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Tag: DISCOS

  • Unresolved complaints against DISCOs worrisome, says FCCPCC boss

    Unresolved complaints against DISCOs worrisome, says FCCPCC boss

    Over 600 complaints of arbitrarily billings, unauthorised disconnections, customer abuses, disregard to capping, community transformer issues amongst others have been recorded against the Ikeja Electricity Distribution Company at the recently concluded electricity consumer complaints resolution platform.

    The four days event which was organised by the Federal Competition and Consumer Protection Commission in conjunction with the MacArthur Foundation ended Saturday in Ikeja Lagos with many aggrieved electricity consumers in attendance.

    In his address, the Acting Director of the FCCPC, Dr. Adamu Abdullahi said the resolution forum had to be organized because of the level of complaints they were receiving against the 11 electricity DISCOs in the country. “We receive the highest complaints from that Sector, and the same complaints from different parts of the country.

    “Since the past months, we have been touring all over the country holding the same resolution forum as the one we are having now. We have been to Nasarawa, Benin, Port Harcourt, Calabar, Jos, Ibadan, Bauchi and consumer complaints have largely been on over billing, community transformer issues, accounts reconciliations, energy capping, tariff band classification, metering, billings before connection to a new building, disconnection without notice etcetera.

    “That is why we insist that all the stakeholders, like the National Electricity Regulation Commission [NERC], The Nigeria Electricity Management Services Agency [NEMSA], which provides meter and of course the concerned DISCOs, have to be present in the forums,” explained the DG.

    Speaking further the FCCPC Acting DG, said that the DISCOs have not been forthcoming and that is why the aggrieved consumers bring their cases to NERC and the FCCPC which is like their last resort.

    “As you can see, these are very serious issues to the consumers and of course they will like to have solutions.”

    According to him, “We are here to resolve these issues and that is why we set aside four days to attend to the complaints,” adding that over the past three days that most of the complaints have been resolved. We will get commitment from the DISCOs on a time frame within which these complaints would be resolved because it is their core responsibility and not ours.

    “The ones we cannot do here, we give time lines to the DISCOs, NERC, and NEMSA to ensure that the complaints are resolved and if not we encourage the consumers to report to our offices where we have willing staff and the complaints the branch staff are not able to handle is escalated to the head office.”

    Engineer Salami Oladokun, representing NEMSA, assured the FCCPC of his Agency’s readiness to continue to collaborate with them adding that NEMSA’s workforce usually go round to monitor the meters.

    Speaking, Mr. Chukwunonso Okwuosah, Forum Secretary Ikeja NERC Forum, appealed to consumers to always attend such forums with an open mind emphasising that no matter how long the issues had lingered that it will be resolved according to laid out government regulations.

    Commending the FCCPC for organising such a forum, he noted it was a sure way to hear directly from the aggrieved customers.

    In her remarks, Jolaoluwa Adewale, Head, Government/Regulatory Ikeja Electric Plc, noted that since the Forum started sitting that many consumers that came with complaints had gotten them resolved though acknowledging that many complaints were still outstanding.

    Read Also: NERC reduces minimum remittance orders for DisCos

    She however appealed to them to exercise patience while promising that the DISCO will work on all the complaints brought to its notice.

    She also added, “we will continue to be fair to our customers and also align and cooperate with the laws of the land.”

    Commending the FCCPC for putting such a Forum together, she added that forums like this bring them closer to their customers.

    Jolaoluwa Adewale nonetheless appealed to the consumers to be more transparent especially in the area of energy theft so as to get more value from the electricity DISCO.

    Meanwhile a visibly aggrieved elderly customer, Mr. Anthony Chukwuemeka Iteghate said he paid N65,000 for a meter since last August but had not received any meter.

    He said that all his visits and complaints to the Ikeja electricity company have yielded no result.

    “They have not given me any meter and have not refunded my money. Since last year, I have been staying without electricity. Their response to me is that there is no meter.”

  • Outages: Minister threatens DisCos with licence revocation

    Outages: Minister threatens DisCos with licence revocation

    • ‘Wilful non-performance won’t be tolerated’
    • Distribution Companies, TCN  summoned

    Electricity Distribution Companies (DisCos) are to be held accountable henceforth for poor power supply in the country, the Federal Government said yesterday.

    Tough sanctions, including licence revocation, await them, Power Minister Adebayo Adelabu threatened.

    “Moving forward, I’m committed to holding all distribution companies accountable for their performance.

    “Wilful non-performance will not be tolerated, and severe consequences, including licence revocation, may be imposed,” the minister said in a statement.

    Expressing concern over erratic electricity supply, Adelabu has summoned the Abuja Electricity Distribution Company (AEDC), the Ibadan Electricity Distribution Company (IBEDC) and the Transmission Company of Nigeria (TCN) for an emergency meeting on Tuesday.

    Electricity supply has dipped across the country in the last three months.

