… says DisCos no more in charge of metering
By Etuka Sunday
Association of Nigerian Electricity Distributors (ANED) has said that the power Shortfall in the country currently is in excess of N1.4 trillion due to lack of Tariff Review by the Nigerian Electricity Regulatory Commission (NERC).
ANED while lamenting the regulatory failure of NERC, said, Minor Review as specified in the Multi-Year Tariff Order (MYTO) was supposed to be done every six months. However, the association said, since February 4, 2016, that legal provision has never been complied with.
Addressing newsmen on a range of issues in Abuja, the Executive Director, Research and Advocacy, ANED, Mr Sunday Oduntan said, for the sector to move forward, the gap created by the shortfall has to be bridged.
“We are still expecting a Minor Tariff Review from NERC. Currently, the shortfall is in excess of N1.4trillion due to lack of review. MYTO specified that Minor Review be done every six months, putting into consideration Inflation Rate, Lending Rate, Foreign Exchange Rate and Generation. But, since on February 4, 2016, there have never been a single Minor Review,” he said.
Mr Oduntan said, the Capital Expenditure (CAPEX) set by NERC in the DisCos’ tariff plan is making it impossible for the companies to finance investments like transformer installations and Mass metering projects.
“The current tariff we have is a suppressed tariff. The CAPEX for all DisCos is $5.5billion (N45billion). What can $5.5billion do in a year? Meanwhile, the Transmission Company of Nigeria (TCN) has N50billion per annum.
“With the CAPEX in place, you must not and cannot spend above it. If you spend above it, you cannot recover it. Business is about cost recovery,” he said.
The ANED spokesman said, there was no justification or data to support the claims that DisCos make more money from areas there are no meters as against areas where there are meters.
“Nobody can tell you that we collect more money from where there are no meters. Where there are meters, our studies have have shown that we make more money from there. Because there is what we call revenue assurance. I’m very sure that I will have money from where there are meters. Where there are no meters, I’m not sure of collecting money, because customers may not pay,” he argued.
The ANED man however, announced for the record that DisCos are no more in charge of Metering, saying that the Meter Asset Providers (MAP) appointed by the regulator (NERC) are the ones now in charge of Metering.
“DisCos are Primarily not in charge of Metering. Meter Asset Providers are now in charge of Metering. Although our previous obligated on Metering will not stop,” he said.
He condemns attacks on DisCos staff in Ilesha, saying that there was no justification for anyone to burn down DisCos’ infrastructure.
“There are laydown procedures to address greviances,” he said.
