Politically
speaking, the Nigerian Electricity Regulatory Commission (NERC) has threatened
to revoke the operating licence of the Kaduna Electricity Distribution Company
(KAEDC) for default in debt payment of over N93.42bn made up of current and
historical components. In similar manner, TCN disconnected Kano Disco, Kaduna
Electric and Aba Power Limited Electric in April for breach of the Market Rules,
which governs and sanitizes the Nigerian Electricity Supply Industry (NESI), but
were later reconnected after a political solution was brokered with the debt
still hanging and no respite for the sector. In its response, KAEDC disclosed
that talks with the commission and other relevant government agencies that include
the Bureau of Public Enterprises (BPE), lenders are ongoing to resolve the
matter.
Since
the sector is a critical component that drives the economy, it is necessary for
every step to be taken to prevent it from collapse due to insolvency.
The
performance of the DISCOs since they came on board has been less than
satisfactory as there are ample evidence to show that owners of these
distribution outfits have not invested enough into these franchises to make
them near-smart outfits that are able to efficiently deliver energy and collect
revenues. They have to invest in their franchise to significantly reduce their
technical, commercial and collection losses by building more Injection
stations, replacing and upgrading distribution transformer substations,
upgrading substandard conductors and cables etc.
In most
instances, their networks are untidy with dilapidated infrastructure and poorly
motivated workforce. It is almost a puzzle that the DISCOs are unable to
significantly close the metering gaps that exist before they took over these
companies thereby subjecting customers to estimated billing that hardly reflect
true consumption.
When
analyzed, most of the debts are owed by the MDAs, hence the DISCOs should
request the government to establish a workable solution on revenue collection
from these government ministries, departments and agencies. Putting energy
payments on the first line charge is one strategy that could be explored to
assist the revenue profile of these DISCOs.
On
their part, DISCOs should mandate their public affairs departments to embark on
aggressive sensitization program to make their customers know that they are
obliged to pay for used energy and change their orientation from seeing
electricity as a social welfare to a business item that ought to be paid for.
The
level of energy theft in the sector is alarming and unacceptable as customers bypass
their meters while other artisans like welders consume electricity without
accounting for same by easily latching removable cables and wires to electric lines
for use to fabricate doors and windows. This makes it urgent for the DISCOs to
go smart by modernizing their network so as to be able to detect anyone
tampering with their lines.
On
staff welfare, the DISCOs have to revisit this issue because most of them laid
off their experienced hands when they took over these outfits and also improve
their remuneration to boost staff morale. Again, their technical section,
especially those in charge of fault trace and clearance should be restored to a
24-hour shift duty to reduce outage downtime. Doing this will introduce
efficiency into the sector and improve cash collection.
As a
catalyst that is required to kick-start the Nigerian economy, everything must
be done to make the sector survive and solvent because electricity availability
is a sine qua none for our economic greatness.
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