The Nigerian power sector has been since inception bedeviled with inefficiency. From the days of ECN through PHCN, the problem of lack of power supply have always been a headache to Nigerians. But why will a nation that has all the resources it needs to generate all the energy it requires be so embroiled with such a problem is a complex issue. Electricity under government has always been seen as a social service rather than a commodity that should be paid for. In addition, the management and staff also see it as an avenue of getting their share of the national cake through rendering of inaccurate rendering of returns. Politician also used electricity has a means of getting votes from the masses who in turn refuse to pay for energy consumed since they perceive it should be free.

Electricity Power Sector Reform
The reform of 2005 started the process of privatizing the power sector. By the end of 2013, the power sector has been split into 11 Distribution Companies, 6 Generating companies and 1 transmission company. The government only maintained control of the transmission company in line with international best practice. The process is meant to improve electricity supply and quality within the shortest possible period of time. The same has been done successfully in Colombia, Argentina, and India among others. But why does it seem as if it isn’t working in Nigeria?
Facts
 Nigeria has an energy demand of around 15,000 MW compared to the fluctuating 4000MW it presently generates. This is why load management is necessary. (technically you should only expect supply for 6hrs a day)
 DISCOs do not generate electricity nor can they decide to store it and decide not to give you electricity(they must supply once it is given to them from the generating companies)
 Nigeria has the capacity to generate up to 10,000MW if Gas supply is available but the Transmission capacity is still around 5,000MW it was several years ago(No Upgrade)
 DISCOs pay for the energy they sell to the populace(they are private companies and don’t get the energy for free. As a matter of fact, most of them operate at gross loss)
 In some areas, one in two energy consumers are not registered with their supplying DISCOs and about 50% of those registered are engaging in energy theft (meter bypass). When next you see someone saying they have been using a N1000 credit for a year, that person has probably bypassed his meter. This has led to the DISCOs running at a loss and unable to pay the GENCOs. This is why foreign investors are not coming in, no one want to invest in a company making loss.

The way forward
Generation: while I do not belief that generation is the main problem as of now, it should however be poised to generate once transmission is jacked up. Countries like China and India generates around 78% and 54% of their energy demand from coal which Nigeria also have. In addition, the gas flared by the exploration companies can more than generate what we need. Thus, government should be able to secure the pipelines to ensure that flow of gas is not interrupted and ensure that anti-flaring laws are enforced.

Transmission: this is the weakest link of the system and it is still in the control of the government. It is a pity that the customers do not have access to beat and protest against the staff of this agencies and the government itself who promise and do not put up the facilities to ensure the promises are kept. As long as the 1970 era transmission era lines constructed to serve the then population are not upgraded, generating more energy will not have any significant impact.

Distribution: this are the “NEPA” people. This people are almost as hated as the police and unfortunately for them, they can be brutalized unlike the men in blue. The area where they are most complicit is that they supply areas that are adjudged to be commercially viable more than the less viable ones. That is why people who live close to large factories usually have light. But what else is expected from a private firm with profit orientation? Their weakness are actually their corrupt inherited workforce who continue to extort and bastardize the image of the sector. This is why most of the DISCOs are actively replacing the old staffs with new blood.

Government: the government should ensure that relevant laws that will prevent vandalisation of power utility infrastructure and energy theft are enacted and enforced. They should also overhaul the transmission company to enable it cope with increasing generation.

The People: when people decides to mob “NEPA” officers, I see people acting in ignorance. Apart from bias load shedding, this guys have no power over energy supply. The Nigerian man see nothing wrong in bypassing his meter and will also advise others to do so. This ensures that the DISCOs cannot attract foreign investments to gear up the sector.

Effect of people stealing energy in an area
Total Population: 1000
Metered: 200
Unmetered but registered: 300
Not registered at all: 500
If a total of 1000kwh is consumed in the area and 200kwh can be traced to the metered customers, the unmetered customers bear the burden of the energy stolen from meter bypass and those that hook into the network. they will thus pay for the whole of the 800kwh remaining. This is why estimated billing is usually crazy. You pay for your stealing neighbors.