    Many reasons, including lack of adequate gas supply, grid breakdown, low supply from Generating Companies (GenCos), the inability of DisCos to wheel supply from GenCos and sabotage, have been adduced for the constant outage.

    The minister also expressed concern over the poor performance of the Nigerian Electricity Supply Industry (NESI).

    Adelabu, who tweeted on his X handle, reiterated the reasons for summoning the AEDC and IBEDC chief executives and the TCN Managing Director.

    He gave the reason as an attempt to find a plausible solution to the power supply in their zones.

    Adelabu described as “disheartening” the decline in power supply despite the concerted efforts to improve the situation.

    He noted that his Ministry has been exerting pressure on the GenCos to enhance their performance, resulting in a recent increase in generation to over 4000MW.

    “Despite this progress”, the minister said, “certain distribution companies are failing to adequately distribute the power supplied by TCN, while vandalism of power infrastructure exacerbates the problem in regions such as Abuja, Benin, Port Harcourt, and Ibadan.

    “The purpose of this meeting is to discuss the worsening power supply in their respective regions and to collectively find lasting solutions.”

    The minister threatened to henceforth hold the DisCos accountable for their performance.

    He said: “Willful non-performance will not be tolerated, and severe consequences, including license revocation, may be imposed.

    “Additionally, I have instructed TCN to prioritise repair works on damaged transmission towers and power lines to improve supply in affected regions.”

    Read Also: Police Service Commission promotes 1607 DSPs

    Adelabu recalled that during recent supervisory visits to power-generating plants, he witnessed firsthand the challenges faced by the sector.

    He spoke of plans to settle outstanding debts to power generation and gas supply companies, which will alleviate the financial strain and contribute to improved generation levels nationwide.

    Pleading with consumers for understanding, Adelabu said he and his team had been making frantic efforts to tackle the challenges.

    “I urge electricity consumers to remain patient as we work tirelessly to address these issues and provide better service to all Nigerians,” he said.

    The Nation learnt last night that the payment of $120 million out of the $1.3 trillion owed to the gas suppliers has unsettled the GenCos.

    The GenCos are said to be meeting to press for the payment of their outstanding debts.

    A source from the GenCos, who was privy to the meeting, said: “Since the Federal Government has made $120 million payment to the gas suppliers as part of their debt, we are also meeting to ask the same government to settle us, the GenCos.”

    Adelabu’s Special Adviser on Strategic Communications and Media Relations, Bolaji Tunji, confirmed the scheduled meeting with the TCN and DisCos.

  • ‘Complaints against DISCOs higher than others’

    ‘Complaints against DISCOs higher than others’

    Over 600 complaints have been recorded against Ikeja Electricity Distribution Company at the electricity consumer complaints resolution platform.

    This include arbitrary billing, unauthorised disconnection, customer abuse, disregard to capping,  transformer issue.

     The event, organised by Federal Competition and Consumer Protection Commission with MacArthur Foundation was attended by aggrieved consumers.

    Read Also: Billing of unmetered customers: FCCPC, NERC square up with DisCos

    Acting Director, Dr. Adamu Abdullahi, said the forum followed complaints against the 11 DISCOs in the country.

    “We get more complaints from that sector, and same from every part of Nigeria.  

    “We have been touring the country holding the forum. We have been to Nasarawa, Benin, Port Harcourt, Calabar, Jos, Ibadan, Bauchi and complaints have been on over billing, transformer issues, etc.

     capping, tariff band classification, metering, billings before connection to a new building, disconnection without notice etcetera”.

  • TCN sends 2,768MW to DisCos

    TCN sends 2,768MW to DisCos

    • As GenCos produce 2,796.50MW

    The Transmission Company of Nigeria (TCN) allocated 2,768MW to 11 electricity Distribution Companies (DisCos) by4pm on Friday, The Nation learnt.

    The quantity of energy was what the Independent System Operator (SO) of the TCN sent to the DisCos between 1 pm and 4pm on the day under review.

    While it allocated 427MW to Abuja DisCo, it sent 227MW to Benin DisCo and 358MW to Eko DisCo.

    The SO also supplied 200MW, 334MW, 421MW and 157MW to Enugu DisCo, Ibadan DisCo, Ikeja DisCo, and Jos DisCo.

    According to the TCN in its document entitled: “Distribution Load Profile Data at 16/02/2024 at 16:00,” the SO sent 180MW, 187MW, 198MW and 79MW to Kaduna DisCo, Kano DisCo, Port Harcourt DisCo and Yola DisCo.

    On the day under review, the SO noted that total energy produced as at 4pm was 2,796MW.

    Of the 19 power generating firms listed in the energy chart, only Shiroro and Egbin recorded zeo mega watts.

    TCN said the previous day (Thursday), total energy generated was 8,9253.24MWH or 3,718MW.

