…… says consumers shouldn’t pay for transformers, meters, poles
The Senate, on Tuesday, directed the Nigerian Electricity Regulatory Commission (NERC) to mandate electricity distribution companies (DISCOs) in the country to discontinue the practice of making consumers pay for meters, poles and transformers while passing resolution urging NERC to immediately abolish the fixed charges of N702, otherwise called estimated billing, with which the power distribution companies charge power
These, which by law, the Senators noted, are properties of the DISCOs, adding that where the consumers purchase those items, they should give notice of the purchase to the DISCOs, and be entitled to recover their expenses from subsequent consumption of electricity.
The motion is coming almost three weeks after the ruling of Justice Mohammed Idris of the Federal High Court in Lagos stopped the plan by NERC to hike electricity tariffs in the country.
Based on its findings on the complaints of the general public on the activities of the DISCOs, the Red Chamber, therefore, directed the NERC to ask the operators to discontinue the practice of compulsory bulk-metering of villages and communities in the rural areas.
The upper chamber also urged the NERC to inquire into the numerous complaints before it by consumers in line with the provisions of Section 74(1)(b) of the PSRA; calling on the commission and the Consumer Protection Council (CPC) to sensitise electricity consumers on the remedies available in the event of inefficient services by the DISCOs.
These were the resolutions from a motion entitled: “Unfair Trade Practices of Electricity Distribution Companies in Nigeria,” which was sponsored by the duo of Senator Sam Egwu and co-sponsored by Senator David Umaru.
The Senate also urged NERC to put measures in place, in alliance with the Consumer Protection Council (CPC) to sensitise electricity consumers on the remedies available to them in the event of inefficient services by distribution companies.
“NERC should make a regulation to mandate the DISCOs to discontinue the practice of making consumers pay for meters, poles, and transformers which by law, are properties of the DISCOs, but where the consumers purchase those items, they should give notice of the purchase to the DISCOs and should be entitled to recover their expenses from subsequent consumption of electricity”, the Senate said.
While calling for inquiry into the numerous complaints before the NERC by electricity consumers in line with the provision of section (74), subsection (1)(b) of the Power Sector Reform Act, the Senate expressed concern that even those who have the prepaid meters are also billed a fixed rate per month, irrespective of whether or not they consumed electricity.
In his concluding remarks, the Senate President, Bukola Saraki, lamented that after the unbundling of the Nigeria power sector, there is yet to be any noticeable change in the power situation of Nigeria.
Saraki also pointed out that there is something fundamentally wrong with the privatization programme, hinting that either those that bought the distribution companies lack the financial capacity to deliver, yet the regulatory body is ignoring them.
He therefore said that Nigerians are hoping for changes in the power sector, adding that it is time for Nigeria to review the challenges facing the power sector reform.