Electricity Consumers’ Satisfaction During COVID-19 Lockdown in Some Selected States in Nigeria

Abstract

This work studies the satisfaction experienced by electricity customers in Osun, Lagos, and Ogun States during the recent lockdown occasioned by the COVID-19 pandemic. The measures of the satisfaction are based on the hours of electricity supply during the period, easiness experienced for payment of prepaid bill and swiftness in faults correction of the distribution companies involved. A questionnaire was developed using Google Forms. The form was shared through various online platforms. A total of 274 electricity consumers responded to the questionnaire, but after sorting, 259 consumers across the three states were analyzed. From the responses, majority of respondents claim there was increased hours of supply during the period when compared to before the period. For prepaid customers who had reasons to pay electricity bill, majority claim it was easy paying while most of those who claimed it was not easy was because of their payment method choices, which is using designated points. Majority of those who have reasons for faults to be corrected by the distribution companies claim that there was not promptness in fault correction.

Keywords

Lockdown discos electricity consumers respondents

Introduction

The coronavirus, popularly referred to as COVID-19, started in Wuhan, China in December, 2019. By the first quarter of 2020, it had spread to many countries, including Nigeria. According to the Nigeria Centre for Disease Control (NCDC), the first case of the virus was reported on February 27, 2020 in Lagos, Nigeria (Nigeria Centre for Disease Control [NCDC], 2020) by an Italian from Milan, Italy and since this day, the virus has spread to all states of the federation with Lagos State recording the highest number of cases, followed by the Federal Capital Territory (FCT), Abuja (Amzat et al., 2020). Various measures were put in place to curtail the spread of the virus by both the Federal and state governments. One of such measures is the total lockdown of movement of people and closing of non-essential businesses for some period of time. On March 30, the Federal Government effected a total lockdown of Federal Capital Territory (FCT), Abuja, Ogun, and Lagos States while the government of Osun State made an announcement of lockdown to take effect from March 31. The lockdown on Abuja, Lagos, Osun, and Ogun was relaxed on May 4 after 35 days. Prior to the start of the lockdown, the energy generating companies (GenCos) assured Nigerians that power supply would not be an issue during the lockdown (Ugwuede, 2020). It is a known fact that the power sector of the country is not doing well as major stakeholders are struggling to get electricity to the populace (Lawal et al., 2019). In Nigeria, demand for electricity far exceeds its supply, hence it is being rationed.

During the lockdown period, as stated earlier, many nonessential businesses were shut down, thereby drastically reducing the need for power for such businesses. With this reduction in demand by business areas, more power was available for residential buildings where people were restricted to. In this study, the consumers’ satisfaction (of those asked to stay home) was investigated to find out their experiences with the power situation during the lockdown period.

The Nigerian Electricity Sector: Brief History, Present Situation, and Challenges

