TheCitizen - It's all about you
  • Home
  • Headlines
  • Latest News
  • Governance
  • Business
  • Financial Crimes
  • Opinion
  • Editorials
No Result
View All Result
  • Home
  • Headlines
  • Latest News
  • Governance
  • Business
  • Financial Crimes
  • Opinion
  • Editorials
No Result
View All Result
TheCitizen - It's all about you
No Result
View All Result

Time to resist Discos’ estimated billing – Punch

meira by meira
August 31 2015
in Public Affairs, Uncategorized
A A
0
22
SHARES
734
VIEWS
Share on FacebookShare on Twitter

With the deal that paved the way for the transfer of electricity generation and distribution from government control to core investors and new owners well into its second year, one thing that has become increasingly apparent is the fact that the current operators lack the capacity to meet the electricity supply needs of the country. Worse still, they are not only denying Nigerians and the larger economy the lifeline that comes with electricity supply but are also inflicting undue pains on them by their stubborn insistence on implementing arbitrary tariff policy.
This distressing development has been underscored by motley demonstrations across the country by electricity consumers, one of them led by the Edo State Governor, Adams Oshiomhole, against Discos’ bald-faced extortion. Consumers should not rest until their rights are guaranteed and protected.
Though the defunct power monopoly, the Power Holding Company of Nigeria, actually started the fraudulent practice, also known as Estimated Billing, the successor companies have somehow managed to surpass this dubious act of the former. This is a practice where attempts are never made to read meters, in places where meters do exist, but consumers are issued bills based purely on estimation. In many cases, the estimates do not in any way bear a reflection of the amount of power supplied. By so doing, consumers are forced to pay outrageously inflated electricity bills, whether there is any supply or not. This is depressing.
Also embedded in the dubious tariff policy is the Fixed Charges, another grand design to extort money from hapless consumers. In this case, a consumer is mandatorily required to pay a fixed monthly amount of money – between N800 and N750, depending on the distribution company concerned – whether that consumer makes use of electricity or not. It does not even matter whether the consumer is out of town and the apartment to which the bill is charged remains permanently under lock and key. These are unfair – or criminal – business practices that should be resisted.
The solution to this arbitrariness has been rightly located in the provision of consumers with pre-paid meters, to ensure an appropriate measurement of the quantity of electricity consumed and the tariff payable. Unfortunately, the consumers seem helpless in this situation. There is nobody to protect them against the Discos’ exploitative tendencies; not even the regulator, the National Electricity Regulatory Commission, under the leadership of Sam Amadi, has been able to rein in the rampaging Discos.
To reinforce their heartless practice, the Discos have defied all NERC’s directives on pre-paid meters. Just 50 per cent (in some states less than 30 per cent) of consumers are enjoying the service. This is simply outrageous. In Ikeja Disco where customers have been promised pre-paid meters if they are up to date with the payment of their bills, evidence abound of those who have paid but have not been provided with the meters.
For want of any other reason for this, many have come to the conclusion that estimated billing is a deliberate policy for quick financial returns without any commensurate improvement in the quality of service delivery. This position is even reinforced by the fact that there are many pre-paid meter manufacturing companies in Nigeria which are just waiting for the placement of orders to make the facility available.
When the privatisation deal was consummated with the transfer of ownership in November 2013, after a lengthy period of prevarication, it was welcomed as a development that was long overdue, given the ordeal Nigerians were made to face by the PHCN and its predecessor, the National Electric Power Authority. The then Vice President, Namadi Sambo, who was also the Chairman of the National Council on Privatisation, said, “The participation of the private sector will bring about more efficient and cost effective power supply, engender private sector investment, improve infrastructure and create employment for Nigerians.”
Indeed, to get the plants and offices running at the initial period, it was believed that the successor companies needed to invest about $3.5bn had the privatisation not gone awry. Unfortunately, it turned out that the firms went to some hurriedly-cobbled-together consortiums that lacked both the financial outlay to improve on what they bought and the technical know-how to run the business.
Having borrowed heavily from local banks for the purchase of the power firms, the beneficiaries of the fraudulent transactions have run out of potential creditors and are also facing the pressure to service their loans. Now, it is difficult to see how the current owners can attract the $10 billion which the International Monetary Fund says needs to be invested in the sector annually for efficient performance.
Little wonder that contrary to all known investment practices, the sham electricity companies expect immediate returns to continue in business and service bank loans. Electricity market is capital intensive and is never a place for dodgy firms. In the usual Nigerian way, corruption blinded the Bureau of Public Enterprises and the NCP into selling the state power utility to their cronies.
But the job of the BPE does not end with just “selling” the companies. Part of its responsibilities is “ensuring the success of privatisation and commercialisation exercise through effective post-transactional monitoring and evaluation.” BPE must do this. Since the investors have failed woefully to deliver on the mandate of the Federal Government, it is time to wield the big stick. President Muhammadu Buhari should order a thorough review of the process, especially the roles of NCP and BPE in frustrating the final phase of the Power Sector reform process, with a view to redeeming the privatisation programme.
Electricity consumers, too, should not be completely helpless. Since NERC, as a regulator, has failed to get the Discos to comply with the implementation of the pre-paid metering, they have to explore all legitimate channels to resist the fraud from the Discos. Through various residents associations, they can lawfully challenge the Discos’ criminal extortion that goes on in the name of electricity tariff.

