Amidst controversies on electrical power availability, distribution and billing plaguing the nation’s industrial development and socio-economic growth, the Delta Association of Chambers of Commerce, Industry, Mines and Agriculture ( DACCIMA) has proffered a five-way step out of the quagmire to the Federal Government and Electricity distribution companies (DISCOs).
DACCIMA stated its proposal in a position paper, tagged: “Addressing The Underperformance of Nigeria’s Electricity Distribution Sector,” released by its Director General, Fidelis Onu.
According to the paper, DACCIMA arrived at the five-step position after diligently reviewing the challenges in the electricity distribution sector and identified the following problems: financial and technical underperformance, metering gap, disbursement and implementation delays, inadequate infrastructure and corporate governance issues for which they proposed the five step solutions.
It should be recalled that recently, DISCOs and the NERC the Electricity regulation commission decided to segment electricity consumers into bands for billing purposes while also hiking tariffs, along with prevalent estimated billing disputes. A situation that is at the core of labour agitations for increase of workers wages.
However, in proffering solutions to the identified challenges, DACCIMA urged the Federal Government and Electricity distribution companies (DISCOS) to first, fast-track implementation of the smart Meter installation programme by prioritising contract awards and ensuring timely execution.
They should ensure transparency and accountability in distribution and installation of meters, to prevent corruption and delays, then provide incentives for for local meter manufacturing to reduce costs and dependence on imports.
Second step is to improve funds disbursement and utilisation by establishing a dedicated task force to oversee timely disbursement and effective utilisation of the World Bank $500 million (Dollar) loan.
Here DACCIMA called for strict timelines and performance benchmark of funds utilisation with penalties for non-compliance, enhance coordination between the World Bank, Federal Government and DISCOS to ensure seamless project execution.
Thirdly, DACCIMA identified the need to strengthen infrastructural development by launching a comprehensive programme focused on modernising existing electricity distribution network.
Federal Government should further take steps to attract private sector through public-private partnership (PPPs) to fund infrastructure projects, implement advanced technologies such as smart grids to enhance distribution efficiency and reduce loss.
Corporate governance enhancement is the fourth step proposed by the body.
Here, DACCIMA urged Federal Government to implement corporate governance reforms within DISCOS to enhance transparency, accountability and efficiency.
Regular conduct of audit, performance evaluation to ensure compliance with best practices in DISCOS, then encourage stakeholders engagement, including consumers and industry experts in decision-making process to foster trust.
Fifth proposal is for Federal Government to promote energy efficiency and alternative sources through encouraging energy efficiency initiatives among consumers to reduce overall demand, encourage development and integration of of alternative energy sources such as solar and wind power to diversify the energy mix and reduce reliance on national grid, also provide incentives for businesses and households to adopt renewable energy solutions.
DACCIMA finally stated that the multifaceted and complex challenges of electricity distribution sector require coordinated efforts from all stakeholders and stressed its belief that implementation of the five-step proposals can significantly improve the sectors performance, leading to more stable, efficient electricity supply for all Nigerians.
Also they reiterated their commitment to working with the Federal Government.