Electricity generation in Nigeria had started earlier in Lagos in 1886, some years after its introduction in England to serve the colonial masters (National Electricity Regulation Commission [NERC], 2020). It started with the installation of two generating sets. However, the first utility company, the Nigerian Electricity Supply Company, was established in 1929 (Oseni, 2011). Despite the fact that its presence in the country is over 100 years, its development has been slow. In 1951, an act of parliament established the Electricity Corporation of Nigeria (ECN). Other bodies like the Native Authorities and Nigeria Electricity Supply Company (NESCO) had licenses to produce electricity in some locations in Nigeria. Another body known as Niger Dams Authority (NDA) was established by an act of parliament in 1962 for the development of hydroelectric power. In addition to the NDA’s responsibility of the development of hydroelectric power, the authority was responsible for the construction and maintenance of dams and other works on the River Niger, improving and promoting fish brines and irrigation (Sambo, 2008). The energy produced by NDA was sold to the ECN for distribution and sales at utility voltages. The NDA was later merged with ECN to form the National Electric Power Authority (NEPA) in 1972 by decree 24 (Dada, 2014). The decree gives the sole custodian of electricity power supply system in the country to the National Electric Power Authority (NEPA). By this, NEPA is in charge of generation, transmission, and distribution of electricity. As a result of the reduction in generation, need for stable power supply, and the necessity of meeting with world standards and practice, the Federal Executive Council (FEC) in the year 2001 approved the National Electric Power Policy (NEPP). After the approval of NEPP, it called for major changes to ownership, control, and regulation of the power sector. NEPP was the body that actually set the roadmap for Nigeria’s power sector privatization, but due to the bureaucracy in government, the policy could not be signed into law until 2005. The signed document became the Electric Sector Power Reform (ESPR) Act of 2005. The ESPR Act 2005 allows private companies to participate in electricity generation, transmission, and distribution. This led to the unbundling of NEPA into Power Holding Company of Nigeria (PHCN). This company took over the assets, liabilities, and employees of NEPA, and was responsible for the generation, transmission, and distribution of electricity (Olugbenga et al., 2013). In 2013, further reform of the sector made PHCN to be further unbundled into six generating companies, eleven distribution companies and the transmission still in the full control of the Federal Government. It should be noted that, government still has 40% shares in the distribution companies. The act made National Electricity Regulation Commission (NERC) as an independent regulator. Experts in the industry are still of the opinion that there is the need for the privatization of the transmission section of the Nigerian power sector. This they claim will better improve the quantity and quality of electricity delivered. As it presently stands, it was claimed that the transmission network has a capacity to wheel approximately 7,000 MW (NERC, 2020). Available information from NERC (2020) show that as at present, the electric grid of the country has 23 connected generating plants with an installed capacity of 10,396 MW, with thermal and hydro plants contributing 8,457.6 MW and 1,938.4 MW, respectively. Out of the installed capacity, about 6,056 MW (4,996 MW for thermal plants and 1,060 MW for hydro plants) is available for further transmission and distribution. This amount of power also includes the once generated by Independent Power Producers (IPPs) and the generating stations under the National Integrated Power Project (NIPP). IPPs are power plants that was managed by the private sector before the privatization period. This available 6,056 MW of power is not enough for the discos to distribute to the entire population of the country at a time, hence utilities result to rationing of the available power through load shedding of some locations for others.

In other to boost the country’s available power for distribution, the recent adoption of distributed generation, which include generation through renewable energy worldwide, has made NERC to develop a regulation for distributed generation. This regulation allows power generation plants (including the once from renewable energy) to be directly connected to the distribution end of the power systems. This power can also be evacuated through a distribution network. This will provide opportunities for investors to set up plants whose power could be generated and utilized without going through the transmission facilities. This will eliminate the payment of transmission cost by the utilities.

Despite the efforts being put into the power sector, the huge gap between electricity demand and supply may have continued to widen with economic growth, as the national demand is increasing at a fast rate. Gas pipeline bombings, energy theft and excessive power losses are parts of the major problems militating against the growth of the sector, these and more are the major reasons investors lack confidence in investing in the sector. Investors are afraid of not having quick return on investment and subsequently, this has greatly affected the target of the Federal government from meeting the target of 40,000 MW by 2020.

Consumer Satisfaction

A consumer of any goods and services is said to be satisfied if his needs are met, services are judged to be okay, and, therefore, the consumption experience is positive (Drosos et al., 2020). According to Oliver (2010), consumer satisfaction is customers’ fulfillment response. The difference between consumers’ expectations on quality of goods or services and the real quality experienced measures how satisfied a consumer is. A consumer whose expectations are met is said to be satisfied. Such consumer tends to patronize such products all the time and also help advertise same, which will eventually increase the patronage of such product (Alanazi & Bach, 2016). A company whose customers are satisfied tends to have more profit and remain in business for a long time. Researches on consumers’ satisfaction of various products have been looked into in the past with a view to measuring how satisfied consumers of such products are. These researches range from satisfaction on food (Espejel et al., 2008; Suchánek & Králová, 2019), housing (Puķīte & Geipele, 2017; Suffian et al., 2016), clothing (Nonaka et al., 2014; Wehfritz et al., 1998), transportation (Amponsah & Adams, 2016; Margareta & Markus, 2009) and electricity (Drosos et al., 2020; Souza et al., 2021).

