As the trade thrives, particularly in Karu local government area of Nasarawa State, the Nigerian Electricity Regulatory Commission (NERC) has declared it illegal.
LEADERSHIP Weekend learnt that because of the constant power failure in parts of Nasarawa close to the FCT and Karu, which sits on the fringes of the Federal Capital City (FCC), the businessmen in collaboration with landlords and community leaders acquired transformers under self-help initiative to boost power supply to the areas.
Findings by LLEADERSHIP Weekend revealed that because of the patronage it enjoyed, some money-seeking individuals have taken the business to a full commercial height where they operate like distribution companies. The “operators” buy transformers and retail electricity to make huge profit, relegating the Power Holding Company of Nigeria (PHCN) to the background.
Consequently, the distribution of electricity in Karu, parts of Nasarawa and some satellite towns in the FCT is now firmly in the hands of such individuals and not the PHCN.
It was discovered that the unwholesome act involves key officials and engineers of PHCN, freelance engineers, technicians, wealthy individuals and members of the various communities in Karu and parts of the FCT.
A local resident of T. Y. Burati Street in Mararaba, Vincent Jatau, told our correspondent that the problem started in 2008 when the area was thrown into darkness for months and some places for more than a year. “We were in darkness for about seven months and nobody cared about our situation; the 11KV line that supplied our transformer packed up and, after a series of repairs by PHCN, it was abandoned, leaving us to our ingenuity,” he said.
The retailed electricity is nicknamed “24 Hours Line” by the people it serves due to its reliability. Distribution to homes of buyers is by special cables coated in black and clearly separated from the general PHCN distribution 11KV lines. The web of the cables transverse the greater part of Karu and other satellite towns of the FCT.
The source of the “magic power supply” is the 33 KV distribution lines from Apo in the FCT which connects most of the highbrow areas of Abuja. It cuts through Karu in the FCT to PHCN sub-station in Mararaba, Nasarawa State.
Most parts of the council are on the 11KV distribution line that is now overloaded and inundated with multiple faults. The inability of the PHCN to fix the lines necessitated residents to look for other options, seldom tapping from the 33KV distribution line. This, according to reports, has more electricity on it, hence the purchase of 500KVA transformers to distribute electricity to the various communities.
A member of one of the community-based self-help electricity committees in Albarka area of Mararaba said that they were forced to go for the 33KV line because a contractor collected money from them but installed a small transformer in the area. “On realising the contractor collected our money and did a bad job and disappeared and the PHCN has no solution to the problem, we opted for the 33KV line using a 500KVA transformer. Since then, we have been enjoying stable electricity supply,” he said.
He further said that the PHCN is no longer relevant to the community because “we have our engineers and technicians who have the competence to install and repair faulty transformers and cables”. He admitted that some elements in the community have taken advantage of the situation to retail electricity for personal gains.
It was also learnt that the business is handled by wealthy businessmen who own cottage industries in the affected communities. They buy transformers and pay PHCN officials to be connected to the 33KV lines and sell electricity to interested residents upon payment of N10, 000 for a single room and shop, N15, 000 for a room apartment, N25, 000 for a two-bedroom flat, N35, 000 for a three-bedroom flat, N50, 000 for luxury houses, and over N100, 000 for a cottage firm.
LEADERSHIP Weekend further gathered that when the practice started in 2009, some homes were forced to pay about N100, 000 to be connected to the “private distribution grid”. This is aside the registration of meters and monthly electricity bills by PHCN. While the business thrives, more “investors” buy transformers and connect needy residents and retail electricity to them. This has expanded the 24-hour electricity to a greater part of Karu.
Further investigations revealed that the retailers buy the transformers for N3million and pay N1.5million for installation to PHCN. After retailing to residents, over N20million is sometimes realised, an “operator” said.
When LEADERSHIP Weekend contacted NERC chairman Dr Sam Amadi, he said he was not aware of the practice. “I don’t know because we receive complaints every day but I don’t know about the Keffi line or 24-hour line,” he said, adding that “if such act exists, it is illegal and criminal. The point here is to be sure that illegal practices in the sense are stopped. But, first, did the government provide them electricity? In this case, the corruption here is if PHCN provides electricity to those areas where private people provide transformers to make money and only a few get it. Retailing power is criminal and against the law. We are aware that some lines have more power supply than the other”.
Dr Amadi said for now only PHCN has the licence to retail power to the public and advised Nigerians to report to the commission any act that contravenes electricity regulations in the country.
On Burati Street in Mararaba, Karu, LEADERSHIP Weekend got a copy of the electricity application form used to register residents to a retailer’s transformer. The company, Maruta Ventures, is said to be owned by a businessman popularly known as “Alhaji”, who has never been seen by most residents. The company allegedly operates with some PHCN officials.
A resident of the area disclosed that the “man (Alhaji) has his boys who collects the money. They connected us for one month and told us to pay up the various charges and after then disconnected all the defaulters. In fact, a few days ago, some people were disconnected from the line for failing to pay the fixed amount”, he narrated.
On the form issued by the company, residents were instructed to pay all charges to a designated bank account. Also, rules F and J in the form states, “Annual fee for the maintenance of the transformer shall be charged and can be reviewed from time to time; breaking of any of the rules and regulations attracts penalties, ranging from disconnection, fine or as may be determined by the executives”.
An electricity retailer in New Nyanya, who produces table water, recently reviewed his charges from N180, 000 to N500, 000 to a customer, which the consumer could not pay and was disconnected from the transformer.
The phenomenon has encouraged a mass relocation of people to areas where power is available 24 hours. In fact, some areas in Masaka are being renamed Maitama and Asokoro because of the steady power supply to the area.
When our correspondent attempted to speak with some of the electricity retailers in the area, he was snubbed. At the PHCN sub-station along Old Karu in Mararaba, officials were also unwilling to speak on the matter. A member of staff in the station who sought anonymity said the matter is a sensitive one, adding, “Some people have become millionaires overnight because of electricity retailing. As long as the corruption in the system remains unchecked, many homes will be denied electricity and only those with means will enjoy the service.”
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