What you should do:
1) Get a meter(the best option is the prepaid)
2) Report anyone engaging in energy theft in your area discretely to the DISCOs
3) Let the community leaders meet on how to strategize and ensure that your area becomes commercially viable to the DISCos and your supply will improve
4) Ensure that you pay your bills regularly
5) Ensure that your meter is read every month(call their customer care and if they you are not satisfied, complain to NERC
I know some people will still bash me for this, but the piece is for the few that will mull over this and know that energy theft is also a crime in the sight of God and Man.

G

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tenderlaw:
G

Chanchit:
....

spacebookers
lalasticlala, abeg push this to frontpage

abbeywasc:
The Nigerian power sector has been since inception bedeviled with inefficiency. From the days of ECN through PHCN, the problem of lack of power supply have always been a headache to Nigerians. But why will a nation that has all the resources it needs to generate all the energy it requires be so embroiled with such a problem is a complex issue. Electricity under government has always been seen as a social service rather than a commodity that should be paid for. In addition, the management and staff also see it as an avenue of getting their share of the national cake through rendering of inaccurate rendering of returns. Politician also used electricity has a means of getting votes from the masses who in turn refuse to pay for energy consumed since they perceive it should be free.

Electricity Power Sector Reform
The reform of 2005 started the process of privatizing the power sector. By the end of 2013, the power sector has been split into 11 Distribution Companies, 6 Generating companies and 1 transmission company. The government only maintained control of the transmission company in line with international best practice. The process is meant to improve electricity supply and quality within the shortest possible period of time. The same has been done successfully in Colombia, Argentina, and India among others. But why does it seem as if it isn’t working in Nigeria?
Facts
 Nigeria has an energy demand of around 15,000 MW compared to the fluctuating 4000MW it presently generates. This is why load management is necessary. (technically you should only expect supply for 6hrs a day)
 DISCOs do not generate electricity nor can they decide to store it and decide not to give you electricity(they must supply once it is given to them from the generating companies)
 Nigeria has the capacity to generate up to 10,000MW if Gas supply is available but the Transmission capacity is still around 5,000MW it was several years ago(No Upgrade)
 DISCOs pay for the energy they sell to the populace(they are private companies and don’t get the energy for free. As a matter of fact, most of them operate at gross loss)
 In some areas, one in two energy consumers are not registered with their supplying DISCOs and about 50% of those registered are engaging in energy theft (meter bypass). When next you see someone saying they have been using a N1000 credit for a year, that person has probably bypassed his meter. This has led to the DISCOs running at a loss and unable to pay the GENCOs. This is why foreign investors are not coming in, no one want to invest in a company making loss.

The way forward
Generation: while I do not belief that generation is the main problem as of now, it should however be poised to generate once transmission is jacked up. Countries like China and India generates around 78% and 54% of their energy demand from coal which Nigeria also have. In addition, the gas flared by the exploration companies can more than generate what we need. Thus, government should be able to secure the pipelines to ensure that flow of gas is not interrupted and ensure that anti-flaring laws are enforced.

Transmission: this is the weakest link of the system and it is still in the control of the government. It is a pity that the customers do not have access to beat and protest against the staff of this agencies and the government itself who promise and do not put up the facilities to ensure the promises are kept. As long as the 1970 era transmission era lines constructed to serve the then population are not upgraded, generating more energy will not have any significant impact.

Distribution: this are the “NEPA” people. This people are almost as hated as the police and unfortunately for them, they can be brutalized unlike the men in blue. The area where they are most complicit is that they supply areas that are adjudged to be commercially viable more than the less viable ones. That is why people who live close to large factories usually have light. But what else is expected from a private firm with profit orientation? Their weakness are actually their corrupt inherited workforce who continue to extort and bastardize the image of the sector. This is why most of the DISCOs are actively replacing the old staffs with new blood.

Government: the government should ensure that relevant laws that will prevent vandalisation of power utility infrastructure and energy theft are enacted and enforced. They should also overhaul the transmission company to enable it cope with increasing generation.