Share9Tweet6
Previous Post

TETFund’s request – The Nation

Next Post

Serena rivals must step up – Sharapova

Related Posts

End female genital mutilation – Punch
Public Affairs

End female genital mutilation – Punch

October 17 2025
Nnaji: Nigeria’s dodgy vetting processes – Punch
Public Affairs

Nnaji: Nigeria’s dodgy vetting processes – Punch

October 16 2025
Vacations and governance: Why President Tinubu’s trip matters -Guardian
Public Affairs

Tinubu, honour promise to ASUU – Punch

October 15 2025
The killings in the South East – Thisday
Public Affairs

The killings in the South East – Thisday

October 14 2025
IOCs: Implement host communities’ projects – Punch
Public Affairs

IOCs: Implement host communities’ projects – Punch

October 13 2025
Don’t arm FRSC – Punch
Public Affairs

Don’t arm FRSC – Punch

October 10 2025
Next Post

Serena rivals must step up – Sharapova

World Championships: Team Nigeria return empty-handed

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

FROM THE GRASSROOTS

ALGON orders Edo council officials to wear Tinubu’s signature caps

ALGON orders Edo council officials to wear Tinubu’s signature caps

by The Editor
October 18 2025
0

...

Olubadan unveils legal committee to tackle land grabbing

Olubadan unveils legal committee to tackle land grabbing

by The Editor
October 15 2025
0

...

Birnin Gwari needs urgent federal intervention – Emir tells Tinubu

Birnin Gwari needs urgent federal intervention – Emir tells Tinubu

by The Editor
October 13 2025
0

...

Rivers court adjourns hearing on LG poll legitimacy

Rivers court adjourns hearing on LG poll legitimacy

by The Editor
September 16 2025
0

...

APPOINTMENTS

Tinubu seeks Omidiran, 28 others’ confirmation as FCC members

Tinubu seeks Omidiran, 28 others’ confirmation as FCC members

by The Editor
October 15 2025
0

...

Okpebholo swears in 19 commissioners, warns against corruption

Okpebholo swears in 19 commissioners, warns against corruption

by The Editor
October 15 2025
0

...

Fubara drops Danagogo, appoints Anabraba as Rivers SSG

Fubara drops Danagogo, appoints Anabraba as Rivers SSG

by The Editor
October 13 2025
0

...

Savannah Energy signs agreement with Chadian govt for new renewable energy projects

Savannah Energy announces board changes, appoints two Nigerians as Independent Non-Executive Directors

by The Editor
October 9 2025
0

...

