By Adewale Sanyaolu
Electricity consumers have hailed the decision of the Federal Government to sack the management of Benin, Kano and Kaduna Electricity Distribution Companies(DisCos) over financial insolvency and technical incapability.
The Nigerian Electricity Regulatory Commission(NERC) and the Bureau of Public Enterprises had in a joint statement announced the sack of the Managing Directors and Board of the three Discos.
This was coming after Ibadan, Abujaand Yola Discos had earlier been taken over in similar circumstances some months ago. The three utility firms were considered to be technically incapacitated and financially insolvent after their loan facilities from Fidelity Bank became unserviceable. Commenting on the development, President, Consumer Rights Advancement Organisation(CRADO), Chief Adeolu Ogunbanjo, said the decision by the Federal Government was a welcome development.
He said for long, the power firms have provided consumers with poor services amid huge estimated bills even in the face of harsh economic realities. He noted that some consumers pay far above the minimum wage for monthly electricity bills while they remain unmetered for years.
He said with the takeover, the Federal Government should ensure that there is no vacuum because the power sector is a very technical one, adding that competent professional should be allowed to run the firms. Ogunbanjo advised that the Federal Government should ensure that there is a supervisory team in place to ensure that what led to the failure of the past management does not repeat itself.
‘‘I spoke to a top official of Benin DisCo who told me in confidence that consumers are not willing to pay and as a result, they cannot meet their loan obligation. But I was quick to tell the official that the reason consumers fail to pay is because of the outrageous billing system and poor metering’’.
Rising under the auspices of the Nigeria Consumer Protection Network, the consumers said the three DisCos failed in their review of key performance indices.
For his part, President of Nigeria Consumers Protection Network, Mr.Kola OLUBIYO said in a to electricity consumers applaud the takeover. “Ordinarily the licensees had a ten years tenor. the mid term review ought to have taken place 5 Years into the post privatisation exercise but this was not done across board ..
The open book review, service level agreement, mass metering, investment in network improvement and overhaul, ATC & C Losses, governance structure, among others were all relegated to the background
Rather, what we had was rent seeking, profiteering and lack of fiscal responsibility and much needed Discipline . No Sector can survive if and where there are no sanctions for impunity and no consequences for infractions.
In the prevailing circumstances , we are on the same page with relevant Stakeholders in the present efforts to clean up the mess and free the Economy held by its jugular by the Non Performing Utilities.”