Notable Provisions Of The NMDPRA Customer Protection Regulations In Nigeria

This article will be looking at the provisions of the Nigeria Midstream Downstream Petroleum Regulatory Authority NMDPRA Regulations on Customer Protection, from standards of performance to the extent of the customer protection powers of the Authority.

What are the provisions of the regulations on the establishment of a customer forum?

– A licensee shall establish or facilitate the establishment of a forum at which customers are able to express their views and raise concerns.

– The forum shall be held at least once every calendar year provided that the Authority may direct that the licensee hold additional forums during the year.

– The licensee shall, prior to the commencement of the forum, notify the Authority of the date, time, mode(physical or virtual), venue, agenda and expected participants of the forum.

– The licensee shall, not later than 21days after the conclusion of the forum submit a report to the Authority on the outcome of the forum.

What do the regulations say on the standards of performance?

– A licensee shall formulate and adhere to standards of performance necessary to ensure the safety, reliability and quality of supply and distribution services to customers.

What are the provisions of the regulations on the development of customer service codes?

– A licensee shall develop customer service codes setting out the practices and procedures to be followed in the conduct of specified licensed activities and ensure strict adherence to them .

– Customer service codes shall include codes governing :

a). Installation, testing, maintenance and reading of meters;

b). Fault repairs and response to customer emergencies;

c). Connection and disconnection of customers;

d). Responding to customer complaints and complaint resolution;

e). Billing & invoicing;

f). Extension of payment and credit facilities;

g). Provision of information to customers and the use and protection of customer information;

h). The establishment of specialized services for economically or socially disadvantaged customers.

What do the regulations say about scheduling?

– The Authority may publish a licensee’s customer service codes on its website upon payment of fees as set out in the schedule to the regulations.

What do the regulations say about the authority to approve customer service codes?

– Customer Service codes shall be approved by the NMDPRA prior to publication & may be reviewed at intervals as may be considered necessary by the Authority.

What do the regulations say on the duty to notify customers of service codes?

– It shall be the duty of a holder if a license, permit or authorisation to –

a). Notify customers of applicable customer service codes that shall be adhered to.

b). Make available to customers, the service codes upon request.

What are the provisions of the regulations on the submission of reports?

– A holder of license, permit or authorisation shall prepare and submit reports to the Authority indicating Its performance levels and status of its operations in respect of licensed activities :

a). at least once every year, and

b). at such times as the authority may prescribe by regulations, guidelines or directives.

What do the regulations say on the Authority to receive and investigate complaints?

The Authority shall –

a). Receive complaints relating to pricing, product quality, service delivery & billing practices from customers with grievances against companies in Midstream & Downstream Petroleum operations.

b). Maintain a directory of complaints brought before it.

c). Investigate complaints received and claims made against companies in the Midstream & Downstream Petroleum operations.

What do the regulations say on the extent of the customer protection powers of the Authority?

– The Authority shall have powers to –

a). Summon a person undertaking Midstream & Downstream Petroleum operations for the purpose of investigating a complaint made.

b). Compel suppliers, gas distributors and petroleum product distributors to comply with the provisions of the regulations.

c). Enter into or cause the ingress into any facility or premises undertaking Midstream & Downstream operations for the purpose of inspecting or carrying out investigations into a complaint made against such a facility.

What do the regulations say on obtainable offenses and penalties?

The Regulations provide that any violation of its provisions can incur an administrative penalty not exceeding One Million Naira.

Notable Provisions Of The NMDPRA Regulations On The Separation Of Licensed Activities & Surrender Of Licenses/Permits In Nigeria

The Nigerian Midstream & Downstream Petroleum Regulatory Authority (NMDPRA) recently launched its regulations on the Separation of licensed activities and surrender of licenses or permits which which be the focus of this article, especially regarding :

– Its Objectives

– Their Application

– The Prohibition of Overlapping Activities

– Mandatory & Voluntary License Surrender .

What are the objectives of these regulations?

– To set forth the procedure for the separation of licensed activities for the separation of licensed activities in the Nigerian Midstream & Downstream Petroleum industry.

– To outline the process for the surrender of license and permit in the Nigerian Midstream & Downstream Petroleum industry.

What is the application scope of these regulations?

– These regulations shall apply to license and permit holders undertaking Midstream & Downstream operations in Nigeria.

What do the regulations say on overlapping activities?

– No entity shall hold licenses for both Midstream & Downstream Petroleum operations at the same time.

– Each licensee and permit holder shall carry out only the specific activities for which its license or permit was issued.

– Any licensee & permit holder who wishes to engage in additional Midstream & Downstream Petroleum activities shall obtain a separate license or permit for that specific activity.

– The Authority may, from time to time, publish on its website, a list of activities considered as overlapping.

Do the regulations require separate accounting & annual audit?

– From the commencement of these regulations, each licensee shall :-

a). Keep separate accounts for each licensed activity it conducts.

b). Submit an annual audit of separated activities to the Authority foe review.

What is the extent of the NMDPRA’s power to order unbundling of activities?

– Where a licensee or permit holder holds multiple licenses or permits for overlapping Midstream & Downstream Petroleum activities, the Authority shall order the licensee or permit holder to unbundle its operations within a period of 6 months.

– The Authority may grant an extension of time for the unbundling upon the licensee or permit holder showing a justifiable reason.

What are the provisions of the regulations on voluntary license surrender?

– A license or permit holder may at any time apply to the NMDPRA through a legal representative in writing for the surrender of its license or permit.

– The application for surrender shall be accompanied by a report containing :-

a). A detailed reason for the surrender.

b). Evidence of settlement of all outstanding liabilities and obligations relating to the license or permit.

c). A detailed plan for decommissioning and environmental remediation where applicable.

– The NMDPRA may accept the surrender of a license or permit if :-

a). All obligations, financial or otherwise relating to the license or permit are settled.

b). The environment and public safety are not jeopardized by the surrender.

c). The entity has made appropriate arrangements for the cessation of activities including but not limited to the decommissioning of facilities, rehabilitation of sites and settlement of obligations to employees.

What are the provisions of the regulations on mandatory license surrender?

– The NMDPRA may direct any licensee or permit holder to surrender its license or permit if :-

a). The licensee or permit holder is in continuous breach of the Terms and Conditions of the licensee or permit.

b). Bankruptcy or insolvency of the licensee or permit holder.

c). It is in the interest of public safety, environmental conservation or national security.

What are the applicable obligations and consequences following License Surrender under the regulations?

– A licensee or permit holder whose surrender application is approved by the NMDPRA shall:

a). immediately cease all operations under the surrendered license or permit.

b). comply with decommissioning and environmental remediation plan.

c). within 7 days of the approval of its application, return the original license or permit to the NMDPRA for cancellation.

– The surrender of a license or permit does not absolve the licensee or permit holder of any existing obligation or liability incurred under the license or permit unless expressly agreed to by the Authority in writing.

– The NMDPRA may, at its discretion, initiate an audit or review of the petroleum operation or activities conducted under the surrendered licensee or permit.

What do the regulations say on the publication of a license surrender?

– The NMDPRA shall within 30 days of the effective date of the surender, publish a notice including particulars of the surrendered license or permit in the Federal Gazette & on its website.

What are the applicable penalties for offences under the regulations?

– A violation of the provisions of the regulations can incur an administrative penalty of 250,000.00 Naira for each day of the default.