By Idowu Oyebanjo
What exactly is
happening in the Nigerian Electricity Supply Industry (NESI)? Whose interests
are the leaders serving? Whose interest are the operators of the weak
electrical network serving? And most importantly, in whose interest is the The Nigerian
Electricity Regulatory Commission (NERC) regulating the industry?
*Sam Amadi, NERC Chairman
(pix: leadership)
These questions have
remained with us for a long time now. Each time one examines these questions,
more questions come to the fore. Was Nigeria ready for privatisation?
Does Nigeria
realise that the management of electricity systems is highly technically
intensive and would need individuals who know their onions to mediate the
course? Is the regulator aware of its role to protect consumers from the
regional monopoly of the operators? Why has it taken so long, after
"unending" complaints from poor and already impoverished consumers,
before NERC was forced by an order from the 8th Senate to carry out what is
supposed to be its main function?
Why should consumers be
pushed to the wall before a revolution occurs? Why should government wait until
a huge crisis of discontent from millions of individuals - North, South, East
or West, united in one voice, unleash mayhem on public utility and public
officers because of years of neglect and mismanagement of funds meant to provide
electricity for the nation? Why is Nigeria yet to have electricity
which was discovered over a century ago?
It is widely accepted
that regulation, where it is impossible to have competition, as is the case
with the distribution of electricity through wires, is a veritable means of
providing quality service at low cost to service users. This is true but so
much depends on the regulator. The principal role of a regulator in a
privatised electricity system is to cater for the interest of the consumers in
such a way that operators can make reasonable profit without exploiting the
consumers. In this regard, NERC has failed Nigeria woefully in recent times.
Why do we say this?
There is ample evidence
that NERC has orchestrated a villainous act against customers in the area of
estimated billing and fixed charges. In effect, NERC has raised money for the
distribution companies (DISCOs) from the pocket of already impoverished
Nigerians. With NERC unable to account or monitor how much money has been
"borrowed" from individual consumers, this act of treachery is
daylight robbery.