Electricity bills: DISCOs may disconnect MDAs over N93bn debt

There are indications that the electricity distribution companies in the country may soon cut off power supply to government ministries, departments and agencies over N93bn outstanding debts.

Investigation by Saturday PUNCH   revealed that members of the Association of Nigerian Electricity Distributors have resolved to disconnect all the MDAs in the federal, state and local governments over the debts.

A source in ANED, which is made of 11 DISCOs, told our correspondent that if ongoing negotiations with the Federal Government fail to resolve the financial crisis in the power sector, the members will be left with no other choice but to cut off power supply to all debtors, including MDAs.

The source said if the debts were not paid soon, the chain of electricity supply from generation to transmission and distribution of power would collapse.

“We are having discussions with the Office of the Vice President (Prof. Yemi Osinbajo) over the issue and the Minister of Power, Works and Housing (Babatunde Fashola, SAN) is involved. President is  also   aware of it, but if that fails, we will  disconnect the MDAs anywhere and everywhere,” the source said.

“Then, it will no more be about government house this or government that.”

According to the source, the DISCOs’ biggest debtor is the military, particularly the Nigerian Army.

The source said military installations in the country have not paid electricity bills since the private DISCOs took over from the Power Holding Company of Nigeria.

He also identified the police and local governments as  other big debtors.

“We are not afraid to disconnect military installations,” the source said.

“If not for the ongoing discussions with the government, we would have disconnected the military installations and nothing would have happened. We are not afraid to disconnect military installations, even though we have had situations in the past when our workers were attacked by soldiers for doing their job.

“We are not afraid of disconnecting anybody. The truth is that the era when we were afraid of the military is gone.

“We have a strategy that is very technical such that we can disconnect an establishment or a house without having to go there. There are ways to do it.

“But now, the Federal Government is on top of the situation so we have decided to wait and see.”

Information made available to Saturday PUNCH showed that as of March 2016, the Nigerian Army owed DISCOs N18.7bn.

For example, the army owed Abuja Electricity DISCO N3.9bn; Kaduna DISCO, N3.8bn; Ikeja Electric, N1.63bn; Ibadan DISCO, N1.7bn; Enugu DISCO, N1.4bn; and Eko DISCO, N2.2bn.

The Nigerian Airforce owed the DISCOs a total of N2.1bn; the Nigerian Navy, N1.7bn, pushing what the military owed to N22.2bn as of March.

Findings also showed that federal ministries and parastatals in the Federal Capital Territory alone owed the Abuja DISCO N3.3bn.

According to information made available to our correspondent, local governments across the country owed the various electricity DISCOs over N500m.

It was revealed that the total debt for Abuja DISCO as of March stood at N10.5bn, but has shot up to N12bn by July.

“The debts are so much that unless something is done, we will not survive,” the source said.

“As of March 2016, Nigeria Police Force owed the various DISCOs a total of N2.1bn.

“For example, Abuja DISCO N329m; Benin DISCO, N367m; Eko DISCO, N134m; Enugu Disco, N109m; Ibadan DISCO, N156m; IE, N454m; Jos DISCO, N118m; Kano DISCO, N32m; Port Harcourt DISCO, over N20m; Yola DISCO, N71m.

“We have generation companies asking us to pay debts running into billions of naira. Where can we get the money when people are not paying our own bills? And the money is more for the whole value chain; only 24 per cent of it is meant for the DISCOs, the rest go to all those involved in the supply of electricity in this country.”

But when our correspondent reached the Executive Director of ANED, Mr. Sunday Oduntan, on his mobile telephone, he neither denied nor confirmed the information.

He said that the association was in discussions with the Federal Government and the Minister of Power, Works and Housing over the issue.

“We are more interested in negotiating and making sure the issues are resolved,” he said.”