Tag: DISCOS

  • Consumers groan over increased electricity bills

    Consumers groan over increased electricity bills

    How much should be the appropriate electricity bill for a consumer without a metre per month? This is the question many consumers who believe they are being charged, what they called crazy bills are asking.

    Consumers who live in mini-, two-bedroom, or three-bedroom apartments were made to pay between N12,000 and N14,000 per month, depending on the areas and policies of the Distribution Companies(DISCOs).Those who live in duplexes pay about N20,000. Early last year, the Power Holding Company of Nigeria(PHCN) imposed N7,000 and N10,000 on occupants of three-bedroom and duplex apartments in Egbeda suburb, Lagos.

    These bills include Value Added Tax, meter maintainance charge, even though most consumers do not have meters. Also included is the reconnection fee of between N1,000 and N2,000 charged consumers who were disconnected for not presenting bills.

    Sources said PHCN officials are delaying the issuance of pre-paid meters to enable them generate enough revenue for their districts or zones.

    A consumer, Mr Adeoye Lawal, a lawyer, said he was paying N13,500 on his three-bedroom apartment in Gowon Estate, Egbeda, Lagos until early this year when he secured a single-phase pre-paid meter.

    Adeoye said efforts to get the meter was abortive until January when he threatened to expose some PHCN officials.

    ‘’From my observations, PHCN officials are hoarding the meters. Though they may not have enough, they are hoarding them to make money. I applied for a meter three years ago. Where did they get the one they gave me after the threat? he asked.

    Also, a staff member of the Nigerian Bottling Company in Jalingo, the Taraba State capital, Mr Ibrahim Akana, said consumers are burdened by huge electricity bills, adding that consumers who do not have meters pay heavily.

    He said getting pre-paid meters was a big problem because PHCN officials demand bribe before they issue them.

    ‘’Perhaps there would be changes in electricity supply when the distribution companies start operations in the last quarter of the year. Consumers are waiting for improvement in metres and power supply as the privitisation process continues,’’ he said.

    A consumer said: “I do not see why I should be made to pay additional N12,000 per month for using a television set, a refrigerator, iron and few bulbs. This is corruption of the highest order. This matter should be investigated to save people from the agony of paying for unconsumed electricity.”

    While justifying the huge bill, a senior official of PHCN Abule Odu, Lagos District, who spoke on condition of annoymity, said the inability to determine the consumption level of users made PHCN to review the bills on several occasions.

    He said: ‘’It is easier to look at analog meters and know the amount of energy consumed by the users.Those that use pre-paid meters know how much they have consumed because they buy cards and load it. However, consumers without meters are given estimated bill as determined by the PHCN district offices. It is not possible for our officials to be entering the rooms of our consumers to count their electrical appliances. Though some consumers use lesser energy, others use much more. As a result, we rely on human judgement while charging consumers. ‘’Each district office is given a target; this puts them under pressure. To meet the targets, we have to increase the bill and disconnect light randomly to make consumers pay their bills. Nobody is ready to lose his/her job. if you continue to give excuses that you are unable to meet the targets due to one reason or the other, you could be sacked. That is the reason heads of PHCN zonal offices have a strong revenue generation drive,” he added.

    According to him, some consumers, especially those living in two-storey and enclosed buildings are happy paying estimated bills.

    ‘’The reason is because they are using objects that consume electricity heavily, according to our investigations. Such consumers know that they would pay higher when they use pre-paid meters.

    If you tell them to apply for meters, they would be reluctant to do so. The only way to make our money is to give a flat rate. Some people have to pay for the sin of others,’’ he added.

    The Chief Executive officer, Eko Electricity Distribution Company (EKEDC), Oladele Amoda, said the zone had implemented Credit Advance Payment for Metering Installation(CAMPI) to enable customers to access electricity.

    He said the idea would help in preventing shortage in prepaid meters.

  • Why power crises persist,  by minister

    Why power crises persist, by minister

    •Fed Govt begins payment to DISCOs

    The Minister of Power, Prof. Chinedu Nebo, yesterday explained that the flurry of system collapses and the fall in the amount of generated electricity were caused by poor maintenance habit, vandalism, sabotage and poor funding.

