The Nation Newspaper

Tag: DISCOS

  • DisCos explain moral suasion to recover debts

    Reasons have been given why the power distribution companies (DisCos) are adopting moral suasion to recover N1trillion debts owed them by  Ministries, Departments and Agencies (MDAs).

    The Executive Director, Research and Advocacy, Association of Nigerian Electricity Distributors (ANED), Sunday Oduntan,  said it  would be wrong for  energy distribution firms to use the Economic and Financial Crimes Commission (EFCC) to arrest  officials of the Federal Government’s MDAs.

    Oduntan said: “Using force to arrest debtors in the sector is not a feasible option now. How can one use a Federal Government’s agency, such as EFCC to arrest the officials of agencies that are directly under the government because they owe electricity bills? This is not possible. That is why the DisCos through its umbrella body (ANED) is appealing to MDAs to pay the debts they owe power firms in unpaid tariffs.’’

    He said ANED is working with the legislative arm of the government to see what it can do on the issue of recovering its debts. According to him, Nigeria is in a democratic era, and this means that individuals or institutions must follow the democratic norms or principles in order to get redress for any injustice meted to them.

    He said any attempt by organisations to operate outside the established democratic tenets would not be treated kindly by the government, adding that on that basis, the firms are following democratic process to recover their debts.

    He, however, failed to comment on the statement credited to the Power Minister, Babatunde Fashola, that the debts, which the MDAs owe power firms are smaller than what they (power firms) claim. He said the firms are unable to operate well because  government owes them.

    According to him, it is difficult for the power firms to meet their obligation to customers, adding that problems such as shortage of meters, transformers and other equipment exist in the sector because the power companies do not have enough money to provide them.

  • NERC orders Discos to set up more complaints units

    The Nigerian Electricity Regulatory Commission (NERC) has directed the 11 power distribution companies (DisCos) to open more Customer Complaints Units (CCS) in their jurisdictions to address the deluge of problems facing them, its Head, Consumer Division Head, Consumer Affairs Division, Mr. Hardley Blue Jack, has said.

    The regulator also ordered power firms to provide meters to their customers to reduce the problems affecting them.

    At a stakeholders’ forum in Lagos, he said the complaints units were vital to the growth of the sector since they would help to reduce problems in the industry.

    He said NERC had not shirked its responsibilities of ensuring that issues, such as shortage of meters, and other equipment were addressed.

    Jack said the units would help the power firms to aggregate the opinions of customers, prioritise them and attend to them.

    A deal among the DisCos, the customers and the communities, he said, was inevitable, if the sector wanted to achieve the much- needed growth.

    “We want service providers (DisCos) and customers to work as partners so also the communities where they operate. When this happens, operators and customers would have no choice than to follow due process in their pursuits for a well electrified society,” he said.

    According to him, it is illegal for anybody to buy and bring transformers into any community, without the approval of the DisCos, advising individuals or entities to desist from such acts.

    Jack said the sector was facing  a many problems, urging DisCos to try and solve them. He said gas was the bane of the sector, noting that the DisCos alone could not address the problems of gas and electricity generation.

    He said inability of consumers to pay their bills compounded the woes of DisCos, as well as made it dificult for them to meet their obligations to customers.

    He urged DisCos and the consumers to be alive to their responsibilities, by doing things that would engander growth.

    “DisCos can solve metering challenges as it affects them directly. However, major issues, such as gas, poor generation, should be jointly addressed by the stakeholders, including the Federal Government.

    DisCos have been inundated with complaints ranging from shortage of meters, cables,  poles,  transformers, to estimated billings, among others, in recent times. The development made them to launch the protests unit to seek redress.

