Stories by Adewale Sanyaolu
This may not be cherry news for millions of Nigerians expecting to witness an end to the menace of estimated bill, as feelers from the industry has indicated that those who fall into such category may have to wait a little longer.
At a media parley held in Lagos recently, the management of Ikeja Electric did not mince words when it hit the nail on the head, saying the company would still continue with the estimated bill for electricity consumers.
The outburst from the management of Ikeja Electric is obtainable in virtually all the 11 electricity distribution companies (Discos) across the country, with consumers lamenting on daily basis over outrageous bills.
A large number of Nigeria’s electricity users are on estimated billing system that leaves most of them paying higher than what they consume per month.
To end the crazy estimated bills they receive, the government had established the credit apply initiative – CAPMI – to enable consumers make payment for meters that should, by law, be delivered within 45 days of payment.
Most consumers made payments but meter delivery in most cases exceed 45 days. The complaints over non-receipt of meters mounted and the government suspended the scheme.
From Lagos to Ogun, Abuja, Jos, Ibadan, Enugu, the story is the same as both households and industrial users of electricity have continued to lament the impact of crazy bills on their businesses.
While some Small Medium Enterprises (SMEs) have had to close shop over the huge debt burden of crazy bills, others have had to resort to the use of alternative sources of power generation in a bid to avoid the outrageous billing system.
Nigerians demand presidential directive
A former governor of the old Kaduna State, Balarabe Musa, recently added his voice to those of other Nigerians asking President Muhammadu Buhari to immediately issue a presidential order to electricity distribution companies, mandating them without delay to install meters in every home, particularly in cities.
Only recently, Nigerian electricity consumers protested in Benin City, the Edo State capital, at what they call a “fixed rate” electricity tariff regime introduced by the Benin Electricity Distribution Company (BEDC). The protests forced the intervention of former Edo State Governor, Mr. Adams Oshiomhole. A similar protest followed in some parts of Lagos where the protesters condemned the high estimated bills being sent to the communities by the electricity authorities.
Some cross-section of Nigerians who spoke to Daily Sun, said that if the political will is there for the President Buhari-led Federal Government to lift countless numbers of Nigerians out of the oppressiveness of crazy bills, a presidential order is all that is required to compel electricity distribution authorities to install meters in every home to which they provide services or forfeit their licenses.
According to them, Nigerians who live in small apartments with just two bulbs and a fan are forced to pay up to N2,000 or N3,000 in some instances due to estimated billing because the Discos have failed to meter them. He said it was a situation that would not be tolerated under any serious government truly concerned with lifting its people out of poverty.
Crazy bills to continue
The Acting Chief Executive Officer, Ikeja Electric, Anthony Youdeowei, had said that with the present economic recession and its effect on the foreign exchange, the estimated bills would linger for some time.
He said that the company had metered 90 per cent of its transformers in the zone, which would make the estimation to be based only on the energy consumed from the transformer.
Youdeowei said the company had reduced considerably the charges on consumers placed on estimation as more were connected to the company’s database.
“Recently, the estimated billings of consumers is coming down because more consumers are now under the company’s database. At present, we are able to enumerate about 700,000 under our database, and I’m sure we are still going to improve on it. Nobody is perfect; consumers who have problems with their bills should report to our customer care office,” he said.
He disclosed that metering of consumers under the zone was not an easy task in view of increase in the foreign exchange, adding that the rules of the game have changed because of the challenges they are facing now.
“The single phase meter we were buying for N40,000 is now more than N100,000 and the money is not coming from consumers. Presently, we have metered all trading points and most of the companies in the zone.”
Youdeowei said the company was facing financial challenges because the present tariff was not cost-reflective, stressing that Ikeja Electric is buying energy at N305 and selling to consumers within its zone at N199 per kilowatt.
“It is a tough business environment and we cannot dictate the price because we are being regulated by the Nigerian Electricity Regulatory Commission (NERC).”
Fashola puts up defence
The Minister of Power, Works and Housing in Nigeria, Mr. Babatunde Fashola, had in October, at a forum on Electricity Metering that had heads of Discos and meter producing companies in attendance, said that the installation of meter is a process that takes time to complete.
Linking the delay to the process the crux-panel installation of meters must go through, Fashola had said, “the ideal situation will be to meter everybody, but if we had the metering gap that we have today, if we have the three million estimated meters we need today to meet the date, it will need man-hours, one after the other, hours upon hours, to actually install all of them.
“We should also understand that metering is also a process. Meters are first produced and then they are calibrated for each Disco,’’ the Minister had said.
A former Minister of Power, Prof. Chinedu Nebo, had put the number of unmetered electricity consumers at 55 per cent.
Position of Discos/meter manufacturers
Chairman of MOMAS Electricity Meter Manufacturing Company Limited, Mr. Kola Balogun, told the forum that there were about 3.3 million meters installed in Nigeria. He said the issue of financing and foreign exchange had affected the production of meter in Nigeria.
