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Members of the House of Representatives and Babatunde Fashola, Minister of Power, Works and Housing on Tuesday underscored the need to find lasting solution to the myriad of challenges facing the power sector in the country.
While the lawmakers harped on the need for prohibition and criminalization of estimated billing by electricity distribution companies, Fashola called for holistic remedial amendments of the Power Sector Reform Act that will focus on decentralization of existing grid system, mandatory arbitration system, contractual enforcement and severe sanction for energy theft.
Fashola who spoke during the public hearing on a bill which seeks to prohibit and criminalize estimated billing and provide for compulsory installation of prepaid meters to all power consumers in Nigeria, frowned at a situation where 8,000 out of 10,000 installed meters are being bypassed to the detriment of the DISCOs.
He also harped on the need for government to provide incentives for production and assembling of meters as part of efforts geared toward increasing capacity and employment generation.
On the financing capacity of the operators, Fashola disclosed that about N40 billion approved by Federal Government for metering programme in 2003 which was settled out of court, can be accessed by the DISCOs. According to him, the fund was converted to loan which any intending DISCOs and other operators can accessed in discussion with the policy arm of Federal Ministry of Power, Works and Housing.
He added that current portfolio and existing debts of the DISCOs pose a major challenge for them to access facility from the banks.
Fashola maintained that there is need for Central Bank of Nigeria (CBN) which provides funding under the Stabilization funding, should be invited by the House alongside with the banks.
According to him, there is need to provide for renegotiation in the bid to ensure efficiency in the performance of the DISCOs.
The Minister who argued that the DISCOs core responsibility is to acquire electricity from GENCOs, canvassed that other private business entities should be allowed to embark on metering.
He also admitted that there is urgent need to revisit the privatisation legislative framework with the view to address the challenges.
In a swift response however, Femi Gbajabiamila, Majority Leader noted that the operators cannot afford to jettison the agreements reached under the privatisation of the power assets, rather proposed that anyone who could not adhere to its obligation should lot out for other competent investor to take over.
Gbajabiamila who assured that all the inputs of the Minister and relevant stakeholders will be reflected in the final outcome of the bill, agreed on the need for exemptions and prohibition of estimated billing.
He maintained that the investors cannot afford to jettison the agreement after taking over the assets, just as he faulted the argument that metering is an ancillary function of the DISCOs with briefcase who jumped at offers without thorough evaluation.
Fashola who frowned at the lackadaisical attitude of Nigerian Electricity Regulatory Commission (NERC) on enforcement, noted that there was nothing wrong with the legislative framework, stressed that the law override regulation where they contradict each other.
KEHINDE AKINTOLA, Abuja