    Nebo, who admitted that Nigeria is undergoing very difficult moments in the power sector, spoke at the headquarters of the Federal Ministry of Power while receiving a report containing recommendation on how to address the incessant system collapse that had characterised the power sector in recent times.

    The Minster said: “For instance, we lost close to 1,600megawatts of power at the weekend on account of vandalism. Our gas pipelines were vandalised and this knocked off our power plants. We urge our compatriots to stop such acts and behaviours that undermine the growth and development of our nation.

    “We are facing very difficult times in the power sector. It will interest you to know that some of the problems are manmade, such as poor maintenance habit, vandalism, sabotage and poor funding.”

    The Minister also confirmed that the ministry had commenced the disbursement the Multi-Year Tariff Order (MYTO) to Electricity Distribution Companies (DISCOs) and Generation Companies (GENCOs to enable them solve their problems.

    Minister of State for Power, Ms. Zainab Kuchi, in her address, lamented that Nigeria’s power situation was very bad.

    “Power situation is very bad in this country and we need to run faster than we can to meet up. We will give the recommendations our best shot and hope to address the issues as soon as possible,” she said.

    The Chairman of the 13-member Technical Investigative Panel on System Collapse, Mr. Fatai Olapade, said unqualified personnel at the Transmission Company of Nigeria were also liable for the problems in the sector.

    “TCN for the past 17 years has not been employing people. Most of the operators are old and some of them are inexperienced; they need to be trained. So there should be capacity building.

    “But all other issues are purely technical, like communication and others. The most important part of it is the vegetation. We are in the raining season and there are some trees that grow so fast that when wind blows they can touch the lines and cause transient fault.”

    The panel two weeks ago by Federal Government and mandated it to come up with recommendations on how to deal with the problem in the sector.

    Commenting on the payments to disco, the Minister, who did not mention the amount released to the companies, noted that although the fund would not be sufficient for funding the 11 DISCOs and six GENCOs but it will make a significant impact.

    Olapade noted that p art of the reasons for system collapses was due to the zero allocation to the DISCOs and GENCOs  in the 2013 budget.

    He said Nigeria’s power sector recorded three system collapses within the period of the panel’s assignment.

  • Abdulsalami’s firm wins bid for power companies

    Abdulsalami’s firm wins bid for power companies

    ...FG rakes in N197.25b from  sales

    Integrated Energy Distribution and Marketing Company, a firm owned by former Head of State, Abdusalami Abubakar on Tuesday emerged the core investor of the Eko, Ikeja, Ibadan and Yola electricity distribution companies.

    Meanwhile, the Federal Government raked in N197.25billion as proceeds from the sale of its 60 per cent stake in 10 out of the 11 electricity distribution companies in the unbundled Power Holding Company of Nigeria.

    Chairman, Technical Committee on National Council on Privatization, Mr. Atedo Peterside, made this disclosure in Abuja during opening of the commercial bids for the privatization of PHCN successor distribution companies.

    In the case of Kaduna Distribution Company, he noted that “none of the two bids received for company met the technical requirements.

    According to him, the Bureau of Public Enterprise will invite fresh bids from all the pre-qualified bidders, in accordance with the ‘Plan’ approved by the NCP in respect of the privatization of any unsold successor company.

    “Plan B entails inviting fresh bids from all the shortlisted bidders that paid the required $20,000 fee for the bid documents,” he said.

    Peterside, who presided over the bidding process, explained that there was an adoption of Aggregate Technical, Commercial and Collection (ATC&C) loss Reduction for the choice of the core investors.

    He said, “I wish to comment on the choice of the ATC&C loss reduction proposal as a basis. For core investor selection. The use of this method for the selection of core investors for distribution companies is a clear departure from the NCP’s usual practice of awarding companies to the bidder who makes the highest financial offer to purchase an asset after being technically qualified.

    “Furthermore, ATC&C loss level will provide Nigerian consumers and other stakeholders with specific parameters with which to measure the outcome of the power sector reform and privatization.”

    From the bidding process, the Integrated Energy Distribution and Marketing Limited emerged the core investor for the distribution company with 22.51 per cent ATC&C, while KEPCO offered 21. 43 per cent.

    Abubakar is the Chairman of Integrated Energy Distribution and Marketing Limited, the same firm that won the bid for Eko Distribution Company with 21.43 per cent ATC&C while KEPCO offered 20.43 per cent.