The People: when people decides to mob “NEPA” officers, I see people acting in ignorance. Apart from bias load shedding, this guys have no power over energy supply. The Nigerian man see nothing wrong in bypassing his meter and will also advise others to do so. This ensures that the DISCOs cannot attract foreign investments to gear up the sector.

Effect of people stealing energy in an area
Total Population: 1000
Metered: 200
Unmetered but registered: 300
Not registered at all: 500
If a total of 1000kwh is consumed in the area and 200kwh can be traced to the metered customers, the unmetered customers bear the burden of the energy stolen from meter bypass and those that hook into the network. they will thus pay for the whole of the 800kwh remaining. This is why estimated billing is usually crazy. You pay for your stealing neighbors.

What you should do:
1) Get a meter(the best option is the prepaid)
2) Report anyone engaging in energy theft in your area discretely to the DISCOs
3) Let the community leaders meet on how to strategize and ensure that your area becomes commercially viable to the DISCos and your supply will improve
4) Ensure that you pay your bills regular
5) Ensure that your meter is read every month(call their customer care and if they you are not satisfied, complain to NERC
I know some people will still bash me for this, but the piece is for the few that will mull over this and know that energy theft is also a crime in the sight of God and Man.

I may agree with you but not totally.

lets face the reality here, in a country like ours that about 60% of the citizen are living in extreme poverty, where do you expect a man that barely feed his family to pay about N10,000 just for electricity?

so the question is, if a such percentage of the citizen cannot afford to pay for electricity, should they be deprived?

@bolded I can testify to you today that, because of epileptic power supply in my area, the 100 units I purchased since march has not been exhausted as at today 9/10/2015.

apart being frustrated with their epileptic supply, there is what the called service charges, (i.e paying for what you did not use).

So what are now saying? that I should go and pay extra so called N750 times 8 months I did not enjoy electricity? can you please tell in which part of this world is it applicable?

iliyande:


I may agree with you in some aspects but not all:

@bolded I can testify to you today that, because of epileptic power supply in my area, the 100 units I purchased since march has not been exhausted.

apart from the

thats why i said "probably".

Nice write up. Though i didn't read it, i just know its a nice write up

abbeywasc:
...In some areas, one in two energy consumers are not registered with their supplying DISCOs and about 50% of those registered are engaging in energy theft (meter bypass). When next you see someone saying they have been using a N1000 credit for a year, that person has probably bypassed his meter. This has led to the DISCOs running at a loss and unable to pay the GENCOs. This is why foreign investors are not coming in, no one want to invest in a company making loss...

Your post was rather long, so I only cut out the part that I wanted to reply to.

First, a lot of DISCOS are lying through their teeth and cheating their customers. It amazes me, why they wish to get paid for electricity they have not supplied to their consumers.

I shared a story several months ago, about how the electricity tarriff in our old family house in Festac suddenly jumped from 5,000 naira monthgly to 30,000 naira monthly, despite the fact that the house had been empty for over a year. When we got this bill we were shocked, and quickly launched a complaint with Eko Disco.

They asked us to write a letter complaining about the anomaly, that it would be investigated and reversed. This was duly done. The following month, we were shocked when the monthly bill was distributed and this time, the amount said to be due for electricity consumption had doubled! How come? Another complaint was lodged, and another letter promptly dispatched to register our displeasure.

Later, one of the marketing managers discovered that the wrong rate had been applied to calculate the estimated bill several months earlier. She even agreed that there was no way such figures could have been incurred in a residential home, if they were not running a factory.

She later advised that power supply should be disconnected from the house as it was still lying empty, but monthly access charges would still be left to run. Okay, oh. This was over 14 months ago. As I speak, the over-inflated bills still keep coming, and the wrong charges have not been reversed.

It occurred to me, that there are likely to be a lot of consumers being ripped off in this manner, through wrong computation of bills, which the DISCOS are still carrying around on their financial books.

We then applied for a pre-paid meter. Till date, they have refused to entertain our requests claiming we must pay up all the outstanding bills on the old meter. And they know quite well, that these over-inflated bills were wrongly computed by their staff.