  • DisCos battle energy theft, others

    Electricity distribution companies (DisCos) have raised the alarm over the high rate of energy theft by unscrupulous customers, The Nation has learnt.
    According to the DisCos, the level of theft and vandalism of power equipment across the country militates against their resolve to improve operations and service delivery nationwide.
    This is coming on the heels of the drop in volume of electricity received monthly by the DisCos from the power generation companies (GenCos). The DisCos said what they received from the national grid had fallen considerably due to poor generation caused by shortage of gas supply.
    The DisCos also lamented the rate at which power consumers bypass their meters and steal their cables. In the process of stealing the equipment, the thieves badly vandalise our facilities, the DisCos added.
    The Nation further learnt that managements of the electricity distribution firms were disappointed by the development, which is having untold effects on their operation.
    Eko Electricity Distribution Company (EKEDC) Chief Executive Officer, Dr Oladele Amoda, said issues, such as electricity theft and equipment vandalism had become an albatross for DisCos. He said his firm has promised to improve on its customers needs, adding that the problem had affected the organisation’s resolve to do its best for them.
    Amoda said: “It is the resolve of EKEDC to meet its obligations to customers by spending money on meters and other equipment. Though we tried to do our best, the unsavory issues are killing. They do not allow customers to see our best, adding that issues such as theft and destruction of power equipment are criminal and should be treated accordingly.”
    Ikeja Electric Acting Chief Executive Officer, Mr. Anthony Youdeowei, said confirmed the theft, adding that the issues were having negative effects on the power firms.
    “While Ikeja Electric and other DisCos believe that it is their rights to meet the needs of customers and they are trying their best to do so, people should ensure that they complement the efforts of the DisCos to achieve the goals and stop creating problems for them,” he said.
    The Nigerian Electricity Regulatory Commission (NERC) also has raised serious concerns over destruction of facilities of power firms.
    Its Acting Chief Executive Officer, Dr Anthony Akah, has advised the firms to protect their properties and ward off attempts by people to destroy their equipment.

  • US plans $1 billion investment on Nigeria power projects

    United States has committed approximately $6.5 million in funding energy projects in the country.

    With another $1 billion investment on power projects is already in the pipeline, under the Power Africa in Nigeria, it was also learnt.

    Mr. Andrew Herscowitz, Power Africa Coordinator made the disclosure Tuesday at the opening of the two day Distribution Company Workshop in Abuja.

    Herscowitz also disclosed that a functional power distribution companies are critical to the development of the country.

    Power Africa is a U.S government led initiative launched by President Barack Obama in 2013 to increase electricity access in sub-Saharan Africa by adding more than 30,000 megawatts of cleaner, more efficient energy development in sub-Saharan Africa and to unlock the substantial wind, solar, hydropower, natural gas, biomass, and geothermal resources on the continent.

    He said, “Since Power Africa was launched, USTDA has committed approximately $6.5 million in funding for 10 activities supporting Nigeria’s energy sector, which could leverage up to $2.7 billion in investment.

    “$50 million in financing from the Oversea Private Investment Corporation (OPIC) to Lumos to scale up it’s off grid solar power service to about 200,000 Nigerian homes and businesses. $1 billion in project pipeline.”

    Power Africa has supported power companies in the country to the tune of $100 million capital expenditure credit enhancement facility with a corresponding $6.5 million in technical assistance and another r$1.5 million for limited commodity to turn around the DISCOS.

    He explained that, “Well functioning DISCOs are critical to the delivery of electricity in Nigeria. If the DISCOs do not work, the energy sector as a whole does not work.

    “Nigeria, like any country, needs to see capital flowing through the entire energy value chain, if there is no money for distribution, there’s no payment to electricity generators, and very little incentive for private sector investment.”

    Power Africa coordinator also assured that the project will continue as part of the partnership between both partners.

    “I want to stress that Power Africa will continue our work in Nigeria and across sub-Saharan Africa to increase access to electricity. The U.S government’s commitment to Africa’s growth and development remains strong, as was outlined in last year’s bipartisan electricity Africa Act,” he said.

