GOING by the provisions of the Electric Power Sector Reform Act and NERC regulations, distribution companies in Nigeria are expected to own, maintain and upgrade distribution infrastructure up to the point of delivery.
IT is in line with these provisions that the commission has repeatedly cautioned against forcing customers to procure transformers. The Commission’s Regulation on Investment in Electricity Networks provides for a refund mechanism where communities invest in electricity supply.
HOWEVER, it has been observed with disgust that these regulations are flouted with impunity. Communities in Nigeria, in most circumstances, are left with no option than to purchase and install transformers.
UNFORTUNATELY, once communities purchase and install transformers, ownership is transferred to the Distribution Companies, who use it to extend supply to other streets. The communities are turned from customers into involuntary investors, who get no dividends, only bills. These transformers become assets to private profit-making companies, who in turn sell them electricity. In fact, communities buy transformers, cables, poles, meters, and even properties which by law and logic belong to the utility companies.
THE Social Contract is inverted and we call for a change. Electricity is not charity. It is a product that Nigerians pay for, and pay heavily. Citizens pay connection fees and also pay for power through estimated billing and prepaid meters. They pay Band A tariffs that are among the highest in West Africa.
WE call on distribution companies to live up to their responsibilities of maintaining , oiling and protecting transformers. They should budget for growth, as demand for power grows on daily basis and also budget for replacement and upgrade, while levies on communities should not be their business model.
DISTRIBUTION Companies should take a cue from mobile network operators, who build, maintain, upgrade and replace their own infrastructure to guarantee uninterrupted service without a recourse to communities to fix poor network signals or replace a damaged mast.
THERE is need for massive transformer audit and recapitalization programme. We therefore, urge the Federal Government, which still holds 40% equity in the Distribution Companies, to carry out a comprehensive audit of all overloaded and faulty transformers and compel the companies to replace them within a defined timeline, especially in underserved communities.
THE burden of generating power with generators, buying poles and transformers is too much on Nigerians.
NERC should ensure enforcement of its regulations and apply appropriate sanctions where necessary.
