By Idowu Oyebanjo
The Federal Government
has announced plans to escrow and beam its searchlight into the revenue accounts
of the operations of the DisCos due to poor monthly remittances. Although
DisCos have condemned the move, this is a good step in the right direction. To
address the problems of NESI, a holistic view of every aspect of the
multi-faceted problems plaguing it is required with a view to solving them in a
coordinated manner. One of the major problems in the Nigerian Electricity
Supply Industry (NESI) today is the potential for illiquidity. In simple terms,
this arises when DisCos declare, whether truthfully or otherwise, that they
have not collected enough money from consumers of electricity and so are unable
to make full payments to the bulk electricity trader, NBET, for electricity
received.
This has the potential to always create illiquidity in NESI because
their remittances should have been used to pay all key stake holders in the
industry including but not limited to GenCos, TCN, Gas providers, market
operator, NERC, NBET etc. The solutions to address this anomaly include a
massive investment in customer metering, reduction in network losses,
preventing electricity theft and collusion of staff of electricity companies
with consumers to defraud the industry, discontinuation of estimated billing,
and ensuring that revenues collected by DisCos in behalf of NESI is transparent
to all key stakeholders, and not least the Federal Government which still owns
40% of DisCos. The government has chosen to implement the last of the
afore-mentioned solutions but the DisCos have frowned at the move. Thus a
critical review of the position of DisCos is in order.