Estimated billings: FG to compel DISCOs to deploy metres, says Nebo

The Federal Government has said it plans to compel electricity distribution companies (Discos) to deploy metres to Nigerians, to address the issue of estimated billings.

Speaking during a visit to Vanguard, Prof. Chinedu Nebo, Minister of Power, lamented the fact that most of the electricity distribution companies have refused to deploy metres to Nigerians, a situation leading to exploitation of electricity consumers across the country.

To this end, Nebo disclosed that the Federal Government has concluded plans to deploy about one million metres to alleviate the plight of Nigerians as regards estimated and outrageous billing.

He lamented the constant vandalisation of gas pipelines, noting however, that the situation was now under control, as generation capacity has risen to above 4,000 megawatts, Nigeria's highest capacity till date.

'Vandalism has become one of the biggest challenges faced in the energy industry in general, with attendant colossal losses running into millions of dollars in terms of crude oil and gas production as well as power generation shortages,' he said.

Nebo explained that the government had to take this bold step, as this was now the only way to safeguard infrastructure in Nigeria.

He also stated that the Federal Government plans to increase tariffs on imported meters to compel DISCOs to patronise local metre manufacturers.

He said: 'We went round the country to take inventory of electricity usage in Nigeria without letting the power companies know. It was what we discovered after the inventory that made us decide to buy and deploy one million metres to Nigerians.

'We are also trying to mop up metres from Nigerian companies which produce metres so that these metres can be distributed to consumers and possibly help address the issue of estimated billings and reduce commercial losses of the power companies.'

On the estimated billing by distribution companies vis-a-vis their commercial losses, he said: 'We cut back technical losses substantially. Unfortunately it is not so with commercial losses. More than 50 per cent of Nigerians are not metered. Some who are metered circumvent the metres and do connections that are illegal. Also, many people are not paying their energy bills.

'Many people are using electricity without the knowledge of the electricity companies. And that is why some of these companies reported a colossal loss of over 50 percent, some of them even 55 per cent.

'So who pays if there is a tariff adjustment? So at the end of the day, it is those who pay that are forced to pay more. This is because it is those who you see that you will get your money from.'

He, however, disclosed that 'the companies are committed to reducing commercial losses gradually, and NERC is working hard to hold them to their promise because it is part of their business plan.

'But until people are metered and metering becomes prevalent all over the country, commercial losses therefore reduce substantially, distribution companies are going to find it difficult to pay for the electricity they consume. This is because it is like putting money in a pocket with holes.'