THE IMPACT OF ELECTRICITY BILL AND ITS EFFECT ON CONSUMERS (A CASE STUDY OF KEDCO DUTSE BRANCH, JIGAWA STATE)

CHAPTER ONE

BACKGROUND OF THE STUDY

1.1 INTRODUCTION

Electricity supply or energy is an essential commodity for sustainable growth and development in any nation including Nigeria, since most economic activities depend largely on adequate supply of energy to operate efficiently and effectively. Thus energy does not only supposed to be in abundance but also it must be affordable to its users as customers/consumers. This is because the quality and the cost of energy used for domestic and industrial purposes affect the welfare of citizens who are the consumer.

However, in Nigeria access to electricity is very low as only 45% of Nigerians have access to electricity (Eleanor, 2019). In addition, Nigeria has the lowest generating capacity in Africa, for example in 2020, demand for electricity stood at 20,800 MW, but supply was only 7,500 MW (One and Nillcinson, 2021) . This tends to affect the level of foreign direct investment and economic activities in Nigeria.

On the other hand, reducing the cost of electricity bill will increases the demand for electricity supply due to increase in populations and growth in the number of small firms, improve the welfare of the citizens, improve employment opportunities, reduce cost of production for small and medium scale Enterprises. However, in Nigeria since the deregulation of electricity sector, the impact of Of electricity bill and its effect on the customers as Nigerian consumers has little or no any significant impact shown on customers; there have been increase in electricity tariff, no improvement in power supply, high fluctuations and poor customer service in both rural and urban settlements of Nigeria. Consumers as customers have tired for ruthless implementation of the arbitrary increase in electricity bill or tariffs by official of KEDCO without supply, at the capital of Jigawa State, Dutse in particular. How can one simple question most of the consumers were asking.

In this regard, it was important to examine the impact of electricity bill and its effect on consumers as well as to identify the influence of billing service in relation to customer satisfaction in order to whether benefits accruing from the service are merely limited to Kano state Electricity Distribution Company (KEDCO) or transcend to the consumers as customers. The study will identify all these.

1.2 STATEMENT OF RESEARCH PROBLEMS

  It is among the major reason or issue which motivated the researcher to write on the topic of this research work, that, there have been concerns of escalated cost incurred by the KEDCO when processing monthly bills for thousands of its customers in Dutse metropolitant, the capital of Jigawa state. Firstly, the Residents protested against what they described as an arbitrary increase in estimated billing by officials of KEDCO, at a time when many are struggling for survival. Secondly, there are series of demonstration took place here in Dutse against the official of KEDCO asking the authority to supply people with prepaid meters for easy electronic billing service on consumers satisfaction at the capital city of Dutse. Customers began to experience setere power shortages from time to time, which caused them to live in darkness for a couple of months as it happened recently at Zai-Gada, yalawa mainoni and Fagoji, months ago. Thirdly, most of the time customers were accusing officials of KEDCO of being inhumane in charging customers ( Through the bills) outrageously without justification, even when there was a nation wide power interruption. People are tired of injustice and ruthless implementation of the arbitrary increase in Electricity bill or tariffs by officials of KEDCO without supply. How can one pay for services that he did not consum? . Lastly, The satisfaction rate has therefore been low relatively to the billing process. Meaning, everything, remained unclear regarding the customer satisfaction levels in relation to the electricity billing service provided by the KEDCO.

These are the motivationally to write on this research topic.

1.3 OBJECTIVES OF THE STUDY

 The main objective of this research study is to identify the impact of electricity bill and its effect on consumer, and used Kano state Electricity Distribution Company (KEDCO), Dutse Jigawa state as an area of case study. Other objectives are:

       i.            To help the consumers of electricity supply about the importance of electricity bill and its effect on their domestic and industrial purposes.

     ii.            To find out the problems and prospect of electricity billing service, distribution and understanding the changes on electricity bill by the customers of KEDCO.

  iii.            To examine the levels of customer's satisfaction and dissatisfaction over the issuing of the electricity bill by the officials of KEDCO in Dutse.

  iv.            To determine the factors to be considered for the adaptation of electricity bills on KEDCO'S customers in Dutse, and factors militating against the impact of electricity bills service on customers.

     v.            To identify the type of Government policies affecting the electricity bill for power supply and Ten (10) keys fact about Nigerian new electricity law on electricity bills for power supply inroduced by the present administration of Bola Ahmed Tunibu.

  vi.            To understand the conceptual meaning of electricity bill for power supply and any other empirical work related to the electricity bill and its effect on the customer's satisfaction and dissatisfaction.

