Amidst global financial crisis, consumers pay for expensive darkness in Nigeria.
Despite the unstable state of power supply in the country, the Nigeria Bulk Electricity Trading Plc (NBET) has released data that show that electricity consumers in Nigeria paid about N250 billion for electricity for the first seven months of the year. The report, which was obtained by the press showed, however, that the amount was about N190 billion short of the over N450 billion that was invoiced for electricity supplied over that period of time.
The figure is also said to be about 25 percent short of the Minimum Remittance Order (MRO) set by the Nigerian Electricity Regulatory Commission (NERC) for electricity distribution companies known as DisCos. The monthly remittance report of the DisCos showed that 11 utilities remitted: about N38 billion in January; about N40 billion in February; about N30 billion in March; about N38 billion in April; about N30 billion in May; about N33 billion in June; and about N46 billion in July.
NERC activated a partial Power Purchase Agreement in July 2022.
On July 1, 2022, NERC activated a partial Power Purchase Agreement (PPA) with electricity generation companies (GenCos) for the supply of 5,505 megawatts of electricity for peak generation and a base load of 4,893 megawatts. The agreement guarantees that the gas supplied to the GenCos by gas companies will be paid for. It also ensures that the GenCos are paid for the electricity they supply to the national grid. This move is part of the efforts by the federal government to improve power supply in the country.
The recent partial Power Purchase Agreements means that all the 25 power generation plants on the grid now have an agreement in place to generate a certain amount of power and get paid for it. The National System Operator (NSO), a unit in the Transmission Company of Nigeria (TCN), have released data on power generation. According to the data, the national grid hit a peak generation of 4,718.8 megawatts on Saturday, November 5, 2022. As of 3 p.m. on Sunday, November 6, 2022, data from NSO showed that 21 power generation companies were supplying the grid with 4,187 megawatts, with Shiroro Hydro supplying 501 megawatts, Delta supplying 438 megawatts, Azura-Edo IPP supplying 375 megawatts and Jebba Hydro supplying 369 megawatts. These are among the top four generators in the country.
National President of electricity consumers says bill has tripled.
Amidst all these, electricity consumers are still complaining of hike in tariff and poor power supply all over the company. Speaking to the press, the national president of the Electricity Consumers Association of Nigeria (ECAN), Mr. Chijoke James, said that while power supply has improved since the beginning of July 2022, the electricity bills have more than tripled in charges. He said this is true especially for consumers on the estimated billing system. In Nigeria now, the Federal Government in conjunction with the electricity distribution companies is trying to have every apartment in every house in every area in the country fixed with a prepaid meter so that they do not have to worry about the estimated billing system.
According to the president of ECAN, it is important that the government should mandate the distribution companies to provide meters to consumers. He said that the policy that the consumers have to pay for meters is wrong because the meters should be free to all. He said, “It is the responsibility of DisCos to provide meters for their business.” He reiterated that the government must end the estimated billing method because consumers are paying for electricity that they have not consumed.
Epileptic power supply hurts businesses and innovation in Nigeria.
The current power situation in Nigeria has continued to hurt homes and businesses, especially Small and Medium Enterprises (SMEs). In 2022, at least three tertiary institutions have left the national power grid because of exorbitant rates without corresponding supply of power. Artisans and businesses who depend on electricity for their daily production have also decried the state of power supply. Artisans such as welders, fashion designers, electronic gadgets repairers, etc. and businesses such as bakery, processed food producers, animal feed producers, etc. have all complained about the situation.
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With this epileptic power supply in the country the best way for the people to save there self from unneccessary and over billing is just to get a prepaid meter and deviate from the estimated billing system structure that can have them pay for more than they use.
We actually do spend a lot on power supply. 250 billion naira is not a small amount of money. Are we actually getting the value of what we are spending our money on?
I don’t think so at all.
Despite not having electricity suppy all times we are still been extorted by our government and paying exhorbitant prices for what we are not consuming,the electricity distribution company needs to get their acts together.
A lot of money is been generated from us been paid for electricity and we are not enjoying the light self, since we are pay we are to be enjoying the electricity. We have to enjoy what we are paying for
With the recent partial Power Purchase Agreements, all 25 grid-connected power plants have contracts to produce a certain amount of electricity in exchange for payment.
The Federal Government and power distribution firms in Nigeria are striving to install prepaid meters in every apartment, house, and neighborhood to eliminate estimated billing.
It is essential that the government issue a mandate to the distribution companies requiring them to provide meters to the customers.
Nigerians paid N250bn for power in 7 months. That is too much oo yet government can’t even give us constant light. what a country
NBETn has released data that demonstrate that electricity consumers in Nigeria paid a significant amount of money for electricity during the first seven months of the year. This is despite the fact that the state of the power supply in the country is unstable.
its good The agreement ensures that payment will be made to the gas companies for the gas that is delivered to the GenCos by those gas companies. In addition to this, it guarantees that the generation companies will be compensated for the electricity that they deliver to the national grid.
this is good because it guarantees that the generation companies will be compensated for the power that they contribute to the national grid. This action is being taken by the federal government as a part of their attempts to improve the power supply throughout the country.
Given the country’s erratic electricity supply, those who want to avoid paying for power they don’t use can do so by switching to prepaid meters instead of subscribing to anticipated bills.
Within 7 month Nigerians were able to paid N250bn despite the epileptic electric power supply. These electric power companies are scamming us.
The estimated billing method needs to be phased out because customers are being charged for power that they have not used, and the government needs to do something about it.
The electric power companies has forcefully collect ₦250bn from us within 7 month this is extortion despite the unstable power supply. It is well.
All this money collected from the public and there is no any much improvement in the available of electricity to the people paying the money because of the corruption.
The electricity distributing companies need to get their acts together beacuse paying exhorbitant prices for what we are not consuming is not nice at all.
So they generate this much from Nigerians yet their no reasonable improvement on the state of power supply in the country. Some environments go as long as months with no light. This is cruelty
All this money is made yet electricity supply is so poor. It’s good that the ECAN president has addressed that meters should be distributed to consumers and not bought. Also the estimated billing method should be totally scrapped.