    The abysmal low energy generation, according to the Minister of Power, Chief Adebayo Adelabu, who briefed reporters last week, was due to the N1.3trillion debt owed to the GenCos and another $1.3 billion legacy debt.

    Meanwhile, the ministry in a statement at the weekend, stressed that the European Union (EU) is set to invest 37 million euros in the Nigerian Electric Supply Industry (NESI).

    This is apart from about 200 Euros million grants invested in the sector since 2008.

    Read Also: FCCPC lauds NERC’s overbilling sanction on DisCos

    This was made known by the EU Ambassador to Nigeria, Samuela Isopi, during a visit to the Minister of  Power, Chief Adebayo Adelabu.

    She was accompanied by the  new Head of Cooperation of the EU, Mr. DE Luca Massimo and the Programme Manager on Energy, Mr. Godfrey Ogbemudia.

    The ministry said this in a statement at the weekend.

    According to him, during the visit, the ambassador spoke on the EU’s various intervention programmes in the power sector, adding that the support would cover small hydro power, solar for health care facilities, rural electrification with isolated and interconnected mini-grids project, circular economy in power sector project.

    She said the projects would commence this year.

    Ambassador Isopi also used the opportunity to invite the Minister to an upcoming launch of two projects funded by the European Union and implemented by UNIDO which will both be launched on March 26..

    Responding, the Minister who received the ambassador in company of his  Chief Technical Advisor, Mr. Adedayo Olowoniyi , expressed  appreciation to the EU for the support they have been giving to them, more support is needed to address the enormous challenges in the sector. He identified liquidity issue as the main problem that the government is trying its best to resolve and said that the market will only be sustainable and run efficiently when there is a cost reflective tariff in place. He was very excited with EU programmes for the sector and confirmed the alignment of these programme with the Ministry’s strategy for the sector while  promising to work with the EU on their programmes especially  on Small hydro and  state  electrification  within the new act.

  • Zero Megawatt to DisCos cripples homes, businesses

    Zero Megawatt to DisCos cripples homes, businesses

    • Ministry, firms disagree on cause of failure
    • Minister in frantic meetings

    Electricity supply which became unstable since the beginning of January across the country took a turn for the worse at the weekend.

    Supply of Megawatts (MW) to Distribution Companies (DisCos) sank to its lowest ebb with some of them getting zero allocation.

    Those who got were given a paltry supply, which could do little or nothing for their consumers.

    Homes and businesses were thrown into a blackout.

    As of 4.05 pm yesterday, electricity Megawatts(MW) available to the national grid dropped by 84.8 per cent in less than four and half hours.

    The grid had 2,658.75MW at 11 am but by 4.05 pm it dropped to only 405MW with some of the DisCos getting zero MW.

    Although Power Minister Adebayo Adelabu blamed the development on declining gas supply to the Generating Companies (GenCos), two of the DisCos attributed it to systems failure from the grid and vandalism.

    Adelabu, according to a statement by his media aide, Bolaji Tunji, met with top management teams of the GenCos and DisCos with a view “to resolving gas supply challenges.”

    Data released by the Transmission Company of Nigeria (TCN) Independent System Operator (ISO) showed that the 450MW available at the grid was allocated to seven DisCos and zero MW to four others.

    The four with zero MW allocation are Port Harcourt, Jos, Kano and Yola DisCos.

    The data contained in a document titled: “Load Distribution Profile Data at 4:05 pm on Sunday” indicated that Ibadan DisCo was allocated 100MW and Abuja DisCo, 90MW.

    Eko DisCo had 80MW; Ikeja, 50MW; Benin, 50MW; Kaduna, 40MW and Enugu DisCo, 40 MW.

    As of Saturday, the energy generated was 3,716MW out of which 3,663MW was distributed before the abysmal decline yesterday.

    DisCos blame outages on system failure, vandalism

    General Manager (Corporate Communications), EKEDC, Babatunde Lasaki, said vandalism is one of the major reasons for poor service being experienced by consumers.

    The Abuja Electricity Distribution Company (AEDC) blamed the nationwide power outage on system failure from the national grid.

    It said in a statement yesterday said that the failure occurred at about 11.21 am.

    The statement reads: ”The management of AEDC wishes to inform its valued customers that the power outage being experienced is a result of a system failure from the national grid at 11.21 am today (yesterday).

    “This has led to a nationwide power outage.

    ”Rest assured that we are working with the relevant stakeholders to restore power as soon as the grid is stabilised. We appeal for your patience.”

    EKEDC General Manager, Corporate Communications, Babatunde Lasaki, explained that the DisCo was not resting on its oars to improve power supply.

    “We urge our customers to collaborate with the company in its quest for a safe, constant and reliable power supply.

    “We equally urged them to report suspected cases of vandalism or fraud to our dedicated channels or report to the nearest EKEDC office or Police station,” Lasaki said.

