The Nation Newspaper

Tag: metering

  • Bumpy road to metering in Nigeria

    With six weeks into the Federal Government’s order to meter asset providers (MAPs) to provide meters to more than four million electricity consumers in the country, many Nigerians are yet to either fathom the rationale behind MAPs existence or get metered, writes AKINOLA AJIBADE.

    Since May 1, 2019, when meter asset providers(MAPs) began their operation to provide meters  to 4,606,106  electricity consumers  and further reduce the metering gap in the country, their operation has remained sketchy. The reasons are many. First, many households are ignorant of the process of procuring meters for use under the new metering arrangements put in place by the government in April 2018. This may be due to inability of the Nigerian Electricity Regulatory Commission(NERC) to throw more light on the new metering scheme introduced by the Federal Government.

    Secondly, not many of the meter asset providers are known to the  consumers a development which has made it difficult for them to know the exact time they are going to be provided meters. This, is coupled with the fact that the mode of payment for the meters by the consumers, has remained unclear.

    Although firms, including Abuja Electricity Power Distribution Company, Ikeja Electric( formerly Ikeja Electricity Distribution Company(IKEDC), Ibadan Electricity Distribution Company(IBEDC), Benin Electricity Distribution Company(IBEDC) and a few others, are believed to have rolled out meters to some areas in their jurisdictions, in conjunction with the MAPs they partnered in order to ensure the success of the scheme, the issue of metering in the Nigerian power sector is still a  problem.

    The Nation’s investigation revealed that consumers are in a fix as regards the ability of the DisCos and MAPs to successfully meter the country, coupled with the fact   that power firms are complaining of lack of funds for operation.

    All the six generation companies (GenCos) and the eleven  power distribution companies (DisCos) that came out of the  defunct Power Holding Company of Nigeria (PHCN) during the privatisation of the power sector in 2013, are grappling with debts estimated to be over N1trillion. This has made many to conclude that metering the country by the power firms and their partners (meter asset providers) is a far fetched objective. A visit to some business units owned by Ikeja Electric and Eko DisCo said it all.

    At the Ikeja Electric Business Units in Dopemu, Agege, Idimu, Ikotun and others within the metropolis, many customers in an interview with The Nation, disagreed with the plans by the Federal Government, to solve metering problems.

    A customer, Segun  Ojo, said neither the government nor the meter asset providers approved bv the Federal Government have shown enough sincerity on the issue.

    Ojo, a mechanical engineer, said the government has on two separate occasions delayed the take-off of the new metering scheme. He claimed that the development  has made Nigerians not to have enough confidence in the government on the issue.

    Ojo, a resident of  Igbogbo in Ikorodu, a Lagos suburb, asked: ‘’How do we explain a situation whereby electricty consumers lacked adequate information about the meter asset providers assigned to them? How do we explain a situation, whereby the financial and technical capability of the firms that were approved to serve as meter asset providers remain unkown?

    Ojo said he only knew that he was under Ikeja Electric(IK) jurisdiction as he gets his monthly electricity bills from the  company.

    ‘’I do not know the meter asset providers, that partnered Ikeja Electric in order to assist the firm to meter its customers.  So also many customers across the country.  Many customers are yet o find out their MAPs, not to talk of mounting pressure on them to hasten the process of providing meter. How do we explain a situation whereby electricty consumers lacked adequate information about the meter asset providers assigned for them? How do we explain a situation, whereby the financial and technical capability of the firms that were approved to serve as meter asset providers remain unkowns for them,” he said.

    However,  many firms have risen in defence of the scheme. The Electricity Meter Manufacturers Association of Nigeria(EMMAN) Executive Secretary, Mr Muhideen Ibrahim, said the names of the  meter asset providers approved by the government and their partners are in the public domain.  According to him, their numbers, duties and partners, which are mainly the eleven  DisCos are published in the newspapers.

    The firms, Muhideen said, have demonstrated the ability to provide meters to customers nationwide, by bringing more meters into the country.  He said his members have doubled their production in order to ensure that the new metering scheme succeeds, adding that their capacity to do the job is not in doubt.

    On funding, he said many of the meter asset providers have discussed with their banks, with a view to get enough facility for operation.

    Also, Momas Electricity Meter Manufacturing Company Limited Managing Director, Mr Kola Balogun, said the metering arrangement, which gave the MAPs the nod to supply meters to Nigerians and further reduce the metering gap of 4.1 million customers, would help in reducing metering gap in the country.