This work is basically on consumer satisfaction of electricity consumers in Nigeria during the recent COVID-19 lockdown. A similar research was carried out in Italy by Ghiani et al. (2020). The work generally studies the impact of COVID-19 on electricity market. It was found out that demand for electricity dropped during the pandemic lockdown. Similarly, According to a recent work by International Energy Agency (IEA, 2020), the impact of the pandemic on electricity demand in some selected countries was reported. As expected, there was a quick drop in demand for electricity during this period.

Related Works on Electricity Consumers’ Satisfaction in Nigeria

Unlike in some other countries (Drosos et al., 2020), where electricity consumers are satisfied with the services rendered by the distribution companies (DISCOs), electricity consumers in Nigeria have always not been satisfied with the quality of services rendered by the power sector (Kurtkoti, 2014). Investigating electricity consumers’ satisfaction in Nigeria had been carried out in recent past by various authors. In the work of Olayinka et al. (2018), he examines the relationship between service quality and customer satisfaction in Ibadan Electricity Distribution Company (IBEDC). The author specifically focused on the residence of Ogun State. A survey questionnaire was employed to measure the five SERVQUAL dimension of reliability, empathy, responsiveness, tangibles, and assurance. The study was able to establish that, service delivery of IBEDC to the customers in the area under consideration is very poor. It also established that equipments used to provide electricity are very old and obsolete. In the work of Anyim and Emmanuel (2016), a descriptive study that looked at the expectations of customers and the level of satisfaction that they have been able to get was carried out. The main objectives of the work were to examine customer expectation, satisfaction level based on quality of service given by the DISCOs. The work also tries to identify the challenges facing DISCOS in their bid to satisfy their customers. This work focused on the service provider side. The authors used interview, questionnaire, and schedules from the electricity distribution units to get the data that was analyzed. The work was able to show that customers are always overbilled and most times, marketers saddled with the responsibility of reading meters do not usually read the meter but estimate the energy usage of customers.

The relationship between electricity service delivery and customer satisfaction among electricity consumers in Lagos State, Nigeria was investigated by Odunlami and Sokefun (2018). In the work, structured questionnaire was used as a tool to get data. The distribution companies involved are Eko Electricity Distribution Company (EKEDC) and Ikeja Electricity Distribution Company (IKEDC). The work found out that service quality and price have significant relationship with customer satisfaction while customer service has no significant relationship with customer satisfaction. The work however suggested that DISCOs should generate more power and provide enough facilities in order to supply regular electricity to their customers.

In the work of Usman (2013), he investigated the determinant of consumers’ satisfaction in Nigeria electricity sector. The author focused on Abuja electricity distribution zone in the country. Various satisfaction indices were determined to measure customers’ satisfaction. The satisfaction indices show that large percentage of the respondents was not satisfied with many aspects of the power services. These services are power quality, attitude of staff to customers and the weak system network.

In a study carried out by Philips Consulting (2013), a survey to capture electricity consumers’ satisfaction was carried out using an online questionnaire. The survey was carried out from December 15, 2012 to January 31, 2013. Respondents from 26 states responded out of which majority was from Lagos. The study found out that most respondents are not satisfied with the current situation of electricity in the country.

To further the study of the subject matter, this work also investigates electricity consumers’ satisfaction of some selected states where lockdown was affected. These states are Ogun, Osun, and Lagos.

Methods

In this work, a questionnaire that contains 13 questions was developed using Google Forms. The form was shared through various online platforms, such as Facebook and WhatsApp. Responses were received from April 12 to May 29, 2020. The questionnaire was structured to compare the hours of electricity supply before and during the lockdown, check for the ease experienced for payment of bill for prepaid customers during the lockdown and also to know if there was swiftness in faults correction of the distribution companies involved during the period under study. The responses were downloaded as an excel document. The information on the excel sheet was coded using numbers. For example, responses that have yes, no and may be were, respectively coded as 1, 2, and 3. Also, responses that show the discos that supply respondents were coded as 1, 2, and 3 for Ibadan Electricity Distribution Company (IBEDC), Eko Electricity Distribution Company (EKEDC) and Ikeja Electricity Distribution Company (IKEDC), respectively. This was done to allow easy analysis as a program using MATLAB 2012a was developed to carry out the analysis of the responses.

