The Nation Newspaper

Tag: DISCOS

  • DisCos short-change us, customers allege

    Electricity consumers are    accusing distribution companies  (DIsCos) of short-changing them by not providing them meters.

    According to them,  firms such as Eko Electricity Distribution Company (EKEDC), Ikeja Electric (IK), Ibadan Electricity Distribution Company (IBEDC) and others have refused to provide them meters, despite consistent demands.

    A customer, Mrs Florence Omotosho, said she suffered pains in the hands of EKEDC officials.

    According to her, the firm asked her to pay N50,000 before it can provide her pre-paid meters, adding that the  company frequent her Ebute-Metta residence to collect bills at the end of the month, and in the process disconnect her light.

    ‘’Failure of Eko DisCo to provide  pre-paid meters to customers under its jurisdiction is having untold effects on its residence.  I paid N6,000 bills monthly to the firm, coupled with the fact that we ( residents) do not get light always. Often times, the firm disconnects our light whenever we fail to give them money, which they cannot account for. How long will they continue to subject us to pains, caused by power outage?  How long are we going to pay estimated bills; the bills that do not reflect the volume of electricity, we are using?” She asked

    She urged the firm to reduce the economy pangs on the consumers by providing them meters, arguing that consumers cannot grow financially under this condition.

    Another consumer, Mr Babatunde Oyelami, said the issue of non-availability of meters is affecting users of electricity.

    According to him, Ikeja Electric has refused to meter many customers, despite making several attempts to get the product.

    He said the firm charges him between N10,000 to N12,500 monthly, adding that the issue has serious implications on his wellbeing.

    The EKEDC’s spokesman, Mr Godwin Ihemudia, said the issue of metering customers is on-going,  adding that many consumers in Ebute-Metta, Lekki, Ajah and other areas will get meters soon.

     

    He said: ‘’ Our  roll on plans is on course. We would provide meters to customers district by district, compared to other DisCos. Very soon, the issue of payment of estimated  billing would be a thing of the past.’’

    Also, his counterpart in Ikeja Electric, Felix Ofolue, said efforts are being made to put an end to the issue of payment of crazy billings by the customers.

    He urged customers to exercise patience, stressing that the firm is working to ensure prompt distribution of meters to its customers.

     

     

  • The extortion by DisCos

    It is an understatement to aver that Nigeria is running a primitive and ‘candlelight’ economy given the deplorable and miserable state of affairs in the power sector. When I was growing up in the late 50s and early 60s, power outages were rare in major Nigerian cities. Most power stations were driven with coal and power distribution was stable and regular until the military struck. Successive military governments, without the requisite knowledge and competence to run the nation’s political economy never visualized that with the growing population, the power needs of the country will comparatively increase. When the power deficit gradually manifested, the military was not prepared with any long-term plan to confront it, so it resorted to importation of generators of all shapes and sizes in its typical ad hoc approach to addressing national problems. Thus Nigeria became the world’s biggest importer of generating sets. All government offices, military formations, industries, banks, oil and gas companies, Small and Medium Enterprises and individuals spend a fortune to run their independent power units. The generating set market is still booming.

    For five decades, we have lived in darkness because of the lack of vision and corrupt disposition of our past leaders. In 16 years of PDP, billions of dollars were either misappropriated or misapplied in President Olusegun Obasanjo’s Independent Power Projects (IPPs) which produced nothing; the subsequent power reform programme of President Goodluck Jonathan gulped billions without any tangible improvement in generation, transmission and distribution. The privatization and unbundling of defunct Power Holdings Company of Nigeria (PHCN) and other power assets was not transparent and did not follow due process as it was politicized and blatantly flawed. Jonathan’s PDP government in its game of political intrigue to win the 2015 elections skewed the entire exercise to favour the party’s patrons. The result of this is the manifest lack of technical competence and financial muscle by the buyers of these national assets to drive the transformation of the power sector which privatization should have impacted.

    Contrast this with the reform in the telecom sector in 2001. Telecom firms who won the bids then were already in the business operating in other countries and could boast of their technical competence and expertise and tested corporate governance. In a jiffy, they set up their offices and installed their equipment and base stations and rolled out their services to subscribers. The result today is a tele-density of nearly 150 million Nigerian phone users, as against a pittance of only 500,000 analogue lines before the telecom reforms.

