Adelabu said Nigerians would also be willing to pay more for electricity if they got an improved power supply for their money

The minister said this on Thursday when he visited the corporate headquarters of Ikeja Electric in Lagos State.

Adelabu, during a meeting with the management of the distribution company, said stakeholders in the electricity supply chain must gear up to create a basis for the removal of electricity subsidy for a cost-reflective tariff.

According to him, the challenges facing electricity are not insurmountable if all stakeholders play their roles well.

He expressed concern that a number of the 11 power distribution companies were not ready to invest in power infrastructure.

This, he said, the government would stop through legislation that would make capitalisation a requirement for all Discos.

“A lot of our distributors are satisfied with the status quo. There are some high-impact investments you can make in infrastructure that will double your fortune. It translates to increased revenue for you. Some Discos are not ready to put in any money, they are just satisfied with getting their monthly stipend.

“We will not allow that. That is why we are saying that if, by persuasion, we cannot achieve it, we will achieve it through legislation. We are looking at capitalisation requirements for Discos, which will compel them to pay more funds.

“Power business is highly capital intensive. It requires a lot of investments and infrastructure, and the investment can never be lost. It will also transform into sales and revenue for Discos. So we believe that our Discos must be ready to invest in high-impact infrastructure,” the minister said.

Adelabu stated that Nigerians are complaining over the current low power supply occasioned by gas constraints because there is much heat and fuel is no longer affordable due to subsidy removal.

He opined that Nigerians would pay more for power if it relieved them of the cost of buying fuel.

“It’s not like we have not experienced this kind of thing before, but the heat is too much now, while petrol and diesel for generators are no longer affordable. People who have been spending N2,000 on fuel now need N10,000. They cannot afford it; so, the noise is great.

“I believe a lot of people will be ready to pay for electricity, whether at the current tariff or an increased tariff, because ultimately we are going to migrate to the full cost-reflective tariff. Over the next three years, we should migrate. The government cannot continue to subsidise the cost of electricity.

“Guinea, Togo, Mali, Ivory Coast, and all the neighbouring countries that we have that are supposed to be poorer than Nigeria pay more than double what we pay here. I believe that our people will be ready, once they are sure of reliable and consistent supply.,” he added.

While welcoming the minister to Lagos, the Chief Executive Officer of Ikeja Electric, Folake Soetan, said the challenges of the country’s power sector are not insurmountable.

According to her, the power distribution company had gone through various stages of transformation over the years, from raising its customer base from 700,000 in 2015 to over 1 million in 2023.

Soetan also disclosed that the Disco has metered 800,000 of its customers while acquiring new transformers.

However, she stressed that there are challenges of energy theft and asset vandalisation, calling on the Minister for support.

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In a statement on Friday in Lagos by Kingsley Okotie, Head, Media Communication,  quoted its Chief Executive Officer, Mrs Folake Soetan, to have said this during an event to mark IE’s 10th anniversary.

According to Soetan, the company recognised the importance of transparency and accountability and therefore ensure this in its operations.

“We successfully deployed 830,292 meters to our customers, giving them control over their energy consumption and fostering a sense of empowerment.

“As part of activities marking Ikeja Electric’s 10th year anniversary, the board and management of the company thrilled its staff to a hybrid session, which showcased the past achievements and plans for the immediate future,” she said.

Soetan appreciated the team and highlighted the many industry’s ‘firsts’ achieved in the past decade.

According to Soetan, topping the list is the global certifications and in 2019, IE became the first distribution company to attain all three categories of certifications.

He said these included ISO 9001:2015 (Quality Management System), ISO 45001:2018 (Occupational Health and Safety Management System), and ISO 14001:2015 (Environmental Management System).

“This achievement reflects the dedication and hard work of each of you that contributes to our commitment to excellence.

“Recognising the importance of transparency and accountability, we successfully deployed 830,292 meters to our customers, giving them control over their energy consumption and fostering a sense of empowerment.

“This year, we celebrated a remarkable reduction in our Aggregate Technical Commercial & Collection losses; from 44 per cent in 2015 to an impressive rate marginally below 20 per cent , through our collective efforts in operational efficiency and sustainable energy practices.

“This achievement is a testament to the hard work and dedication that each member of our team brings each day,” she said.

Soetan said: “Time and again, we have undoubtedly demonstrated that our strength lies not only in our technical expertise.

“But in the hearts and minds of the incredible individuals that make up Ikeja Electric Plc’s dedicated Employee Volunteer Scheme, who passionately commit to and participate in giving back to our host communities and families.

She said, “As we recount on our journey, let us also look forward to the exciting possibilities that the future holds.

