Kenneth Udeh, Abuja
The Senate on Tuesday told the Federal Government to reject the planned electricity tariff increase by eleven (11) successor electricity distribution companies (DISCOS) with the Nigerian Electricity Regulatory Commission (NERC).
The upper legislative chamber also asked the Tinubu led administration to take into consideration the plight of the Nigerian citizens with regards to the prevailing economic situation, affordability and the need for improved service delivery while looking at the rate review applications filed by the DISCOS.
The resolutions were passed following a motion fronted by Senator Akintunde, Yunus Abiodun (Oyo Central) in which he informed the Senate that the DisCos had requested for a price review through an application sent to the Nigerian Electricity Regulatory Commission “NERC”.
The 11 DisCos had in their application explained that the need to review the price of electricity is based on the need to incorporate changes in macroeconomic parameters and other factors affecting the quality of service, operations and sustainability of the companies.
The Lawmaker informed the Senate that the NERC had organised an on going “Rate Case Hearing” to receive comments from stakeholders before taking its decision over the matter as published on the NERC’s official website.
Leading the debate, Yunus said that there was no justification for the price hike by the DisCos, stating that within the last 10 years, billions of naira were spent by Senators across Nigeria in the procurement and installation of transformers through various Zonal Intervention Projects (ZLPs) as a result of request in Senator’s various Constituencies.
According to Yunus since Senators had already procured transformers and other electricity infrastructure,the equipment have become registered properties of the DisCos (a privately owned enterprise).
However,Yunus bemoaned the refusal of DisCos to utilise such Transformers on the ground that affected communities have to pay millions of naira arrears of bills for electricity never consumed while keeping the affected consumer(s) in perpetual darkness.
He reminded his colleagues that the previous increase in the Multiyear tariff with assurances of improved service delivery by the DisCos was a waste as there is no commensurate improvement made by any of 11 DisCos in their respective service deliveries to justify the previous increment.
Yunus advised on the negative impacts of the price hike on citizens;
“The proposed increase will significantly impact the affordability of electricity for the average Nigerian, further exacerbating the financial burdens faced by households and businesses.
“high electricity tariffs will impede industrial growth, job creation, and overall economic development. This will have adverse effects on the nation’s drive towards sustainable development and poverty reduction.
“It is essential to address the issues of inadequate power supply, metering, and quality of service provided by the DisCos. Customers should not bear the brunt of inefficiencies in the power sector.
Supporting the motion Senator Senator Abbas Aminu Iya (Adamawa Central) noted that it is an unacceptable for DisCos to provide only 4 hours of electricity despite the purchase of electrical equipments by not only Senators, but by other legislators, members of the executive arm of government and community stakeholders including individuals.
The red chamber maintained that the price of gas, which was the major item being used by electricity companies to generate power, had not been increased.
Prompted by the positive contributions that besieged the motion, the Senate directed the NERC to decentralized proposed engagement with the Stakeholders scheduled for Abuja to the Six Geopolitical Zones of the Federation for effective participation by all.
The Senate also tasked the NERC to explore alternative measures to address the financial challenges faced by the DisCos, such as improving operational efficiency, reducing technical and commercial losses, and enhancing revenue collection mechanisms in addition to immediately discontinuing estimated billing and making available to all electricity consumers prepaid meters at affordable prices.
The senate resolved that henceforth, town hall meetings on electricity should be held at the headquarters of the companies.
The Senate also mandated relevant Committees (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.
Additionally,the Senate directed the DisCos to allow communities to recover the cost of purchasing transformers before asking them to pay bills and to also allow poor Nigerians to breathe.”
Senators Ekpenyong Asuquo, Jimikuta David, Ipalibo Harry Banigo and Abba Moro in their contributions supported the motion.
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