    He said: “The most important thing is that the metering gap would be very small as years roll by. This is good for the sector, which has battled metering problems for decades. The meter manufacturers, suppliers and importers of the product are better for it. The reason is because the idea would help in creating employment opportunities for the teeming population.’’

    He advised Nigerians to think less of the problems faced by the metering scheme, adding that now that the sector has enough potential to make the scheme work.

    Consumers, Balogun said, can pay for the pre-paid meter willingly and can as well choose to spread the payment over a period of time.

    The Ikeja Electric spokesman, Mr Felix Ofolue, said many people are yet to be metered because there is liquidity problem in the sector. Based on this, it remains to be seen whether consumers are going to be metered now or not.

  • MAPs will achieve 30% local content input in metering

    Only genuine electricity consumers will get meters when the Meter Asset Providers (MAPs)  start operation in January 2019, Momas Electricity Meters Manufacturing Company (MEMCOL) Chief Executive Officer, Mr. Kola Balogun, has said.

    By so doing, MAPs will comply with the 30 per cent local content directive given by the Nigerian Electricity Regulatory Commission (NERC).

    In an telephone interview with The Nation, Balogun said meter asset providers have agreed to meet 30 per cent local content requirement in order to ensure a seamless operation when the new metering regulation comes into effect in 2019. According to him, the 30 per cent local content requirement also includes the inputs into a meter. This means 30 per cent of the materials must be sourced locally.

    Balogun said: “To meet the  30 per cent local content requirement as contained in the regulation that set up meter asset providers,  an agreement has been reached by the parties involved (meter asset providers), to be more arithmetical in the ways and manners they distribute meters to consumers.

    “For instance, if a meter asset provider signed an agreement with a power distribution company (DisCo) to supply 10,000 meters to customers, what MAP will do in this situation is to divide 10,000 meters by 30 per cent. This will give us 3,000 meters, which is the 30 per cent the government asked us to provide.”

    Balogun said the regulation is flexible and simple as  a firm can apply to be a meter asset provider for one or three power firms.

    “If a meter asset provider is having two or three DisCos as clients, it means more jobs or profits for that organisation. If everything goes according to plans, local production and sales of meters have been encouraged by the government. This is good for the power sector, which has 4.1 million metering gap to cover. This is achievable, once the power firms, meter asset providers and other stakeholders follow the rules and regulation of the industry, “ he added.

    Also, a meter asset provider, who does not want to be mentioned, said the issue of meeting the 30 per cent local content requirement is not a task for meter asset providers, especially meter manufacturers among them.

    He said firms approved by NERC to play such roles would meet such requirement as they would not want to go contrary to NERC stipulation.

    In addition, Meter Manufacturers Association of Nigeria ( MMAN) Executive Secretary, Mr. Muhideen Ibrahim, said the new metering policy, which emphasised the use of a third party for distribution of meters to consumers, is a good one capable of reducing meter deficit in the metering sub-sector.

    He said complaints about lack of meters by consumers would end as there are many firms that will engage in the distribution of meters to them.

    The firms approved by the Federal Government to produce meters locally, he said, would improve their operation and contribute to the growth of the power sector, adding that the sector has refused to grow, due to problems such as shortage of gas, poor supply of electricity, inability of consumers to access meters for growth, among others.

     

  • NERC plans to solve metering problems

    NERC plans to solve metering problems

    The Federal Government has fashioned out modalities on how to solve critical problems besetting the power sector, the Minister of Power, Works  and Housing, Mr Babatunde Fashola, yesterday has said.

    He said metering is one of the major problems confronting the power distrubution companies(DisCos), adding that the government in realisation, is working through the Nigerian Electricity Regulatory Commisson(NERC) to solve the problem.

    At an interractive forum with the media in Lagos, yesterday, Fashola said NERC is coming out with a regulation, that would enable custotmers that have not been metered to get meters.

    He said the regulation would take of some of the problems in the sector, adding that through this means, many customers would be metered and as a result, they would stop paying estimated bills.

    Accoridng to him, funding,energy audit and other indices are necessary before metering customers can take place.

