Friday 24 April 2020

Two Months Free Electricity - Have government paid for the Postpaid Bills And Prepaid Meter electricty consumption as a result of the Lock down?

Were you rejoicing that bill hasn't been delivered to your residence and probably you are claiming that government have paid for free electricity supply as a results of the lock down announced to slow and contain the spread of the Corona virus Pandemic - this is a mere happenstance that might have been caused due to the marketers delay in getting a bill across to your residence perhaps because of the Lock down, I have received my bills and plans to pay, because the DISCOs are private owned.

When I first heard of the palliative measure to make possible free Electricity. I wasn't optimistic because this is what we know we can truly feel and will support the poor, middle-class and the rich - With no will, plan, finance or provision to back it up and here it won't be a fable of conditional cash transfer we keep hearing.

WHAT YOU SHOULD KNOW ABOUT THE POWER SECTOR

The Electricity value chain consist of the Generating companies(GENCOs), Transmission Companies (TCN) and the distribution companies (DISCOs).

We all are more concerned about the DISCOs because they are the ones that distribute power to the households, offices and companies after it must have been stepped down power to 33kv and 11kv from electricity from TCN.

The government only owns the TCN and partly some GENCOs and have privitized the DISCOs and some GENCOs.

Some GENCOs need gas to power their stations before Generating to TCN and transmit to DISCOs, the DISCOs are the bottom of the value chain and they are the ones that go after the money and pays the NBET who then pays the return to GENCOs and TCN.


DID GOVERNMENT PAY FOR FREE ELECTRICITY

The NBET is paid by the DISCOs after customers might have paid for Electricity, that's when you pay your bills before and after disconnection or when you recharge your prepaid Meyers and the NBET get across payment to the GENCOs and TCN.

What government paid was ₦200 billion for the gas that is supplied to GENCOs to wheel power the country - which has Always been the norm as the money generated by DISCOs after remittance to NBET is always poor as majority of Nigerians have huge outstanding debts and some refuse to pay their bills and also they have issues with cost reflective tariffs. When we stop paying our bills there's a chance that we may stop getting power supply, because the private companies (DISCOs) will not be able to continue rendering service.

VERDICTS: Government can't just make order for free Electricity - the government must first raise the necessary fund to pay the Distribution companies because they are private owned and will need to do capital expenditures to keep distributing power.

So far it's just propaganda - it will take within 120 - 180 billion Naira paid to the DISCOs before free supply can be achieved. That wasn't budgeted for in our 2020 budget and no provision have been made by the House of representatives on this and we've not heard of any sitting on this.

That's why when I saw the staff that was beaten I felt bad for him. We should avoid this. It's the money paid for Electricity to DISCOs that will end up being paid through NBET to TCN and GENCOs.

If you don't have money then there's no need beating staffs that have families waiting for them to come home and we are still the people that will complain when there's no power supply and we have refused to pay because of a sensational headline of we shall, we will and we may do.

Government haven't paid for free Electricity and so far there's no hope of it in sight. If it happens it will be a miracle - as we've not even taken care of the poor who are hungry and are still having donors aid our fight on COVID-19

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