  • Fashola, DisCos, others to discuss N800b debts

    Fashola, DisCos, others to discuss N800b debts

    The over N800 billion debts owed the 11 power distribution companies (DisCos) by Ministries, Departments and Agencies (MDAs) will take the centre at the next sectoral meeting scheduled for this month.
    The meeting, held monthly, will discuss problems hindering the growth of the sector and proffer solution to them.
    It was gathered that the debts are having a negative consequence on the operation of the sector, such that the DisCos are finding it difficult to operate without the money.
    Industry sources said the meeting, which is at the instance of the Minister of Power, Babatunde Fashola, would discuss the debts and proffer solution to it.
    It was also learnt that the meeting, which will be hosted in any of the five states under the watch of the Ibadan Electricity Distribution Company(IBED), will discuss issues such as improvement in power generation and distribution, metering and others that are vital to the growth of the sector.
    ‘’There is no doubt that the issue of the over N800billion debts would be discussed at the next meeting. The energy distribution entities are yet to show remarkable progress, due to poor funding. The firms are not happy, due to the fact that they are unable to finance some transactions because of low liquidity.’’ a source close to one of the DisCos said.
    The Chief Executive Officer, Eko Electricity Distribution Company (EKEDC), Oladele Amoda, said there was no investment in the sector, due to lack of fund.

    He said the rate at which operators were investing in the sector had gone down considerably, adding that banks were not lending to the industry.
    He urged the banks and investors to show interest in the industry, by injecting funds into the sector in order to make it competitive.
    According to him, the inability of the operators to re-invest in the sector is the bane of the industry, advising operators to galvanise the potential of the sector for improved performance.
    Fashola had at the last meeting in Lagos, urged power firms to meter their customers across the country.
    He said metering is important to the growth of the sector, advising the DisCos to solve financial problems bedeviling them, by providing meters to their customers. He said, due to lack of fund, the operators are unable to provide meters to their customers.

  • TCN blames DisCos for power crisis

    TCN blames DisCos for power crisis

    • FG approves contractor financing model

    The Managing Director Transmission Company of Nigeria (TCN), Abubakar Atiku, yesterday blamed the low revenue collection in the power sector on the inefficiency of the electricity Distribution Companies (DisCos).
    Addressing reporters in Abuja, he recalled that the defunct Power Holding Company of Nigeria (PHCN) was recording an excess of 60 per cent revenue collection.
    He regretted the private investors undertook to improve on this while acquiring the assets from the Bureau of Public Enterprises (BPE) but failed.
    Stressing the record of current DisCos revenue collection was a far cry from the expected projections, Atiku urged the private investors to scale up its collection to match the agreements they signed with the BPE.
    He said: “Discos, they are 100% responsible for deriving the revenue to the electricity market and they are not living up to expectations.
    “We expect them to be 100% efficient we know it is not possible but when PHCN was privatised it is on record that the successor companies are doing more than 60% in terms of collection.
    “It was anticipated at the plan of the privatisation to see that there is improvement over and above 60%.
    “But what are we witnessing now is lower performance. So distribution companies must step up to live to the expectation they signed with BPE when they bought over these assets.”
    According to him, the major challenge facing TCN is the problem of liquidity in the electricity market.
    The Managing Director pointed out that payment of TCN services in the market has gone down from 55 percent to 30 percent in recent times.
    With that, he said the revenue coming to funds’ coming to TCN has reduced.
    Reacting to load rejection, Atiku noted that while some of the distribution firms were rejecting, others were taking more than their allocation which in the long run balanced the system and power frequency and neutralised any cause for concern.
    According to him, the federal government has released 98 percent of the firm’s 2016 budgetary allocation while it hopes to secure more funds from the current budget for completion of 22 critical projects.
    He stated: “The federal government has also approved the Contractor Financing Model for reinforcement and rehabilitation of projects in TCN.
    “The first tram his for $200million worth of projects. The implication of this finance model is that the private contractors or investors can now fund TCN projects and be paid overtime.
    “Although this would lead to the timely completion of projects, Uris however premised on our getting about 60 percent of Israel invoice paid, which is not the case presently.”