Identifying standardisation as a challenge, he said the sector needed to come out with a clear framework that would ensure that houses are metered. He noted that questions have been raised on why consumers cannot buy their meters themselves.
On his part, the Managing Director of Enugu Disco, Mr. Robert Dickerman, told the forum: “If you let customers buy their own meters, they will buy the wrong one. Smart meter is better for us but no customer will buy a smart meter.”
On the estimated billing system, he said his company had followed a methodology that would ensure that customers do not get crazy bills. “For customers who do not have a meter and are on interim period until we can meter everyone, there is an estimated billing and this is quite controversial for some people. “No one should be getting something called crazy bills because the estimated methodology is based upon the availability of the supply line, which is called the feeder to that area.”
Lagosians benefit from NNPC/SNEPCo health outreach
…As PETAN honours Shell, Ojulari
Thousands of Lagosians have benefitted from a health outreach organised by the Nigerian National Petroleum Corporation (NNPC) and Shell Nigeria Exploration Production Company (SNEPCo), which offered free medical services and education at strategic areas in the mega city.
The Health-in-Motion programme took the team of doctors and nurses to Lagos Island East Local Government Area and the Ojota Motor Park, one of the largest in Lagos State, providing cardiovascular screening, screening for blood sugar and cholesterol, alcohol breath test for drivers, HIV counselling and testing, malaria testing, screening for breast, cervical and prostate cancer, dental care/minor surgery, optometry/distribution of eye glasses and treatment of minor ailments.
‘‘We are pleased to reach our extended families with this first major health initiative,” said SNEPCo Managing Director, Bayo Ojulari, as he reflected on the outcome of the exercise.
Meanwhile, the Petroleum Technology Association (PETAN,) a group of indigenous technical oilfield service companies in the upstream and downstream sectors, has honoured the Shell Petroleum Development Company of Nigeria Limited (SPDC) with the Distinguished Achievement Award (Corporate) at the 2016 Oil Industry Awards Dinner held in Lagos recently. The award was in recognition of the company’s pioneering role in Nigerian content development.
PETAN also handed out a Professional Award to Mr. Bayo Ojulari, Managing Director of Shell Nigeria Exploration and Production Company (SNEPCo,) for his notable contributions to the development of Nigerian content in the oil and gas sector. Both awards were presented by the Group Managing Director of NNPC, Dr. Maikanti Baru.
SPDC was cited for leading the way in Nigerian content development and implementing initiatives that have enabled more indigenous companies to provide goods and services in the oil and gas sector.
“We are motivated by these gestures to continue to pursue the belief that it is only in bringing happiness to others that we reach our greatest values,” said Osagie Okunbor, Managing Director, SPDC and Chairman, Shell Companies in Nigeria. “We commend PETAN for consistently supporting programmes that nourish the Nigerian oil and gas industry manpower base despite the challenges of the current low oil price situation, and we have since recognised in you the enduring qualities for true partnership.”
In addition to awards from PETAN in 2013, 2014 and 2015, SPDC has also been honoured in Nigerian content development by the Nigeria Oil and Gas (NOG) Conference, the Nigerian Association of Petroleum Explorationists (NAPE), the Nigerian Chamber of Shipping and at the Social Enterprise Report and Awards (SERAs.)
On his part, Ojulari was recognised for distinguished service and leadership, particularly his contributions to the development of HSSE management and local content development as well as the advancement of petroleum engineering within and outside Nigeria.
London conference to discuss Africa’s oil, gas opportunities
Energy and Corporate Africa, the organiser of Africa Small and Marginal Oil Field conference, has disclosed plans to focus on opportunities in Africa’s oil and gas sector in London next year.
The Chief Executive Officer of the America-based, Energy and Corporate Africa company, Mr. Sunny Oputa, said amid new investors’ friendly legislation that encourages participation of indigenous companies and Foreign Direct Investment (FDI) in the development of oil and gas assets, and significant divestment of assets by big oil companies in the region, Africa’s oil patch opens up massive opportunities for independent and indigenous companies that are ready to benefit from this emerging new wave of economic buoyancy.
The conference will bring together the region’s energy, oil and gas senior government officials, national oil companies, independents, indigenous companies, banks, investors, legislators and analysts to share knowledge and also network for the benefits of all concerned.
Expected participating nations include Nigeria, Ghana, Equatorial Guinea, Angola, Gabon, Senegal and Cameroon.
Oputa explained that the conference will showcase available assets both large and marginal, farm-in and other business opportunities through national and company presentations. It will afford deal seekers and decision makers grand platform to interact under the same roof.
The organisers equally announced a change in the conference name, which is now to be known as ‘Africa Marginal and Independent Producers (Oil/Gas) Conference’.
He explained that the change is as a result of new global demand and the need to appreciate and inculcate independents that have made tremendous growth in the development of local resources.
This, it said, aligns with the imperative agenda of African governments to balance production with economic developments, adding that this has given rise to the need to ensure rapid development of stranded assets, large and marginal fields.
Sun
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