“Together, as one cohesive team, let us continue to illuminate lives, empower communities, and drive Ikeja Electric Plc to even greater heights,” she appealed.

In his welcome address, the Chairman of the Board of Directors, Dr Kola Adesina, congratulated and thanked the staff for the dedication and agility they demonstrated over the years, which had set the DisCo apart as the trailblazer in the Nigerian energy sector.

He said: “As we reflect on our journey, let us take a moment to appreciate the transformative period from 2013, when we strategically took over and rebranded from IKEDC to IE in 2015.

“These steps were not just a change of name but symbols of our commitment to progress, innovation, and, most importantly, to you- our invaluable team.

“We made history by being the first to launch a bilateral project, in 2019, thus showcasing our collaborative spirit and devotion to achieving excellence through teamwork.

“This is followed by the introduction of a 24-hour dedicated service for bilateral operations, emphasizing our commitment to providing seamless service and setting new standards in the industry.

“Our passion for exceptional service delivery is evident in our initiative to adopt automated payment channels by making transactions seamless and more efficient for our valued customers.

“We are not just providing a service but rather creating experiences that resonate with our customers.”

Toibudeen Oduniyi, the Director of the Post Transaction Management Department in the Bureau of Public Enterprises, and a board member of IE congratulated the staff.

Oduniyi expressed his optimism at IE’s innovative spirit encouraged the staff on remaining committed to delivering exceptional service to its teeming customers.

“I am assured that individually and collectively, you will keep attaining new levels, retaining your position as an industry leader.” he said.(NAN)

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Ikeja Electric (IE) Plc, which made this disclosure in its memo to the commission, noted that the directive is “in order to meet the tariff shortfall funding target from 2020 by the Federal Government of Nigeria.”

Owing to the directive, the 50 percent tariff increase is expected to raise the average tariffs from the current level of 27.30 N/kWh to 40.95 N/kWh, according to the Chief Executive Officer, Anthony Youdeowei.

The memo was dated February 12, 2020.

The power distributor titled the document: “Re: Addendum to Ikeja Plc’s Performance Improvement Plan and application for extraordinary tariff review of MYTO-2015.”
NERC, according to the IE document, said: “The objective for the extra-ordinary tariff review of MYTO-2015 is to ensure Ikeja Electric adjusts its tariff in line with the commission’s directive that current average allowed tariff shall be grossed-up 50% from April 2020.”

IE informed the commission that in line with the directive “we have designed the tariffs based on the MYTO tariff model contained in the document, ‘Ikeja DisCo Tariff Model Jan 2020’ shared with IE by the commission.

“In this application, we intend to create a new tariff class, called Bilateral; a class that is being created for customers that IE has a signed Power Purchase Agreement (PPA) with under a willing-buyer-willing seller arrangement. In order to provide an efficient and reliable service to customers in this tariff class, cost-reflective tariffs are required to cover the cost of service delivery.

“Our total bilateral energy procured is currently 200MW, however, bilateral sales in this application, is only the portion of the bilateral energy that has been contracted with customers on a willing-buyer-willing seller arrangement.”

The power firm said that the expected MYTO 2020 and bilateral revenue requirement are collected sales (GWh) in MYTO is 3,955mw, and bilateral 161mw, total 2020 for 4,116mw.

According to IE, the collected energy sales based on the 50 percent tariff increase in MYTO is 3,955GWh, while of the bilateral sales is 161GWh.

It also noted that the expected MYTO 2020 and bilateral revenue requirement, are N162billion and N8billion respectively, to give a total revenue requirement of N170billion.

The IE said that the “50 percent tariff increase is expected to raise the average tariffs from the current level of 27.30 N/kWh to 40.95 N/kWh.”

The document added that “the addition of bilateral sales revenue requirement further increases the average tariffs to 41.31N/kWh. Over the next five years (2020-2024), we have assumed the bilateral revenue requirement forms part of the title allowed revenue.”

The Executive Director, Research and Advocacy, Chief Sunday Oduntan, Association of Nigerian Electricity Distributors (ANED) said that the 11 electricity distribution (Discos) will not commence the implementation of the extraordinary tariff review of MYTO-2015, until they get the go ahead from the Nigeria Electricity Regulatory Commission (NERC).

Speaking with The Nation on phone, he noted that the power firms were yet to get the go ahead from the commission.

He however, admitted that the power distributors will kickstart the implementation of the new tariff when the commission gives the directive.

His words: “The DisCos cannot do anything until the regulator says so. The regulator has not asked us to charge the new tariffs. They (NERC) has the say. Once they ( NERC) says we should start, we will start charging.”