    He said: ‘’ In terms of metering problems, the DisCos need huge capital, which  unfortubatey they do not. Do you the prices or cost of metering houses in the 36states of the Federation? It is huge. The DisCos would first go the customers for audit since there different classess of electricity customers in the country. Some customers are classified as R1,R2, R3 and R4.  Those in R4 use maximum demand of electricity. If there is no energy audit, those in R4 may be using electricity that is meant for those in R1 category. And that means huge loss to the power distribution companies. The question is Who is going to bear the cost or the burden?

    He said energy theft is a serious case in the sector, adding that some people are using electricity unlawfully to the detriment of the DisCos and customers that on the power firm’s platform.

    He said a DisCo installed meters in its network, adding that 8,000 out of 11,000 meters were by-passed by customers.

    How can we explained a situation, when a powe firm spends a lot of money to meter customers, and the meters were by-passed by customers, who have for years being complaining of exploitation in the sector.

  • Metering regulation coming

    The Minister of Power, Works and Housing, Babatunde Raji Fashola has said the metering regulation programme will commence this month.

    He disclosed this during the  dialogue on the power sector, organised by the Lagos Chamber of Commerce and Industry (LCCI) in Lagos.

    According to him, the regulation when issued, will open up the market for more players in the meter supply value chain and strengthens local meter suppliers, adding that the regulation will make more people have access to power.

    He said the regulation on how eligible customers will operate so that more people can get access to power will be issued, adding that when the regulation and process of implementation come out the added power will stand

    To him, Discos business is distribution of power and not metering, pointing out  however, that they need meters to do so. The regulation, he said, will ensure that those who specialise in manufacturing, supply and installation of meters will now go into that business subject to license by the National Electricity Regulatory Commission (NERC).

    On the debt situation and how the power supply payment assurance guarantee will help to increase production from  2,690mw, which he said the present administration met on ground in 2015 to 6911mw, the ministry, he said, is committed to evolving solutions that will help put all of that to 6000mw on the grid, adding that the country generates about 4, 225mw on the grid.

    Fashola said there was a peak power generation, which is the maximum amount of power produced so far, but that it didn’t mean that the system was operating at its peak.

    He acknowledged that the LCCI had been a very critical stakeholder, representing the private sector, adding that he was invited to give an update on the reforms in the power sector and explain some things about the eligible customers, how it can work, and the metering programmes. He agreed that all of these are  subject to regulation by the NERC.

    LCCI President, Chief Nike Akande, said for the power sector to survive and be sustained, it has to be driven by the private sector. She, therefore, urged the government to provide the enabling environment for these to happen, adding that working and collaborating with the government are the way forward.

    Chief Akande said there are several reforms in the power sector, but the most recent one is driven by the World Bank.

    “Looking at the draft I think that it is going to be more beneficial than what we have been having in the past, though it is still work in progress,” she added.

    Expressing disappointment at the power generation, the LCCI boss said there was urgent need for all stakeholders to work together in order to realise the goal of providing a more effective and efficient power supply in the country.

  • DisCos need N220b for metering, says Fashola

    DisCos need N220b for metering, says Fashola

    •’Govt revisiting abandoned 2003 N37b meter contract’

    The 11 electricity distribution companies (DisCos) require   N220 billion for the metering of customers, Power, Works and Housing Minister, Mr. Babatunde Raji Fashola, has said.

    Fashola was the guest lecturer at this year’s edition of the public lecture series of the Department of Economics of the University of Lagos.

    He spoke on Power sector reforms: Challenges and the way forward.

    According to the minister, the Federal Government wants to improve power on sustainable basis. Through the Power Sector Reform Programme (PSRP), the government, he said, would achieve, among others, the metering of customers, and their appropriate billing.

    He noted that meters by the same manufacturers were calibrated for each DisCo’s use, such that you cannot use a meter calibrated for Ikeja DisCo in Eko DisCo without recalibration. Meters, the minister added, cannot be installed without a visit to the customer’s home for audit assessment,adding that DisCos liquidity problem makes it difficult for them to access credit to order meters.

    Fashola said: “One DisCo requires over N20billion to meter. The consumer base does not capture all those who consume power, and without meters, the DisCos aggregate power distributed to a destination and estimate of the bill is difficult.’’ Reinforcing the need for whistle blowing for energy theft as a civic responsibility, he said such reports would expose customers who don’t pay or steal energy.

