Estimated billing system is the bane of grid electric power supply and development in Nigeria: An empirical analysis

Abstract

The estimated billing system for electricity was introduced in Nigeria by the Nigerian Electricity Regulatory Commission (NERC) in 2012 for billing customers without meters or with faulty or inaccessible meters. But instead of following the guidelines and formula provided by NERC for the estimation, the electricity Distribution Companies (DisCos) resorted to billing these customers arbitrarily and frustrated efforts by NERC to ensure the proper metering of electricity consumers. This research evaluates the incentive, which makes the DisCos in Nigeria prefer the estimating billing system to a much more efficient smart prepaid metering system. To carry out the research, four Enugu Electricity Distribution Company (EEDC) customers were selected. The estimated bills of these customers, which they received before they got smart prepaid meters, were compared with their prepaid meter bills for an equal period. EEDC was found to be over-billing these customers under the estimated billing system by a yearly average per customer of 64,901.67 Nigerian Naira (170.79 USD).