  • GENCOs, DISCOs at war over mounting debts

    GENCOs, DISCOs at war over mounting debts

    The power generation companies (GENCOs) may have drawn the battle line with the electricity distribution companies (DISCOs) over the growing indebtedness estimated at over N400billion, a development experts believe may have adverse effect on the already deplorable power situation across the country, reports Ibrahim Apekhade Yusuf

    Time was when the power generation companies (GENCOs) and the distribution companies (DISCOs) were best of allies ever but all that has become a thing of the past now as both of them no longer see eye-to-eye in a manner of speaking.

    The reason for this is not far to seek: the once cordial relationship enjoyed by the GENCOs and DISCOs has turned sour because of the growing debts owed by the latter.

    Investigation by The Nation revealed that the DISCOs owe the GENCOs a very humongous sum, accumulated in the last couple of years.

    Crux of the matter                                                                                                                                                                                                                                                                    

    At issue is that DISCOs receive bulk power through the Nigerian Bulk Electricity Trading Plc (NBET) supplied by GENCOs.

    The inability of the DISCOs to meet their payment obligations to NBET for power supplied by the GENCOs, has also made it impossible for the GENCOs to pay the gas suppliers.

    Expectedly, the DISCOs have blamed their inability to meet their financial obligations in the electricity value chain on non-reflective tariffs, vandalism, low power generation, inability to access credit facilities from the banks and non-payment of bills by customers.

    The DISCOs also claimed that they are being owed a debt of N100 billion by ministries, agencies and departments (MDAs), a debt, which the Minister of Power, Works and Housing, Mr. Babatunde Fashola, said was subject to verification.

    However, while a majority of the DISCOs have demonstrated increasing capacity to access funds for network development, others have blamed their excuses on the non-reflective tariffs and the N3 trillion exposure of the financial sector to the banks for their failure to discharge their obligations.

    Peeved by the apparent non-performance of some of the DISCOs, Fashola had advised that “those DISCOs who cannot run the business must be honest with themselves and begin to look for options either to raise capitals, to get more strategic partners in or to do whatever they consider appropriate within the framework of their contract in order to get on with this job.”

    The Nation gathered that the power companies are battling with a debt overhang of over N400billion.

    While GENCOs’ debt is put at over N300bn, DISCOs have complained of being owed over N100bn by customers.

    At the twilight of last year, the Executive Secretary, Association of Power Generation Companies, Dr. Joy Ogaji, had revealed that: “The debt is over N300bn that GENCOs are being owed. If the situation is not checked, there will be blackout. It is so imminent that I don’t know if most of the generation we are having now can go beyond Christmas if the payment problem is not solved. We can’t pay contractors; most of the machines are packing up.”

    Ogaji, however, said the Nigerian Bulk Electricity Trading Company Plc should be blamed for the problem, saying, “As GENCOs, we don’t really have any direct relationship with DISCOs at the moment; GENCOs are meant to generate power and government brought NBET as a wholesaler, which takes all the power being generated by GENCOs and sells to the DISCOs. So the onus lies on NBET to collect the money from the DISCOs. “The claim on whether DISCOs are remitting money or not should not be the problem of the GENCOs, but that of NBET. Government told us that NBET is properly capitalised and has enough money to meet all of the GENCOs’ payments. But unfortunately, NBET has not been able to do that.”

    In a chat with The Nation, one of the GENCOs confided in our correspondent at the weekend that through their umbrella association, they have resolved to approach the Nigerian Electricity Regulation Commission (NERC) for approval to supply power directly to certain categories of customers and also collect the bills directly.

    Thus, the power generators are making subtle moves to bypass the DISCOs and supply power directly to certain class of customers.

