The senate and the house of representatives yesterday passed resolutions directing the Nigerian Electricity Regulatory Commission to prevail on distribution companies to stop the estimated billing regime of electricity consumption and the proposed tariff hike.
The senate’s resolutions were sequel to a motion entitled “Need to halt the proposed increase in electricity tariff by eleven successor electricity distribution companies (Discos),” sponsored by Messrs Yunus Akintunde, Ekpenyong Asuquo, and Aminu Abbas.
In his presentation, Akintunde said the 11 DisCos had filed application for rate review with the NERC.
He argued that the Discos had no justification for the proposed tariff hike, especially as the price of natural gas had not been reviewed.
He noted that the proposed increase would significantly impact the affordability of electricity and further impoverish the lives of average Nigerians.
In a unanimous decision, the lawmakers said Nigerians are going through hard times as a result of the removal of fuel subsidy.
The senate asked the NERC to decentralise the proposed engagement with stakeholders scheduled for Abuja to the six geopolitical zones of the federation for effective participation by all.
It also urged the NERC to thoroughly look into the rate review applications filed by the Discos, taking into consideration the interests of citizens, affordability and the need for improved service delivery;
Besides, it asked NERC to explore alternative measures to address the financial challenges faced by Discos, such as improving operational efficiency, reducing technical and commercial losses, and enhancing revenue collection mechanisms.
Furthermore, it asked the Discos to, henceforth, discontinue estimated billing and make available to all electricity consumers prepaid meters at affordable prices.
Thereafter, the senate mandated the committee on power (when constituted) to engage with the federal ministry of power, NERC, and other stakeholders to find lasting solutions to the challenges facing the Nigerian electricity sector, including the need for comprehensive sector reforms.
Similarly, the house of representatives urged the NERC to prevail on the DisCos to stop the estimated billing of electricity consumers across the country.
The house also urged NERC to sanction the DisCos for their poor supply of power to consumers and devise means of working out compensation packages for individuals, communities, private, and public entities for the investment in the distribution network.
It also charged its committee on power (when constituted) to interface with NERC and DisCos to address all issues making effective distribution of power difficult in the country.
The resolutions followed the adoption of a motion by a lawmaker representing Abeokuta south federal constituency of Ogun State, Mr Afuape Moruf, calling on the regulator to address challenges faced by electricity consumers.
Moruf, in his motion, argued that the 11 DisCos across the country have continued to render abysmal poor services to consumers, contrary to the Electricity Act, 2023.
He described as worrisome the fact that consumers pay for their meters, cables, and transformers, yet they are disconnected at will by DisCos.
“The Distribution Companies raked in a whopping N247.33 billion in the first quarter of 2023 as against N232.32 billion generated in the fourth quarter of 2022, representing a rise by 20.81 per cent compared to N204.74 billion generated first Quarter of 2022 (year-on-year consideration).
“Whereas electricity supply declined from 5,956 Gigawatt hour (Gwh) in the first quarter of 2022 to 5,852 (Gwh) first quarter of 2023 (year-on-year consideration), despite the increase in earnings; the distribution companies have demonstrated unfaithfulness toward the social contract with Nigerians, as enshrined and enhanced by the transitional effect of the Electric Power Reform Act, 2005 to the Electricity Act, 2023.
“NERC has watched helplessly while communities, individuals, and corporate organisations assumed the responsibilities of providing electricity transmission facilities (meters, cables and transformers) where they are either not available or repaired, where the same are faulty.
“Whereas, the commission can act within the ambit of its own created service charter that outlines consumer rights, obligations, expected service levels, and redresses applicable to them.
“While NERC watches the DisCos abdicate their responsibilities to communities, individuals, corporate bodies, and public institutions, no compensation mechanism has been evolved to ensure either an outright refund of these third-party investments in the distribution network or a possible conversion of same to electricity credits for the use of these ‘investors,” Moruf stated.
With Vanguard, Punch reports