    “Those who are resisting the installation of meters and assaulting DisCo workers who seek to install meters must stop it. It is a criminal offence. The government had in 2003, 14 years ago, issued a contract for the supply of three million meters to NEPA/PHCN estimated at N37 billion.

    “That contract was not performed until the privatisation was concluded in 2013, and was inherited by the Buhari government as a court case in which a judgment of N119 billion had been signed against government. We have worked to get the case out of court, negotiate the judgment and go back to the N37billion contract to see how many meters it can now provide, and how to install them. We are still finalising the terms of agreement,” he added

    On what the government is doing to improve supply, the minister said: “We recognise that our power supply is not enough and what we have done is do the simplest thing, get more power. So our road map seeks to get, first incremental power, progress to stable power, and then achieve uninterrupted power.

    “From this road map it must be clear to any right thinking and well meaning person that this is a journey and not an event that will happen overnight. As we progress on this journey, we will get to critical milestones from which we can look back and say we are now better off at that milestone, than when we started the journey.

    “I understand the urgency to get the power. I understand the high level of expectation. I know that they come from many years of broken promises and a change from government-managed power to privatisation of power.

    “While I fully support privatisation, I believe what took place in 2013 in the heat of politics was a privatisation that was well- intentioned since 2005 but delivered with some deception in 2013 with the expectation of political profit. It led many uninformed Nigerians to believe that once the privatisation was concluded, the assets sold to the distribution companies (DisCos) and the generation companies (GenCos) there was immediately going to be power.

    “I cautioned then that people’s expectations were being unduly raised without telling them that there was a lot of work to do. While I believed that the APC government will do a better job, little did I expect that I would inherit the problem. But I am grateful for the opportunity from Mr. President, to contribute to solving a problem that I am deeply passionate about and I will offer nothing but my best while I am at it.”

    Fashola noted that because of the  transition challenges, some people have called for the cancellation of the privatisation, but that such a cause of action had consequences.

    ‘’The government will be breaching its own contract in the same way we cancelled the privatisation of refineries in 2007 and will send a negative investment signal that we do not respect agreements, and government will have to refund in dollars, all the money paid by the DisCos and GenCos most of which have been spent on almost 50,000 workers of PHCN who had to be paid, among others.

    ‘’Instead of doing these, the government believes that the lapses in the privatisation can be re-engineered, retrofitted or reformed to deliver,’’ he added.

  • ‘N88b debt, recession threaten metering’

    ‘N88b debt, recession threaten metering’

    Over N88 billion debt owed by customers and the economic downturn are responsible for the slow metering of consumers in Ikeja Electric Plc, The Nation has learnt.

    The firm’s Head of Corporate Communications, Mr. Felix Ofulue, said Ikeja Electric has a robust metering programme but owing to the  recession in the country coupled with the huge debt, which is in excess of N88billion, the metering programme has been slowed down. The debts are owed by all categories of customers, including  maximum demand customers.

    He confirmed that the firm has metered all maximum demand (MD) customers in line with the directive of the Nigerian Electricity Regulatory Commission (NERC),  noting that such metering goes on regularly as new MD customers come on board.

    He said Ikeja Electric, despite the problems facing the firm, is committed to metering all its unmetered customers within the stipulated time in the metering prpgramme.

    He added that it wouldn’t be possible for all customers to be metered at the same time because of the huge cost involved. He appealed to customers that have not been metered to be patient as they would be metered.

    For the unmetered customers,  he said the company has an established billing method approved by the industry regulator (NERC) for  them, based on factors, such as the customer’s consumption over time and availability of power supply within the particular month for which the customer was billed.

    “All our feeders connecting our consumers without prepaid metered have been metered, which will enable them to get fair estimated bills.

    ‘’Notwithstanding, we are metering our consumers in Ikeja GRA  and I want to assure all our consumers that they will all be metered,’’ he added.

  • The unending metering crisis

    The unending metering crisis

    Metering customers remains a challenge for distribution companies (Dis Cos). Will this be addressed in 2017? AKINOLA AJIBADE asks.

    When in November 2013 the Federal Government privatised the Power Holding Company (PHCN), the buyers did not envisage problems.

    The problems include gas shortage, low power generation, irregular supply and metering.

    The 11 distribution companies (Dis Cos) are struggling to meet the metering deadline of five years, as contained in their Purchasing Agreements (PAs) with the Bureau of Public Enterprises (BPE).

