The Nation Newspaper

Tag: DISCOS

  • Supply prepaid metres to consumers, govt urges Discos

    Supply prepaid metres to consumers, govt urges Discos

    The Federal Government has ordered electricity distribution companies (DisCos) in the country to supply prepaid meters to electric consumers without further delay.

    Minister of Power, Works and Housing, Mr Babatunde Fashola (SAN) gave the order at the end of his third monthly meeting with operators in the power sector at the Ugwuaji Transmission Station, Enugu, yesterday.

    He said the meeting discussed the issue of availability of gas, volatility of foreign exchange market, financial capability of DisCos as well as difficulties in pricing gas in dollars instead of the local currency among others, adding that the DisCos must live up to their responsibilities of meeting the demands of their customers in the area of supplying pre-paid meters to them to avoid estimated billings.

    Before the meeting, the minister had asked the DisCos to engage their customers by informing them promptly about any power outage and reasons for such problems.

    According to Fashola, it was not the business of the government to explain to Nigerians why certain DisCos were not meeting up with their responsibilities, having sold the various companies to them.

    Fashola said the government was playing the same role which the Nigerian Communications Commission (NCC) plays as regulator of the telecoms companies.

    “If you are not getting power from the Transmission Company, you must tell your customers so. The issue of review of tariff was arrived at after consultations. You (DisCos) did the consultations. Why don’t you step out and explain the issue to your customers. All of us must explain to our different customers where we operate,” he said.

    The communique issued at the end of the meeting read, “The  Minister of Power, Works and Housing, Babatunde Raji Fashola (SAN) chaired the third monthly meeting of operators in the electricity industry in furtherance of identifying, discussing and finding practical solutions to issues facing the Nigerian electricity supply industry.

    “The operators were fully represented at the highest executive management levels, including Managing Directors and CEOs of Generating Companies (GenCos), DisCos and the Transmission Company of Nigeria (TCN) as well as various government agencies such as the Niger Delta Power Holding Company (NDPHC), Nigerian Bulk Electricity Trader (NBET), Gas Aggregating Company of Nigeria (GACN), the Nigerian Electricity Liability Management Company (NELMCO), the Nigerian Electricity Regulatory Commission (NERC), and Nigerian Electricity Management Services Agency (NEMSA), responsible for the regulation and development of the electricity industry. The meeting deliberated on various issues and agreed as follows:

    “Arising from the decision at the previous meetings on public engagement, the DisCos resolved to reinvigorate their efforts towards customer engagement, through the launch of Customer Care Units for adequate resolution of power sector issues in line with the standards set up by NERC.

  • NERC warns DISCOs against over-charging customers

    The National Electricity Distribution Commission (NERC), Friday, warned the eleven power distribution companies (DisCOs) against exploiting customers, who do not have meters, just as electricity supply to the grid ramps up at 4, 387 megawatts (Mw).

    The agency said it would be wrong for DisCOs to capitalise on the low electricity supply in the country to over -charge customers, who on account of their inability to get meters are put on estimated billing.

    In a statement signed by NERC’s Head Public Affairs Department, Dr Usman Abba Arabi, said billings for unmetered customers should be based on their consumption level.

    He said: “The reduction in power supply when it lasted affects both metered and unmetered customers. For metered customers the drop in their consumption will be captured by their meter.

    For unmetered customers it is imperative that estimated bills during this period are reflective of their actual consumption. At this juncture, it is imperative that bills for unmetered customers are accurate as much as possible. It should under no circumstance be arbitrarily inflated.’’

    Arabi said unmetered and estimated customers have the right and option to pay current estimated electricity billing, in the event no concern was raised   in their estimated electricity bills.

    He urged electricity distribution companies to charge customers in line with the provisions of the Billing Estimation Methodology Regulations, 2012, provided by the government.

    It would be recalled that the peak generation level that notched epoch 5,070 megawatts few weeks ago suddenly nosedived due to inadequate gas supply on the main gas pipeline supplying many of the power stations.

    This was on account of gas supply shortage due to inability to evacuate condensates and oil produced with the gas because the main oil export pipeline out of Forcados was vandalized two weeks ago.

    However, with the successful repair work on the damaged facility, the system is now ramping up as it attains 4, 387 megawatts peak generation as at Friday.

