Home Business Ikeja Electric, Abuja, Benin, Enugu, Ibadan DisCos Top List of Companies Indicted for Electricity Load Rejection

Ikeja Electric, Abuja, Benin, Enugu, Ibadan DisCos Top List of Companies Indicted for Electricity Load Rejection

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● As FG threatens to revoke their operational licenses
By Chisaa Okoye (Business Reporter)
Five electricity distribution companies (DisCos), namely; Ikeja Electric, Abuja, Benin, Enugu and Ibadan DisCos topped the list of power companies indulging in electricity load rejection, by failing to adequately distribute the power supplied by the Transmission Company of Nigeria (TCN), resulting in the recurrent decline in power supply.
Sources hinted that these DisCos have repeatedly failed to meet key performance index (KPIs) for electricity offtake, as the disparity between available power capacity and customer demand in their franchise areas are very significant.
They often fall short of the target volume of energy to be offloaded by them at any time as their Partially Contracted Power, in line with the partial activation contract regime, which became effective in July 2022.
The five companies are among power distribution companies still indulging in over-billing of customers by issuing estimated bills rather than supply them with pre- paid meters as directed by the federal government.
For instance, Ikeja Electric recently embarked on disconnection of metered customers in Ojodu area of Lagos State and environs.
In one of the cases, the DisCo disconnected metered customers, claiming that their compound had outstanding N600,000 bill from former customers that lived there more than five years before their landlord purchased the property and built a new building they are currently residing.
 
According to sources, Ikeja Electric failed to provide meters for the former residents of the place but was charging them outrageous bills, which culminated to N600,000.
It was gathered  that the owner of the property sold it about five years ago after which the new owner, demolished the old structure and built a new one.
The new owner was said to have contacted the Ikeja Electric and purchased prepaid meters for the new building and the meters were installed by the DisCo for the new tenants.
More than four years after, Ikeja Electric officials, about a fortnight ago, were said to have stormed the compound with the N600,000 bill which had a name different from the name of the current landlord of the house and disconnected the metered customers who were new tenants in the property.
Also, checks revealed that most customers of the Ikeja Disco who paid between N100,000 and N150,000 each for prepaid meters are yet to be supplied years after, even as the DisCo has continued to serve them outrageous bills on a monthly bases.
 
This is in spite of the  federal government’s resolve to sanction DisCos or their representatives selling meters or asking electricity users to pay to get the item.
 “We have made it clear through the regulator’s direct order as well as the intervention from the Ministry of Power that these meters are to be provided to Nigerians at no cost.

“Even for meters that will be paid for through the MAP, there is a directive from the regulator to the DisCos that they need to find a way to reimburse citizens over time.
“If we find any DisCo or its representatives selling these meters or exploiting Nigerians to be able to get them, we will sanction such disco”, the government had said.

Besides, these five DisCos, according to industry sources, also topped the list of power distribution companies deliberately not taking up power supply from TCN, thereby sabotaging federal government’s efforts to boost power supply for economic development.
Reliable sources said the DisCos blame vandalism of power equipment, which is not always the case, for their poor performances.
“The truth is that these DisCos reject power supply from TCN because they make their money through outrageous bills they serve electricity users. They always blame generation companies, TCN or allege equipment vandalism.
“We are not saying there are no issues with GENCOs, or TCN or that power equipment vandalism doesn’t  occur, the problem of the power sector is the DisCos. If the government doesn’t take drastic action against these DisCos, the situation will remain as it were”, a source said.

The Federal Government has always made it clear that power distribution companies have the responsibility of providing meters to customers.

The lack of adequate meters has remained an issue in these regions as these electricity distribution companies are reluctant to meter consumers in their various franchise areas, but instead choose to be over-billing end users by issuing estimated bills.

Recently, the Nigerian Electricity Regulatory Commission (NERC), had announced it would deduct N10,505,286,072 from the annual allowed revenues of the 11 DisCos during the next tariff review as part of sanctions over their non-compliance with the capping of estimated bills for unmetered customers.

In a notice released in Abuja, NERC noted that the billing of unmetered customers in their various franchise areas for 2023 revealed non-compliance with the monthly energy caps issued by the commission.

It said: “The public may recall that in 2020, the commission issued the order on Capping of Estimated Bills (Order No: NERC/197/2020) and subsequently issued monthly energy caps which aimed to align the estimated bills for unmetered customers with the measured consumption of metered customers on the same supply feeder.

“A review of the electricity distribution companies’ billing of unmetered customers for 2023 has revealed non-compliance with the monthly energy caps issued by the commission.”

The Commission  in response to this and in a bid to safeguard unmetered customers from arbitrary billing by Discos, stated that pursuant to Section 34(1)(d) of the Electricity Act 2023, it had issued the order on Non-Compliance with Capping of Estimated Bills (Order No: NERC/2024/004-01 4).

It said the order stipulates the following: “Credit adjustment to customers: Discos are to issue credit adjustments to all over-billed unmetered customers for the period January to September 2023 by the March 2024 billing cycle.

The Discos were directed to publish the list of credit adjustment beneficiaries in two national dailies and on their website not later than March 31, 2024.

Irked by the worsening power supply situation across the countey, the Minister of Power, Adebayo Adelabu, last week, summoned the Chief Executives of Abuja Electricity Distribution Company (AEDC) and Ibadan Electricity Distribution Company (IBEDC), following the deteriorating electricity supply situation in their franchise areas despite improved supply from TCN.
Also, the Managing Director of the Transmission Company of Nigeria (TCN), Alhaji Sule Ahmed Abdulazeez was invited to the meeting.

On Wednesday, the Power Minister vowed that the Federal Government will not hesitate to revoke the licences of DisCos over the worsening power supply in the country.

Adelabu noted that despite the concerted efforts by the ministry to improve the situation,  it’s disheartening that some DisCos are failing to adequately distribute the power supplied by the TCN resulting in the decline in power supply.

“The Ministry has been exerting pressure on the Generating Companies (GENCOs) to enhance their performance, resulting in a recent increase in generation to over 4000MW. Despite this progress, certain distribution companies are failing to adequately distribute the power supplied by TCN, while vandalism of power infrastructure exacerbates the problem in regions such as Abuja, Benin, Port Harcourt, and Ibadan.

 

“Moving forward, I am committed to holding all distribution companies accountable for their performance. Willful non-performance will not be tolerated, and severe consequences, including license revocation, may be imposed. Additionally, I have instructed TCN to prioritize repair works on damaged transmission towers and power lines to improve supply in affected regions.”

 

 

 

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