Sometimes When the TV Blows....

Electricity is needed everywhere –sometimes giving rise to corruption and inefficiency in the electricity sector. It ranges from petty corruption at the level of meter readers and linemen, to grand larceny by the political executives who award lucrative concessions or require state-owned utilities to sign unfavorable power purchase agreements (PPAs). Utility managers are often in the middle, getting their share from suppliers and contractors.

Doing Business is currently developing a new indicator on the importance of electricity for businesses in countries across the world, and its findings might provide incentives for governments to enact necessary reforms to improve transparency and efficiency in the electricity sector.

Theft of underground electric cables in Zimbabwe took a toll on households in Harare's Kambuzuma suburb, damaging domestic appliances worth billions of dollars. Households lost electrical appliances, including television sets, decoders, radios, stoves and refrigerators after a sudden surge in voltage.

The local utility, Zesa, has faced widespread criticism for the power outages, with Zesa taking more than three days to restore power in some localities citing fuel shortage as the reason. The utility did not have fuel for its vehicles to transport staff to repair the power lines, it declared. Residents were skeptical.

To make matters worse for affected residents, they will find it tough going to collect any compensation from Zesa as they signed an “exemption clause” on their application for power which states that “Zesa does not compensate where damages result from a vandalism-induced problem."

In Lagos, Nigeria, incessant power cuts have led to constant use of diesel generators, spewing exhaust fumes skywards. The power failures - called "lights out" - come frequently and unpredictably. Across Lagos, Nigerians blame their government for the electricity problems, saying funds earmarked for the country's generation plants seems to have disappeared. Under President Olusegun Obasanjo, who was elected in 1999, the government is seeking to privatize the state-run power company, the National Electric Production Authority - known as NEPA.

Nigerians joke that NEPA actually stands for "Never-Ever Power Always."