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Power Firms Owe Consumers Explanation for Estimated Billing – Fashola

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The Minister of Power, Works and Housing, Babatunde Fashola
  • Power Firms Owe Consumers Explanation for Estimated Billing

The Minister of Power, Works and Housing, Mr. Babatunde Fashola, has said that the power distribution firms should explain to consumers the basis for estimated billing, which they subject them (consumers) to and when it will end.

Fashola, who stated this on Monday at the 12th Monthly Power Sector and Stakeholders’ Meeting in Ibadan, hosted by the Ibadan Electricity Distribution Company, however, said rapid provision of prepaid meters would help to cement consumers’ trust.

He stressed the need for the firms to build confidence and trust between them and the consumers by communicating the steps being taken to improve service delivery.

“Consumers still feel that they are getting the wrong end of the stick with the estimated billing method. While the deployment of meters must go on at a very rapid and aggressive pace, Discos also owe an explanation to consumers on the basis of the billing where they are estimated, and explain when it will end,” the minister said.

He said, sometimes, the explanation would help people react more positively, but described the provision of meters as the solution.

“So, I continue to stand on the side of consumers; they have a right to have meters and the Discos have an obligation to deliver them whatever it takes. This is the business they signed up to and we will support them to do this,” the minister added.

Power generation in the country has worsened in recent weeks after hitting the 4,000 megawatts mark in December last year, with many consumers without prepaid meters complaining about over-billing despite the dip in supply.

Commenting on the problems in the power sector, the minister said sabotage of gas assets and pipelines had “decommissioned power plants and their ability to provide up to 3,000 megawatts of power.”

“The 3,500MW to 3,800MW that we have been able to keep on the grid over the last few months will be assisted greatly if we can have the gas pipelines back and add 3,000MW to it. That means we will be able to deliver well over 6,000MW if the gas pipelines are safe,” he added.

Fashola said the sabotage of facilities had also created debt and liquidity problems, shortfall in power expectation and in revenue recovery by power distribution firms.

He told the power investors and other stakeholders at the meeting, “Consumers are more resistant to payment when they don’t have electricity; I will be, too, and you will be too.

“We see that they (consumers) pay more when the power is more stable. Of course, there are issues also at the retail end, including metering and estimated bills.”

Meanwhile, the Federal Government on Monday issued a Friday, February 17, 2017 deadline to power distribution companies to submit their audited and management accounts.

It also directed the firms to make all submissions of debts owed them by its Ministries, Departments and Agencies on or before February 28.

The Nigerian Electricity Regulatory Commission and the Power ministry have on several occasions condemned the refusal of power distribution companies to submit their audited accounts since they took over the successor companies of the defunct Power Holding Company of Nigeria.

In November last year, the Minister of Power, Works and Housing, Babatunde Fashola, stated that in the past three years, the Discos had refused to submit their audited financial reports to NERC, adding that when the commission wanted to activate their contractual obligations as stipulated by law, the power firms dragged it to court and frustrated its efforts.

“Your advert should also have told the Nigerian public how many Discos have gone to court to frustrate the attempt by NERC to hold them to their contracts so that they can pay the Gencos, who have been sacrificing, and the gas producers, who have not received payment and who have continued to act patriotically,” Fashola had said.

To put an end to the delay by the Discos, the Federal Government came up with the deadlines and mandated the firms to comply.

The two directives were contained in a communique issued at the end of the 12th monthly meeting of operators in the power sector, which was chaired by Fashola and had the highest executive management staff of organisations in the industry in attendance.

The communique read in part, “The meeting also noted the steps taken to address the liquidity issues currently limiting the functioning of the sector through the work that is presently underway to identify, verify and pay MDAs’ debts to the Discos, as well as gas debts and generation debts.

“It was noted that Abuja, Ikeja, Ibadan and Yola Discos have complied with data requirements and verification of their submission is underway on a first come, first serve basis. A deadline of February 28, 2017 was issued to receive submissions on the MDAs’ debts from distribution companies, and February 17, 2017 was set as a deadline for the submission of audited and management accounts.”

The communique stated that participants at the meeting decried the negative impact caused by the sabotage of gas pipelines and that this had caused a severe limitation in power generation.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Government

Senate Suspends Senator Abdul Ningi for 3 Months Over Budget Padding Allegations

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Abdul-Ahmed-Ningi

The Senate has announced the suspension of Senator Abdul Ningi for three months following his allegations of budget padding to the tune of N3.7 trillion in the 2024 budget.