    Adelabu meets GenCos, DisCos chiefs, sets up committee

    Adelabu at the meeting with the GenCo and DisCo chiefs expressed surprise that the power supply which was relatively stable during the Yuletide had become a nightmare. 

    He said the need to understand the latest outages informed his visits to power facilities in Olorunshogo in Ogun State and Omotosho in Ondo State.

    The meeting also discussed indebtedness to the GenCos by the Nigeria Bulk Electricity Trading Company (NBET).

    “We are aware that the sector has liquidity challenge, but we need to have a minimum threshold.

    “We are working on revalidating the debt and determining a fair resolution,” the minister said.

    Adelabu also spoke on the need by GENCOs to enter a contractual arrangement with gas suppliers to ensure a steady supply to them.

    He said: “We know that there are certain concessions expected of government before this could be achieved and we are willing to work on this to stabilise the power sector.

    “To tackle the gas supply and liquidity challenges, I’ve decided to form a committee involving all stakeholders.

    “Together, we will work on recommendations to resolve these issues and ensure a more reliable and consistent power supply for our citizens.

    “A plan has also been established to initiate discussions with the Minister of State for Petroleum Resources regarding collaboration and to emphasise to the ministry the importance of prioritising Gas to Power.

    “Our commitment is unwavering in addressing the challenges affecting power supply.

    “We understand the impact on citizens, and our goal is to swiftly resolve the issues of gas supply, indebtedness, and overall sector stability.

    “Your patience is appreciated as we work collaboratively towards a brighter, more reliable energy future for Nigeria”.

    The minister also denied that he called for subsidy removal.

    A statement by Tunji added: “There is a need to correct the erroneous impression going around quoting the Minister of Power, Adebayo Adelabu as advocating the removal of subsidy in the power sector.

    “The minister has also visited Ayede Sub-Station and some other power facilities in Oyo State including a visit to the Ibadan Distribution Company (IBEDC) where he read the riot act that no distribution company should compel communities to buy transformers or electricity poles as it should be the responsibility of the distribution companies to do so.”

    Our ordeal by consumers

    But electricity consumers who spoke with The Nation dismissed the “insufficient gas supply” excuse given by Adelabu and called for the scrapping of the 11 DisCos.

    They accused the TCN and DisCos of not investing in critical facilities needed for the business in the past 10 years.

    A resident of the Shimawa community in Ogun State, Folashade Ogunmola, said the Discos are more interested in the quick returns than in injecting funds into the sector.

    He said: “In Shimawa, this is the fourth year we have not seen anything called electricity all because of transformer issues which Ibadan Disco has not provided.

    “Our neighbourhood had to contribute over N2.5 million last December to buy a transformer after four years of groping in darkness.”

    Ogunmola lamented that his business in the community had almost collapsed due to a lack of electricity.

    A landlord in the community, Olusola Akande, said: “The lack of electricity here in the last four years has made it impossible for me to get tenants into my property.

    “Most houses on my street are empty because of electricity issues; in the few that are occupied, their owners charge peanuts.”

    Read Also: Magu: Appeal Court orders bank to pay N540m damages 

    In the Akute community, under the Ikeja Electric (IE) jurisdiction, a resident, Segun Adeleye, lamented that the area hardly enjoys electricity for two hours a day.

    He stated that even before the “gas shortage excuse” by the Power Minister, the electricity supply in the area had been appalling.

    Consumers in Rivers and Bayelsa states also decried the poor power supply. 

    The development has put more burden on operators of small and medium business enterprises who said they were tired of buying petrol because of its high cost.

    “For a very long time, even the electricity supply which came intermittently is no longer available,” said Michelle, a resident of the Chinda area of Port Harcourt.

    She added: “The darkness as a result of outages became worse in December. It has lingered till now. 

    “Our businesses are suffering and we cannot plan. It has added to the hardship we are facing.”

    A seamstress, Lilian Chi, said: “This area appears to be worse in terms of electricity supply. We stay for many days without electricity and it has affected my business. I repair generators a lot and most times I don’t have money to buy fuel. Things are hard.”

    Soky Dan, another resident of Port Harcourt, said despite the lack of power supply, the DisCos sends estimated bills running into thousands of naira to consumers without pre-paid meters.

    “Throughout December, there was hardly any electricity supply, but PHED gave me and my neighbours an estimated bill of over N35,000. It was a bitter experience contributing the money to pay.

    “I feel that the area (Port Harcourt) should be unbundled and given to more distribution companies. PHED acts like a monopoly. They don’t care about the effects of the actions on us.”

    In Bayelsa State, the electricity situation is further compounded by estimated bills and the nonchalant attitude of PHED officials.

    A youth leader and scholar, Tokpo Coronation, has started mobilising youths to confront the PHED on why it had plunged the state into darkness.

    Coronation said residents were concerned that the DisCo was not supplying electricity but would always come at the end of the month for payments.

