The Abuja Electricity Distribution Company (AEDC) has issued a 72-hour ultimatum to all customers with outstanding bills, urging them to settle their accounts immediately or face disconnection.

In a press statement signed by the company’s Acting Managing Director/CEO, Victor Ojelabi, he stressed that customers must pay their outstanding bills by Monday, June 3, 2024, to avoid disruption of their electricity service.

Recall that a recent report revealed how some government ministries, departments and agencies (MDAs) are among the top debtors of electricity distribution companies (DisCos).

According to the report the total debt owed by the Ministry, Agency and Departments (MDAs) alone is N100 billion, which is further crippling the already struggling power sector.

Ojelabi therefore stated the importance of adhering to payment deadlines to maintain efficient and reliable service.

“The timely payment of electricity bills remains crucial for the continued operation and enhancement of AEDC’s infrastructure, which is essential for delivering uninterrupted service to the community.

“All outstanding bills must be paid within 72 hours of this notice, by Monday, June 3, 2024,” the statement partly read.

Power Distribution Companies (Discos) are reportedly contemplating widespread disconnections of several companies and factories, fearing substantial losses estimated in billions of naira.

Recall that following the surge in electricity tariffs for Band A customers in the nation from N66/kWh to N208/kWh, the Manufacturers Association of Nigeria (MAN) lodged a petition with NERC, urging a reversal of the new electricity rates for its members.

Citing numerous economic challenges confronting manufacturers and business owners in the country, the association argued that the escalated electricity tariffs would further exacerbate the hardships of conducting business in the nation.

The Manufacturers Association of Nigeria (MAN) instructed its members across the country to persist in paying the previous rate of N66/kWh to the distribution companies (DISCOs) pending a resolution of the petition filed by the association to the National Electricity Regulatory Commission (NERC)

NERC approved the new tariff due to financial illiquidity and mounting losses incurred by the DisCos stemming from the lack of a cost-reflective tariff within the power sector.

The Minister of Power, Adebayo Adelabu, had earlier said that the federal government was subsidising about 67 percent of the power sector, expected to amount to N2.9 trillion by the end of 2024.

The report also showed that about 52 percent of electricity costs would not be subsidised monthly as the government has halted a significant portion of the electricity subsidy.

With the refusal of MAN to pay the tariff, DisCos are expected to bear more losses in the coming months.

According to the latest report by NERC, DisCos, revenue collections stood at N294.95 billion out of the N399.69 billion billed to customers in the fourth quarter of 2023, indicating a N105.1 billion loss in total.

Manufacturers believe they are being unfairly targeted with high electricity tariffs, insinuating a government strategy to shift the burden of electricity cross-subsidies onto them, a responsibility previously borne by the government before it ceased subsidising the sector.

The aim is to impose cost-reflective rates on these companies.

Electricity cross-subsidy is a process where tariffs are adjusted so that customers with high demand and more reliable power supply pay higher rates.

This is done to compensate for customers who receive limited power and face affordability challenges.

To secure payment of the revised tariff, sources claim DisCos are threatening widespread disconnection targeted at companies and factories that have refused to pay the new rate implemented by NERC.

An official who chose to remain anonymous disclosed that the power distribution companies would have no choice but to disconnect some of these companies from their services as the old rate remains unstainable for the electricity providers.

“I think DisCos have no choice but to embark on widespread disconnection to avoid carrying over these losses.

“Meanwhile, we also understand some of the companies are seeking alternatives such as gas and ‘eligible’ customers to reduce their electricity cost,” the source said.

Furthermore, the Director-General of MAN, Mr. Ajayi Kadiri, stated in his correspondence that members have received bills indicating the tariff hike, with some being notified of impending electricity supply disconnections to their factories.

“Our members have been served bills reflecting the increase and some have been informed that electricity supply to their factories will be cut off.

“This is rather unfortunate and does not demonstrate the willingness to engage manufacturers with a view to arriving at a mutually beneficial outcome,” Kadri said.

