UNDERSTANDING THE ELECTRICITY DISTRIBUTION SITUATION IN (PHED) BUSINESS AREAS

The Nigeria’s Power Industry has a perennial history of inefficiency, lack of accountability, corruption, poor customer service and poor regulatory framework amongst others in every facet ranging from generation, transmission and distribution.

These gaps have individually and/or collectively impeded the quest for stable, cost-effective and customer-friendly power supply to both households and businesses, especially the rural-based across the length and breadth in Nigeria, thereby stunting the growth of micro, small and medium enterprises (MSMEs) which hitherto should be the engine of socio-economic development by creating employment opportunities for increased individual and household incomes.

The unbundling of the country’s power sector and the privatization of its generation and distribution components is yet to be translated into better customer service delivery, mutual accountability, transparency, improved returns on investments, and expanded networks.

Currently, a number of issues plague the electricity sector. These issues cut across the entire value chain: from generation to distribution and consumption. Whereas increased attention has been paid to the dynamics of improving generation, less has been given to the issues that permeate the interactions between distribution companies and consumers, especially small businesses and households. These issues revolve around the costing of electricity consumed at any one time, how much electricity is actually consumed, power shedding and the indiscriminate billing systems that varies depending on the neighbourhood. These are the accountability issues that undermine the existing value chain.

These issues are often attributed to the corruption that permeates the operations of distribution companies. Nonetheless, it is our belief that a consumer-directed approach can provide viable solutions to these problems.

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