    The Dis Cos, Nigerian Electricity Regulatory Commission (NERC), local manufacturers of meters and others have been trading words over metering.

    Penultimate week, NERC absolved itself of blame, saying it has done all it could to make the power firms supply their customers enough meters.

    Its Acting Chief Executive Officer, Dr Anthony Akan, said NERC should not be blamed for the problem since it has directed the DisCos to provide their customers meters.

    In a statement, Akan advised DisCos to invest more in metering, by partnering institutions, which can either produce or provide meters.

    Akan said: ‘’NERC, in line with the provisions of the constitution, made the power firms understand the necessity of reducing the burdens of paying estimated bills on consumers, by providing meters as at when due. The Commission has directed DisCos to issue meters to customers, and also threaten to sanction firms, which fail obey its directives on the issue.

    ‘’NERC introduced and implemented a scheme known as Credit Advanced Metering Implementation Initiative (CAPMI) to hasten the process of providing meters to consumers by the DisCos. We, at NERC, believed that CAPMI would assist in providing meters to consumers, who cannot wait for long to get meters from the power firms.”

    According to Akan, many customers got their meters easily through this means, while others went through the hog of waiting for  their service providers.

    Also, NERC’s Head of Consumer Unit Mr Blue Jack said the commission never shirked its responsibilities of ensuring that consumers get meters.

    He attributed the success recorded in metering to NERC’s oversight functions, adding that the agency has been monitoring the firms approved to distribute electricity.

    NERC, he said, visited the distribution firms in Port Harcourt, Benin, Ibadan, Eko and Ikeja, adding that the commission is satisfied with their performance, especially in meters provision.

    Jack said: ‘’To protect the interest of customers, NERC has started compiling the list of subscribers of the outlawed scheme known as Credit Advance Metering Implementation Initiative. We know that many subscribers were unable to get meters before the idea was scrapped by the Federal Government on November 1, 2015, for not being well implemented by the DisCos.”

    But, the Discos cited weak capital as the major reason for not metering their customers. They said illiquidity, caused by banks’ failure  to provide them credits and customers to pay their bills, are affecting their operation.

    The Association of Nigerian Electricity Distributors (ANED) Executive Director, Mr Sunday Oduntan, said the liquidity gap of over N900 billion and the N100 billion debt of the Ministries Departments and Agencies (MDAs) were inhibiting the  sector’s growth.

    He said the government should also be blamed for the low output recorded in the sector.

    Oduntan said: “If the DisCos are unable to meter their customers and, in return, generate revenue through them, Whose fault is that? The answer is simple: It is the fault of the consumers, who refused to pay their bills, and others. I’m telling you, once the firms are able to recover their debts, they would, without doubt, have enough money for their operation. When this happens, the issue of shortage of meters would no longer be there.”

    He said the metering gap would be closed, when power firms get funds to improve their operation.

    Eko Electricity Distribution Company (EKEDC) Chief Executive Officer Ademola Amoda said the DisCos were doing their best to procure meters for their customers, despite financial constraints.

    He said the liquidity gap was widening, arguing that it is affecting the firms’ capacity  to meet their obligations to customers.

    ‘’If consumers are paying their bills and banks  are providing loans to the DisCos, it would be easier to provide meters to consumers. By so doing, power firms would be able to recoup money on investment. Estimated billing does not pay. The DisCos made more money from metering their customers, because they are able to monitor their consumption and also charge them accordingly,” he added.

    But the Electricity Manufacturers Association of Nigeria (EMMAN) blamed the metering problems on the power firms.

    The umbrella body for manufacturers of meters in the country said the DisCos were not procuring enough meters.

    Its Secretary, Muhideen Ibrahim, said meters were in short supply because the DisCos were not buying the product from local manufacturers.

    He said the firms would meet the metering needs of their customers, if they were buying meters from the indigenous manufacturers.

    Ibrahim said: “There is no way the DisCos can absolve themselves of the blame on shortage of meters. The meters, which the DisCos are importing into the country, cannot meet the needs of their customers, yet they refused to patronise the local producers of the product.’’

    The DisCos, Muhideen said, know that when they buy meters from local manufacturers, they would have enough to supply. This, he added, will end.

    According to him, the Federal Government approved five firms to produce meters, adding that they have the capacity to produce enough meters.