    Three years after Buhari’s APC government came on board, the power situation has deteriorated and Nigerians are now wondering why PHCN was liquidated. Popular opinion today is that the citizens prefer PHCN performance to what we presently have. Even the meagre 3000 megawatts (MW) then generated before the advent of APC was well managed in transmission and distribution by the erstwhile PHCN. Now that they claim generation has upped to 7000MW, most parts of the country are thrown into darkness for weeks if not months. From north to south, east and west, citizens are crying and lamenting over this abysmal and indigent power situation. We see protests every week against the now notorious “Estimated Bills” clamped on consumers by the DisCos with little or no power supplied. The cries and protests against this extortionist and fraudulent bills have fallen on deaf ears of our leaders and they do not care. They live in the comfort of their mansions powered by sophisticated generating sets and fuel, all funded by taxpayers.

    For instance, here in my community in Nkanu West LGA in Enugu State, the Enugu Electricity Distribution Company (EEDC) supplies power for less than five days in a whole month. As soon as they start handing out their infamous ‘crazy’ estimated bills, they will supply power only to withdraw same after they have collected substantial sums from consumers. Days later, they embark on mass disconnection. Several protests by citizens and even the Enugu State House of Assembly have been ignored by this fraudulent Disco. If this is not corruption and impunity by a commercial entity which should bill customers for services commensurate with the exact quantum of units consumed, then what is?

    The DisCos have conspired to abandon metering four years after they took over in order to sustain their profiteering agenda. It can only happen in Nigeria. The Nigeria Bar Association (NBA), Civil Society Organizations (CSOs) and the Nigeria Labour Congress (NLC) have all abandoned the Nigerian people in this unconscionable and wicked extortion of the poor masses. Where are the likes of Gani Fawehinmi who alone fights for the masses?

    Now, where is the proof of the Change the APC promised to bring into governance and the economy if the party cannot fix the power sector in three years of its administration?  On assumption of office, the government stated that they will review the whole privatization exercise. The two chambers of the National Assembly also set up committees to look into this issue. But like all other critical national affairs that affect the masses, nothing has been heard or done to address a very fundamental resource that will drive the whole economy and improve lives. It is not late to do the needful and save Nigerians from this perennial darkness, misery and oppression by those who have been handed our national assets but have become rip-offs in the guise and name of DisCos and who are fleecing citizens of their hard-earned cash for providing little or no power. I can bet Buhari and APC all the crude oil in the bowels of Nigerian soil that if they had targeted and fixed power before the 2019 elections and provide uninterrupted supply of electricity to the teeming masses and our industries, they would have done half of the campaign needed to win a landslide at the polls.

    I appeal to President Muhammadu Buhari, Vice President Yemi Osinbajo, Power, Works and Housing Minister Babatunde Fashola and the National Assembly to intervene urgently to review the entire privatization exercise and ensure that only competent and reputable electricity-compliant companies with cognate competences and experience with solid financial muscle to pour new investments into this very critical sector are handed the assets. We also need a robust regulatory and oversight agency to ensure the right corporate governance structure and check the DisCos from their profiteering and exploitative practices. Derelict and nonchalant in carrying out its statutory mandate, NERC has performed dismally as a regulator, virtually conniving with the oppressor Discos. It took the Consumer Protection Council (CPC) a long time to address the malpractices of the DisCos when in a recent indictment, the Executive Secretary Babatunde Irukera stated albeit belatedly that “the key complaints that we receive are arbitrary, unsupported  and unreasonable billing; … that you are asking them to pay for something that was not supplied.” For CPC that is the end of the matter. No mitigation or intervention on behalf of the consumers.

    Electric power is key, central, imperative and indispensable for any economy to develop and grow. The rate of growth is directly and indirectly proportional to the quantum of electric power available for industry, all social and economic activities and the comfort and welfare of citizens in their homes. Electricity is the livewire of industry everywhere in the world. To provide electricity is no rocket science.  It is hypocritical and languishing in self-deceit to talk about a growing economy with the present dearth of power in Nigeria. Smaller countries such as Ghana have power sufficiency and are still increasing capacity. It is a shame that with the enormous gas and coal resources coupled with abundant sun and wind energy available to us, we cannot solve this seemingly intractable and insoluble power nightmare once and for all. The verdict is failure of leadership and absence of governance.