Last Thursday, a panel of NERC adjourned its verdict on the petition by the Manufacturers Association of Nigeria, MAN, indefinitely.

The Vice Chairman of NERC, who doubles as Chairman of the panel, Dr Musiliu Oseni, said that the commission would take some time to review the petition and come up with a fair verdict.

On their part, however, the counsel to MAN, Tola Oshodi, urged the electricity regulator to reverse the recently hiked tariff for Band A consumers, as it was inimical to the manufacturing sector.

“We are here to appeal. MAN was not given an opportunity to make representation before the new tariff was fixed.

“MAN is recognised in the guidelines as a stakeholder that must be engaged before such decisions, but it never happened. The provision for stakeholders’ engagement was not complied with.

“We appeal that the new tariff should be suspended as we go through the process of engagement,” he said.

Minister of State for Petroleum Resources (Gas) Rt. Hon. EkperikpeEkpo has commissioned a 5.2m Compressed Natural Gas (CNG) plant in Lagos.

Speaking, Ekpo said the occasion, under the theme “From Gas to Prosperity: CNG for All”, represents a critical turning point in the development of affordable, sustainable, and secure energy sources in the country.

The Minister described 2024 as a historic year for Nigerians, stressing that through his courageous decision to eliminate fuel subsidies and promote the acceptability and broader use of LPG, President Bola Tinubu has brought about several fresh beginnings in the lives of Nigerians.

“Although the elimination of the Premium Motor Spirit (PMS) subsidy has brought difficulties, it has also given us a once-in-a-lifetime chance to invent and adopt more economical, efficient, and sustainable energy alternatives,” the Minister stated.

Ekpo noted that the use of CNG as a transport fuel is a mature technology used globally as it is the cleanest burning fuel in terms of Nitro-oxide and soot emissions. While it can be employed to power passenger cars and city buses, CNG passenger vehicles emit 5-10% less CO2 than comparable gasoline powered passenger vehicles, the Minister added.

Ekpo said more of the stations will be replicated across commercial centres in the six geopolitical zones of the country.

The project is a partnership between the NNPC Gas Marketing and Transit Gas Nigeria Limited (TGNL) and Ekpo thanked the two companies for supporting the objective of utilizing the country’s abundant natural gas resources to accelerate economic development and growth.

According to him, what the two firms did was in line with the President Bola Tinubu’s “From Gas to Prosperity: Renewed Hope” programme.

The Minister informed the gathering that the Federal Government will continue to innovate and invest in requisite infrastructure that will allow Nigerians to get full benefit of its gas resource.

“As the Nation continues to take giant strides in the adoption of CNG as a sustainable alternative to PMS and AGO, we are resolute to bring the benefits of CNG adoption closer to the Nigerian people, and projects like this are major milestones in achieving this objective,” said Ekpo.

“By harnessing the potential of our natural gas resources, we are not only driving economic growth but also paving the way for a more sustainable and prosperous future for all Nigerians,” he added.

Ekpo who described CNG as a cheaper, cleaner, more eco-friendly, and safer source of fuel than traditional liquid fuels, noted that its usage will enhance the nation’s efforts to meet its Nationally Determined Contributions (NDCs) obligations to the Paris Climate Change Agreement.

Lagos State Governor, Mr. Babajide SanyaOlu, in his speech at the event described the CNG project as an important and strategic investment by the NNPC.

The governor said CNG powered vehicles offered cleaner and cheaper source of fuel, especially when viewed against the backdrop of the removal of subsidy on PMS.

He announced that the Lagos State government would be purchasing over 2,000 brand new CNG buses to refleet its public transport system, while converting no fewer than 2,500 vehicles to run on the gas.

Group Chief executive officer (GCEO) of NNPCL, Malam Mele Kyari said the CNG project would bring succor to motorists all over the country.

He said investment in the project was an obligation for NNPCL in line with  provisions in the PIA which demanded the  promotion and  utilisation of gas and the creation of economic prosperity to Nigerians.