    He said: “Many residents wanted us to protest but I convinced them that we should hold a meeting with PHED management this week to know why they are collecting money from us without supplying us electricity.

    “The situation has become so terrible that the light will come for two hours and will not come again for five days.

    “So, in a month, we don’t enjoy up to 15 hours of power supply, but they will still come and collect money from us.”

  • Why TCN reduces supply to DisCos to 4,004MW, by Mbah

    Why TCN reduces supply to DisCos to 4,004MW, by Mbah

    Energy supply to the 11 electricity distribution companies (DisCos) has been on the decrease of late but the Transmission Company of Nigeria (TCN) explained that it wheeled 4,004MW to the energy distributors due to gas constraints.

     According to the Independent System Operator (ISO) of the TCN, energy sent out declined from 3,944MW on 23rd January 2024 to 4,004MW on 24th January 2024, owing to the constraint.

    TCN, however, issued a press statement, noting that gas constraint is accountable for the reduction of energy allocation to the 11 DisCos.

    Public Affairs, General Manager, Ndidi Mbah disclosed in the press statement in Abuja that the company is working in partnership with stakeholders to keep the grid intact despite the current low power generated into the system.

    According to the statement, due to low energy generation, there is a decline in the quantity of energy in the grid which is wheeled to the DisCos.

    TCN, said the statement, is limited to what is generated at the moment.

    Read Also: Adelabu to Nigerians: stop buying transformers, poles, cables for DisCos

    The statement reads in part: “The Transmission Company of Nigeria TCN hereby announces that there has been a gradual decrease in an available generation into the grid due to gas constraints to the thermal generating companies, which has impacted the quantum of bulk power available on the transmission grid for onward transmission to the distribution load centres nationwide.

    “TCN is doing everything possible in collaboration with stakeholders in the power sector to ensure that it continues to keep the grid intact despite the current low power generated into the system.

    “Consequent upon the current load on the grid, load distributed to the distribution load centres have also reduced, as TCN can only transmit what is generated.

    “TCN is committed to ensuring a gradual increase in electricity supply to load centres as gas improves to the power available thermal plants.

    “Please bear with us as we continue to work with the stakeholders in the value chain to ensure that supply through distribution companies to electricity consumers nationwide improves.”

  • Govt to change approach on DisCos’ funding

    Govt to change approach on DisCos’ funding

    • Electricity distributors fail to pay dividend in 12yrs

    Unhappy with the poor performance of electricity Distribution Companies (DisCos), the government plans to change its approach to the funding of the 11 firms. 

    It was learnt that none of the DisCos has paid any dividend to the Federal Government, despite owning a 40 per cent stake.

    Besides, the government has injected not less than $1.25 billion in the last 12 years into the DisCos operations, apart from other interventions running into billions of naira.

    In spite of these,  electricity supply remains epileptic.

    It was learnt at the weekend that the lack of returns led the government to strip the Bureau of Public Enterprises (BPE) of its authority over its shares in the DisCos. 

    Ministry of Finance Incorporated (MOFI), which is by law mandated to manage government assets, is now to take charge of government’s 40 percent stake in the DisCos. 

    A Ministry of Finance official made the government’s deep frustration known at the weekend.

    “Since 2012, not a single dividend has been paid,” he lamented, highlighting the disparity between financial support and tangible benefits.

    The official warned that the financial black hole could jeopardise President Bola Ahmed Tinubu’s ambitious $1 trillion economy projection. 

    “You cannot double your rate of growth of Gross Domestic Product(GDP ) and increase your base to $1 trillion without power. It is not just going to happen. The question is how do we get to where we want to get to and the mandate that the President has given us if we don’t address something as fundamental as this (steady power supply)?”

    He added that the government would not “continue pumping money into the power sector while we remain in darkness. This affects our businesses negatively.”

    The source explained that stripping the BPE of its authority over government’s shares in the DisCos was aimed at improving accountability and driving reform within the power sector.

     He said:  “This is part of the plan to get that sector working again. Somebody has to be held accountable by the Nigerian people, somebody needs to represent  Nigerian people.   There have been trillions of interventions in the sector.

    “The only entity that is authorised to do shareholding on behalf of the Federal Government is MOFI.  Anything contrary to that is an aberration because nobody has paid attention to it.” 

     The source, however,  ruled out the possibility of the federal government pulling out of the DisCos because of their poor performance. According to him, “government is in partnership we believe can work. All   we need to do is to identify what the problems are and find a solution that will positively turn things around.”

    Read Also: Armed Forces Remembrance Day: CDS, governors, clergy promise  support

     The  House of Representatives has already initiated an investigation into the $1.25 billion government fund in the DisCos without any dividend.  

    The government has poured trillions into interventions aimed at revitalising the power sector. One major programme is the N300 billion Power and Airlines intervention launched in 2010. This multi-pronged effort sought to bolster electricity generation, particularly in industrial zones, and ultimately improve living standards nationwide through consistent power supply.