     

    • Elder Okochi writes from Agbani Nkanu West LGA, Enugu State.

  • CPC, DISCOs and electricity consumers

    It was a sigh of relief for electricity consumers recently as the Consumer Protection Council (CPC) disclosed that “arbitrary billing and group disconnection of electricity consumers without consideration for those paying their bills constitute a gross abuse of consumer rights”. Though this is coming late from CPC, it is better it came than not.

    The Director General of the Council, Babatunde Irukera, was quoted as saying that “there is no excuse for how consumers are treated. “The key complaints that we receive are arbitrary, unsupported and unreasonable billing; people not being treated with dignity, the complaint resolution process is either lacking or unclear and there’s really no respect for people”.

    According to Irukera,” consumers’ complaints have not been primarily about supply, but about billing for non-existent supply, stressing that: “as a matter of fact, a vast majority of supply complaints are attributed to the fact that you are asking them to pay for something that was not supplied and the other significant reason is group disconnection”.

    Indeed, the power distribution situation has degenerated to a deplorable level and corroborates Irukera’s position that “DISCOs have gotten to a point where no one takes their bills seriously anymore, because they are considered outrageous”.

    It is incontrovertible that the power distribution situation in the country has not gone this bad since the several metamorphoses of organizations and bodies governing the use and distribution of electricity in Nigeria.

    Recently, over 20 rural communities on the 33 KVA at the outskirts of Aba were disconnected for over one week. Some conditions were stipulated which upon their fulfilment they would be re-connected. Such conditions include what is considered a death warrant. The communities were expected to sign a pact that they would fulfil the complete payment of the current charge plus 10 percent arrears. The irony of the whole episode is that some of the communities are on the current charge of as high as between N600,000 and in some instances close to N1million. Imagine what factors that would scale up the electricity consumption of a rural community to that outrageous amount. The arrears of one of the communities currently stand at over N8million, courtesy of the arbitrary billing system with the baptismal name “crazy bill”. If such community had consented to this death warrant, it means that assuming the current charge is N700,000, the community will part with N1.5million- the current charge plus 10 percent of the arrears. Thank God that community did not assent to that death warrant.

    Other conditions were not fair either. They include the compulsory application for a bulk prepaid meter and striking a deal with Enugu Electricity Distribution Company (EEDC) on how many days power will be supplied in a month and at a specific cost. The puzzle that defies resolution is here is the price services negotiated before they are supplied? That means that EEDC has been playing some pranks with these communities for some years now as with the proposed arrangement, power would be made available if an accord is struck with the consumers. Unfortunately, before now, there has been what is called “load-shedding arrangement”, where a community is denied power for some days in order to scale down the monthly bill.

    I don’t know what other consumers located across the country are suffering in the hands of other DISCOs, but if their experience is similar to that consumers suffer in the hands of EEDC, the hell is a better place for Nigerians.

    The multiple metamorphoses and the huge cash investment by the federal government on this sector, the stories of NEPA, PHCN, and what have you, have been that of woes and incessant cries of disappointment from their numerous consumers. The awful situation elevated incessant power outages to the status of norm instead of an aberration. The disappointing situations clothed the organizations with numerous and derogatory metaphors such as “Never Expect Power Always” (NEPA),”No Electrical Power at All; and “Please Hold a Candle Now” (PHCN), among others.

    Perennial power outages, unstable services by these bodies regulating the use of energy in the country informed the radical action by the Nigerian government which gave birth to the Electric Power Sector Reform Act of 2005. This Act called for the unbundling of the national power utility company into a series of 18 successor companies: six generation companies, 12 distribution companies covering all 36 Nigerian states, and a national power transmission company.

    Some key arguments reigned supreme at the height of the privatization process. Analysts were of the strong view that key public corporations embedded in critical sectors of the economy such as power are not privatized to protect the citizens against exploitation. It is an elementary economics that one of the essences of public corporation is to provide essential services to the public at a subsidized rate. Again, if the underlying motive of privatizing PHCN was to break monopoly, that motive was good as useless. For example, in Aba where the multi-billion Geometric Power Project could have provided a better and strong alternative, the project was sabotaged in a manner which is not devoid of politics.

