will they receive dividend for their investments? If not, why are they funding the purchase of an asset that does not belong to them?
NERC’s Answer: ……. still waiting

My Proposed Solutions

As I suggested at the forum, we will not solve the billing problem until NERC is bold enough to effect an overhaul of the billing system as follows:

1. We need to separate the consumer accounts from the meters accounts. Let me explain…The meters are fixed asset and should be permanently attached to an account for the property. That way, irrespective of consumer turnover at that property, the asset is permanently identified with the location.
2. We need to introduce a consumer account billing system instead of the property account billing system we operate now. Discos will open a billing account in the name of the customer attached to a bank account so BVN is compulsory.
   Whenever the customer moves into a property, he/she will go to the disco in that location and link his/her account to the meter account in that property. That way, his/her personal account will be responsible for consumption on that meter for as long as he/she stays there. When he/she leaves, they will go to the disco to disconnect their personal account from the meter account and reconnect to the meter account at their new location wherever they move to.
3. This system will solve a lot of billing issues
   a) accumulated bills by a previous tenant which a new tenant is made to pay.
4. b) Discos can turn off service to a property when no consumer account is attached so it reduces electricity wastage and theft.
5. c) A consumer can be in credit on his personal account since he knows he can take it with him when he leaves the property. Some can pay bulk money ahead of usage which provides cash flow for the discos
6. d) The MAP cost will now be a usage of meter fee and not a hire purchase charge. Since the consumer knows he doesn’t own the meter, he is charged a usage fee monthly which is logged on his personal account. If he doesn’t want to pay, then the only option is estimated billing!
7. e) No customer can disconnect his/her account from a meter without clearing all outstanding. Also since the customer account is linked to a BVN, credit ratings are possible, liens are possible and debt collections are possible!
8. f) MAPs can be assured their returns on investment because billing is transparent and the usage contract is between MAPs and Customer and not dependent on Discos. MAPs usage fee (not service charge please because communications is important in getting consumer buy in) will be paid directly to MAP account once the customer pays for service. That way, Disco is not collecting for MAP and cannot dam the funds.
9. g) The customer has the freedom to change a MAP if unsatisfied with the asset or customer service on the meter’s efficiency or accuracy. Hope someday soon, that same freedom will be extended to changing discos too!
10. h) Chronic debtor syndrome will drastically reduce.

Finally, in my opinion, this is the much needed paradigm shift we need to end the incessant issues on billing and metering. It requires deeper process refining than my simplistic layout here, but it works in other climes (though I think meters are property of DisCos in other countries).
A pilot scheme can be explored in a restricted area to identify implementation challenges and solve them before adopting it nationwide.

All NERC needs is the political will. If well communicated, consumers will accept it because it solves most of their complaints on billing and metering … and makes them personally accountable for their consumption.

By the way, for me, It’s still doubtful that the DisCos really want MAP to work. If they do, it will work!

Wishing you all a restful Sunday!

 

Sola Salako Ajulo
President-at-large
Consumer Advocacy Foundation of Nigeria CAFON