  • Judge renews order barring electricity tariff hike

    Judge renews order barring electricity tariff hike

    •Warns NERC, DISCOs against contempt

    Justice Mohammed Idris of the Federal High Court in Lagos on Monday renewed the order barring the Nigerian Electricity Regulatory Commission (NERC) from increasing electricity tariff.

    He said the order that parties maintain status quo ante bellum subsists.

    “The order that the parties in this suit should maintain the status quo ante bellum remains valid and binding until it is set aside by a court of competent jurisdiction,” Justice Idris held.

    He spoke while delivering ruling on a contempt proceedings initiated by activist-lawyer, Toluwani Adebiyi, against NERC chairman and Chief Executives of Distribution Companies (DISCOs).

    Justice Idris first made the order last May, but while the suit was pending, NERC announced the tariff hike.

    NERC’s lawyer, Chief Anthony Idigbe (SAN), and others said they were not personally served with the Form 48 (notice of consequence of disobedience of court order).

    Ruling, Justice Idris agreed with the respondents and held that Adebiyi issued Form 49 (a formal application for committal to prison of a person who refuses to obey an order) without properly serving the alleged contemnors with the Form 48.

    He said: “It is clear, in this case, that the purported issuance of the Form 49 on the defendants by the plaintiff without prior and proper service of the Form 48 is premature.

    “The issuance of Form 49 when the court is yet to hear and determine the application of the plaintiff for leave to serve Form 48 is also inappropriate.

    “In the circumstances, I hold that the defendants’ objections have merit. The Form 49 and the motion for order for committal issued by the plaintiff against the defendants are hereby set aside. The court has set aside the contempt application due to fundamental procedural irregularities.”

    Justice Idris, however, said NERC and the DISCOs are still liable to be held in contempt should they continue to violate the order.

  • Discos’ corrupt and fraudulent bills

    SIR: Recently, it was in the news that Mr. Babatunde Raji Fashola (SAN), Minister for Power, Works and Housing has approved increases in tariff charges on electricity unit by the respective distribution companies (Discos) ranging from 45% to over 65% without considering its impact on inflation bedeviling the economy and fairness and equity on the consumers. There is no gainsaying the fact that the discos have been abusing and exploiting Nigerians and the system to milk Nigerians dry with shameless impunity. Nigerians have the capacity to vehemently demand that this over-estimation stop now and should so demand. When the Nigerian exploiters with their foreign collaborators acquired our collective assets in the power sector at prices that were ridiculously less than 10 percent of their value, little did patriotic Nigerians know that the greed of the very few would be a dirty source of pain to fellow Nigerians and responsible organizations.

    It is trite that building power infrastructure is long term and capital intensive and usually yields long term return. It takes above an average of five years to begin to earn revenue. But in the case of these discos, they started earning revenue right from the first day of acquisition of our collective power assets. Even the disputed estimated bills of PHCN were carried over and debited to consumers even when the discos claimed they did not acquire PHCN liabilities but only infrastructural assets.

    There are three categories of the discos’ customers. The first are those with pre-paid meters. The second are those with analogue meters and the third category are those the discos refused to meter and are corruptly, fraudulently and criminally served monthly with over estimated bills usually over 12 times in most cases their actual electricity consumption. Take my case for example: I consume less than 40 units of electricity per month but Ikeja Electric serves me with a fraudulently over-estimated bill of average 480 units as monthly bill. So I am compelled to pay for what I consume for 13 months as my one month bill. For one year, I have paid for 13 years in advance! The same is true for almost every customer of the discos on what they call estimated customers.  All of these unfortunate electricity consumers have paid in advance for between five to 13 years every year since the discos were sold out in November 2013. This of course is the dirty height of corruption and corporate stealing.

    From the above, you will discover that the argument by the Minister that the discos are not making profit is a lie and grand conspiracy to continue to defraud the category of unmetered electricity consumers. The discos have not invested on any visible infrastructure in my area within Mowo Kekere/ Ijede Road axis of Ikorodu in Lagos State and as a result only one transformer still serves over 600 houses that have resulted in very erratic power supply and very  low voltage that have damaged our domestic equipment. I know the same scenario is true in most areas too.