    “The DISCOs owe the GENCOs a lot of money and that is why there is crisis in the sector. Some of the Discos actually do not have what it takes to run the sector and some of them will soon go under. The GENCOs are not talking like the Discos because they also owe gas suppliers. They have also formed their own association and plan to meet NERC for approval to supply power directly to certain class of customers and also collect the bills directly. That is the only out to ensure that the GENCOs do not collapse,” one of the operators who asked not to be named explained to our correspondent.

    In a recent advertisement by the Association of Nigerian Electricity Distributors, the umbrella body for the DISCOs stated that its members were being owed N100bn by consumers, including military and government Ministries, Departments and Agencies as their biggest debtors.

    However, different operators in the sector blamed the DISCOs for the drastic illiquidity in the power market, as they argued that the DISCOs were not doing enough with respect to revenue collection from electricity consumers.

    Aside the NBET, the Niger Delta Power Holding Company recently urged the DISCOs to ensure adequate remittance to the bulk trader in order to enhance smooth operations of the power business.

    The Managing Director/Chief Executive Officer, NDPHC, Mr. Chiedu Ugbo, stated that the indebtedness to his company by the power market as of August 2016 was over N105bn.

    “The total energy invoiced by the eight operational NDPHC plants since they started functioning amount to about N235bn. But out of this amount and as of August 2016, we were being owed about N105bn,” Ugbo told newsmen in Abuja.

    Echoing similar sentiments, President, Nigerian Gas Association and Managing Director, Frontier Oil Limited, Mr. Dada Thomas, in a media interview recently blamed the DISCOs for the parlous state of the sector.

    But the DISCOs had argued that aside the fact that the current Multi Year Tariff Order put together by the Nigerian Electricity Regulatory Commission was not cost reflective enough, the refusal of ministries, departments and agencies of government to settle their electricity bills was also hampering their ability in making the required remittances.

    The Chief Executive Officer, ANED, Mr. Azu Obiaya, recently told our correspondent that to avert an increase of over 200 per cent in electricity tariff payable by residential consumers in the near future, the federal government had to intervene in the sector.

    He explained that the government’s intervention was vital in order to address the N809bn revenue shortfall in the industry.

    Obiaya insisted that the intervention could come in form of subsidy to consumers, access to foreign exchange by the companies, as well as commercial reasonable financing for the DISCOs.

    He explained that DISCOs were not willing and could not impose any increase in tariff on consumers, but maintained that to avoid a situation where the consumers would have to pay as high as N70 to N105 per kilowatt-hour as energy charge, the federal government must do something.

    Currently, the average rate being paid as energy charge by residential consumers across the country is N22.8/KWH, but this may increase if nothing is done to address the N809bn revenue shortfall in the power sector, according to the DISCOs.

    The blame game

    The blame game in the power sector has come to the fore again as Transmission Company of Nigeria (TCN) claimed that DISCOs 30 percent remittances on monthly invoices is responsible for the current poor state of the country’s electricity services.

    Nigeria’s economic growth has been slowed by lack of steady power supply, despite claims by government of embarking on privatisation of the sector, which has divided the former PHCN into different components: GENCOs, DISCOs and TCN with the promise to double power generation from its present 4.5 mega watts.

    According to the General Manager in charge of Transmission at TCN, Bede Opara, DISCOs have not been able to pay their debts due to energy theft and other issues. “The low revenue collection affects transmissions as well as gas plants. All these are parts of the issues affecting the sector at one point or the other.”

    Power drop in months

    It is however instructive to note that the Nigeria Electricity System Operator, NESO, a section of TCN responsible for operating the transmission system, has indicated that due to these shortfalls there is constant collapse of the system.

    According to their report in May 2016, the national grid collapsed five times. In June, it collapsed four times. July, September and October, each witnessed one collapse, while November and December witnessed three collapses each. The transmission network was said to have recorded over 26 system collapses in 2016. These were largely blamed on weak transmission network, regarded as the weakest link in the electricity value chain.

