The Nation Newspaper

Tag: DISCOS

  • Fashola to DisCos: divest shares to new investors

    Fashola to DisCos: divest shares to new investors

    The Minister of Power, Works and Housing, Mr Babatunde Fashola, has advised electricity distribution companies (DisCos) to bring in more funds by offering to dilute their stakes in exchange for needed inputs such as meters, transformers and other equipment required for systems upgrade, insisting that it would make more business sense to give up some shares in exchange for cash.

    He advised owners of power assets to embrace new commercial behaviour suitable for operating optimally in the new power sector commercial environment.

    Fashola spoke in Abuja while receiving a delegation from the Nigeria Economic Summit Group (NESG), led by its Vice-Chairman, Mrs. Sola David-Borha.

    The minister said if this advice is acceded to, it will make for redistribution of their risk in exchange for equipment and capacity to drastically reduce the prevailing high occurrences of commercial and technical losses.

    A statement endorsed by Deputy Director, Press, Mr. Timothy Oyedeji further reminded the power asset owners that the success of the privatisation exercise rests on the distribution end in the value-chain. He said they should step up their collections, so as to meet the time-lines agreed with government for all parties to respect agreements and take full responsibility for their actions.

  • NERC warns DisCos against extortion

    NERC warns DisCos against extortion

    The National Electricity Regulatory Commission (NERC) has threatened to sanction Distribution Companies (DisCos) which extort consumers before supplying them transformers and other power distribution accessories.

    Its Acting Chairman, Dr Anthony Akah gave the warning yesterday, during the commissioning of the Ebonyi State Consumer Complaints Forum Office in Abakaliki.

    He said it was a criminal offence for DisCos to charge money to replace transformers and other power distribution accessories.

    “The Commission will punish DisCos caught in such act to the full weight of the law. This can include fines and even revocation of licenses depending on the magnitude of the offence,” he warned.

    He debunked the allegation that the commission is a toothless bulldog, adding that the sanction of Abuja Electricity Distribution Company and others has proved that the commission cannot only bark, but can also bite.

  • Reps probe NERC, Discos, Gencos over N309b govt’s secured bond

    Reps probe NERC, Discos, Gencos over N309b govt’s secured bond

    • House to remove ‘offensive’ estimates from budget

    The House of Representatives is to investigate the Nigerian Electricity Regulatory Commission ( NERC ) over  the N213b  intervention fund provided by the Central Bank of Nigeria (ÇBN) last year through the Nigerian Electricity Sector Intervention facility.

    The investigation followed  the opposition of the lawmakers to a plan to borrow another N309b through a Federal Government secured bond.

    The bond, according to the Federal Ministry of Power, Works and Housing, was to cover the electricity market shortfall of N187b in 2015 and a projected shortfall of N122b for this year.

    The lawmakers were at a loss on the justification for the bond, which translates to  Nigerians bearing the operational loss of private electricity companies despite paying their electricity bill.

    Consequently, the utilisation  of the N213b  intervention fund has been commited to Committees on Power, Privatisation and Commercialisation, Aids, Loans and Debts Management.

    The House also directed NERC to devise a monitoring mechanism to measure and enforce full monthly remittances  by the DISCOS.

    The lawmakers also urged the regulatory body to recoup all mis-appropriated funds that resulted in the accumulated market shortfalls and apply sanctions for any default whatsoever, including the threat to withdraw the licenses of erring firms.

    The decision of the House followed the adoption of a motion by Edward Pwajok (PDP, Plateau ) who regretted that power sector operators have not lived to the expectations of Nigerian with their poor services in spite of increasing  tariffs twice since 2013.

    Saying that Distribution Companies (DISCOS) have severally failed to remit revenues collected to other market participants in full,  Pwajok added, “Tariff computation was a factor of capital investment that which was considered during the privatisation exercise, but regrettable there is no evidence that the DISCOS and GENCOS invested in acquiring any tangible assets.

    The House of Representatives yesterday went into a closed door session over the 2016 budget impasse.

    The session which lasted over two hours featured discussions on the  budget and how to address the “ grey areas “ as agreed with the President Muhammadu Buhari in an earlier meeting he had with the principal officers of the National Assembly.

    Though there was no briefing on what was discussed by members at the session as was the norm, The Nation learnt that the lawmakers moved to resolve aspects of the budget which the Presidency have designated as part of the “grey areas.”