    To justly resolve this issue of fraudulently over-estimated billing system that is very corrupt by any assessment, the Minister and Nigerian Electricity Regulatory Commission (NERC) will be doing the right thing to immediately direct the discos to stop the estimated billing of electricity consumers that the discos refused to allocate meters and also to cancel the bloated amount on their respective bills effective February 1, 2016 by not further issuing bills to this category of consumers until they are metered since they have all paid bills in advance of between five and 13 years every other year. This is the only solution to the terrible corporate stealing that is being forced down the throat of the average electricity consumer in this country by the discos.

     

    • John Egiaruoyi,

    Ikorodu-Lagos.

  • TUC to FG: increase minimum wage, reverse sale of DISCOs

    TUC to FG: increase minimum wage, reverse sale of DISCOs

    The Trade Union Congress (TUC) on Tuesday demanded the Federal Government to review upward the current N18,000 minimum wage.

    This is part of the presentation made by a TUC delegation led by its President, Mr. Bobboi Kaigama, during a visit to Vice President Yemi Osinbajo at the Presidential Villa, Abuja.

    Noting that the National Minimum Wage (Amendment) Act 2011 would be five years old in March, he said that in accordance with the International Labour Organisation’s Minimum Wage Fixing Convention 131 of 1970, an ad hoc committee should be raised every five years for the review.

    He said: “We use this opportunity to serve notice that it is time for the Federal Government to set up that committee and mandate it to kick start work on a new minimum wage.

    “We trust that this will be done immediately to save Nigerian workers from the harsh effects of present day economic realities which are taking tolls on their meager incomes.”

    He also urged the Federal Government to reverse the sale of the electricity distribution companies (DISCOs), stressing that the current operators had demonstrated lack of will, capacity and competence to invest in the power sector and provide power to consumers.

    He said the current increase in electricity tariff is “anti-people” describing the Act of the National Assembly empowering the electricity regulator the unilateral power to increase the tariff as “very lame, too simplistic and misleading.”

    He said: “Any Act that preys on the masses that it is supposed to protect negates the very essence of public policy.

    “In the same vein, any act that compels the citizens to pay for services not delivered is not only flawed and undemocratic but ultra vires to the power of the National Assembly to make laws for the good of the country.”

    Stressing that the telecommunication operators brought funds, expertise, service delivery and competition in their business which Nigerians were happy about, he pointed out that the sole aim of the DISCOS “is profiteering through fraud.”

    According to him, the DISCOs have failed to implement their own part of the contract as poor electricity supply and non- availability of meters are experienced nationwide.

  • DisCos: Senate tariff resolution ‘ll fail power sector

    The Association of Nigerian Electricity Distributors (ANED) yesterday said the Senate resolution that stopped the implementation of the 2015 Multi -Year Tariff Order (MYTO) will have adverse effects on the power sector.

    According to its Executive Director, Advocacy and Research, Sunday Oduntan,  a market priced tariff is a fundamental requirement under the agreements signed between Distribution Company (DisCo) operators in the Nigerian Electricity Supply Industry (NESI) and the Bureau for Public Enterprises (BPE), raising the concern for sanctity of contract.

    The association in a statement, lamented that the decision will culminate in the  absence of a market priced tariff that  creates the possibility of failure by the operators.

    He said such a failure will be at a price that the government can ill-afford in these times of dire economic challenges.

    The group maintained that a market priced tariff is critical to address decades of under-investment such as the five million metering gap in the sector.

    Oduntan insisted that globally, electricity reforms have always been tied to increased investment, resulting in improved production efficiency. Such investment is predicated on access to capital which will be jeopardised in the absence of a market priced tariff, he added.

    He said the absence of a market priced tariff will endanger the viability of the entire value-chain of distributors, generators, transmission and gas suppliers, resulting in the failure of the sector.

    He said: “As the upstream operators will not receive required payment (DisCos only receive 25 per cent of the revenues associated with the tariff.

    “Failure of the sector will result in, among other things, loss of employment and livelihood for approximately 50,000 Nigerians, indirect job losses from factory and other business closures, possibly in the millions; and a related outcome of discouraging further investments in the development of gas reserves and production for local consumption; and

    “Expected performance improvement, with appropriate investment, on the other hand, will lead to a reduction of tariffs in subsequent years.  This is empirically supported.

    “Fellow Nigerians, suspending the implementation of the tariff will leave us in continued darkness, with diminished and no future prospects of growth of our economy.”

