It is certainly
worrisome that Nigeria’s Electricity Generating Companies and Distribution
Companies have cried out that the burden of unpaid bills could impair their
ability to generate and distribute power. The electricity supply situation is
bad enough. A crippling debt compounding it is absolutely unacceptable. While
government, generating companies, transmission companies, distribution
companies and end users must play their respective roles, however, unless the
necessary investment is injected yearly for the next five years, the situation
is likely not to improve. This is, therefore, a call on government to take the
lead in the effort to improve on delivery of electric power in Nigeria.
The minister
with responsibility for power, Barrister
Babatunde Raji Fashola (SAN), has appropriately warned the Discos to stop
“blackmailing” the government, which, according to him, did not hand over the
business to them as a Trade Union. Each of the 11 companies signed agreements
and supposedly knew what they were doing. In the situation, he questioned the
locus standi of the Association of
Nigerian Electricity Distribution Companies that had gone public with paid
advertisements on their so-called worries. In a recourse to the law of tort,
Fasola also declared that the debts now being claimed would have to be
verified. He reported that monthly meetings are held by government with the
generating companies and transmission companies. At such a meeting in Sokoto,
the parties agreed that the companies would utilise an on-line platform for
verification of debt claims. The minister then wondered why none of the
companies complied with the agreement.
Granted that
the companies are owed huge amounts due to a culture of irresponsible living
over the years, verification may be indeed daunting, against the background of
the experience of domestic consumers and the oddity of fixed billing in the
face of poor infrastructure for doing an appropriate one. It is known that some
communities often in unison refuse to pay estimated charges and their Discos
have had to resort to “negotiating”. Other consumers have cried out over
pre-paid meters not delivered. And they have balked at paying since such meters
alone can ensure payment for actual consumption with them.
And the
minister has stated unequivocally that bills cannot be “estimates” but actual.
However, in
the production, transmission and distribution chain, the matter is not as
simple as that. The generating companies deliver to the Nigeria Bulk
Electricity Trading Company as the wholesaler to the Distribution companies.
The Discos have, however, blamed their inability to make payments on the N100
billion they claim to be owed, mostly by the military institutions, government
departments and agencies.
The supply
chain is affected. The Discos owe the generating companies a claimed amount of
N300 billion, The Gencos owe the gas suppliers. The Nigeria Electricity
Regulation Commission (NERC), endeavours to make the Discos comply with the
terms of the agreement they signed. Between them there are disagreements on
tariff.
The present situation is, however, beyond apportioning blames. It is not a question of who is at fault but what is wrong with the entire gamut of the power business. This was frankly and clearly stated recently by the Chief Executive Officer of one of the distribution companies, who reeled out the requirements for solving the problems in electricity generation and distribution: inadequate investment. The nation needs to invest about N250 billion every year for five years. Nigeria generates only two per cent of needed power, while 36 per cent of it is lost through commercial theft, illegal consumption and very poor network. The census of consumers reveals 32 million households but only four millions are official customers of the six distribution companies.
End users
also require education on electricity usage, as 30 per cent of supplied
electric power is wasted through simple faults like failing to put out the
light and turning off things that are not in use. In a period of global
economic downturn, and domestic recession, where is the requisite fund to be
found for the needed investment in the power sector?
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