ODDITIES

Lagos to probe school over alleged sodomy

Father impregnates 15-year-old daughter in Ondo

by The Editor
October 17 2025
0

Court orders exhumation, autopsy of Afriland Towers fire victims

Court orders exhumation, autopsy of Afriland Towers fire victims

by The Editor
October 15 2025
0

Slain husband’s dad forgives Maryam Sanda, backs Tinubu’s pardon

Slain husband’s dad forgives Maryam Sanda, backs Tinubu’s pardon

by The Editor
October 14 2025
0

GLOBAL NEWS

Madagascar’s military leader swears in as president

Madagascar’s military leader swears in as president

by The Editor
October 18 2025
0

...

Trump, Putin to meet in Budapest over Ukraine war

Trump, Putin to meet in Budapest over Ukraine war

by The Editor
October 17 2025
0

...

2026 Hajj: Saudi govt approves 66,910 slots for Nigeria

2026 Hajj: Saudi govt approves 66,910 slots for Nigeria

by The Editor
October 17 2025
0

...

Trump persuades India to stop buying Russian oil

Trump persuades India to stop buying Russian oil

by The Editor
October 16 2025
0

...

Former Kenyan Prime Minister Raila Odinga dies in India

Former Kenyan Prime Minister Raila Odinga dies in India

by The Editor
October 15 2025
0

...

State of the States

21.8% North-East residents HIV positive – NBS …as 16,000 die from HIV complications in Borno

Adamawa records 8,850 new HIV infections in four years

by The Editor
October 17 2025
0

...

Zamfara APC condemns state govt’s mass sacking of civil servants

Zamfara APC condemns state govt’s mass sacking of civil servants

by The Editor
October 14 2025
0

...

Gov. Otti set to build modern fire station in Umuahia

Gov. Otti set to build modern fire station in Umuahia

by The Editor
October 7 2025
0

...

Senator denies bill to rename Kaduna to Zazzau State

Kaduna State pays ₦72,000 minimum wage

by The Editor
September 18 2025
0

...

Plugin Install : Widget Tab Post needs JNews - View Counter to be installed
  • Trending
  • Comments
  • Latest
Imo police boss to probe officers in viral video with cult insignia

Imo police boss to probe officers in viral video with cult insignia

October 18 2025
DHQ denies alleged coup attempt to topple fed govt

DHQ denies alleged coup attempt to topple fed govt

October 18 2025
FG drives grassroot mobilisation campaign for PVC collection

FG drives grassroot mobilisation campaign for PVC collection

October 18 2025
Nigeria: IMF insists on fuel subsidy removal

Nigeria missing as IMF lists Africa’s fastest-growing economies

October 18 2025

EDITORIAL REVIEW

End female genital mutilation – Punch

End female genital mutilation – Punch

by The Editor
October 17 2025
0

Nnaji: Nigeria’s dodgy vetting processes – Punch

Nnaji: Nigeria’s dodgy vetting processes – Punch

by The Editor
October 16 2025
0

Vacations and governance: Why President Tinubu’s trip matters -Guardian

Tinubu, honour promise to ASUU – Punch

by The Editor
October 15 2025
0

The killings in the South East – Thisday

The killings in the South East – Thisday

by The Editor
October 14 2025
0

IOCs: Implement host communities’ projects – Punch

IOCs: Implement host communities’ projects – Punch

by The Editor
October 13 2025
0

Opinion

Tinubu finds his own demons

Next time, Umahi should go to NTA

by The Editor
October 16 2025
0

...

Objections over presidential pardon for grave offenders

Objections over presidential pardon for grave offenders

by The Editor
October 13 2025
0

...

1975 public service purge: What have we learnt?

1975 public service purge: What have we learnt?

by The Editor
September 30 2025
0

...

Tinubu finds his own demons

Nigeria’s state of weakness

by The Editor
September 18 2025
0

...

Plugin Install : Popular Post Widget need JNews - View Counter to be installed
  • Home
  • Headlines
  • Latest News
  • Governance
  • Business
  • Financial Crimes
  • Opinion
  • Editorials

© 2024 TheCitizen Ng. All Rights Reserved.

No Result
View All Result
  • Home
  • Headlines
  • Latest News
  • Governance
  • Business
  • Financial Crimes
  • Opinion
  • Editorials

© 2024 TheCitizen Ng. All Rights Reserved.