By Ayo Onikoyi
When the government of Chief Olusegun Obasanjo came with the readiness of combating the problem of energy in the nation, it generated loud ovation and the enthusiasm that descended on the country was that the problem of energy would soon be a thing of the past.
When the government of Chief Olusegun Obasanjo came with the readiness of combating the problem of energy in the nation, it generated loud ovation and the enthusiasm that descended on the country was that the problem of energy would soon be a thing of the past.
The will of the government to get things done paved the way for the enactment of Electric Power Sector Reform Act, 2005. Seven years after, the country could only celebrate the transformation of then National Electric Power Authority (NEPA) to Power Holding Company of Nigeria (PHCN). The status of the Reformed Act unbundled PHCN into one transmission company, seven generation companies and eleven distribution companies.
Prepaid meters
To an average Nigerian what this supposed to mean is more energy supply for everyday living and for business but this has not been the case. Instead of improved power supply, what has been the order of the day is perennial darkness occasioned by incessant power outages. As a result of this, the business of generating sets has become a bludgeoning industry.
Many World Bank and UNIDO studies have repeatedly indicated that Nigeria is a nation where rising and prohibitive energy costs pose a serious threat to industrialisation. With about 10 per cent dependence on PHCN, many firms have collapsed under the unbearable burden of the rising cost of energy. Cement manufacturers in Nigeria, for instance, pay $7 for the same unit of energy that costs just $1 in Egypt. It is estimated that 15 per cent of manufacturing output is lost to power surges and outages. Experts reckon that the 4,000MW which PHCN now generates at the peak of production is only sufficient to power three or four states.
With an estimated rationing rate of 1,500MW to Lagos state alone, the other 35 states and the federal capital territory is left with just 2,500MW. With a population of less than 30 million, Egypt generates 35000MW. Nigerians pay for electricity without enjoying it. Yet, PHCN keeps sending bills to its hapless customers.
It is bad enough that people hardly enjoy electricity but most dehumanising when they have to pay for energy they did not consume. This issue of over-billing and sometimes “”crazy bills” has been a battle Nigeria Electricity Regulatory Commission has been fighting since its creation by provision of Electric Power Sector Reform Act, 2005. The age-old arbitrariness, extortionate charges and poor service delivery through the use of billed meters by the Power Holding Company of Nigeria and its successor distribution companies has been condemned severally by NERC Chairman, Sam Amadi.
One of the primary functions of the commission, as contained in the Electric Power Sector Reform Act, 2005, is to “ensure that the prices charged by licensees are fair to customers and sufficient to allow the licensees to finance their activities and to allow for reasonable earnings for efficient operation.” But, certainly, current electricity tariffs are patently unfair to consumers who are forced to pay for services not rendered.
Though Dr. Amadi has demanded an end to such exploitative operation but agreed that until the actual enforcement of regulations and standards are pursued the practice cannot be a thing of the past. He said the metering system which has been employed is designed to guide against charges for energy not used. It is also the much-awaited mechanism for the elimination of waste in electricity consumption.
Distribution of Pre-paid meters
Nigerians have welcome the introduction of the pre-paid meters with open arms but have had to gasp and groan when they could only see it and could not have it. The management of PHCN made various announcements that the equipment is available but yet many consumers have cried out that they still could not procure them after having paid the statutory connection fee of N25,000 for single phase and N55,000 for three-phase as the case may be.
A consumer who lives in Surulere has this to say: “ the so called prepaid meters are nowhere to be seen around here. Take a walk from this Itire down to Ijesha, I tell you there is hardly a house that can boast of a pre-paid meter. We have heard with it you can actually monitor how much you spend on electricity but here, there is no such luxury. Look at the situation now, in the last five 5 months we have been having electricity for just about three-four hours per day and some days there would be no power supply at all but our bills have been almost constant. PHCN brings a bill of not less than N5,000 per month. There was a month our transformer was out for 16 days, meaning there was no electricity for two weeks but when it came to the bills nothing reflected on it. The amount was as constant as ever. PHCN still brought a bill of over N4,000”
Even the NERC boss has accused the management of PHCN of willfully thwarting its own meter deployment scheme in a bid to exploit electricity consumers through its practice of “crazy billing.” That tendency, he noted, accounts for “cases of people in residential areas who pay more than companies….” According to him, “Even though they have meters, the distribution companies don’t go and read these meters.” Other consumers, residential and industrial, who had paid sums as high as between N23,000 and N40,000 per unit of prepaid meters since 2009 have yet to be provided with the meters, while PHCN has chosen to operate in total disregard for decency and statutes.
Those who are lucky to have the pre-paid meters have been singing songs of praise for the scheme. A consumer, Mr. Adeolubodun who lives in Mushin said “the PHCN prepaid meter is a blessing to me. Apart from the fact that it allows you to budget your money well it also cut off having to deal with unscrupulous PHCN staff who ask for money for all sorts of services. Before I acquire this meter I was paying between 3,000 to 7, 000 every month but now with a card of 7,000 I can enjoy power supply for more than 6 months”
But if the recent pronouncement of PHCN through its Ikeja Electricity Distribution Company, penultimate Thursday is anything to be believed the pre-paid meters may soon reach the homes.
Principal Manager, Public Affairs of the company, Pekun Adeyanju, has said prepaid metres are available for electricity customers who desire to have them. While reacting to allegations by some customers that the organisation is deliberately hoarding the meter to perpetuate estimated billing, Adeyanju said that the PPM is a priority of the management and that 7,000 are being deployed to customers all over the network of the company monthly. “In fact, the CEO, Engr. O.C. Akamnonu, has directed the Customer Service Department to increase deployment to 10,000 on a monthly basis.