    Another notable intervention is the Solar Connection Facility, established to equip rural communities with affordable solar power. Launched as part of the COVID-19 economic recovery plan, the programme was designed to install 5 million new solar connections in off-grid regions to bolster job creation and improve tax revenue.

     Also, the National Mass Metering Programme (NMMP) tackles the longstanding issue of estimated billing by facilitating widespread meter installation across the country. With a seed capital of N200 billion, the programme has already disbursed nearly N60 billion for procuring over 960,000 meters in its initial phase.

    These interventions, alongside others, represent the government’s multi-faceted approach to revamping the power sector and ensuring that Nigerians have access to reliable electricity. 

  • FG reclaims control of equity holdings in DisCos

    FG reclaims control of equity holdings in DisCos

    • Restructures equity management

    In a landmark move that reshapes the Nigerian power landscape, the Federal Government has reclaimed control over its equity holdings in all electricity distribution companies (Discos).

    This has brought to an end its 12-year partnership with the Bureau of Public Enterprises (BPE).

    This repossession of the DisCos  followed the Ministry of Finance Incorporated’s  (MOFI’s ) revocation of  a 2012 Power of Attorney granted to the BPE.

    It also  declared its intention to directly manage FGN equity across various entities.

    The Minister of Finance and Coordinating Minister for the Economy Mr Wale Edun and MOFI CEO Dr. Armstrong Takang,in two separate  letters to the appropriate officials  cited the completion of the DisCo privatization process in 2013 and the subsequent repeal of the Electric Power Sector Reform Act 2005 (EPSRA) as key reasons for the decision.

    In the first letter, the Federal Government of Nigeria, through the Ministry of Finance Incorporated (MOFI), terminated the  2012 Power of Attorney (POA) granted to the Bureau of Public Enterprises (BPE). This directive effectively brings back under MOFI’s control the equity interest of the FGN in the successor companies of the Power Holding Company of Nigeria (PHCN).

    Edun  signed the instrument on January 10, 2024, citing the completion of the privatization process in 2013 and the government’s desire to have MOFI assume ownership, management, and control of its equity holdings as stipulated in its establishment Act.

    The 2012 POA authorized the BPE to act on behalf of MOFI in transferring shares of the PHCN successor companies and undertaking related actions. However, with the privatization now complete, the government believes it is more efficient and in line with existing laws for MOFI to directly manage these holdings.

    Read Also: Electricity crisis: Govt to sell off 40% investment in DisCos

    The Minister’s directive instructed the MOFI Board of Directors to:

    *Revoke the 2012 POA granted  BPE

    *Assume ownership, control, and management of all FGN equity holdings in the PHCN successor companies

    *Do the same for all other FGN equity holdings as per relevant laws and contracts

    *Issue necessary notices and documents to implement this directive.

    The second letter from Takang, aims to streamline equity management and enhance government influence in the sector.

    Following the privatization of the DisCos in 2013, the BPE had acted as the custodian of  FGN’s shares and appointed directors to their boards.

    However, citing the repeal of the Electric Power Sector Reform Act 2005 and internal restructuring within MOFI, the Minister of Finance revoked the Power of Attorney granted to the BPE and directed MOFI to directly manage the FGN’s holdings.

    Sequel to the changes, the BPE-appointed directors on Disco boards will be withdrawn with immediate effect while existing BPE-held share certificates will be cancelled and replaced with new ones issued to MOFI.

    The  DisCos are required to submit board minutes, reports, plans, and financial statements from 2021 to 2023 to MOFI.

  • ‘DisCos’ licences expired in October’

    ‘DisCos’ licences expired in October’

    Licenses of Electricity Distribution Companies (DisCos) expired in October this year with a possibility of a two year extension due to non-performing years, the House of Representatives heard yesterday.

    This was as the DisCos were yet to repay the N88.680 billion loan granted by Central Bank of Nigeria (CBN) them which they were supposed to pay back within 120 months.

    At an investigative hearing of the House Committee on Public Accounts, Chairman of the Committee, Hon. Bamidele Salam had sought to know when the operating license of the DisCos will expire.

     Responding, Managing Director of Jos Electricity Distribution Company, Abdul Bello Mohammed told the lawmakers that the operating licences of all the DisCos expired last month (October), but was quick to add that two years were declared as non-performing years.

    He said: “The EPS 2005 provided for a tenure of 10 years licence for the Distribution Companies. But however, there’s also a provision for renewal of this licence for another 10 years and then extension by five years.”

    When asked when the first 10 years was supposed to elapse, Mohammed said: “It should be in October this year.”

     But Hon. Salam who was apparently not satisfied by the response, inquired further saying: “the first 10 years elapsed in October this year and we are in November already.