1.4 RESEARCH QUESTIONS

       i.            What are the most important thing that KEDCO'S officials do to ensure the effective distribution of electricity bills for energy supply to their customer's in Dutse?

     ii.            How KEDCO’S officials can deals with the problems and prospect of electricity billing to avoid inhumane in charging customers outrageously without justification and reduce ruthless implementation of the arbitrary increase in electricity tariffs, without supply.

  iii.            What are the level of KEDCO'S customer's satisfaction and dissatisfaction over distribution of electricity bills, power supply, etc.

  iv.            What are the factors to be considered most for the adaptation of electricity bills, and factors militating against the impact of electricity bill and its effect on customers ?

     v.            To what extent does those types of government policies influencing the distribution of electricity bills service for supply of energy, and how can these new electricity laws affect the decision-making process of power supply in Nigeria ?

  vi.            What is the relationship that has been existed between the Residents of Dutse as KEDCO'S consumer and official of KEDCO in discharging their day to day activities in Dutse?

vii.            To what extent does the KEDCO'S customers understood the conceptual meaning of their live and business?

1.5 SIGNIFICANT OF THE STUDY

This study was importance to students writing one the same research topic, lectures,, users of KEDCO'S services, KEDCO'S officials and everyone who has dreamed of or planning to start consuming the power supply from KEDCO in Dutse capital of Jigawa state. This study is also beneficial to those already using KEDCO'S electricity supply or wanted to connect or re-connect with the service of KEDCO'S energy.

The study could be a guideline for consumers, it will also help the managers to understand the way and manner that their customers were either satisfying or dissatisfying with their services in Dutse, Jigawa state.

1.6 SCOPE AND LIMITATIONS OF THE STUDY

 The study attempted to examine the impact of Electricity Bills and its effect on consumer, using KEDCODutse Jigawa state as an area of case study from the year 2020 to date (2023).  It will also focus on the influence that electricity bills has on profits maximizing for the power supply company of KEDCO and to the levels of consumer's satisfactions and dissatisfactions in Dutse, capital of Jigawa state.

 Like any other research work, this research study has encounted some issues related to data collection and analysis from the respondents, whose were scared to provide the researcher with an information needed most. Other limitations were time, transportation and financial constraints. Though, from the part of consumer, there are fewer constraints.

1.7HISTORICAL BACKGROUND OF THE STUDY AREA

Dutse is the capital city of Jigawa State in northern Nigeria. The historical background of Dutse, like many other cities in the region, is deeply rooted in the history and cultural heritage of the indigenous people of the area. Here is a brief historical overview of Dutse, Pre-colonial History the region that is now Jigawa State, including Dutse, has a rich history dating back centuries. It was originally inhabited by various indigenous ethnic groups, including the Fulani, Kanuri, and Hausa people. These groups had their own distinct cultures, traditions, and ways of life. Colonial Era During the colonial period, the British Empire exerted influence over various regions in what is now Nigeria. The influence of the British, including their administrative and political structures, significantly impacted the area. The city of Dutse, like other towns in the region, experienced the effects of British colonial rule. Post-Independence Nigeria gained independence from British colonial rule in 1960. The various regions and states within Nigeria, including Jigawa State, were established and began developing their own political and administrative structures. Creation of Jigawa State Jigawa State was created on August 27, 1991, when it was carved out of Kano State. Dutse was chosen as the capital of the newly created state, and it became the center of government and administration in the state.

Modern Development since becoming the capital of Jigawa State, Dutse has seen significant modern development, including the establishment of government institutions, infrastructure development, and improved educational and healthcare facilities. Economic Activities the economy of Dutse and Jigawa State, in general, is largely based on agriculture. The region is known for the cultivation of crops like millet, sorghum, rice, and maize. Additionally, trade and commerce play a role in the local economy, with markets and small businesses contributing to economic activity. Cultural Heritage the people of Dutse and Jigawa State have a rich cultural heritage, with traditional music, dance, and festivals playing an important role in their lives. The state is known for its cultural diversity, and various ethnic groups coexist and contribute to the cultural tapestry of the region.

1.8 DEFINITION OF THE KEY TERMS:

       i.            BILL: - A Bill is a written statement of money that you owe for foods or services. The synonyms: invoice, account, statement, list of charges, tally, amount due, check, etc.

     ii.            ELECTRICITY BILL:- Means the priodic invoice issue by power holding company (KEDCO) to their customers requesting payment for electricity supplied under their agreement. Thus, it is the monetary amount billed to a customer in accordance with the relevant contract of supply between that customer and an Electricity entity.

  iii.            POWER SUPPLY:- Is a device that converts the output from an ac-voltage is first rectified to provide a pulsating DC and then filtered to produce a smooth voltage.

  iv.            CONSUMER:- Is a person who purchases goods and services for personal use. Consumers can be either an individual or group of people who purchase or use good and services solely for personal use, manufacturing or producing.

     v.            KEDCO:- Kano Electricity Distribution Company: is a company responsible for distributing electricity between there (3) States Wich are Kano, Katsina and Jigawa. KEDCO has its bulk power supply from the transmission stations is wheeled to a number of sub-Transmission stations located at different areas within the geographical area of Kano, Katsina and Jigawa state.