    A source who pleaded anonymity said the Speaker briefed members on the meeting held with the president and pleaded with them to help ensure the issue of grey areas in the budget was resolved quickly.

    The Nation learnt that one of the things agreed in the closed door session was to scale down amounts added to the estimates brought by the MDAs under different subheads.

    Though the lawmakers had earlier insisted that the National Assembly has the power of appropriation and the prerogative to add or subtract from the Executive’s estimates, members were said to be in agreement  that in order for the budget to be assented to by the President, there might be a need to back down from their previous position.

    “Members agreed that the offensive additions on the part of the Representatives would be drastically reduced,” he said.

    The Speaker was said to have told members that three committees have been set up from the Senate, House and the Executive to work on the details to ensure a speedy transmission to the President to allow him assent to it with the next few days.

  • DISCOs, Egbin power plant sign agreement to supply 220mw

    DISCOs, Egbin power plant sign agreement to supply 220mw

    The Nigerian Electricity Regulatory Commission (NERC) has informed the Federal Government of the activation of the agreement between Paras Energy and Eko DISCO to provide 40megawatts (mw) to Lagos as well as the agreement between Ikeja and Eko DISCOs with Egbin power plant for dedicated supply totalling 220mw.

    A communiqué at the fourth Minister of Power, Works and Housing meeting in Calabar Power Plant, Odukpani, Cross River State, revealed this yesterday in Abuja.

    It noted that the parastatals in the power sector and the operators in the Nigerian Electricity Supply Industry (NESI) have updated the monthly meeting on their plans and development.

    It noted that the “meeting resolved that Port Harcourt DISCO and Calabar and Ibom Power Plants can proceed with their bilaterally negotiated agreement to supply currently stranded power, starting with 150MW to 250 MW.

    “Port Harcourt DISCO will invest in infrastructure in Akwa Ibom and Cross River to receive the power and deliver it to customers at the approved tariff.

    The communiqué added the Transmission Company of Nigeria (TCN ) announced that projects critical to improving power distribution in Aja, Kebbi, Kafanchan, Otukpo, Makurdi, Wudil, Afam, Daura and Kwanar Dangora are completed or nearing completion.

    According to the communiqué, the meeting acknowledged the shortage of gas, limiting power output from power stations connected to the ELPS pipeline, and supported ongoing discussions between the  Minister of Power ,Works and Housing and Minister of Petroleum Resources to facilitate additions in gas supply and the repair of the Forcados Oil Export Line to ameliorate the gas shortage.

    It revealed that the meeting acknowledged the need to improve on the responsiveness and awareness of the Distribution Companies’ (DISCOs’) Customer Complaints Units (CCU) to ensure that all complaints from paying customers are acknowledged and resolved swiftly.

    Resolutions were made to publicise dedicated customer complaints lines in four national newspapers by each DISCO to support this objective in the next two weeks.

    The communique noted that the meeting reiterated the need for more aggressive rollout of metering for all customers.

    In this regard, it stressed that “Eko, Kano, Kaduna and Jos DISCOs confirmed plans to aggressively deploy recently procured metering starting in May.

    Abuja DISCO assured the meeting that it plans to meter 100,000 households by December and Port Harcourt DISCO intends to install 110,000 by the same time.”

    It said that the meeting committed to treating all decisions made as binding. To this end, a unanimous resolution was made regarding strong sanctions against operators who fail to act on decisions agreed at the meetings.

  • NLC files contempt proceeding against DISCOS

    The Nigeria Labour Congress (NLC) has filed contempt proceedings  against electricity distribution companies (DISCOS) for alleged flouting a court order on hike in tariff.

    Justice Mohammed Idris Federal High Court had restrained DISCOS from increasing electricity from February 1.

    Speaking with The Nation, NLC President Comrade Ayuba Wabba said the issue was already in court. “As I am talking to you now, a process of committing all of them that have violated that order on contempt charges is on the way. Already, they have been served and the case is coming up very soon,” he said.

    Wabba said the increased tariff has adversely affected the economy and the welfare of every Nigerian, adding that many people would not be able to pay the new tariff. He said no strategic stakeholder, including the NLC, was consulted by the DISCOs before the tariff increase.

    ‘’They (DISCOs) claimed they consulted people, but who?” he asked, wondering who they consulted when the Manufacturers Association of Nigeria (MAN) and organised labour that actually represent many Nigerians were all crying foul.

    He said it was obvious the DISCOs only consulted their friends and brothers before coming up with the idea of increasing electricity tariff. He added that what is even more worrisome is the fact that meters are not available.

