From Ndubuisi Orji and Kenneth Udeh, Abuja
The Senate and House of Representatives have told the Nigerian Electricity Regulatory Commission (NERC) to reject planned electricity tariff hike and immediately halt arbitrary billing of electricity consumers by Distribution Companies (DISCOs).
At separate plenary, yesterday, both legislative chambers also asked the President Bola Tinubu-led administration to take into consideration plight of Nigerian citizens with regards to the prevailing economic situation, affordability and need for improved service delivery while looking at the rate review applications filed by DISCOs.
In the Senate, the resolutions were passed following a motion by Akintunde Yunus in which he noted that DISCOs had requested for a price review through an application sent to NERC.
The 11 DISCOs had in their application explained that the need to review the price of electricity was 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 NERC had organised an ongoing “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 there was no justification for price hike, 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 various Constituencies. He said 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 consumers in perpetual darkness.
He reminded his colleagues that the previous increase in the multi-year tariff with assurances of improved service delivery was a waste as there was no commensurate improvement made by any of the 11 DISCOs in their respective service deliveries to justify the previous increment.
Yunus advised on the negative impacts of the price hike on citizens saying: “The proposed increase will significantly impact the affordability of electricity for the average Nigerian and further exacerbate 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 Abbas Aminu Iya, said it was unacceptable for DISCOs to provide only four 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 contributions the motion received, the Senate directed NERC to decentralise proposed engagement with the stakeholders scheduled for Abuja to the six geopolitical zones 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 recover cost of purchasing transformers before asking them to pay bills and also allow poor Nigerians to breathe. On its part, the House of Representatives urged the NERC to reprimand the DISCOs for the abysmal electricity supply to consumers, as well as work out modalities to compensate communities, individuals, and other private and public entities for their investments in the distribution network.
It mandated its Committee on Power (when constituted) to interface with NERC and DISCOs to address issues impeding quality services delivery to consumers.
This followed adoption of a motion by Afuape Moruf calling NERC to address challenges confronting electricity consumers.
In the motion, he expressed dismay that the 11 DISCOs have continued to render poor services to consumers, contrary to the Electricity Act, 2023. He stated that it was more worrisome that consumers pay DISCOs for meters, cables and transformers, yet they were disconnected at will by the former.