The Federal Government has disbursed a total of N158.74 billion to electricity distribution companies (DISCOs), electricity generation companies (GENCOs), gas companies (GASCOs) and service providers under the CBN-Nigerian Electricity Market Stabilisation Facility.
Governor of the Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, disclosed this yesterday while testifying before the House of Representatives’ ad hoc committee on the need to curb excessive electricity charges being levelled on consumers by distribution companies.
He said out of the money, seven DISCOs received N49.841,913 billion; 18 GENCOs got N73.545,871 billion, six GASCOs took N24.892,952 billion while service providers were paid N10,463,904,265. He said to ensure that electricity becomes efficient, the apex bank also intervened by providing a payment assurance facility and has so far disbursed N330 billion out of a projected N701 billion.
According to him, “The intention is that power should continue to be supplied while the sector sorts itself out in the following areas, reduce the losses that have plagued the industry, increase collection and arrive at a realistic tariff that phases out shortfalls.” Emefiele, however, shocked the ad hoc committee when he confirmed that “CBN has no record of metered customers and estimated billed customers.”
In his presentation, chairman of the Nigeria Electricity Regulatory Company (NERC), Prof. James Momoh, told the panel that the Commission was doing everything humanly possible to ensure that billing was done in accordance with consumption. He said as a result, NERC had fined some DISCOs the sum of N134.1 million due to violations of electricity regulations, and that the same money was duly transferred to the Rural Electrification Agency (REA) account.
“All the reports related to the fines are published annually. NERC is taking measures to improve on the services by DISCOs,” he said. He disclosed that the availability of electricity meters to consumers will be fully available in the next three years beginning from January 1, next year.
The NERC boss informed that the Commission was committed to providing electricity and eradicating excessive charges through the meter assets producer, MAPs programme, which, among others, is to ensure local manufacturers of prepaid meters by encouraging 30 per cent local content input.
“We are giving franchise to local meter manufacturers who have the means, extending dates to bring in interested manufacturers. We do all these to reduce estimated billings and excessive charges,” he said. He noted that as part of regulation, most DISCOs have been sanctioned over excessive charges and the monies returned to the affected consumers, like in Enugu, Port Harcourt, Eko, Ibadan.
“More punishments were still being meted out for infractions on distribution companies,” he said, adding that NERC was still exploring all the provisions of the Power Sector Reform Act, to ensure that best practices were observed in the industry, while the consumers are not shortchanged. Meanwhile, the Nigeria Electricity Management Services Agency (NEMSA) has urged that proper testing be done on meters before they are imported and installed anywhere in the country.
NEMSA boss, Peter Ewesor, an engineer, who disclosed this, said every procedure required for testing a meter, which is ‘Type and Routine Test’ must be adhered. He listed old age of meters, leakages in current or electricity as well as generators that were not well connected to the main switch or change-over switch as could be responsible for increased charges.
But the ad hoc committee has accused NERC and DISCOs of conniving to short-change and extort money from Nigerians through excessive billing. According to members of the committee led by Hon. Israel Famurewa (APC, Osun), majority of the DISCOs are operated by “fraudsters” who are masters in “cheating” electricity consumers across the country. A member of the committee, Hon. Raphael Nnanna (APC, Imo) said: “With all what NERC said, they’ve not addressed the issue of excessive and outrageous billing. Nigerians are suffering and they’re not addressing that.
“All these things NERC said amount to stories. How are you proffering solutions to the issue of estimated and outrageous billing?” Another member of the panel, Hon. Muazu Lawal (APC, Zamfara) said: “It appears DISCOs and other stakeholders are not ready for the job before them. “You just go about billing people the way you like without considering the actual power they consume.
This happens everywhere in the country and even here in Abuja. “From what’s happening, I think DISCOs are either operated by fraudsters or they’re just extorting money from Nigerians. If you’re not ready for the job, tell us you’re not ready.” Hon. Olayonu Tope (APC, Kwara) noted: “If Nigerians are to cast their votes on the performance of NERC, it will be that the agency is a complete failure.
The failure of Nigeria’s economy today is lack of power. NERC is one of the major stakeholders leading Nigeria to failure. Mr. NERC, you’re a failure.”
While declaring open the event, Speaker Yakubu Dogara explained that the investigation is being carried out with a view to reducing the financial burden on Nigerians and finding a lasting solution to the crisis currently plaguing the energy sector. “The House is aware of the financial hardship being experienced by most of our people, due to the high electricity charges by DISCOs. This has further compounded the difficulty brought about by the economic downturn in the country.