    “This is the background that made us provide a national platform where all people would be allowed to air their grievances. And that we did and we made our point very clear. It is an ongoing process and we are giving it a firm commitment,” Wabba said.

    He said he spoke with the Chairman Senate Committee on Labour a few days ago, and the Chairman requested the NLC to submit its memorandum.

    The NLC chief said based on this, there would be a joint public hearing by the two chambers of the National Assembly where labour would once again raise the issue

    Wabba said labour would consult and come up with its own engagement strategy.

    According to him, this is necessary to avoid the exploitation of consumers by DISCOs because of the absence of meters.

    The labour unionist said one of the issues labour was canvassing was that people should not pay bills if they don’t have meters because it is the responsibility of DISCOs to provide meters to Nigerians.

    Wabba argued that the issue of non-metering and estimated  billing are exploitations, adding that such issues are typical of a business that is monopolised.

    He said after the so-called privatisation, what was done was to transfer the nations’ common wealth to the hands of a few, adding that a business that is monopolised is only driven by profit.

    “That is why they say they are looking at profit margin; that the profit margin is not there,” Wabba said.

  • DisCos battle to recover unpaid fixed charge

    Electricity Distribution Companies (DisCos) are battling to recover huge unpaid fixed charge from defaulting customers.

    The Nation learnt that the DisCos are insisting on payment of the charge before customers recharge their meters.

    The customers were said to have  defaulted in fixed charge payment before its abolition last February 1.

    The DisCos’ managements have warned their officials not to recharge debtor-customers’meters  until they have paid.

    Most of the business units in Ikeja Electric (IK) visited by The Nation, showed that such customers have been barred from recharging their meters.

    A manager in Ponle Business  Unit of Ikeja Electric at Egbeda, Lagos, said power firms would ensure that the debts are paid before customers are allowed to recharge their meters.

    He said: “From the available information at our disposal, it is clear that a lot of customers were indebted to the power distribution companies. Of note is debt arising from non-payment of fixed charges.  There are two approaches of recovering fixed charges owed by customers. First, DisCos have factored the fixed charges into monthly bills they are issuing to customers every month. Secondly, firms are compelling customers to clear arrears of fixed charges they owe before they are allowed to recharge their meters.”

    He said power firms have ruled out the issue of concessions for customers that owe fixed charges, stressing that customers are under obligations to pay their debts.

    “Many customers have approached us for concessions on the issue of payment of fixed charges they owe before it was abolished by the government. However, we told them point blank that we cannot give them concessions. Energy business is different from trading in pepper and onion, in which you can go to the market and pile up your debts. The only way for the DisCos to grow is to collect all their debts,” he added.

  • NEMSA warns DisCos against fake equipment use

    The Nigerian Electricity Management Service Agency (NEMSA) has warned electricity distribution companies (DisCos) not to execute or commissin any electrical installation including metering for use without statutory inspection, test and certification by an inspector at the National Meter Test Stations (NMTS) of NEMSA.

    The management of the agency, in a document,  noted that electrical accidents do not just happen but they are caused by lack of adherence to technical standards and safety procedures in the Nigerian Electricity Supply Industry (NESI) and other work places.

    In the document titled: Banning of Substandard Materials in the NESI and Reporting of Electrical Incidences (Accidents/Electrocution (S), Electrical Fires) for Investigation,” NEMSA said the move to ban substandard materials was to guarantee the delivery of safe, stable and relaible power supply to the citizenry and to guarantee the safety of lives and property nationwide.

    During the agency’s nationwide monitoring and evaluation exercises by the technical management team and 16 field inspector offices across the country, NEMSA said it discovered indiscriminate use of substandard materials/equipment in the network and bad construction in NESI by the electrical contractors and DisCos.

  • Governments owe DisCos N60b

    Governments owe DisCos N60b

    The Association of Nigerian Electricity Distributors (ANEDS) yesterday urged President Muhammadu Buhari to intervene so that the three tiers of government could pay the N60 billion electricity bill they are being owed.

    Its Executive Director, Barr. Sunday Oduntan, who spoke in Abuja, said the Nigerian Army is the highest debtor.

    He lamented that the huge debt has started weighing the power firms down.

    He said: “The total amount of debt owed power distribution companies (DisCos) by ministries, departments and agencies at both the federal, state and local government levels is about N60billion. As at December last year, the total debt was N58billion, but it has grown to about N60billion as we speak.

