The House of Representatives has waded into the issue of exploitative practices meted out to consumers by the Nigerian electricity Distribution Companies (DisCos), which has lingered unabated for a long despite the oversight of the Nigerian Electricity Regulatory Commission (NERC).
A motion seeking to compel the Distribution Companies (DisCos) to discontinue the extortive practice of estimated/arbitrary billing with immediate effect was introduced by Rep. Afuape Moruf at plenary on Tuesday.
Unanimously adopting the motion, the legislators reached a resolution mandating the electricity distribution companies to face reprimands due to their dismal provision of services to Nigerian electricity consumers.
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Moruf had earlier in the motion noted that the Electricity Act of 2023 outlines a comprehensive and institutional framework governing the operations of a privatized, contract-based, and rule-bound electricity market. He asserted that this framework applies to all participants in the Nigerian Electricity Supply Industry (NESI).
He said the role of the NERC as the regulator of NESI, includes ensuring an adequate supply of electricity to consumers. Additionally, NERC is tasked with ensuring that the prices charged by Electricity Distribution Companies (Discos) are fair to consumers, while also allowing sufficient finances for the Discos’ activities and enabling them to make reasonable profits for efficient operations.
The lawmaker further explained that the Electric Power Sector Reform Act of 2005 established 11 Electricity Distribution Companies (Discos) with the specific responsibility of supplying electricity to consumers within their respective operational areas. These companies are also obligated to provide power transmission facilities and other ancillary services to ensure the reliability and support of electricity transmission from generation sites to consumers.
“Concerned that the distribution companies raked in a whopping N247.33 billion in the first quarter of 2023 as against N232.32 billion generated in the fourth quarter of 2022, representing a rise by 20.81 percent compared to N204.74 billion generated first Quarter of 2022 (year-on-year consideration)
“Whereas, electricity supply declined from 5,956 (Gwh) in the first Quarter of 2022 to 5,852 (Gwh) first Quarter of 2023 (year-on-year consideration), despite the increase in earnings.
“Concerned that the distribution companies have demonstrated unfaithfulness toward the social contract with Nigerians, as enshrined and enhanced by the transitional effect of the Electric Power Reform Act, 2005 to the Electricity Act, 2023, having been inefficient in their services.
“They have condemnable attitudes towards expected investments, abdicating their statutory responsibilities for communities, private and other public entities, despite their humongous earnings, as extracted from the Q1 2023 report of the National Bureau of Statistics on a performance review of the 11 distribution companies,” he said.
Moruf expressed concern about NERC’s apparent inaction as communities, individuals, and corporate organizations took on the responsibility of providing electricity transmission facilities such as meters, cables, and transformers in areas where they were either unavailable or in need of repair.
Consequently, the House called upon NERC to establish a robust metering plan that ensures consumers are billed fairly. The lawmaker demanded that NERC use the relevant provisions of the law and existing agreements to penalize DisCos that exploit and abuse the rights of consumers.
The House also directed NERC to collaborate with distribution companies to develop a methodology for compensating communities, individuals, and other private and public entities for their investments in the distribution network.
In conclusion, the Speaker, Rep. Tajudeen Abbas, instructed the Committee on Power (when constituted) to engage with NERC and distribution companies (DisCos) to address and resolve any obstacles hindering the delivery of excellent services to Nigerians.
Earlier this month, NERC said outrageous billings, service interruptions, and illegal disconnections dominated the list of over 3.25 million complaints made by consumers to DisCos within five years. This has gone on for years with little intervention from the regulator, leaving consumers at the mercy of electricity companies.
Nigerian consumers largely bear the burden of electricity infrastructure, providing for themselves meters, transformers, poles, wires, and related equipment needed for electricity supply, which according to section 68 (9) of the new Electricity Act, 2023, is the responsibility of power companies.