        Mohammed said: “yes, by implication; going by the provisions of the Act. But there are two years that were declared non-performing years and I think they’ll be added.”

        Probing further, Hon. Salam asked whether the licence will extend to 2025 and automatic, saying “it has to be applied for. The Act clearly provides that the DisCos should write.

        “The Act is very clear about it, it says that the DisCos will apply for the renewal of this licence and then the Commission (NERC) can also extend it.”

        When asked again whether the DisCos have applied for the renewal, Mohammed said: “it (existing licence) has not expired yet because of the two years non-performing” but was quick to add that “it is the Commission (NERC) that will actually clarify that.”

        Members of the committee frowned at the poor performance of the contractors who accessed the fund on behalf of the DisCos, while expressing concern that the DisCos who have not been able to access the facility, but have started repayment of the interests on the loan.

    Read Also: Consumers, operators differ on Discos’ performance

        According to the DisCos’ representatives, most of the contractors engaged have not been able to access the facility approved by the apex bank for the execution of various power projects under their purview.

        A report presented to the committee from CBN revealed that as at August 2023 out of 50 contractors 30 per cent has so far been able to complete the process to access the fund.

        However, Hon. Salam said: “why I asked that question was, you have a bill of 120 months loan repayment bill and I’m afraid that if the licence expires and there’s no renewal, where do we get our money back?”

        While lamenting that some of the DisCos are not stable financially, Hon. Salam frowned at the inability of the DisCos to access the intervention fund worked out for them through the apex bank to boost their capacity.

        He said: “We were made to sign contract awards as DisCos and the PMO also issued the final contract award. The projects are meant to confront the problems the DisCos. We agreed with TCN that this money will be channeled through the distribution companies with the purpose of addressing these bottlenecks. And that is the structure that has been put in place through the PMO and everybody is involved.”

        In another breath, Mohammed said “the payments are not DisCos projects, they are specifically TCN projects but DisCos are used through all the lending structures to shoulder that responsibility.”

        The Committee resolved to summon all the stakeholders involved in the transactions including, CBN, NERC, Deposit Money Banks, DisCos, Transmission Company of Nigeria (TCN), contractors, among others.

        While ruling, Hon. Salam adjourned the investigative hearing to 13th December, 2023.

  • Consumers, operators differ on Discos’ performance

    Consumers, operators differ on Discos’ performance

    Nigerians have scored the electricity distribution companies (Discos) low in overall performance delivery, although operators and stakeholders agreed there have been improvements in many areas.

    The Federal Government unbundled the power sector and consequently licensed Discos in 2013.

    Consumers sampled by The Nation, expressed disappointment with the Discos in areas of meter acquisition, crazy billing (for unmetered customers), poor response to repairs of electrical faults, indirect transferring of purchase, maintenance or replacement of electrical equipment and gadgets like transformers, cables, among others to consumers.

    For Jacob Oshowale, a resident on Cameroon Street, Mushin, Lagos State, under the Eko Electricity Distribution Company (EKEDC), the inability of the Disco to replace his faulty meter after over nine months has remained a pain to him. This, he told The Nation, has been further compounded with the slamming of a N152,164 on him by EKEDC to make up for “all the past units that were not correctly paid for because the meter had not been working properly as the meter had been developing the fault gradually.”

    The story is not different for communities in Akute, Ogun State, under the Ikeja Electric (IE) jurisdiction. At several times, communities in this axis, especially those in the Temidire Estate CDA, have had to contribute money for repair faulty cables and fuse replacement in their community. And in instances where such contributions were not forthcoming, the communities were left in darkness for weeks.

    A resident of One Love and Progress Community Development Association (CDA) and Orile Onjuwon CDA, both in Mosa Onjuwon, Ilogbo, Ota, Ogun State, Babatunde Ogundare, told The Nation that his community has resorted to self-help having been neglected by the Ibadan Electricity Distribution Company (IBEDC) for several years. He explained that the community on its own purchased two transformers at over N3.3 million and has spent over N2 million buying cables, yet, the communities are still in darkness because the transformers are yet to be energised.

    “We have two transformers, which cost us over N3.3million- one cost N1.9m and the other cost us N1.4 million. For cables and some poles we have spent over N2 million. Sadly, we have not been able to energize it due some financial constraints to purchase some items. The fact is that IBEDC have been very unfair to us. We are aware that it is their responsibility to provide these items, but they didn’t. We provided it ourself and yet they are still unable to come energise it for us. Now in future, they will cite one law or regulation and lay claim to these items we bought with our own sweat,” he said.

    A seemingly frustrated Ogundare is convinced that while the Nigerian Electricity Regulatory Commission (NERC), may be shouting itself to the rooftops, educating electricity consumers on their  rights and obligations of the Discos as contained in the regulation document from the Commission as enshrined in the Electric Power Sector Reform Act (EPSRA), 2005, which places the responsibility of buying, replacing or repairing electricity transformers, poles and related equipment on the 11 DisCos, sadly, as regulator of the industry, NERC, he said, has only been barking but not biting.