    He said the firms would help close the metering gap by supplying an average of 50,000 meters monthly.

    MEMCOL Nigeria Limited Chairman Mr Kola Balogun said each firm could manufacture 50,000 meters, while some can produce more.

    MEMCOL, he said, could produce 200,000 meters, arguing that the Dis Cos’ allegation that local meter’manufacturers do not have enough stocks is unfounded.

    “Local companies are producing smart meters and pre-paid meters, which in all ramifications, are comparable to those that are  produced abroad. The allegation by the DisCos that local firms are producing sub-standard meters, the DisCos is not plausible. It is just a way of giving a dog a bad name to hang it,’’ he said.

    In a related development, the Technical Adviser to South African Revenue Protection Association (SARPA), Rene Bindeman, urged  the DisCos to find a way of providing their customers meters.

    He said lack of meters was affecting revenues in the market.

    Speaking at a workshop on data management and revenue recovery, organised by Abuja ElectricityDistribution Company (AEDC), Bindeman urged the DisCos to  install and protect their meters, because it is the only way they could boost their revenue.

    Explaining that meters are expensive to procure and install, he called for the manufacturing of meters in the country in order to make it cheaper for the Discos. He said: “If you do not have the money, there is no way you can meter customers because what will happen is that you need to be able to have meters in the field but meters cost a lot of money.’’

  • Eko DisCo begins metering enumeration

    The Eko Electricity Distribution PLC has started enumeration and area mapping programme for deployment of smart electricity meters to customers in its operational area.

    Its Managing Director, Dr Oladele Amoda, who was represented by the Chief Operating Officer, Mr. Sam Nwaire, spoke at a town hall meeting with customers at the Apapa Business District of the company.

    In a statement by the General Manager, Corporate Communication, Mr. Godwin Idemudia, Nwaire said the enumeration and area mapping was being carried out in all the eight Business Districts of the company.

    He said the purpose of the exercise was to confirm it was committed to its meter roll-out plan, which would be deployed in phases. It would ensure that the access of smart meters by unmetered customers within Eko DisCo network, it said.

    According to him, though the exercise would be carried out in phases, every area would be covered in the end, adding that officers of the company have already embarked on a house to house inspection in designated locations for the commencement of the exercise.

    Nwaire appealed to all customers to cooperate with duly identified officials of the company who will be coming to their areas for the exercise. He deplored a situation whereby officials on their lawful duties for the company were harassed and molested in some communities under the guise of protesting against some issues between such communities and Eko DisCo.

    Nwaire reiterated the company’s commitment to promoting a cordial relationship between it and its customers though prompt attendance to all complaints and grievances by customers, adding that every area and community is vital to the attainment of the company’s corporate goal.

  • Metering made difficult

    Metering made difficult

    Citing shortage of meters, electricity distribution companies (DisCos) have not complied with the Federal Government’s directive to give consumers meters. Consumers, who are getting estimated bills, accuse the firms of fleecing them. The DisCos deny the allegation, saying there is a scientific method of preparing estimated bills, AKINOLA AJIBADE reports.

    ADENIYI Ojo, 48, is worried about the monthly electricity bills he receives from the Ikeja Electric (IE), his service provider. Describing it as “outrageous,” Ojo, who lives in Egbeda, Lagos State, lamented that he pays between N12, 000 and N14, 000 monthly as electricity bill for his three-bedroom apartment.

    The electrical/electronics engineer said his grief is worsened by the poor electricity supply that has been a permanent feature in Egbeda and other areas serviced by Ikeja Electric, one of the 11 electricity distribution companies (DisCos) in the country.

    Ojo told The Nation that his fury over being short-changed, which stemmed from the payment of such ‘crazy’bills by consumers could have been avoided if DisCos had complied with Federal Government’s directive to meter all consumers within a specified period.

    He said rather than comply with the 12-month period given to them by the government through the National Electricity Regulatory Commission (NERC) to meter all customers; the DisCos insist on the claim that there are insufficient meters to go round only to continue with estimated billing, which allegedly is meant to fleece their customers.

    It was learnt that to solve the lingering problem of estimated billing, also called “crazy billing” and to monitor power consumption pattern, the National Assembly has ordered the power firms to meter all their customers within 12 months. However, none of the 11 power DisCos has met the deadline. They have continued to bill the customers on estimation, and this has not gone down well with Ojo and, indeed, other electricity consumers across the country.