Results and Discussions

A total of 274 electricity consumers responded to the questionnaire, but after sorting, 259 consumers across the three states were analyzed. The criteria for sorting involve removing respondents outside the coverage location. From the remaining responses, the DISCOs involved are IBEDC, EKEDC, and IKEDC. Figure 1 shows the DISCOs that supply the respondents. Majority of the customers (67%) who responded are supplied by IBEDC. This represents 174 respondents. Total of 25% and 8% of the respondents are, respectively, supplied by IKEDC and EKEDC. The states of residence of the respondents are a major factor in the DISCOs that supply them. For example, IBEDC supplies Osun and Ogun among other states (Olayinka et al., 2018). Lagos State is supplied by IKEDC and EKEDC. Figure 2 shows the states of residence of the respondents. Total of 55% of the total number of respondents is from Osun State. This represents 143 respondents. This large number of respondents from Osun State is as a result of the state of residence of the authors. Total of 39 (15%) and 77 (30%) respondents are, respectively, from Ogun and Lagos States.

Figure 1.

Source: The authors.

Figure 2.

Source: The authors.

Respondents were asked if they experience improved hours of supply during lockdown. From Figure 3, responses showed that 125 (48%) respondents testify that there was indeed improvement in hours of electricity supply while 40 (16%) respondents are not really sure if there was indeed an improvement. Total of 94 (36%) respondents claim there was no improvement. A breakdown of responses based on states of residence is shown in Table 1. This table shows that, out of 125 responses that claim that there was improvement, 20, 79, and 26 are, respectively, residing in Ogun, Osun, and Lagos States. Also, out of 94 responses that claim that there was no improvement, 16, 39, and 39 are, respectively, residing in Ogun, Osun, and Lagos States. It can also be seen from the table that, majority of respondents from Ogun and Osun States claim there was improvements in hours of supply. On the contrary, majority of respondents from Lagos State claim there was no improvement. A further breakdown of responses on improvement on hours of supply based on DISCOs concerned is shown in Table 2. This table shows that, out of 125 responses that claim there was improvement, 96, 5, and 24 respondents are, respectively, customers of IBEDC, EKEDC, and IKEDC. Also, out of 94 responses that claim there was no improvement, 50, 13, and 31 respondents are, respectively, customers of IBEDC, EKEDC, and IKEDC. Table 2 also shows that majority of customers of IBEDC claim there was improvement in hours of supply during the lockdown. On the contrary, majority of customers of EKEDC and IKEDC who responded, claim there was no improvement. From this assertion, it is clear that majority of respondents who live in states supplied by IBEDC (i.e., Ogun and Osun) experience better hours of supply during the period when compared with majority of respondents who live in Lagos States, who are supplied by EKEDC and IKEDC.

Figure 3.

Source: The authors.

Table 1.

Response from Customers on Better Hours of Supply During Lockdown Based on States of Residence

State of Residence	Yes	No	May be	Total
Ogun	20	16	3	39
Osun	79	39	25	143
Lagos	26	39	12	77
Total	125	94	40	259

Source: The authors.

Table 2.

Response from Customers on Better Hours of Supply During Lockdown Based on DISCOS

Distribution Company	Yes	No	May be	Total
IBEDC	96	50	28	174
EKEDC	5	13	2	20
IKEDC	24	31	10	65
Total	125	94	40	259

Source: The authors.

