OPINION: MINISTER FASHOLA; POWER SECTOR NEEDS LAW   

Most Nigerians will commend the performance, so far, of the honourable  minister since the beginning of his tenure as the minister for works,  housing and power and his antecedent in the transformation that took  place in Lagos state when he held sway as governor. The pace set, aligning it with what his predecessor, Asiwaju Bola […]

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Most Nigerians will commend the performance, so far, of the honourable  minister since the beginning of his tenure as the minister for works,  housing and power and his antecedent in the transformation that took  place in Lagos state when he held sway as governor.

The pace set, aligning it with what his predecessor, Asiwaju Bola Tinubu  achieved, bringing out the beauty in Lagos is still fresh in our memory.  The sustenance of  Tinubu’s legacy especially on the Lagos State  Traffic Management (LASTMA) which was set up in the year 2000, that  finally dealt with the major challenges faced in the transportation  sector of the state, saw governors running to Lagos to learn the methods  to be used in their states.

Then the question; can the same be replicated in the power industry? I  recognise the fact that the minister have been doing well with power  generation knowing fully well  that most of our generating plants have  not been maintained for years, most especially the hydro power plants  which many countries are making use of and getting the required energy  output from them to boost their economy in various sector.

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The same hydro plants have been neglected for years under the past  administration are now receiving serious attention,  even brazil gets  over 60 GW from the same hydro system.

But  a major aspect which you are not paying enough attention and  the  past administration also did not perform too well on and which might  possibly crumble all your effort in the long run is the law that  protects the investors against the parasites who are bent on destroying  the industry; who sees power as a national cake which must not be paid  for.

Sometimes in October 2013, Jonathan Kendall, a managing partner of Reno  Energy consulting in Rio de Janeiro says more than 8bn reais ( $3.7bn )  worth of power is stolen each year, mostly in major cities. “The  stealing of energy in Brazil is completely out of control “Kendall  said. I pray things will not be out of control in Nigeria power sector  and that’s the main reason for writing my piece. These is nothing  wrong in building many power plants, constructing new transmission lines  and having sleepless night to transform the power sector but if law to  stop the energy theft is not looked into, the same people will tell it  to your face that you haven’t done anything. For several years,  countries like Brazil, India were busy planning, building generating  plants to meet up the demands for electricity in their countries.

Sir, I can tell you today that Brazil have not less than 135GW  installed capacity of generating set from combination of hydro, gas,  coal, wind etc. But the income from the power generated with respect to  the one consume by the people is not encouraging. Recently, I had a  conversation with a friend who resides in kwara state. She told me of a  storey building in her neighbourhood that hasn’t pay for electricity  in years. You won’t be surprise you that many houses in our cities are  consuming energy for free.

Let me reiterate sir, if we attain the level of Singapore in power  supply today, in few months, many generation company will pack up  because of incurred debt. Sometimes around December last year, we had  interaction with a community that didn’t have supply for almost nine  years and we asked them question, “ if you have power in your village  today, how much do you think you will be billed “ she happily replied  that she shouldn’t be charged more than N500.

Most Nigerians do not have business with generation, transmission, NBET,  NIGERIA electricity system operator, market operators and the likes,  care less about how they operate but just want power supply whether  legally or illegally. The major fear is that when you do not take the  necessary action in curbing the parasite that can collapse the same  building you are raising with your sleepless night, knowing fully their  exist  danger , it will be a great regret at the end.

In Canada, under their criminal code, section 326, “everyone commits  theft that fraudulently, maliciously or without colour of right;  abstract, consumes or uses electricity or gas or causes it to be wasted  or diverted. If found guilty of an indication offence and is liable to  imprisonment for a term not exceeding two years or of an offence  punishable on summary of conviction, where value of subject matter of  the offences does not exceed $5,000”.

The only way the industry can work is if we have adequate funding which  is dependent on either the investors or people pay what they consumed  from the distribution company but as it stands today, many investors are  scared of the power industry because of many reasons related to recovery  of energy produced/consumed.

The law works in Canada because they have a visible law which is  effective and most importantly has a huge fine attached in exchange for  going to prison, thereby making it hard for people to steal energy  knowing the great danger in doing such evil act .

It is the same in the united states of America, theft of utility  services; inference of commission of theft; penalties under 2006 Lousina  law “ on the first conviction, the offender shall be fined not less  than one hundred dollars or imprisoned for not more than six months or  both. Or on a second or subsequent conviction, regardless of whether the  second or subsequent offense occurred before or after an earlier  conviction, the offender shall be fined not less than one hundred  dollars and not more than three hundred dollars.

The benefit of this law from these countries is majorly to protect the  investors, improve the power generation and supply adequate energy to  the people. Many plants from various generation company are been shut  down not because of non-availability of gas due to lack of funding to  procure gas and maintain the damaged ones.  In Nigeria, we have a unique and laughable law against energy theft,  from the electric power sector reform act ( EPSRA ) S.9 , we can all  read it up and laugh it out because it’s not visible and effective. So  many go ahead to do whatever they like with power. Death penalty is  quoted in the EPSRA Law, which from the inception haven’t seen anyone  convicted and yet, thousand engaged in the act of energy theft in this  country.  The effect of energy theft didn’t stop on the investors nor government  but on us all, ranging from frequent power outage, power surge,  accidents and all.

The privatisation of power is a laudable achievements which had turned  around the workforce in the industry and allowed brilliant brains to  join forces with the active existing old staff in the industry, no  doubts, the internal structure has been revived. Nigerians see the name  change, they still believe food vendor is still the same. So, they see  power as a free commodity and sees no crime in stealing the energy. If  we do not register it in their thought now, we will find ourselves in  the same situation with Brazil where ATC & C loses will be our  nightmare.

Written by Oguntoye Opeyemi .

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@equityoyo

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