Ningi, who represents Bauchi Central and chairs the Senate Committee on Population, had made the claims in a recent interview with the Hausa service of the BBC.

During a plenary session, Senator Olamilekan Adeola, the Chairman of the Senate Committee on Appropriations, raised a motion to address Ningi’s allegations, citing the urgent need to address what he termed as “false allegations.”

The transcript of Ningi’s interview was read on the Senate floor, prompting deliberation on the appropriate action to take.

Initially, Senator Jimoh Ibrahim proposed a 12-month suspension for Ningi, but Senator Chris Ekpeyong moved to reduce it to six months.

Eventually, Senator Garba Maidoki amended the motion further, suggesting a three-month suspension.

The amended motion was put to a voice vote, and Senate President Godswill Akpabio announced the decision to suspend Ningi for three months.

Following the ruling, Ningi was escorted out of the Senate chamber by the Sergeants-at-arms.

The suspension comes amidst division within the Senate over Ningi’s claims, with some senators disowning his allegations and calling for a thorough investigation.

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Ekiti Governor Unveils Multi-Billion Naira Relief Programmes Amid Economic Crisis

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Biodun Oyebanji

Ekiti State Governor, Mr. Biodun Abayomi Oyebanji, has announced a comprehensive relief package aimed at alleviating the hardship faced by the people of the state.

The relief programs encompass various sectors to cushion the impact of the economic downturn.

One of the key initiatives entails clearing salary arrears amounting to over N2.7 billion owed to both State and Local Government workers.

This move signifies the government’s commitment to addressing the financial burdens faced by its workforce.

Furthermore, Governor Oyebanji has approved a substantial increase of N600 million per month in the subvention of autonomous institutions, including the Judiciary and tertiary institutions.

This augmentation is intended to enable these institutions to implement wage awards in alignment with State and Local Government workers’ salaries.

In addition to addressing salary arrears, the relief programs extend to pensioners, with the approval of payments totaling N1.5 billion for two months’ pension arrears.

Moreover, an increase in the monthly gratuity payment to state pensioners and local government pensioners will provide additional financial support, totaling N200 million monthly.

The relief initiatives also encompass agricultural and small-scale business sectors.

The allocation of funds for food production and livestock transformation projects underscores the government’s commitment to enhancing food security and economic sustainability at the grassroots level.

Governor Oyebanji emphasized that these relief programs are part of the state’s concerted efforts to mitigate the adverse effects of the economic downturn and foster shared prosperity.

The comprehensive nature of the initiatives reflects a proactive approach towards addressing the challenges faced by Ekiti State residents.

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President Tinubu Orders Immediate Settlement of N342m Electricity Bill for Presidential Villa

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power project

President Bola Tinubu has directed the prompt settlement of a N342 million outstanding electricity bill owed by the Presidential Villa to the Abuja Electricity Distribution Company (AEDC).

This move comes in response to the reconciliation of accounts between the State House Management and the AEDC.

The AEDC had earlier threatened to disconnect electricity services to the Presidential Villa and 86 Federal Government Ministries, Departments, and Agencies (MDAs) over a total outstanding debt of N47.20 billion as of December 2023.

Contrary to the initial claim by the AEDC that the State House owed N923 million in electricity bills, the Presidency clarified that the actual outstanding amount is N342.35 million.

This discrepancy underscores the importance of accurate accounting and reconciliation between entities.

In a statement signed by President Tinubu’s Special Adviser on Information and Strategy, Bayo Onanuga, the Presidency affirmed the commitment to settle the debt promptly.

Chief of Staff Femi Gbajabiamila assured that the debt would be paid to the AEDC before the end of the week.

The directive from the Presidency extends beyond the State House, as Gbajabiamila urged other MDAs to reconcile their accounts with the AEDC and settle their outstanding electricity bills.

The AEDC, on its part, issued a 10-day notice to the affected government agencies to settle their debts or face disconnection.

This development highlights the importance of financial accountability and responsible management of public utilities.

It also underscores the necessity for government entities to fulfill their financial obligations to service providers promptly, ensuring uninterrupted services and avoiding potential disruptions.

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