    Apparently to give credence to his claim that the DisCos’ failure to meter consumers was deliberate and intended to fleece consumers, Ojo said he has tried all he could to get either a pre-paid meter or an analogue meter to reduce his monthly energy bill, but to no avail.

    Ojo said: “In 2012, I applied for a prepaid meter at my business unit in Ponle area of Egbeda, having realised that my monthly electricity bill was becoming too much for me to bear. Due to my inability to get a prepaid meter, I approached the unit to see if I could get an analogue meter. Years after, I have neither got a prepaid meter nor an analogue meter from the DisCo. This means I would continue to pay estimated bills.”

    That is not Ojo’s only reason for feeling cheated. He lamented that he and, indeed, like other customers within the area who don’t have meters, have not only been paying huge bills but also bribe officials of the power firm sometimes to avoid disconnection.

    Ojo is not alone in his frustration. Another customer, Ponle Adeoye, said she has been paying estimated bills since she is unable to get a meter. Adeoye, a lawyer, said estimated billing was a ploy by the power firms to rake in money from hapless customers.

    While condemning the refusal of the power firms to meter consumers instead of reeling out estimated bills, Adeoye said it amounts to inflicting more pains on Nigerians who have been hard hit by daily power outages.

    She said: “To me, the idea of estimated bills is confusing. What are the parameters used by DisCos to determine the cost of electricity, which customers that do not have meters consume?

    “It is quite unfortunate that an average consumer do not know the parameters. All we (consumers) see every month are ‘crazy bills’ that run from N13, 000, N15, 000 and up to N20,000, depending on the DisCo.”

    Similarly, Ade-Owas Ohabunwa decried the state of the power industry viz-a-viz the huge cost of electricity paid by consumers as “unfortunate.” He accused electricity firms of hiding under the pretext of shortage of meters to extort customers through estimated billing. He said the power firms are compounding the problems of electricity users.

    Ohabunwa, who is the Chairman of Amuwo-Odofin Estate, Lagos said many residents in the area do not have meters, adding that they pay huge bills monthly. He said residents of the estate are tired of hearing promises from the management of Ikeja Electric that they would be given meters.

    He said one of his neighbours who lives in a three-bedroom apartment was charged N500,000. “It is sad that the occupant of a three-bedroom apartment was charged N500,000 for some months because she does not have a meter. This was done in the name of estimated billing,” he said, asking: “How can one explain that?

    Describing this as “ridiculous,” Ohabunwa lamented that this is the sad situation Nigerians found themselves even under the private sector ownership. He, however, said some of his members were given meters by the management of Ikeja Electric after staging a peaceful protest two years ago.

     

    Local meter

    manufacturers also hit

     

    Electricity consumers are not the only ones affected by the power supply situation. Local meter manufacturers are also accusing DisCos of refusing to patronise them thereby adding to the problems associated with estimated billing.

    Local meter manufacturers under their umbrella association, Electricity Meters Manufacturing Association of Nigeria (EMMAN) accused DisCos of fleecing their customers by billing them on estimation.

    Its Executive Secretary, Mr. Muhideen Ibrahim, said DisCos are making a lot of money through estimated billing; therefore, they are not eager to source meters locally for their teeming customers.

    He said if DisCOS buy meters in large quantities from local manufacturers, they would meet the demands of their customers. While highlighting the importance of patronising local meter manufacturers, he said DisCos will resolve the problem of estimated billing if they engage us (local meter manufacturers) to produce enough meters but doing so would hurt DisCos’ revenue projections.

    According to him, local meter manufacturers have the capacity to produce enough meters in the country. He said DisCos know this but refused to patronise them because they (DisCos) want to continue to make money through estimated billing.

    Ibrahim said: “It is not that 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 billing. Also, they want to continue to patronise meter producers abroad, where they falsely hope to get better meters.”

    The EMMAN Executive Secretary argued that meters produced by indigenous companies are far better than the ones produced abroad, but the penchant for anything western is making DisCos to shun local meter producers for their foreign counterparts.

    He said the allegation by DisCos that the meters produced in Nigeria are not compatible with their technology was not true, stressing that the claims are false.