NERC’s General Manager, Public Affairs, Dr. Usman Abba Arabi, didn’t pick calls to confirm whether the new tariff will become effective on April 1.

He also did not reply to text messages that The Nation sent to him on the matter.

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The acting Chief Commercial Officer, Ikeja Electric, Ugochukwu Obi-Chukwu, made this known on Tuesday in Lagos.

Obi-Chukwu said his organisation had just completed meter installation for all residents of Unilag Estate in Isheri, adding that metering of Magodo residents had also commenced.

He said that the service would be extended to the entire business unit in the next few weeks.

“This exercise is part of the company’s efforts to bridge the metering gap under its network,” he said in a statement by Mr Felix Ofulue, Head, Corporate Communication Unit, IE,

Obi-Chukwu said that the exercise was also in line with the directive of the Nigerian Electricity Regulatory Commission (NERC), promising that the organisation would be deploying meters in phases.

According to him, the deployment of meters will start with Shomolu, Ikorodu and Abule-Egba Business Units, while the second phase would include Akowonjo, Ikeja and Oshodi Business Units.

“We have commenced metering in the University of Lagos Estate, Magodo and some other areas as a pilot scheme.

“It is the unique demography of these areas that has made the survey of customers very easy,” he said.

The acting chief commercial officer advised customers to make payment based on the survey, adding that meters would be installed within 10 days after payment.

Obi-Chukwu, however, cautioned against meter bypass, warning that offenders would be prosecuted.

“The company has put measures in place to ensure that the meters are not by-passed, and there are monitoring team patrolling on daily basis to check the meters.

“Whoever is caught by-passing his/her meter will be made to pay N50,000 fine for single-phase meter and N100,000 fine for three-phase meter.

“Also, such customers will be charged for loss of revenue and be billed backward, as will be determined by Ikeja Electric. The fine depends on the nature and level of the by-pass,” he said.

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Felix Ofulue, the Head, Corporate Communications Unit, in a statement said that this was to close the metering gap within its network in a renewed commitment to satisfy the yearnings of customers.

According to Ofulue, the company is abiding with the regulator’s guideline which states that all customers have a right to properly installed and functional meter.

He said that the regulator also stated that un-metered customer should be issued with electricity bills strictly based on Nigerian Electricity Regulatory Commission’s (NERC) estimated billing methodology. Ofulue said that the roll out would cover residential customers across its six Business Units, in its first batch of renewed metering drive.

According to Ofulue, the company remains resolute in its commitment to provide meter to all its customers and narrow the metering gap as quickly as possible.

“Ikeja Electric wants to reassure customers and state clearly its plans to progressively reduce estimated billing thereby building customers trust in our services. At the moment, prepaid meters are being installed in different communities across the network.

“While in other localities, pre-installation activities are ongoing and between now and the end of the year we will have concluded the first batch of the deployment. We therefore urge our customers to be patient as our ultimate objective is to ensure that all our customers are eventually metered.” Ofulue said.

Ofulue assured customers in Ikeja, Abule-Egba, Akowonjo, Oshodi, Ikorodu and Shomolu who had indicated their eagerness would be issued meters.

He said that with this move, the organisation was adding its quota in narrowing the metering gap. “The recent report by the National Bureau of Statistics (NBS) showed an increase of 1.59 per cent in the number of prepaid meter to customers, which is an indication that the meter gap is gradually closing.

“The Federal Government has consistently enjoined the Distribution Companies (DISCOs)to provide meters to customers in a bid to narrow the gap and reduce complaints of high consumption charges and estimated billing.

“This is in line with the Electric Power Sector Reform (EPSR) Act, 2005 to ensure an efficiently managed electricity supply industry that meets the yearnings of Nigerians for stable, adequate and safe electricity supply,” he said.

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Felix Ofulue, the company’s Spokesman, told newsmen on Friday in Lagos that the interruption would take place from March 6 to April 4.

Ofulue said the outage was to enable the Transmission Company of Nigeria (TCN) to carry out routine work on the Ikeja West Transmission Station.

He said that Ojodu, Magodo, Alausa, Oke-Afa, Bolorunpelu, Egbe, Igando, Shasha, Ipaja, Alimosho, Agege, Egbeda and Abesan would experience power outage during the period.

According to the spokesman, other areas to be affected include Ayetoro, Abule-Taylor, Ogba, Ifako, Shomolu, Gbagada, Oworonshoki, Ogudu, Isheri-Olowora, Berger, Anthony and Otta.

“We are appealing to consumers to bear with the company during the maintenance work. The maintenance will enhance improved service delivery,” he said.

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