PHCN GETS MARCHING ORDERS ON ELECTRICITY SUPPLY

Electricity consumers are set for war against electricity distribution companies DISCOs, over lack of meters and high bills. UDEME AKPAN reports that the swift intervention of NERC may assist to achieve stability in the sector.

The Chairman of the Nigerian Electricity Regulatory Commission, (NERC), Dr. Sam Amadi has, at different occasions, expressed his concern for consumers of electricity in the nation. This is based on at least a reason. Amadi believes that consumers should be kings, particularly because without them, operators would not be in business.

Contrary to his great expectation, the electricity distribution companies, DISCOs continue to exploit consumers through sharp practices, including what has come to be known as crazy billing and provision of meters. These exploitative ways and means got to climax a few weeks ago when PHCN virtually stopped the issuance of new pre-payment meters to consumers in all parts of the nation as well as raised its estimated tariff by over 150 per cent without any explanation.

Consequently, consumers who live in two-bedroom flats that used to pay about N5,000 monthly tariff now pay between N12,000 and N15,000, depending on the policies and practices of the distribution companies. Consumers who live in three-bedroom flats and duplexes pay between N16, 000 and N20, 000 per month against about N7, 000 they used to pay.

These bills include Value Added Tax and ““meter maintenance charge”” even though most consumers do not have meters. Industry sources remarked that PHCN officials had deliberately stopped the issuance of pre-payment meters after a noticeable drop in revenue as consumers adopted measures to reduce their tariff.

Many consumers who have been waiting for months to get the new meters are compelled to continue to pay estimated bills which are based the guesswork of PHCN personnel. This, however, does not take cognisance of consumers, who for days or weeks or those who do not have high-power consuming appliances. Besides, many consumers are compelled to pay additional N100 for a token in order to pay bills under a ““cashless”” policy being introduced by PHCN in partnership with a local firm in some Lagos districts.

Expectedly, the angry consumers have not been mute. While some groan, others have taken to the streets, protesting the massive exploitation of the DISCOs. For instance, a few days ago, the youths of Omu-Aran, Irepodun Local Government Area of Kwara State took to the streets, protesting alleged extortion by the PHCN.

The protest could have got out of control without the timely intervention of the police. The youths, who carried placards with various inscriptions, were protesting what they termed illegal billings and extortion by the PHCN officials. The protesters, who had gathered in front of the community’’s Post Office reportedly, took to the streets, chanting war songs and holding placards with different inscriptions. Some of the inscriptions on the placards read: ““We are tired of crazy bills””, ““Stop this extortion now”” and ““Omu-Aran no go gree.”” The policemen, along with some officers of the National Security and Civil Defense Corps (NSCDC), it was learnt had to form a barricade to prevent the youths from entering the building.

The leader of the youths, Mr. Wasiu Awoniyi, explained that they embarked on the warning protest after several meetings to resolve the issue with PHCN proved abortive. As he puts it: ““We have been looking up to the elders and elites in the community for a peaceful resolution of this ugly phenomenon without any breakthrough. That is why we took it upon ourselves to embark on this awareness and warning protest.””

Awoniyi remarked that: ““Our resolve is that no monthly PHCN bill should go beyond N1, 500 for an apartment and N2, 000 for artisans and other skilled persons. We are giving PHCN management up till February to make necessary adjustment and correct the situation in the interest of peace.””

The cries of consumers have not fallen on deaf ears. NERC has stepped in to tackle these and other concerns. From all indications, electricity consumers may be in a position to heave a sigh of relief as NERC has directed electricity distribution companies to meet the yearnings of consumers or be sanctioned.

The commission has started considering some options capable of assisting to boost availability of electricity meters in the nation. The options include customer financing and the use of accredited meter vendors. NERC also resolved to ensure standardization and efficiency in the deployment of the meters and to that end a public notice will soon be issued for all vendors of meters to apply for certification of their products in line with the metering code. The commission also plans to send a letter to the Bureau of Public Procurement, (BPP), in order to fast track a No Objection Certification for various vendors.

Investigations showed that although the nation has two meter manufacturing firms in Lagos and Kaduna, they have not been able to flood the local market with adequate meters. Minister of State for Power, Hajia Zainab Ibrahim Kuchi, who encouraged consumers to pay for the new meters explained that they would be compensated in future. She remarked that such customers would get energy credit and reduction in their fixed charges over time.

This voluntary option seems to be a good development, particularly for Small and Medium Enterprises (SMEs) whose operations were to a great extent crippled as a result of many factors, especially irregular supply and crazy billing. Consequently, NASME has called for the creation of separate classifications, specifically for NSMEs, to enable them to reduce the high operational cost. It also called for the elimination of all fixed charges. ““In the medium to long term, NASME recommends that the fixed charge is completely eliminated and all charges become variable based on consumption,”” it said in the report.

The organisation explained that this would ensure that its members only pay for what they consume and ultimately, encourage energy conservation in the nation. It also made a case for the introduction of a unified standard for information shown on payment receipts, explaining that the minimum information requirements for each distribution company to be the same, in order to improve transparency. NASME added: ““Distribution companies should be mandated to set up structured and effective complaint and resolution channels with stipulated resolution timelines.

An authoritative study conducted by the organisation showed that many industries have closed shops as a result of poor supply of electricity which compelled them to take to the use of generators at higher cost. The cost which is reflected in the prices of various goods and services make them uncompetitive at the global market.

The NASME stated that the high cost of the new Multi Year Tariff Order 11, introduced in June last year was counter- productive on the operations of its members. The Executive Secretary of the organisation, Mr. Eke Ubiji who confirmed the development said NASME is ready to engage with relevant government institutions.

The organisation explained that this would ensure that its members only pay for what they consume and ultimately encourage energy conservation in the nation. It also made a case for the introduction of a unified standard for information shown on payment receipts, explaining that: ““The minimum information requirements for each distribution company to be the same, in order to improve transparency.””

NASME further called for the restructuring as creation of complaint channels in distribution firms so as to enable service providers respond to complaints. It stated that: ““Distribution companies should be mandated to set up structured and effective complaint and resolution channels with stipulated resolution timelines. Appropriate penalties should be established with supervision by NERC.””

It also stated that; ““There should be awareness campaigns and sensitisation on MYTO 11 to MSMEs using grassroots/practical methods. NASME can provide input about appropriate consultation mechanism for SMEs.””

Stakeholders, including the National President of Oil and Gas Service providers Association of Nigeria, OGSPAN, Mr. Colman Obasi stated that there was a great need for the various hurdles to be removed so as to enable small and medium scale business operators have constant electricity at affordable cost to power their operations.

He stated that: ““Small and medium scale businesses are very central to the economy of the nation, particularly in terms of employment, technology transfer and capacity building. These and other reasons explain why the government and others should ensure they have access to stable power supply

Obasi stated that with stable supply at affordable cost, the operators would be in a position to export their products and services to the global market, thereby generating additional foreign exchange for into the nation. He stated that: ““We should not only be thinking about crude oil and gas, we should consider the small and medium scale business in particular and non oil sector in general as an instrument targeted at diversifying the economy of the nation.””

The National President who appreciated the step taken to tackle issues asked for the cooperation of relevant people and organizations, especially the DISCOs. This seems to be very important as they occupy a prime place in the sector. Indeed the DISCOs should wake up to provide electricity with a human face, knowing that the world is watching.