    “A large part of this debt is owed by the military. The Nigerian Army takes pleasure in beating up our staff for unjust reasons and they don’t like to pay their bills. We won’t condone this anymore and we are going to take this case up with them, particularly the recent one that happened in Abeokuta.”

    He said despite the fact that the Army is owing the DisCos over N15billion, its officials are usually brutalised whenever the power firms make an attempt to enforce the collection of electricity bills.

    Oduntan said: “The Nigerian Army keep oppressing us and often times they feel they are above the law, but this shouldn’t be. In Abeokuta, they beat up one of our official for unjust reasons and the same group of military men who did that have not paid their electricity bills since 2013.

    “The team in Abeokuta, which is the 351 Artillery Brigade, was led by one Major Musa and we use this medium to urge President Buhari to call the soldiers to order. They must know that they are not above the law.

    “The army alone owes DisCos over N15billion. They owe Benin Disco N2.3billion, Eko is owed N1.9billion, Ikeja N1.6billion, Jos N2billion, Kaduna N6.6billion, Kano N301million, Port Harcourt N1.3billion, and Yola-N435million.

  • Meters manufacturers accuse DisCos of neglect

    The Electricity Meters Manufacturing Association of Nigeria (EMMAN) has said the reason the electricity distribution companies (DISCos) do not patronise them is that they make more money through estimated billings.

    Other reasons, the body claimed, include plans by the energy firms to import meters from China and other developed countries to attract foreign investors.

    Its Executive Secretary, Mr Muhdeen Ibrahim, said the DisCos were not ready to source meters locally for their customers.

    He urged the DisCos to patronise local manufacturers, adding that this would enable them to meet their customers’ demands.

    According to him, when this happens, the power firms would not be able to charge their customers estimated bills, arguing that  this would  affect their earnings.

    According to him, local meter manufacturers have the capacity to produce enough meters in the country, insisting that the DisCos know this but refused to patronise them because they want to continue making money through estimated billings.

    He said: ‘’It is not that the local meter manufacturers do not have the capacity to produce enough meters in Nigeria. The capacity is there, but the problem is that DisCos want to make money through estimated billings. Also, they want to continue to patronise meter producers abraod, where they falsely hope to get better meters.

    ‘’Meters produced by indigenous companies are far better than the ones produced abroad. The craze for anything western is making DisCos to jettison local meter producers for their foreign counterparts.

    He said the allegation by the DisCos that the meters produced in Nigeria are not compatible with their technology was untrue.

  • DisCos battle to recover unpaid fixed charge

    Electricity Distribution Companies (DisCos) are battling to recover huge unpaid fixed charge, increasing customers’ financial burden.

    The Nation learnt that the Discos are insisting on payments of the fixed charges before customers recharge their meters. Customers using either analogue or pre-paid meters before did not pay fixed charges.

    Customers were said to have defaulted in fixed charge payment fore it was abolished and tariff increaesed by 45 per cent last February 1.

    Managements of the DisCos have warned their officials not to recharge the meters of customers who owe fixed charges until such debts are fully paid.

    Most of the business units in Ikeja Electric (IK) visited by The Nation, showed that customers who owe arrears of fixed charges were barred from recharging their meters.

    According to officials of Ikeja Electric at Ponle Business Unit in Egbeda, Lagos, the decision was made by the management to make customers pay fixed charges they owe before the government cancelled it in February this year.

    A manager in the Unit, who spoke under condition of anonymity, said customers were owing DisCos arrears of fixed charges, stressing that power firms are not leaving any stone unturned to recover fixed charges owed them by customers.

    He said: “From the available information at our disposal, it is clear that a lot of customers were indebted to the power distribution companies. Of note is debt arising from non-payment of fixed charges.  There are two approaches of recovering fixed charges owed by customers. First, DisCos have factored the fixed charges into monthly bills they are issuing to customers every month. Secondly, firms are compelling customers to clear arrears of fixed charges they owe before they are allowed to recharge their meters.”

    He said power firms have ruled out the issue of concessions for customers that owe fixed charges; stressing customers are under obligation to pay their debts.

    “Many customers have approached us for concessions on the issue of payment of fixed charges they owe before it was abolished by the government.  However, we told them point blank that we cannot give them concessions. Energy business is different from trading in pepper and onion, in which you can go to the market and pile up your debts. The only way for the DisCos to grow is to collect all their debts,” he added.