July 25, (THEWILL) – The Nigerian Senate has urged the Federal Government to halt the proposed hike in electricity tariff by Distribution Companies (Discos) in the country.
While stressing the need to allow ordinary Nigerians to breathe, the lawmakers directed Discos to discontinue estimated billing henceforth and make prepaid meters available to all electricity consumers at affordable prices.
The resolutions followed a motion sponsored by Senator Yunus Abiodun Akintunde (APC, Oyo Central) and co-sponsored by Senators Ekpenyong Asuquo (APC, Cross River South) and Aminu Iya Abbas (PDP, Adamawa Central).
Presenting the motion, Titled, “Need to Halt the Proposed Increase in Electricity Tariff by Eleven Successor Electricity Distribution Companies (Discos)”, Senator Akintunde maintained that the Discos have no justification for the hike, especially as the price of natural gas has not been reviewed,
“The Senate: Observes that the eleven (11) successor electricity distribution companies (“Discos”) have filed an application for rate review with the Nigerian Electricity Regulatory Commission (NERC). 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;
“Also observes that 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;
“Aware that as part of the 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;
“Also aware that Nigerian Electricity Regulatory Commission (NERC) had through its official website published and set 20th July 2023, deadline for comment by stakeholders;
“Worried 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 the request in Senator’s various Constituencies.
“Also worried that when these transformers are supplied and installed becomes registered properties of the Discos (a privately owned enterprise); while sadly same Discos have consistently refused to energise 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 in perpetual darkness;
“Concerned that the services of the 11 discos are currently bedevilled 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, reap off etc; and
“Also concerned that despite repeated previous increases in the multiyear tariff with assurances of improved service delivery by the Discos no commensurate improvement has been made by any of 11 Discos in their respective service deliveries to justify the previous increment,
“Further concerned that the: proposed increase will significantly impact the affordability of electricity for the average Nigerian, further exacerbating the financial burdens faced by households and businesses;
“Less than one-week time frame window provided by Nigerian Electricity Regulatory Commission (NERC) for comments from all relevant stakeholders is too small for any meaningful engagement;
“High electricity tariffs will impede industrial growth, job creation, and 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”, he said.
Adopting the motion, the Senate urged the Nigerian Electricity Regulatory Commission (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 Red Chamber also directed 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.
It mandated its Committee on Power (when constituted) to engage with the Federal Ministry of Power, NERC, and other stakeholders to find lasting solutions to the Nigerian electricity sector’s challenges, including the need for comprehensive sector reforms.
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