Now, if I tell you that the DISCOS are the most dishonest enterprise in Nigeria, would I be wrong??

Another factual experience - The pre-paid meter in my office went bad after less than a year of operation. The fault was duly reported at the local DISCO Office. What was their response? Go and buy another pre-paid meter for 60,000 naira (i.e. sixty thousand naira), in these hard times!! Ask me, if the term 'warranty' means anything to them. For the past 2 months, our office has been running on generators, while we wait for the DISCO to offer us a means of repairing or fixing the pre-paid meter!

Very informative , most people dont pay their electricity bill, yet they are at the forefront of complaining about unstable power supply , change as implied by the president does not only apply to those in the helms of affair, until we learn to change our mindset and attitude,we will keep dragging this country backwards

This is a serious issue. The people's mind need to be purged and a lot of things need to be put in place so as to help deliver those paying for their neighbours.

kingdenny:
Very informative , most people dont pay their electricity bill, yet they are at the forefront of complaining about unstable power supply , change as implied by the president does not only apply to those in the helms of affair, until we learn to change our mindset and attitude,we will keep dragging this country backwards

Guy, speak for yourself. Most people I know, pay their electricity bill only to be shortchanged by the DISCOs at the end of the day.

laudate:


Your post was rather long, so I only cut out the part that I wanted to reply to.

First, a lot of DISCOS are lying through their teeth and cheating their customers. It amazes me, why they wish to get paid for electricity they have not supplied to their consumers.

I shared a story several months ago, about how the electricity tarriff in our old family house in Festac suddenly jumped from 5,000 naira monthgly to 30,000 naira monthly, despite the fact that the house had been empty for over a year. When we got this bill we were shocked, and quickly launched a complaint with Eko Disco.

They asked us to write a letter complaining about the anomaly, that it would be investigated and reversed. This was duly done. The following month, we were shocked when the monthly bill was distributed and this time, the amount said to be due for electricity consumption had doubled! How come? Another complaint was lodged, and another letter promptly dispatched to register our displeasure.

Later, one of the marketing managers discovered that the wrong rate had been applied to calculate the estimated bill several months earlier. She even agreed that there was no way such figures could have been incurred in a residential home, if they were not running a factory.

She later advised that power supply should be disconnected from the house as it was still lying empty, but monthly access charges would still be left to run. Okay, oh. This was over 14 months ago. As I speak, the over-inflated bills still keep coming, and the wrong charges have not been reversed.

It occurred to me, that there are likely to be a lot of consumers being ripped off in this manner, through wrong computation of bills, which the DISCOS are still carrying around on their financial books.

We then applied for a pre-paid meter. Till date, they have refused to entertain our requests claiming we must pay up all the outstanding bills on the old meter. And they know quite well, that these over-inflated bills were wrongly computed by their staff.

Now, if I tell you that the DISCOS are the most dishonest enterprise in Nigeria, would I be wrong??

Another factual experience - The pre-paid meter in my office went bad after less than a year of operation. The fault was duly reported at the local DISCO Office. What was their response? Go and buy another pre-paid meter for 60,000 naira (i.e. sixty thousand naira), in these hard times!! Ask me, if the term 'warranty' means anything to them. For the past 2 months, our office has been running on generators, while we wait for the DISCO to offer us a means of repairing or fixing the pre-paid meter!

i do understand your point especially with respect to crazy billss and the apparent lukewarm attitude of the DISCOs. please know that there are three complaint levels
1) to your DISCO customer care
2) to your DISCO customer forum
3) and ultimately to NERC
always ensure that you get your letters officially stamped as received by the DISCO and keep the duplicate for when you intend to complain. the problem with the system is that most of this complaints are attended to by your local business district which is still staffed by the old NEPA staffs who are prone to cutting corners to meet billing and collection efficiency.
please forward the complaint to the head office of your DISCO rather than your local business area.
if you are metered, please ensure that you keep track of your meter readings and your tarrif classification. massive effort is ongoing by most DISCOs to overhaul the system
by the way, is your PPM a three Phase meter?