    If Geometric were allowed to come on stream before now, residents of Aba, the latest Small and Medium Enterprises-hub would have been rescued from the terrible claws of the Enugu Electricity Distribution Company, EEDC, which holds sway in the Southeast.

    The activities of EEDC in Aba are both despicable and exploitative. It is inimical to commercial and artisanship spirits of the town. The attitude of the field workers of the establishment- who are arguably permanent staff- is irritating. They are impunity epitomized: disconnecting consumers at will even when there are clear evidences of payment of bills; failure to issue disconnection notices; indiscriminate re-connection charges without issuance of receipts as evidence of payment. These field workers are lords unto themselves and you dare not question their authority.

    The billing system is nothing to write home about. They implement what is called “estimated or crazing billing system” and the irony is that consumers may go some months without electricity but are duty-bound to pay bills. It is a common knowledge that the payment for products is to derive utility, which is the satisfaction derived from consuming a product. For EEDC, “utility” is a “strange concept”.

    The rural communities are not spared in this madness. They are under what is called “the bulk billing system” which runs upwards of N600,000 per month. Pundits are yet to terms with why rural communities- where it is crystal clear that energy consumption is very low because there are no industrial activities or gadgets that should scale up energy consumption- should be awarded such outrageous bills. More worrisome is the fact that these rural communities are peopled by predominantly peasant farmers whose means of livelihood are too inadequate to sustain them. The situation has forced communities and individuals to drag EEDC to court. But this option is as well frustrating because of the delay associated with our judicial system. Some communities that do not consider legal actions as viable options have resorted to self- help by physically manhandling EEDC staff.

    CPC is enjoined to up their ante and save consumers from fangs of the DISCOs, especially EEDC. EEDC is indeed a clog in the wheel of progress of Aba as an SME hub of the nation.

  • New metering plan brightens DisCos’ funding prospects

    Electricity distribution companies (DisCos) seem to be making a headway in their bid to secure funds for capital projects.

    The Executive Director, Research and Advocacy, Association of Nigeria Electricity Distributors (ANED), Mr. Sunday Oduntan, said the firms would make enough money from the new metering plan which will take efect from next month.

    The power firms, he said, would rake in a lot of money which they will help finance critical projects such as provision of meters to customers.

    In a chat with The Nation, Oduntan said the firms are unable to provide meters, among financing other investments, due to limited funds at their disposal.

    “The Capital Expenditure (CAPEX) set by the Nigerian Electricity Regulatory Commission (NERC) in the DisCos’ tariff plan was not enough to meet the metering target and finance other investments such as installation of transformers. But with the new metering plan in place, the DisCos would not find it difficult getting funds for operation. They would make money by playing the role of Meter Asset Providers (MAPs).  By this, the power firms would serve the dual roles of providing meters to customers as well as claiming the ownership of the meters,”he said.

    According to him, the new plan would help DisCos bridge a four million metering gap as well as put an end to estimated billings in the industry. According to him, the new metering plan is timely as NERC has fixed 2020 as deadline for the termination of estimated billings.

    The metering gap, he said, has widened because the DisCos were unable to get money for metering purpose. “You will see that the firms have enough time to make money when considering the fact they have 15 years as tenure to operate as MAP licensors. That period is enough for a company that has a goal to make money for its operation. This is aside the fact that it can renew its operating licences for such role,” he said.

    It would be recalled that power firms have been finding it difficult funding their operation. The problem dated back to the privatisation period of 2013, which has seen the electricity distributors facing a herculean task of meeting customers’ expectation.

    To reposition the sector for growth, NERC came out with a draft regulation in the last quarter of last year. The draft regulation, which was discussed by NERC, DisCos and other stakeholders, resulted in the introduction of the  metering plan.

