By EBUN SESSOU
In 2005, a new phase of meter was introduced in the country as a way of addressing issues pertaining to electricity billing system in the country. While the deployment of the new pre-paid meter introduced in 2005 was still on in the Lagos district, further distribution had been suspended in the Ikeja distribution zone since July last year.

But, Pekun Adeyanju, Principal Manager, Public Affairs, Ikeja Distribution Zone of PHCN said the project had not been suspended in his zone ”but deployment has been slowed down.”

Pekun Adeyanju

However, he disclosed that, the installation of the pre-paid meter is on-going but not as expected. “We are still installing the pre-paid meter but not at the rate expected of us. The issue is that there is a little problem on the part of the contractor that is handling the pre-paid meter. By the time the issue is resolved, we will go back to the massive installation of the prepaid meter.

”I can confirm to you authoritatively that there is no official directive to stop the pre-paid meter. From the feedback I am getting from my department, it is something that people want and the management is trying to do everything possible to resume massive deployment of it”, he said.

We are restoring over 7000 pre-paid meters every month and the target is to get it to 10,000 in the next one months. We are not giving out other meter again.

I don’t know why people find it difficult to get, we have told the people to be informed on the process. All they need to do is to go to the right place. Pay N25,000 for a single face, N5,000 for three faces . The process is not difficult at all. I have helped some people in getting the meter. But, people will not even make attempt of getting the meter before giving all sorts of complaints.

And for issues surrounding electricity including crazy bills,  he said, “I believe the prepaid meter will solve that problem. I don’t know why people keep saying that they are billed for what they didn’t consume. But, now that the pre-paid meter is out there is no point talking about crazy bills.

EFCC investigates contract on pre-paid meter supply

Undoubtedly, the new pre-paid meter project of the Power Holding Company of Nigeria in Lagos State has run into a hitch. This follow allegation of fraud in a N4.3billion loan granted the contractor producing the metering device, Saturday Vanguard investigation has learnt.

Already, the Economic and Financial Crimes Commission, EFCC, has sealed off the 70, Adeniran Ogunsanya, Surulere, Lagos business premises of Ziklagsis Networks, the company contracted to procure the new pre-paid meter for deployment to PHCN customers in the Ikeja distribution zone.

Earlier it was reported in one of the dailies that the office of Ziklagsis Networks was under lock and key with the EFCC seal on the doors.

Spokesman for the EFCC, Femi Babafemi was also  said to have confirmed that the company was under investigation over a N4.3 billion debts it owed Intercontinental Bank.

”Currently, we are investigating allegations of fraud and that is why we sealed the company. That is the much I can say for now because I don‘t want to say anything that will jeopardise the investigation,” Babafemi said.

When asked why the premises of Ziklagsis should be singled out to be sealed and investigated when several other companies owing the banks had not suffered the same fate, Babafemi said, ”We take such action when we suspect that there is a criminal element in the process of the grant of the loan. Ordinarily, we don‘t criminalise the normal process of banks granting loans. But if we suspect a criminal flavour in the award, approval and disbursement of the loan, we carry out investigation.”

Efforts made to get the management of the Ziklagsis to react to the allegations proved abortive as at press time.

Investigations also revealed that the former Chief Executive Officer of the company, Mr. Dehinde Oguntoyinbo, resigned over six months ago.

An August 18, 2009 posting on the CBN website listed Ziklagis as number 15 on the roll call of debtors of Union Bank of Nigeria with a non-performing loan of N4, 339,343,543.00 as at May 31, 2009.

But Babafemi insisted that it was Intercontinental bank that the company was owing and not UBN.

A source at the PHCN who, however, pleaded not to be named told our correspondent that it was the bank that invited the EFCC.

The source narrated, ”That Company (Ziklagsis) was not meeting its contractual obligation to PHCN in Ikeja Zone. Unlike the Eko Distribution Zone where more than 50 per cent of PHCN customers have the pre-paid meter, the rate of deployment and installation of the meter in Ikeja is less than 10 per cent. This did not please PHCN management which now withheld some payments to the contractor.

”But it is the bank that invited EFCC because I guess the contractor was not meeting up with its loan repayment schedule.”

The source further revealed that the bank had threatened to seize several containers of the new pre-paid meters imported by the contractor and sell them to mitigate its loss.  The pre-paid meters, introduced in 2005 to replace the old post-payment meters, is popular among PHCN consumers in several cities across the country.

It has been generally hailed as the solution to the twin challenge of controlling power consumption and the infamous “crazy bill” through which the PHCN forces consumers to pay more than they consume in terms of electricity supply.

Before now, there had been speculations that the PHCN officials had sabotaged the new scheme as it does not give them room to continue to extort electricity consumers since the new meter clearly erases the threat of physical disconnection of debtors.

Since customers will pay their bills upfront, the era of collecting bribe to connect defaulting customers has passed by the new meter which has the capability of automatically disconnecting consumers once they run out of energy credit.