    His submission on NERC is based on a letter sent by his community to the Commission, appealing to it to intervene in the situation between his community and IBEDC over a year ago which he said has not been responded to by the NERC; neither has the IBEDC taken an step to discharging their responsibility towards the community.

    “By law, all the DisCos have the responsibility of repairing or replacing damaged electrical equipment used on their networks; but this is not the case as we have seen so far. Unfortunately, the regulator, NERC, has not been seen to be imposing heavy sanctions for the DisCos dereliction of duty in this regard. NERC is appearing to be a toothless bulldog,” Ogundare submitted.

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    But Ogundare’s position on NERC may be contested. For instance, as a safeguard for customers against exploitation due to the lack of meters, the Commission said it has continued to issue monthly energy caps for all feeders in each DisCo. “This sets the maximum amount of energy that may be billed to an unmetered customer for the respective month based on gross energy received by the DisCo and consumption by metered customers,” NERC said.

    And while the consumers are lamenting over their predicament, on the contrary, the Discos, are however of the opinion that they have performed well in the circumstance. And going by figures reeled out by the NERC, Discos may be smiling to the banks.

    The NERC report indicates that in the first half of 2023, the 11 Discos have amassed N514. 95 billion in revenue, representing the highest collection recorded in the period in the past nine years.  A breakdown of the NERC data revealed that the DisCos earned N267.86 billion as electricity bills in the second quarter of this year, indicating an 8.4 percent increase from N247.09 collected in the first quarter.

    The National Bureau of Statistics (NBS) Electricity Report Q1 2023 which reviewed the performance of the 11 DisCos noted that electricity supply was 5,852 (Gwh) in Q1 2023 from 5,611 (Gwh) in the previous quarter. However, on a year-on-year basis, electricity supply declined by 1.74 pervcent compared to 5,956 (Gwh) reported in Q1 2022.

    Stakeholders in the industry relate the recent increase in DisCos revenue to factors such as better metering technology monitoring, stricter regulatory oversight, higher tariffs, more investments in infrastructure, a larger customer base, and improved collection efficiency.

    For instance, NERC record indicate that in the first half of the year, metering of consumers across the Discos stood at 178,864, representing a 2.04 percent increase compared to the 175,281 meters installed in the first quarter of the year.During the second quarter, NERC revealed that 168,397 meters were installed under the Meter Assets Provider (MAP) framework while 9,302 meters were installed under the National Mass Metering Program (NMMP) framework.

    In the aspect of Aggregate Technical, Commercial and Collection (ATC&C), Discos recorded a Loss of 38.41 percent comprising – technical and commercial loss (18.47 percent) and collection loss (24.46 percent).in the second quarter of this year.

    The NERC submitted that the decline in ATC&C loss in this period is a function of the 6.79 percentage point improvement in collection efficiency between the first and second quarter of the year.

    ATC&C provides a consolidated report of how much revenue a DisCo is able to collect relative to how much it should have collected based on the volume of energy it received and sold to customers. It is the indicator that evaluates the actual energy and revenue loss in electricity distribution systems.

    The Chief Executive Officer of Ikeja Electric, Mrs. Folake Soetan, takes pride in the AT&C loss of the IE.  “This year, we celebrated a remarkable reduction in our Aggregate Technical Commercial & Collection losses; from 44 percent in 2015 to an impressive rate marginally below 20 percent, through our collective efforts in operational efficiency and sustainable energy practices,” she said.

    For her, top on the list of IE’s feat in the last decade of operation is the firm’s global certifications. “In 2019, we became the first distribution company to attain all three categories of certifications: ISO 9001:2015 (Quality Management System), ISO 45001:2018 (Occupational Health and Safety Management System), and ISO 14001:2015 (Environmental Management System),” she said, adding that the firm successfully deployed 830,292 meters to its customers, and by extension, giving them control over their energy consumption and fostering a sense of empowerment.

    The Eko Electricity Distribution Company (EKEDC) takes delight in its “technological integration” which it described as the bedrock of its performance in the past decade. “In the last ten years, we have deployed Supervisory Control and Data Acquisition/ Distribution Management System (SCADA/DMS) that allows for remote access and control of our infrastructure, the first of its kind in the distribution side of the power sector in Nigeria, we have moved our metering process to an automated system, and we have metered our feeders and transformers for efficient monitoring and accurate billing to reduce billing disputes. We have also attained global certification to help to manage the information assets entrusted to us,” EKEDC’s General Manager, Corporate Communications, Babatunde Lasaki, said in a signed statement.

    As another 10 years cycle begins, hopefully if it is not cut short by the tenure discrepancy surrounding the Discos licences, the question among consumers is “when will the Discos be alive to their responsibilities”?