  • DisCos push for input into draft regulation

    The power distribution companies (DisCos) are seeking input into the draft regulation being fine-tuned by the Nigerian Electricity Regulatory Commission (NERC).
    The firms said some parts of the regulation needed to be improved to ensure efficiency.
    The DisCos, under the aegis of the Association of Nigerian Electricity Distributors (ANED), cited metering, saying it is key in the sector. They said the DisCos were not ready to play with it; therefore, it must not be handled in such a way that it wouldn’t boost their operation.
    ANED’s Manager, Regulation, Mr Adetunji Adeleye, said the DisCos were unhappy with the payment for meters by consumers as contained in the draft regulation.
    Adetunji said metering was important as it was one of the means through which the DisCos derive their revenue. He added that the firms are expecting the issue, among others, stated in the draft regulation would be addressed to favour them, whenever NERC finishes fine-tuning the draft regulation.
    According to him, the DisCos are required to provide meters to consumers to distribute electricity to them. He said where other parties were involved in metering, it would affect the firms.
    Adetunji, who represented the power firms at a consultative forum held in Abuja to deliberate on germane issues, such as metering, distribution and generation of electricity, said the firms are not pleased with the mode of payment for meters supplied to the consumers, as contained in the draft regulation.
    The forum was organised by NERC to seek opinions on salient issues affecting the sector was well attended by stakeholders.
    He said the issue of third-party metering stated in the draft would not help the DisCos that are constitutionally required to issue meters to consumers with to provide electricity and generate revenue.
    “That is the reason DisCos want the outcome of the draft regulation to be in their favour when NERC eventually releases it to the public, he said.
    He, however, lauded the decision of the NERC ton the draft regulation, saying it would set the tone for the administration of the sector.

  • DisCos deploy more meters

    To improve earnings and operational efficiency, power distribution companies (DisCos) are deploying Maximum Demand Meters (MDMs) in manufacturing, steel and fabrication, maritime and other companies in the high-end bracket of the metering industry, Chief Executive Officer, Nigerian Electricity Management Services Agency (NEMSA), Peter Ewesor, has said.

    Maximum Demand Meters are used by industries because of huge load consumption, while Lower Demand Meters are used by residential and some commercial consumers.

    In a telephone interview with The Nation,  Ewesor said it was evident in the increase in number of Maximum Demand Meters submitted to the National Meter Test Station (NMTS) across the country.

    NMTS is a department approved by the Federal Government to test meters, which DisCos deploy to consumers.

    He said the number of such meters distributed by the DisCos to companies have witnessed an unprecedented growth, adding that the idea would help the power firms to reduce collection losses caused by non-payment of tariffs by consumers.

    Ewesor said: “The patronage for Maximum Demand Meters by bigger firms has increased by 100 per cent from 50 per cent or 60 per cent in recent times. The reason is because the DisCos are seeking improvement in earnings, which happened to be the major means of shoring up their revenues.”

    According to Ewezor, who is also the Chief Electrical Inspector of the Federation, individuals are within the  lower end consumers bracket because they use less volume of electricity and as a result of tariffs that are lower to those that are being paid by factories and other high-end income consumers.

    He said most of the eleven DisCos have submitted Maximum Demand Meters to NMTS for testing in line with the directives of the Nigerian Electricity Regulatory Commission (NERC).

    Also, MOMAS Nigeria Limited Chairman, Mr Kola Balogun, has urged power firms to leverage the maximum demand meters to make money for growth. MOMAS is one of the few indigenous manufacturers approved by the Federal Government.

     

     

     

  • Congress to Discos: stop fleecing consumers

    Congress to Discos: stop fleecing consumers

    A faith-based organisation, The Muslim Congress (TMC), has urged the electricity distribution firms to stop fleecing their consumers through estimated bills.

    The congress canvassed supply of pre-paid meters.

    Its Amir (President), Dr Luqman AbdurRaheem described metering supply as a burning issue that has not abated.

    The discos, he said, have refused to continue further supply of meters because it is easy to fleece unmetered houses by collecting money for electricity not supplied.

    AbdurRaheem called on the Ministry of Power, Works and Housing to save the people from losing their hard-earned money by ordering the discos to re-start forthwith the supply of pre-paid meters to all homes and industries.

    “If the discos know they cannot collect money for services not rendered, they will begin to face their business more seriously,” he said.

    Admitted that there is relative improvement in electricity generation and distribution nationwide, AbdurRaheem decried the frequent drops in generation and collapse of the national grid.

    “There should be longer periods of continuous supply of electricity that is crucial to the industrial and economic development of the nation. Even though the present problem has been quickly resolved by the Nigerian National Petroleum Corporation (NNPC) through the repair of the Escravos Pipeline, it is essential to put in place mechanisms that will prevent bush fires from causing such a monumental problem,” he said.