To further know if there were indeed improvements, hours of consumers supply are compared before and during the lock down period. Figure 4 compares the frequency of respondents’ hours of electricity usage before and during this period. The implication of this figure is that, for instance, 38 and 31 customers are, respectively, supplied electricity for 0 and 3 hours before and during lockdown. Also, 41 and 35 customers are, respectively, supplied electricity for 9 and 12 hours before and during lockdown. Lastly, 7 and 15 customers are, respectively, supplied electricity for 21 and 24 hours before and during the period under study.

To further confirm the extent of improvement or otherwise in hours of electricity supply, a comparison was done to identify the number of respondents who before lockdown, experienced a certain hours of supply, but during lockdown, experience better or same or worse hours of supply. Figure 5 shows the frequency of respondents who experienced no change, increase, and decrease in hours of supply during lock down when compared to before the period. For instance, out of the 38 customers (see Figure 4) who experienced 0–3 hours of supply before lockdown, 21 customers claim there was no change in their hours of supply during the lockdown while 17 customers claim there was increased hours of supply during the period under study. Out of the 59 customers (see Figure 4) who experienced 6 to 9 hours of supply before the lockdown, 16, 33, and 10 customers, respectively, claim no change, increase and reduction in hours of supply during the period. Also, out of the 7 customers (see Figure 4) who experienced 21–24 hours of supply before lockdown, 5 maintained the same hours of supply during lock down, while 2 customers experienced worse hours of supply. Figure 5 also shows that 84, 137, and 38 respondents, respectively, experienced no change, increase, and decrease in hours of supply during the lockdown period when compared to before lockdown. The implication of this is that, unlike the 125 customers that claim there was improvement in hours of supply (from Figure 3), 137 customers actually experienced better hours of supply during lockdown. The additions might be from the customers who claimed “May Be” as their response. Also, unlike the 94 respondents who claim there was no improvement in hours of supply, Figure 3 shows that only 38 respondents experienced decrease in hours of supply during the period under study.

Figure 4.

Source: The authors.

Figure 5.

Source: The authors.

This work also finds out how easy consumers (who use prepaid meter) find the payment of their energy bills during the lockdown. It should be noted that only 125 respondents (48.3%) have prepaid energy meter. The reason for concentrating on prepaid customers is that they are in the category of consumers whose electricity supply is automatically disconnected whenever their energy unit is exhausted. So, if they cannot buy electricity unit, they will remain disconnected. Other forms of billing popular in Nigeria’s electricity market are post-paid estimated billing and post-paid metered billing. Figure 6 shows the responses to easiness of payment for prepaid customers. Those who found it easy are more than those who do not find it easy. Total of 71 (57% of 125) respondents claim it was easy to pay electricity bill, while 43 (34% of 125) respondents claim the opposite. Total of 11 (9% of 125) respondents did not have any reason to pay bill during this period. A breakdown of responses based on states of residence of respondents was done. Table 3 shows that, out of 71 responses that claim it was easy paying prepaid bills, 12, 38, and 21 respondents are, respectively, residing in Ogun, Osun, and Lagos States. Also, out of 43 responses that claim it was not easy paying, 2, 35 and 6 respondents are, respectively, residing in Ogun, Osun, and Lagos States. Majority of respondents from all coverage states of residence claim it was easy paying their bills. A further breakdown of responses based on DISCOs involved was also carried out. Table 4 shows that, for those who claim it was easy (from Figure 6), 49, 8, and 14 respondents are, respectively, customers of IBEDC, EKEDC and IKEDC. Also, for those who claim it was not easy (from Figure 6), 36, 2, and 5 respondents are, respectively, customers of IBEDC, EKEDC and IKEDC. For all the DISCOs involved, there are more claims of easiness in payment than otherwise.

Figure 6.

Source: The authors.

Table 3.

Response from Customers on Easiness of Bill Payments Based on State of Residence

State of residence	NA	Easy	Not easy	Total
Ogun	4	12	2	18
Osun	3	38	35	76
Lagos	4	21	6	31
Total	11	71	43	125

Source: The authors.

Table 4.

Response from Customers on Easiness of Bill Payments Based on DISCOs

Distribution Company	NA	Easy	Not easy	Total
IBEDC	7	49	36	92
EKEDC	0	8	2	10
IKEDC	4	14	5	23
Total	11	71	43	125

Source: The authors.