  • Why DISCOs are phasing out analogue meters, by EKEDC chief

    Why DISCOs are phasing out analogue meters, by EKEDC chief

    Non-Functioning  of analogue meters, shortage of spare parts and  advent of smart meters, among others, are reasons the Distribution Companies (DisCos) are phasing out analogue meters, The Nation has learnt.

    It was gathered that many of the analogue meters are old, thereby making it difficult for the power distribution firms to get accurate reading  from them.

    The Chief Executive Officer, Eko Electricity Distribution Company, (EKEDC) Dr.  Oladele Amoda, said most analog meters are not working well, because they are old.

    He said the meters are obsolete, dysfunctional and prove difficult to read, adding that the development informed the decision of power  firms’ plan to phase out the meters in line with the agreement they signed with the Federal Government during the privatisation of the power sector.

    He said the government has given DiSCos between 2013 and 2018 to provide meters to their customers, adding that many of the firms were unable to keep to the agreement due to financial and technical problems.

    He said: “The analog meters have been in the system for long. I think the last production of analog meters was either in 1982 or 1985. This means that some analog meters have spent 30 years or more.  The timeline for the meters is between 15 and 20 years.When the manufacturers of meters said that the expiring date of the meters is for instance, 2012, they add some months on top of it, which means that the meters can still be used a year after the expiry date. By and large, analog meters are old, coupled with the fact that activities on those meters have reduced considerably. At this level, the DiSCOs have no choice than to phase them out.’’

    He said components of the analog meters were no longer in the market, stressing that manufacturers of such meters were producing products with huge technologies.

    Amoda said Eko DisCo has started the phasing out analog meters, by providing smart meters to its customers, adding that the firm would soon replace obsolete meters in its area of coverage.

    The Project Director/Business Leader, Advanced Metering infrastructure, Sahara Energy Group, Mr. Rotimi Onanuga, said the firm decided to introduce the initiative in order to ensure metering efficiency.

    Speaking during a stakeholders’ forum in Lagos, he said efforts were being made to ensure that effective distribution and use of meters in the firm’s area of jurisdiction. According to him, phasing out of analog meters and replacement with prepaid meters is part of efforts, which the company is making to ensure energy efficiency.

    He said the firm was hoping to provide its customers with prepaid meters soon, stressing that the idea would help in phasing out analog meters.

    He said local manufacturers of meters do not have the capacity to produce enough meters for electricity consumers, noting that the development made his firm to seek foreign partnership to provide smart meters  to the customers.

  • Electricity tariff: Judge warns Government, DISCOs against disobeying court orders

    Justice Mohammed Idris of the Federal High Court in Lagos on Monday warned the Federal Government and Distribution Companies (DISCOs) against disobeying subsisting court orders on electricity tariff.

    He said the government must not act in a way that shows disdain for the court in a constitutional democracy.

    Justice Idris said: “The point must be made that obedience to the rule of law by all citizens but more particularly those who publicly take the oath of office to protect and preserve the Constitution is desideratum to good governance and respect for rule of law. ‎In a constitutional democratic society like ours, this is meant to be the norm.

    “It is an act of apostacy for government to ignore the provisions of the law and the necessary rules meant to regulate matters.

    “I must say it loud and clear that the government of this country shall be a government of laws and not of men.”

    Protests by labour unions have trailed the new power tariff approved by the Nigerian Electricity Regulatory Commission (NERC).

    Activist-lawyer Toluwani Adebiyi last year filed a suit seeking a perpetual injunction restraining NERC from implementing any upward review of electricity tariff without significant improvement in power supply for at least18 hours a day.

    Justice Idris made an order directing parties to maintain status quo.

    But, while the suit was pending, NERC announced the tariff hike.

    Adebiyi  on Monday informed the court that he has initiated contempt proceedings against NERC chairman and DISCOs’ Managing Directors for disobeying the court’s orders.

    The lawyer is praying the court to commit the alleged contemnors to prison.

    But NERC’s lawyer, Chief Anthony Idigbe (SAN), said he had filed an appeal against the order by Justice Idris.

    Idigbe said he also had a pending application for stay of proceedings pending determination of the appeal.

  • Tariff hike: Discos seek understanding

    •Workers protest today 

    Association of Nigeria Electricity Distributors (ANED) has sought the understanding of the organised labour unions on the increase in  tariff, promising uninterrupted electricity supply.

    The appeal came in the wake of the nationwide protest today by the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC).