    He blamed the NNPC for the fuel crisis in the country because “The NNPC did not plan for nor execute a course of action that would have addressed the spike in demand during yuletide period. The NNPC also knew that the independent marketers had stopped importing petroleum products because of the high cost of foreign exchange. So, it was a problem that was waiting to happen several months earlier. The NNPC must improve on its ability to plan for the needs of the people it serves.

    “On the other hand, the petroleum marketers sought to profit from the shortage in supply by hoarding products and arbitrarily selling above the regulated pump price. The marketers would prefer that the government raises the price of petrol so that they can go back to the business of petrol importation. But a price increase at this time would certainly bring untold hardship on the people and paralyse their economic activities.

    “It would baffle the ordinary Nigerian why the federal government has been unable to fully rehabilitate the Port Harcourt and Kaduna refineries or build new ones. It is the provision of new refineries that can bring lasting solutions to the perennial fuel shortages. We should not have any business with the landing cost of petrol since this is caused by importation. Let us refine our crude oil at home and sell at economically-friendly prices.”

  • DisCos ‘ll clampdown on fraudulent workers, says ANED

    Electricity distribution companies (DisCos), will not hesitate to clampdown on erring workers as part of efforts to improve efficiency, Executive Director, Research and Advocacy, Association of Energy Distribution Companies (ANED), Mr. Sunday Oduntan, has said.

    He said the firms have put workers on their toes with a view to ensure that they desist from acts capable of eroding consumers’ confidence.

    In an interview with The Nation, Oduntan said ANED, which serves as umbrella body for the eleven DisCos in the country, has started going round the firms to investigate corrupt practices among the employees,  adding that the firms have been directed to sack workers that are found guilty.

    He said the development became necessary in order to rid the DisCos of bad eggs and further give the sub-sector a new image.

    He said there are cases of corrupt workers in many of the firms as evident by the ways and manners they reportedly exploit consumers in the course of connecting their light.

    He said some workers collect monies to buy equipment such as meters, transformers, poles and others, from customers, without getting the consent of their employers.

    Oduntan said: “It is a normal thing to blame the problems in the nation’s electricity sector on the three critical value chains namely the generation, transmission and distribution. Of course, each of the segments has its own problems. But what we are saying is that the distribution segment, which comprises of eleven firms, should as a matter of fact, solve their own problem first.

    “Firstly, the DisCos must rid themselves of criminally-minded people to be able to win the confidence of customers. Secondly, they need funds to ensure seamless operation. Thirdly, rules need to be enforced in the firms to ensure discipline, honesty and further provide corporate governance standards.  When these have been provided, the distribution sector will operate optimally.”

    He said activities in the DisCos would pick up once they are able to get enough allocation or supply from the power generation companies (GenCos).

    The DisCos, Oduntan said, require sufficient power supply from the GenCos to operate well, stressing that failure to get enough electricity supply has impacted negatively on their operation.

    According to him, the bottlenecks hindering operation of power generation companies must be removed by the stakeholders, including the Federal Government in order to get the best services from them.

    He said the problems include shortage of gas, funds and collocation, which according to him, means   site gas pipelines in areas where they can be easily accessed by the GenCos.

    He urged the Federal Government and other stakeholders in the value chain to work together to ensure that DisCos meet the five-year deadline given them by the government to meter their customers, among providing other infrastructural facilities.

  • Senate kicks against tariff increase by DisCos

    Senate kicks against tariff increase by DisCos

    The Senate Committee on Privatisation yesterday in Kano, said there was no need for the proposed increase in electricity tariff.

    The committee chairman, Ben  Murray Bruce, who  spoke during a monitoring visit to Kano Electricity Distribution Company, (KEDCO)  said  electricity distribution companies (DisCos) were close to Cost Reflective Tariff era.

    According to him, it will be suicidal for prospective customers in the country if an increase in tariff is allowed without a concomittant increase is workers wages.

    Bruce said all what the DisCos need is to make their system efficient and effective to serve the needs of customers.

    He hailed the management of KEDCO for their ability to serve their customers efficienty, generating over N2 billion against the targeted N3.5 billion to keep them in business.

    “This development is an encouraging one, in which the management has told us honestly and clearly that this is a good business in which there is hope for Nigerians.

