An expert on power, Kunle Olubiyo, has said lack of investment and obsolete equipment, among other factors, continue to hinder the growth of the power sector.

Mr Olubiyo, who is also the president of the Nigeria Consumer Protection Network, made this known in Abuja on Wednesday.

According to him, the electricity distribution companies (DisCos) have not demonstrated the capacity to invest in the sector.

He also said that there were a lot of obsolete equipment in the transmission segment of the sector.

Mr Olubiyo said that the 11 DisCos lacked the requisite resources to fund the mass deployment of electricity meters required to guarantee cost recovery and return on investment.

He stated, “They also lack the capacity to close the huge revenue gaps to stop the liquidity challenges bedevilling the sector. The DisCos also lack the requisite resources to buy new distribution transformers, upriser cables, armoured cables, feeder peelers, aluminium conductors, insulators and critical line materials.

“When you visit many parts of the country, you discover that those old meters that were there during the time of the National Electric Power Authority (NEPA) are still in existence. They are also seen in some rural areas because these meters are not there; the DisCos continue giving estimated bills to customers whether they get electricity or not.

”With the liquidity challenges, the service providers only collect estimated billings from customers monthly and get revenue from the end users that are metered. They cannot invest in the distribution network due to paucity of funds.”

Mr Olubiyo also said that DisCos lacked the requisite resources to engage ad hoc staff for customer enumeration, required to guarantee accuracy of the population and provide updated Know Your Customer (KYC).

He said at the moment the sector lacked accuracy of customer data that was scientifically accurate and veritable.

Speaking on the transmission segment of the value chain, which was the midstream, he said that most of the equipment in that subsector was very obsolete.

Mr Olubiyo said that there was also the challenge of improperly installed grid meters.

“When these meters are not properly installed between the three segments of the sector, which are the generation, transmission and distribution, the reading will not be accurate,” he said.

According to him, corruption is embedded in the sector’s privatisation.

He added, “We have said it times without number that the process was not transparent enough. Those who do not have resources or cognate backgrounds, experience, or knowledge were granted licences for the privatisation.”

(NAN)