    Before now generation and distribution companies have asked for more time and patience from Nigerians to improve electricity supply. Their plea came as they identified weak transmission network as a major hindrance in the attainment of the 10,000 megawatts target set by President Muhammadu Buhari to be achieved in 2019.

    Data obtained, showed that Kaduna, Eko, Jos, Yola, Port Harcourt, Abuja, Ibadan and Benin DISCOs rejected the 1,336.75MWH of power from TCN in the third quarter of this year, despite instability in the supply of electricity across the country.

    Specifically, in the month of July, a total of 318.83MWH, which was three per cent of the total energy delivered to the DISCOs, was rejected by four of the firms. In July, the Kaduna DISCO’s rejection of 132.99MWH made it the highest in the month. The Eko DISCO rejected 67.46MWH; Jos, 63.05MWH; while the Yola DISCO rejected 55.33MWH.

    In the same month, the Port Harcourt DISCO took in the highest quantum of power at 441.43MWH; Kano accepted 397MWH; while the Enugu DISCO collected 302.49MWH.

    In August, there was an increase in load rejection by the distribution companies to the tune of 541.56MWH, which was four per cent of the total energy delivered to them as against the 318.83MWH delivered in the previous month.

    The Port Harcourt DISCO rejected the most quantum of power with a total of 239.88MWH, followed by the Eko DISCO with 134.8MWH. In the month under review, five DISCOs took excess load beyond their Multi-Year Tariff Order allocation to the tune of 187.21MWH.

    The Abuja DISCO took the most, with 132.81MWH; followed by the Kaduna Disco, with 23.21MWH; Ibadan, 16.24MWH; and Enugu, 12.42MWH. Further analysis showed that September saw the rejection of 476.36MW, representing 12 per cent of the total energy delivered to the Discos. It was, therefore, the highest load rejection in the quarter.

    The Abuja DISCO rejected 94.72MWH, followed closely by Port Harcourt, with 92.35MWH; Ibadan was next with 67.14MWH; and the Benin DISCO turned down 46.40MWH. Among all the DISCOs, only Kaduna accepted power beyond its MYTO allocation, taking in 65.96MWH in excess of its MYTO allocation.

     

  • Fashola to DISCOs: step up your service delivery or quit

    Fashola to DISCOs: step up your service delivery or quit

    Minister of Works, Power and Housing Babatunde Fashola yesterday warned distribution companies to step up their service delivery or quit.
    Fashola gave the warning at the opening ceremony of the 11th monthly stakeholders meeting in Lagos.
    He said: “We all know the issues around metering and billing system; we must build the trust and confidence that customers’ complains will be addressed.
    “We need to do whatever is possible in our various distribution areas to improve the quality of service and continue to train our personnel to recognise that customer is king.
    “If we cannot provide or solve their problems, we own it a duty to explain what we are doing.
    “We own it a duty to fish out a few members of staff; not all, because we have some dedicated staff.
    “I am conscious of the challenges the operators are facing.
    “We are working as hard as we can to make the environment more responsive to you and as I have said and will repeat that as pioneers, you will carry some burdens.
    “You will have to sacrifice, perhaps more than what you have done,” he said.
    Fashola said without the customers and the consumers, there would be no business.
    “I think that all of us in the public and private sector must understand that. If you don’t have the skill and the patient to serve, leave.
    “But I am optimistic that things will get better, I am optimistic that we can win together and we can win for the Nigerian people.”
    On the liquidity issues, Fashola said government was working with other development partners.
    “Local and international partners would have shown commitment and inspiring appetite to play in this market.
    “We are trying to see what we can do together to bring the liquidity issues under some control and from there eventually solve it.
    “Our partners in government are also inspiring and showing understanding of what the challenges are. So, it is quick decision-making now.
    “Collaboration and decisions will be fair, but firm, and we expect that people will respect the decisions and also processes to be re-engaged as they come,” the minister said.
    Managing Director, Ikeja Electric Mr. Anthony Youdeiwoe described 2016 as a challenging year for stakeholders.
    According to Youdeiwoe, though, the challenges still remain, they are better discussed whenever we meet like this.”
    He said efforts were also ongoing to address the challenges and proffer solutions.

