IBEDC Faces Backlash Over Minimum Energy Credit Purchase Policy

The Ibadan Electricity Distribution Company (IBEDC) has sparked outrage after implementing a new policy requiring Band A customers to purchase a minimum of ₦5,000 in energy credits, while other bands face a minimum of ₦2,000.

Previously, customers could purchase any amount of energy credit, a policy still in effect with other electricity distribution companies.

Defending the decision, IBEDC stated that the policy aims to curb energy theft. According to a company spokesperson, Busolami Tunwase, the measure addresses irregularities observed in energy usage patterns.

An unnamed senior official added that customers vending small amounts, yet consuming significant energy, raised concerns about meter bypassing.

The policy, however, has drawn heavy criticism from consumer advocacy groups and stakeholders.

Adeola Samuel-Ilori, National Coordinator of the All Electricity Consumers Forum, described the policy as unconstitutional, stating, “Electricity is a right, not a privilege.

The policy denies consumers the freedom to purchase based on their financial capabilities.” He warned of potential legal actions if IBEDC fails to reverse the policy.

Adetayo Adegbemle, Convener of PowerUp Nigeria, questioned the policy’s legality under the Nigerian Electricity Regulatory Commission (NERC) regulations. He argued that the measure might exacerbate energy theft by pushing consumers to bypass the system.

Kola Olubiyo, President of the Nigeria Consumer Protection Network, called for investigations by the Federal Competition and Consumer Protection Commission (FCCPC) and NERC. He condemned the move as monopolistic and anti-consumer, undermining competitive electricity market principles.

Princewill Okorie, Executive Director of the Electricity Consumer Protection Advocacy Centre, described the policy as oppressive and out of touch with consumer realities. He called for immediate intervention by the FCCPC to safeguard consumer rights.

Regulatory Action and Potential Implications
Both the FCCPC and NERC have reportedly begun investigating the policy, which many believe undermines the competitive spirit and consumer rights protected under the law.

Critics argue that forcing customers to purchase fixed credit amounts restricts their financial autonomy and contravenes the principles of fair market practices.

Consumer groups have urged IBEDC to review the policy to avoid public resistance and potential legal challenges, emphasizing the need for consumer-friendly reforms in Nigeria’s electricity sector.