Consumer Protection Group Blames Corruption in Power Sector for Rising Electricity Tariffs
Wants Discos to account for N96bn loan for mass metering programme Kaduna chamber of commerce says increase in rates ill-timed
The Electricity Consumer Protection Advocacy Centre (ECPAC), a group dedicated to quality service delivery as well as upholding values, ethics and professionalism in the power sector, has blamed alleged high level reckless by Distribution Companies (Discos) for the incessant tariff hikes.
Speaking during a briefing in Abuja yesterday, Executive Director of the group, Chief Princewill Okorie, urged President Bola Tinubu to curb sleaze in the sector as well as non-implementation of policies, to reduce the frequent reasons to increase rates.
The group argued that the current crisis in Eko Disco, for instance, was due to the inability to enforce discipline and curb wastages, observing that while Discos are complaining of inadequate tariff, it is inhuman to obscure the level of financial imprudence exhibited by them.
“The N96 billion loan given to Discos for National Mass Metering Programme in 2020 is yet to be accounted for. Under the current Meter Asset Provider (MAP), it provides that customers who pay for meters should be refunded through energy credit.
“As of today, nobody is aware of the number of consumers that have paid for meters and how many have been refunded. The Nigerian Electricity Regulatory Commission (NERC) approves Operational Expenditure (OPEX) for Discos annually, yet consumers fund repairs and provision of infrastructure which Discos fail to refund them as provided by Network Expansion Investment Policy,” the group argued.
Stressing that there are fundamental problems in the sector,
Okorie argued that monitoring the utilisation of OPEX and CAPEX as well as the network investment policy would reduce the corruption within the Discos.
“The power sector is very fundamental to the social and economic development of this nation. Nigeria is a signatory to the United Nations Covenant on Human Rights, social and political and cultural rights. In fact, section 34, subsection 1 of the constitution is against torture, inhuman and degrading treatments.
“And the way Nigerians are treated today in the power sector, it is clear that they're being tortured, they're being dehumanised and treated without respect. So increasing tariff is not justified,” the advocacy group maintained.
Okorie stated that Nigerians were largely ignorant of their rights in the electricity supply chain, emphasising that the Discos for instance, are shirking their mandatory responsibility of carrying out awareness and enlightenment programmes to their customers.
“There's a deliberate attempt by the powers that be to frustrate consumers and use the poor suffering consumers to fund the sector. If you go to the ministry of power today, there is a department in charge of transmission. There is a department in charge of generation. There is a department in charge of distribution.
“Apart from having those departments under the minister of power, you still have institutions set up to oversee transmission, oversee generation, oversee distribution. What of consumer protection? And it is these consumers that generate the money that sustains the sector. Now, the policies that deal with consumer issues, consumer protection component of the act, no unit of the ministry drives it.
“That is why you can see that network expansion investment policy cannot be driven for implementation. That's why you can see that map policy is not driven. That's why the money the Central Bank of Nigeria (CBN) brought out, nobody knows how much each of the Discos got.
“Nobody knows the number of meters that were provided. Because no unit insists that this section will be implemented,” he lamented.
Stressing that manufacturing companies were already shutting down, Okorie argued that while ordinarily, Discos should pay for their facilities, consumers are currently funding the infrastructure for them, including poles and transformers.
“I challenge the media and I challenge the Minister of Power. I challenge NERC. Let them bring a report of utilisation of OPEX and their CAPEX since 2013 when privatisation came on board.
“What amount has the Discos invested from their operational expenditure every year? What have they invested in their capital expenditure every year? How many transformers have Discos provided?, he queried.
He maintained that if these systemic issues are addressed, Nigerians will see that there is no justification for increase in tariff, insisting that there was lack of transparency in the management of the entire value chain.