Nigerians battle with darkness as electricity supply in the country worsens while distribution companies add salt to injury by giving consumers crazy estimated bills which does not reflect the quantum of power supplied

By Anayo Ezugwu

NIGERIANS are becoming increasingly frustrated and angry because of the unending power outage in the country and the estimated bills sent by distribution companies, Discos. In the last one month, the federal government has alleged that the discos have not been able to evacuate power generated by the generation companies, gencos, thereby worsening the state of electricity supply. Consequently, darkness has become an irritating companion of most Nigerians with individuals and businesses now resorting to self-help to generate power to service homes and offices at a higher cost. This makes the country a harsh places to do business as the cost of operating generators inevitably increases the cost of running the business which would have been lower if there was constant electricity supply.

The poor state of power supply in the country has persisted despite the huge investments made in the sector. Recently, the federal government invested N702 billion in the gencos while N200 billion interventionist fund was established to assist the discos who bought the companies since the privatisation of the sector in 2013. However, the incessant power outage is hitting small business which is the engine of growth of any economy and artisans hard.

For instance, Blessing Amah, hairdresser at Ajuwon, a suburb of Lagos, told Realnews that since the beginning of April she has been operating at a loss on a regular basis as some of her customers stopped coming to her shop because she is yet to buy big generator set to power the electrical gadgets for her business. She said the small generator she is using cannot power her hairdryer.

“I’m afraid that if power supply does not improve I may likely lose my source of livelihood. My challenge is not just the power supply but also the estimated bills. The bill has increased significantly. How can a small shop like mine pay as much as N8,000, as against the N2,500 I paid earlier in the year?” she queried.

Amah’s story is not different from that of many Nigerians who run small and medium scale enterprises and other manufacturing companies who are groaning under power outage and increased cost of doing business as they resort to alternative power supply to remain in business.

Apart from power outage, electricity consumers are deeply pained by the estimated bills which they get from the discos. This has led to protest by consumers in some communities against the discos. Residents in one of such communities in the Ebute Metta area of Lagos State on Tuesday, July 24, protested against what they called ‘estimated billings’ by the Eko Electricity Distribution Company, EKEDC. The residents under the aegis of Concerned Community Development Associations, CDAs, staged a peaceful rally around major streets and submitted a protest letter to the Lagos Mainland local government secretariat, requesting for government intervention.

They also alleged deliberate hoarding of the prepaid meters by the Discos, since they know this will prevent them from getting easy money they are forcing electricity consumers to pay through “crazy” estimated bills.. The protesters carried placards with various inscriptions as they marched to the council secretariat. Some of the placards read: “EKEDC, our mumu don do,” “This extortion must stop,” “Ambode come to our aid” and “We are your customers, we know our rights,” among others.

Dapo Williams, chairman of the association, said more than 21,000 electricity consumers in the area were being subjected to estimated billing by EKEDC. He said the community had met with the management of EKEDC on several occasions and had various discussions and exchange of correspondence to end the estimated billing.

“We are tired of their excuses; we are no longer comfortable with the outrageous billing. We have to take to the street to register our displeasure over their crazy bill. They should give us prepaid meters. It is functional meters that will let us know the quantum of electricity that we are using on daily basis,” he said.

Yinka Giwa, secretary, Abule-Nla Community Development Association, said in spite of the epileptic power supply in the community, Eko Disco had always given the residents crazy bills at the end of the month. “We are protesting so that EKEDC should be aware that we are fed up with their consumer billing system.

“The company has found it pleasurable and convenient to adopt the system of using a ‘satanic and nefarious methodology’ to compute its consumer bills through estimated billing. Estimated bills are always served our community, regardless of EKEDC’s failure to supply reasonable energy. Now, no prepaid meters no payment of monthly bills, we are no longer a fool,” he said.

On his part, Patrick Uzo, another protester, urged the management of Eko Disco to comply with the directive by the minister of power, works and housing, that every Disco should abolish estimated billing.

There appears to be no silver lining in sight for consumers as the Association of Nigerian Electricity Distributors, ANED, has said Nigeria may not have stable power supply in the next five years except the challenges confronting the sector are addressed. Sunday Oduntan, executive director, Research and Advocacy, ANED, listed the challenges to include liquidity gap of N1.3 trillion, lack of improved generation due to mismatched electricity pricing, lack of much needed investment in transmission and distribution network and rising energy theft among others. “Except these challenges are addressed, we may not have stable power supply in the next five years,” he said.

Oduntan said the illiquidity in the sector must be prioritised because the sector could not afford to collapse. “If the power sector collapses, many banks will collapse because in 2013 during privatisation, only one Distribution Company obtained foreign loan, others took loans from local banks in dollars. Privatisation was based on 30 percent equity and 70 percent loan. The model was borrowed from New Delhi, India, and it is working as we speak. If it is successful in India, why is it not working in Nigeria?”

He decried the prevalent non-reflective tariff and called on the government to prevail on the military, ministries, department and agencies, MDAs, to pay for energy consumed. According to him, MDAs owe about N72 billion and the military has refused to pay since August 2017, when Babatunde Fashola, minister of power, works and housing, said the federal government would settle all legacy debts by MDAs.

“Afterwards, nothing has been paid by the military. It is important to also state that the mismatch in electricity pricing has resulted into inability of the Discos to settle their obligations to the Nigerian Bulk Electricity Traders, NBET.

“What we get from NBET is usually higher than what the Discos charge to consumers because we don’t have control over tariff. Government determines what we charge power consumers. Until we have a review of electricity tariff which ought to have been taken place every six months, there can’t be cost-reflective tariff and without cost reflective tariff, Discos can’t settle their debts to NBET.”

The poor electricity supply in the country has long been seen by ordinary Nigerians as evidence of the ineffectiveness of the government at all levels. The situation has not improved much since the privatisation of the sector in 2013, even with continued government interventions.

Now, faced with general elections come 2019, the President Muhammadu Buhari’s administration has the challenge of convincing frustrated electricity consumers that it has the expertise to achieve constant, stable and nationwide electricity supply as they promised in 2015.

July 27, 2018 @ 17:59 GMT|