Further enquiry was made to find out the reason for the uneasiness experienced by some customers. Figure 7 shows the frequency of the responses. From the figure, it was found that majority (63%) of the respondents who found payment uneasy used designated points for payment, which they stated that it was unavailable. The unavailability of designated points may be due to the lockdown. Equal numbers of respondents either do not know the reason for the uneasiness or they experience network failure on online payment platforms.

Figure 7.

Source: The authors.

On the question of fault rectification, Figure 8 shows the frequency of responses indicating if fault was quickly rectified or not. From the figure, it is obvious that majority does not experience fault during the period under consideration. Total of 128 respondents (49%) did not experience any form of faults that requires rectification. However, out of the 131 respondents that said they experienced fault, 74 (majority) of them said there was no swiftness in fault rectification while 57 said there was swiftness in fault rectification. A breakdown of responses based on states of residence and DISCOs involved is further carried out. Table 5 shows frequency of responses based on states of residence. From this table, it can be seen that, majority of respondents from Ogun and Lagos States do not experience swiftness in faults correction. However, majority of respondents from Osun State experience swiftness in faults correction. Table 6 shows the frequency of responses based on the DISCOs involved. From this table, majority of respondents serviced by IBEDC said there was swiftness in fault rectification, but for majority of respondents that are serviced by EKEDC and IKEDC, more of them experienced lack of swiftness in fault rectification. Another inference from Tables 5 and 6 is that, though, majority of respondents that are serviced by IBEDC claim there was swiftness in faults correction, majority of responses from Ogun State (also serviced by IBEDC) show the contrary.

Table 5.

Response from Customers on Fault Rectification Based on States of Residence

State of residence	NA	Swift	Not Swift	Total
Ogun	22	4	13	39
Osun	78	38	27	143
Lagos	28	15	34	77
Total	128	57	74	259

Source: The authors.

Table 6.

Response from Customers on Fault Rectification Based on DISCOs

Distribution Company	NA	Swift	Not Swift	Total
IBEDC	97	40	37	174
EKEDC	7	3	10	20
IKEDC	24	14	27	65
Total	128	57	74	259

Source: The authors.

Figure 8.

Source: The authors.

Conclusion

This work has been able to measure the level of electricity consumers’ satisfaction during the lockdown period occasioned by the COVID-19 pandemic. A survey was carried out on three locations that were locked down. The locations are Ogun, Osun, and Lagos States. The survey tries to measure how satisfied are they based on the hours of electricity supply during the period, easiness experienced for payment of bill for prepaid customers, and swiftness in faults correction of the distribution companies involved. A questionnaire was developed and was shared through various online platforms, such as Facebook and WhatsApp from April 12 to May 29, 2020. The responses were coded using numerals and a MATLAB program was used to carry out the analysis. A total of 274 electricity consumers responded to the questionnaire, but after sorting, 259 consumers across the three states were analyzed. Majority of the responses came from Osun State. The results were able to show the following:

Majority of respondents from Ogun and Osun States (all serviced by IBEDC) claim there was improved hours of supply during lockdown period. However, majority of respondents from Lagos State claim the contrary.

Majority of respondents on prepaid billing system claim that it was easy paying their bills. And those who experience otherwise are due to the unavailability of designated points of payments.

Majority of respondents claim that there was no swiftness of fault correction during the period. Though, majority of customers of IBEDC claim there was swiftness in fault correction. Further analysis reveals that, out of the two states serviced by IBEDC, majority of respondents who reside in Ogun State claim that there was no swiftness in fault correction.

Footnotes

Declaration of Conflicting Interests

The authors declared the following potential conflicts of interest with respect to the research, authorship and/or publication of this article: On behalf of all authors, the corresponding author states that there is no conflict of interest.

Funding

The authors disclosed receipt of the following financial support for the research, authorship and/or publication of this article: This research received no specific grant from any funding agency in the public, commercial, or not-for-profit sectors.

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