  • Fashola to DisCos: Improve metering, reduce estimated billing

    The Minister of Power, Works and Housing, Mr. Babatunde Fashola, has directed all electricity distribution companies to improve their metering of customers and reduce estimated billings.

    The minister, who presided over the monthly power sector and stakeholders meeting held in Lagos on Monday, told the distribution companies (DisCos) that they should make customer service the focus of their operations, adding that the DisCos should step up their service delivery or leave.

    “We all know the issues around metering and billing. We must build that trust and confidence by addressing customers’ complaints. Without the customers and the consumers, there will be no business for you (DisCos). If you don’t have the skill and the patience to serve, leave,” he said.

    He urged all the stakeholders in the electricity supply value chain to train and retrain their staff on how to serve the public,

    Fashola said, “Tell the staff that without the customers, they don’t have a job, and advised them they shouldn’t pick calls when they are not in good mood. They can call back later rather than picking the telephone and insulting a customer.

    “We need to do whatever is possible in our various distribution areas to improve the quality of service, and to continue to train and retrain our personnel to recognise that the customer is king and even if we cannot provide or solve the problem, we owe it a duty to explain what we are doing.

    “It is a thankless job but it is good undertaking to serve. I am conscious of the challenges operators in the industry face. My team and I are working as hard as we can to make the environment more responsive to you and as I have said and will repeat that as pioneers you will carry some burden.

    “You will have to sacrifice perhaps more than what you have done but I am optimistic that it will get better. I am optimistic that we can win together and we can win for the Nigeria people.”

     

  • Electricity tariff hike: Court faults NERC, DISCOs

    Electricity tariff hike: Court faults NERC, DISCOs

    The application instituted by the Nigerian Electricity Regulation Commission (NERC) for stay of action on the landmark judgment against electricity tariff hike has suffered a serious setback as the court has overruled the application.

    In the ruling delivered by the Federal High Court Judge, Justice M.B Idris recently, the judge described the application to stay the judgment of the court as unreasonable, lacking in merit and therefore dismissed.

    It may be recalled that the matter instituted on May 2015 through a motion by Barrister Toluwani Adebiyi led to an order of court not to increase tariff until the substantive suit was determined. But the motion was thwarted by the National Electricity Regulatory Commission (NERC) and electricity distribution companies (DISCOs), before the determination of the suit as they both act contemptuous of the court in February 2016 by unilaterally increasing the electricity by 45 per cent.

    But the court had delivered a ruling against the electricity tariff hike on 13th July 2016, saying it didn’t pass through the due process. However, while power supply firms appealed the judgement, the National Electricity Regulatory Commission (NERC) said it intends to comply but subsequently reneged on its earlier stance.

    Mr. Sunday Oduntan, Director of Association of National Electricity Distributors (ANED) which comprises all distribution companies in the country, on behalf of his members had vowed to fight the matter up to the Supreme Court if need be.

    Barrister Toluwani Yemi Adebiyi, the activist and the plaintiff who had sued the supply firms and the regulator at time had described the ruling as further victory for all Nigerian electricity consumers, saying it is class hypocrisy and share waste of time for NERC and electricity distribution companies (DISCOs) to continue to swim against the tide, in spite of the inadequate power supply and lack of meters, leading to estimated billings which make Nigeria consumers to pay for gross darkness.

    “The DISCOs are still sending estimated billings which the NERC Chairman had through public admission unknowingly confessed to be wrongful and unlawful,” Barr. Adebiyi stressed.

    Interestingly, on 13th July 2016, the matter was determined in favour of the Nigerian Consumers, meanwhile NERC and DISCOS have filed separate appeals before the Court of Appeal Lagos Division, hearing of which starts on the 9th of January, 2017.