    “We are excited with the explanations we got from Kano DISCO. We will go back to the Senate and write our report and tell all Nigerians that there is hope for them and the problem of power can be fixed.”

    He said all that is needed is the money and meters for the whole country, adding that  the DisCos needed to figure out when transmitters break down so that the  TCN can fix them immediately.

    Also speaking, the Managing Director, KEDCO, Dr Jamil Isyaku Gwamna complained to the Senate committee that the 350 megawatts (Mw) transformer in Kumbotso has broken down without TCN effecting any repairs. He lamented that the development is now hampering supply to its numerous consumers.

    He also lamented the non-payment of electricity bills  by customers as major challenge for the company.

    He said this denies the  firm revenue, adding that, with the 2, 500  workers, the company monthly wage bill stands at N530 million.

  • DisCos lament delay of N100b subsidy, others payment

    DisCos lament delay of N100b subsidy, others payment

    •Call for cost effective tariffs

    The power distribution companies (DisCos) are seeking the payment of N100 billion subsidy owed them  by the Federal Government to improve their infrastructure.

    The firms said the government, during the privatisation in 2013,  promised them N100 billion to cushion the effects of increased tarrifs on their operations, adding that four years later the government was yet to fulfill its promise.

    They also seeking the payment of debts owed by the Ministries, Departments and Agencies (MDAs).

    The Association of Nigerian Electricity Distributors (ANED) Executive Director, Research and Development, Mr Sunday Oduntan, said the development became necessary to change obsolete infrastructure.

    He said the DisCos inherited  old facilities from  defunct  Power Holding Company of Nigeria(PHCN), adding that the problem was affecting the distribution of electricity in the country.

    He said the payment of  the subsidy and debts  would help the firms in strengthening their operations.

    He accused the government of breaching some of the agreements it reached with the investors during privatisation, urging it to fullfill its promises to move the sector forward.

    Oduntan said: “By not paying the N100 billion subsidy, MDAs debts among fulfilling other things, it promised, the government has breached the terms of the agreement binding the investors and the Bureau of Public Enterprises(BPE)/Federal Government.’’

    ANED, Oduntan said, has pleaded with the government to assist in building infrastructure for operators in the sector, adding that the government was yet to attend to salient issues that affecting the industry.

    He said the DisCos are facing problems, such as poor collection, illiquidity, shortage of meters and other equipment, adding that the development has resulted in low optimal performance for energy distributors.

    Shortfall, Oduntan said, has become a permanent feature in the industry, as operators across the value chain are experiencing one losess or the other.

    The ANED’s director said power firms are either experiencing technical or operation loss, stressing the problem has reached a level, which they (power firms) cannot continue to bear.

    He said the DisCos are unable to recoup their investments as their customers (individual and government) were not ready to pay for the energy consumed.

    He explained that despite that the DisCos charge customers N30.80 per kilowatts of electricity instead of N80, customers do not pay their bills promptly, adding that this was frustrating the companies’ efforts to  invest.

    He said any increase in the generation of electricity would lead to a corresponding increase in the DisCos’revenue.

    He said DisCos were better off when there is an increase in power generation, pleading that the government  fulfill its promise, by fashioning modalities for the power generation companies (GenCos) to increase their output.

    He said when GenCos increased their output, electricity supply would increase.

    Oduntan also lamented the shortage of gas which, according to him,  has crippled operations in the sector. He blamed attacks on gas  pipelines for this problem.

    Another area, which Oduntan said, is a source of concern to the power firms is energy theft.

    He said the rate, at which consumers steal electricity, was becoming alarming, stressing that  those who engage in this were yet to stop, despite power fines to impose fine on them, among other penalities.

    He said the DisCos has over  five million customers, when they took over the assets of PHCN in 2013 and that if the 11 utilities’firms were metering, about 100,000 customers yearly, they would have served them in five years.

    He said estimated billing was introduced as an interim measure to assist consumers to use electricty and pay for it.

    On the complaints against estimated billings, Oduntan said it was not introduced by the DisCos to make money, but to assist customers to pay.

    Efforts to get the Nigerian Electricity             Regulatory Commi-ssion (NERC) to comment on the issue proved abortive, as a text message sent to its Public Relations Officer, Mike Faloseyi, was not replied.