    The Chief Executive Officer, MEMCOL Nigeria Limited, Kola Balogun, said consumers who do not have meters are at the mercy of the power firms, which have refused to meter their customers so that they would continue to milk them.

    Balogun said findings have shown that DisCos are charging crazy bills  to improve their earnings.

     

    DisCos react

     

    However, some power companies have defended their services, describing as untrue claims that they deliberately imposed estimated bills on consumers to fleece them to recoup their investments.

    According to the spokesman, Ikeja Electric, Mr. Felix Ofulue, the DisCos neither deliberately deny  customers access to meters nor charge them estimated bills.

    He said there were plans to roll out meters to customers, adding that the Ikeja Electric has started a metering roll out plan through which it  would provide meters to its customers.

    He said: “The plans to provide meters are on-going in Ikeja Electric. We  are doing it on feeder to feeder and  transformer to transformer basis. Customers in areas such as Ikorodu, Abule-Egba, Ikeja, Anthony, and others within Ikeja Electric juridiction are going to  get meters in line with the company’s metering plans.

    Ofulue said some customers are happy paying estimated bills, while others are not.

    He lamented that customers that have been metered bypass the meters in an attempt to defarud the power fim by not paying for electricity consumed.

    The Chief Executive Officer, Eko Electricity Distribution Company (EKEDC), Dr Oladele Amoda, said it was not true that the DisCos  charge customers outrageously because they want to generate revenue.

    He said DisCos use a scientific method to determine how much they charge customers who do not have meters, and are therefore, not doing it arbitrarily. He said his firm considers certain factors before it charges customers that do not have meters.

    Amoda listed some of the factors to include examination of the feeders in a particular area in order to know the volume of supply in a month; check the volume of electricity, which people have consumed over a period of time, usually a month, and thereafter, bill them.

    “The issue of charging estimated bills by power firms was not arbitrary. The DisCos arrive at estimated bills through a scientific method fashioned out by the NERC. In fact, the DisCos are not happy with the issue of collecting estimated bills,” Amoda said.

    He said Eko DidCo, for instance, frowns at estimated billing. “As a matter of fact, the company would like its customers to have meters. That is why we came out with a meter roll out plan through which meters would be given to our customers over a period of time,” he said.

    Amoda, however, said part of the problem is the low capacity of local manufacturers of meters such that they have not been able to meet the needs of power distribution companies.

    He, however, said Eko DisCo has partnered with meter producers abroad to supplement local production, adding that the firm has started to provide smart meters to its customers.

  • NERC goes tough on Discos over metering

    NERC goes tough on Discos over metering

    Dissatisfied with the level of implementation of the Credited Advance Payment for Metering Implementation (CAPMI) by majority of the distribution companies, the Nigerian Electricity Regulatory Commission (NERC) has signaled its intention to commence enforcement action for non-compliance.

    The Commission has given the distribution companies a seven day ultimatum to show cause why action should not be taken  against them for non-compliance stemming from violation of the provisions of the licence terms and conditions.

    This is contained in a letter to the defaulting utility firms -namely Port Harcourt, Abuja, Yola and Enugu distribution companies. Others are Ibadan, Ikeja, Eko and Benin Disco.

    The warning read ‘’ The Commission considers your actions as manifest and flagrant breaches and therefore requires you to show cause in writing within seven days from the date hereon, why enforcement should not be commenced against you and sanctions meted accordingly for non-compliance with the Terms and Conditions of the license granted you and the order on Credited Advance Payment for Metering Implementation’’.

    The order introducing the CAPMI scheme became effective on 14 May, 2013, in which NERC directed that the scheme should commence and be implemented at the same time in all the distribution companies. Furthermore, the discos were to redeploy meters under the scheme to willing customers, including the installation of same within 45days from the date of the payment by any customer.

    In the letter to the Discos, NERC noted that it has been observed from public consultation and monitoring exercises carried out by the Commission to ascertain the implementation level, showed that the discos either failed or neglected to fully implement the CAPMI scheme.

    Condition 2(1) of the terms and conditions of the licence granted the discos provides as follows: ‘’The licencee shall comply with the conditions of this licence and the requirements of the licenced  business as set out in the Act and Regulations approved by the Commission in accordance with the Commission’s statutory duty to monitor all licencees’’.

    They also have been found to be collecting money from customers for credit meters not minding whether they opted for the scheme, including not publicising the scheme thus giving misleading information to customers.