    The protest followed the 45 per cent increase in tariff by the Nigeria Electricity Regulatory Commission (NERC).

    A statement signed by the Executive Director, Research and Advocacy of ANED, Sunday Oduntan,  said: “…We reassure electricity customers nationwide that the continued increase in generation in the last few months will continue to translate into more electricity supplied to their homes and businesses”.

    It added that Discos would continue to distribute power transmitted to them.

    They assured that they “…are sensitive to customer anxiety at the recent increase in tariff.  As such, we assure our customers that the increase is no more than that which is necessary for critical improvement of an electricity infrastructure that has suffered decades of neglect”.

    According to the statement, the increase will help to mitigate the negative cash flow and revenue shortfalls bedevilling the sector since the handover of the assets to private operators, hindering the ability of the generators to increase power supply, due to their inability to pay gas suppliers; constraining the wheeling capacity of the power.

    “We are appealing to organised labour and fellow compatriots to please join the Federal Government and the power sector operators, as we continue to work to improve the supply of electricity,” added the statement.

    The statement noted: “…we must point out that even with the increase in tariff, the cost of self-generated power, estimated to be between N45 to N70 per Khw, is still significantly more than the cost of grid supplied power.  And this is without considering the additional benefits to our environment, of minimising the use of generators and a reduction in their related emission of pollutants.”

    But the NLC said the mass action, which is expected to take place in the 36 states and Abuja, will see its members and their civil society allies picketing electricity distribution companies.

    Also yesterday, the National Union of Textile Garment and Tailoring Workers of Nigeria (NUTGTWN) urged President Muhammadu Buhari to review the power sector reform of the previous government to increase public sector involvement.

    Its General Secretary, Comrade Issa Aremu, who made the call in a statement in Abuja, said the promise by the government to revive textile industries would not be possible without improved power supply.

    Aremu, who said the union supports the planned picketing by labour and their civil society allies, added that the government should listen to suggestions of power sector unions on the issue.

    In a statement, he said: “The textile union calls for improvement in power supply.  The point cannot be overstated. Between 30 per cent and 35 per cent of textile and garment manufacturing costs are energy-related expenses. Without electrification, there can be no industrialisation.”

    He hailed NLC leadership for its mass action and rejected the hike in tariff.

  • New electricity tariff: Lawyer asks court to charge NERC, DISCOs for contempt

    New electricity tariff: Lawyer asks court to charge NERC, DISCOs for contempt

    A human rights lawyer, Bar. Toluwani Yemi-Adebiyi has approached the Federal High Court to charge the management of the electricity distribution companies (DISCOs) and the Nigeria Electricity Regulatory Commission (NERC) for contempt of court.

    Justifying the need for the court action against the plaintiffs, Yemi-Adebiyi said the legal implication of NERC and DISCO defiance is contemptuous of the court.

    Expatiating, he said: “The power sector has illogically taken the bull by the horn by contemptuously increasing the electricity tariff, in spite of the subsisting Order of Court not to bring any Increment until the Substantive Suit is determined.”

    He also recalled that in spite of the legislative chambers insistence, that such decision should be suspended until the probe of their unfair Trade practices is concluded.

    In spite of failure to provide meters to consumers, thus giving them the room to bring outrageous estimated bill to their own gain, but to the detriment of the already exploited consumers who are not getting value for what they pay for.

    In spite of procedural irregularities at Variance with the statutory requirements for Increasing Tariff which emphasised on efficiency as a vital pre-requisite for Discos to recover full cost of its business activities.

    Raising a poser, he queried, “Is the power sector efficient? Rising and falling, dwindling and hovering around 4,000MW in spite of $20billion invested in the past 10yrs, with consumers paying for darkness and gross darkness, yet not getting value for what they are paying for.”

    Besides, he said, “Profit making by the private investors should not be at the exploitative detriment of the already exploited consumers.”

    The activist lawyer who said the plaintiffs were guilty as charged. “Form 48, Notice of disobedience of Court Order had been filed. Filing of Form 49 in Conjunction with Order 35 of the Federal High Court will follow thereafter,” he said.

    It may be recalled that Yemi-Adebiyi who had taken the NERC to court got an order by the Federal High Court in Lagos to stop it from further increasing its tariff, said the injunction granted by Justice Ibrahim Idris against any increment was subsisting and had not been discharged.