Port Harcourt Electricity Distribution Company (PHEDC) has expressed concern over N200billion owed it by Ministries, Departments and Agencies (MDAs) of the state governments in its franchise area.
PHEDC also complained that Afam community in Oyigbo Local Government of Rivers State owed the company N31.5billion.
The Managing Director/Chief Executive Officer of PHED, Dr. Benson Uwheru, spoke in Port Harcourt yesterday.
He said: “The unbundling cut out for us a franchise area for Port Harcourt particularly, distributing power to Rivers State, to Akwa Ibom, Cross River and Bayelsa.
“I must say that the last 10 years has been replete with hurdles and challenges. The transition came with legacy issues coming from the Federal Government controlled National Electric Power Authority as well as Power Holding Company of Nigeria”.
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He said vandalism and unwillingness of some electricity consumers to pay bills was disturbing, saying Afam community in Oyigbo Local Government of Rivers State alone was indebted to the company to the tune of N31.5 billion.
He said: “Today N31.5billion and still counting has been accumulated in a community called Afam in Rivers State, a community that uses power and they don’t pay for it. There is a couple of communities in Bayelsa and Akwa Ibom states that use power, but have refused to pay for it.
“Now when it gets to the MDA’s, the debt of the MDAs is over N200billion in arrears. I will not mention any specific MDA because they are our customers. My philosophy of leadership has always been dialogue and strategic engagement.
“I must thank MDAs also that are paying for their bills, including the state governments, particularly the Rivers State Government that continues to show exemplary leadership by paying for all their MDAs that use power from the Disco.”
The PHED MD urged other MDAs and other states to emulate Rivers to enable the company achieve its mandate.
He said: “So my appeal is to all state governments within our franchise to find a way and means to ensure that their MDA’s also fully meet and discharge their obligations to Port Harcourt Disco.
“Private individuals put in funds to buy this company. How do we return value back to the owners of the company?
“Today, when you look at the tariff, it is not cost reflective, the subsidy is not able to cover for the operational cost of running this business. So it is a sector riddled with all kinds of challenge, from lack of cost reflective tariff to lack of customers payments.
“Our metering gap also creates a challenge, vandalism is a big challenge. The number of transformers vandalised weekly is a big challenge in the sector.
“The Afam community issue transcends before privatisation. They are existential and historical issues, but with time it has been aggravated. So the debts have accumulated over the last decade”.