The Nigerian senate has asked the executive arm of Government to consider the plight of the poor and vulnerable in the society and put a halt on proposed Increase in Electricity Tariff by Electricity Distribution Companies (DISCOS)
This is also as the upper chamber Urged the Nigerian Electricity Regulatory Commission (NERC) to decentralize proposed engagement with Stakeholders scheduled for Abuja to the Six Geopolitical Zones of the Federation for effective participation by all
The red chamber also urged 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
The resolution of the upper chamber follows a motion sponsored by Senator Abbas Aminu (Adamawa Central) and Co-Sponsored by Asuquo, Ekpenyong (Cross River South)
Senator Abbas in his presentation pointed that the eleven (11) successor electricity distribution companies (“Discos”) have filed an application for rate review with the Nigerian Electricity Regulatory Commission (NERC)
He added that the request for rate review is premised on the need to incorporate changes in macroeconomic parameters and other factors affecting the quality of service operations and sustainability of the companies
According to him the Commission in line with its mandate has requested the general public for comments on the rate review applications by the distribution licensees while advising interested stakeholders to review and take into consideration the excerpts of the Rate Review Applications filed with the Commission by the respective licensees.
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He further stated that as part of Nigerian Electricity Regulatory Commission (NERC) rule-making process and in the exercise of the powers conferred by the Electricity Act 2023, the Commission is empowered to conduct a Rate Case Hearing on the applications prior to making a ruling
The Lawmaker lamented that within the last 10 years, billions of naira was 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
Adding that when these transformers are supplied and installed they became registered properties of the Discos ( privately owned enterprise) and same Discos have consistently refused to energize 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 stated that 11 discos are currently bedeviled with total failure, occasioned by prolonged blackout due to lack of provision of relevant infrastructure like transformers, electricity poles, poor distribution network compounded with unjustifiable estimated billings, lack of supply of prepaid meters
He says despite repeated previous increase in the multiyear tariff with assurances of improved service delivery by the Discos, no commensurate improvement has been made by any of the 11 Discos in their respective service deliveries to justify the previous increment
The lawmaker stated that the proposed increase will significantly affect the affordability of electricity for the average Nigerian, further exacerbating the financial burdens faced by households and businesses
Adding that it will impede industrial growth, job creation, and overall economic development as well as have adverse effects on the nation’s drive towards sustainable development and poverty reduction
The Senate in its resolution urged 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
They also urged Discos to henceforth discontinue estimated billing and make available to all
electricity consumers prepaid meters at affordable prices
The Senate mandate 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
The senate also urged the DISCOs to ensure monies paid by the communities or anyone for purchase of transformers are deducted before charging them for consumption.
(Editor : Ena Agbanoma)