Great Write up! Highly insightful!

abbeywasc:

i do understand your point especially with respect to crazy billss and the apparent lukewarm attitude of the DISCOs. please know that there are three complaint levels
1) to your DISCO customer care
2) to your DISCO customer forum
3) and ultimately to NERC
always ensure that you get your letters officially stamped as received by the DISCO and keep the duplicate for when you intend to complain. the problem with the system is that most of this complaints are attended to by your local business district which is still staffed by the old NEPA staffs who are prone to cutting corners to meet billing and collection efficiency.
please forward the complaint to the head office of your DISCO rather than your local business area.
if you are metered, please ensure that you keep track of your meter readings and your tarrif classification. massive effort is ongoing by most DISCOs to overhaul the system
by the way, is your PPM a three Phase meter?

Yes, it is a 3-phase meter.

How many months will it take the DISCO to provide a SOLUTION to the problem?? It has been going on for ages!!

laudate:


Guy, speak for yourself. Most people I know, pay their electricity bill only to be shortchanged by the DISCOs at the end of the day.

i do not doubt that most people you know pay their bills and are ultimately shortchanged(actually, i dont understand the type of the shortchanging) however, i have seen prominent leaders, judges, politicians and top government officials bypassing their meters. both end of the system needs to be corrected for two wrongs do not make a right

abbeywasc:

i do not doubt that most people you know pay their bills and are ultimately shortchanged(actually, i dont understand the type of the shortchanging) however, i have seen prominent leaders, judges, politicians and top government officials bypassing their meters. both end of the system needs to be corrected for two wrongs do not make a right

Did you read my initial post on this thread? That is what I mean by shortchanging??!!

Being asked to pay for electricity that was NOT supplied;

Being given crazily estimated bills that were wrongly computed by the DISCO staff, and being compelled to pay such bills;

Being asked to pay for a new pre-paid meter instead of the DISCO fixing it, when the old one which is still under warranty, developed a fault through no fault of the owner;

Monthly access charge of 750 naira being deducted every month, when the PPM was working, even though you do not get power supply for 15 days in a month;

These are some of the things that constitute "short-changing!!" Grrr!!!

Nice theory but the DISCOS are making so much money, light or darkness the bill remains the same so many Nigerians are responding by engaging in sharp practices.

laudate:


Did you read my initial post on this thread? That is what I mean by shortchanging??!!

Being asked to pay for electricity that was NOT supplied;

Being given craily estimated bills that have been wrongly computed by the DISCO staff, and being compelled to pay such bills;

Being asked to pay for a new pre-paid meter instead of the DISCO fixing it, when the old one which is still under warranty, developed a fault through no fault of the owner;

Monthly access charge of 750 naira being deducted every month, when the PPM was working, even though you do not get power supply for 15 days in a month;
These are some of the things that constitute "short-changing!!" Grrr!!!

so sorry about the mix up. never really notice yours was the quote i earlier replied
most of the problem you mention is due to metering and the fact that nigeria as a nation does not produce meters. if you have a prepaid meter, you cant be shortchanged that way. i think i have explained part of the what causes crazy bills apart from errors from DISCOs
the N750 fixed charge is always going to be contentious. NERC regulation stipulates that if you dont have supply for 15days in a month, you need not pay the fixed charge. the problem is that the billing system inherited from PHCN is not robust to handle such inconsistent deductions. thus, most DISCOs are either seeking or already migrating to better billing platforms that can handle such.
please know that the fixed charge is collected in line with NERC regulation and does not belong to DISCOs alone but to all the participant in the sector. i know the system is not okay for now, but drastic restructuring and repositioning is ongoing.

otokx:
Nice theory but the DISCOS are making so much money, light or darkness the bill remains the same so many Nigerians are responding by engaging in sharp practices.

Actually, the DISCOs do not make so much money. they do collect so much though. part of what they collect goes to the GENCOs and TCN(they get full value for their services from the DISCOs under the TEM agreement), NERC, and NBET.
i know none of this guys have ever collected a dime directly from anyone. have you ever wondered how they get their own revenue?