Senate orders NERC to halt fixed electricity charges

FG to spend N15bn to generate 8,000mw by 2016

Senate yesterday asked the National Electricity Regulatory Commission, NERC, to immediately stop the monthly fixed charges being collected from electricity consumers across the country.

The lawmakers also asked NERC to account for all the monies that has so far been collected on fixed charges across the nation.

Furthermore, the legislators directed Electricity Distribution Companies, DISCOs, to discontinue the practice of compulsory bulk metering of villages and communities in the rural areas because a consumer should have the right to elect to be part of bulk metering scheme or not.

These directives were the outcome of some of the resolutions adopted by the Senate, which were contained in the motion by Senator Sam Egwu (Ebonyi North) and co-sponsored by Senator David Umaru (Niger East) entitled: “Unfair Trade Practices of Electricity Distribution Companies in Nigeria.”

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Senate also resolved to direct NERC to make a regulation to mandate the DISCOs to discontinue the practice of making consumers pay for meters, poles and transforms, which by law are properties of the DISCOs.

The senators noted that where consumers purchase those items, they should give notice of the purchase to the DISCOs and should be entitled to recover their expenses from subsequent electricity consumption.

This was in addition to the Senate calling on NERC to bring an end to the monopoly of DISCOs on the sale of energy meters to enable consumers purchase them, either from the distribution companies or from any other suppliers, subject to the regulation and specifications by the regulator.

Furthermore, the Senate implored NERC and the Nigerian Consumers Protection Council, NCPC, to sensitise electricity consumers on the remedies available to them in the event of inefficient services by the distribution companies.

While calling for inquiry into the numerous complaints before NERC by 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 lead debate, Egwu posited that he was disturbed by the avalanche of complaints by electricity consumers in the country about the unwholesome practices of the DISCOs, which fall short of standards established by the NERC and do not also meet up to global best practices, whereby failing in the discharge of their contractual obligations to the Nigerian people.

Almost all the senators who commented on the motion were bitter with the services the discos are currently rendering to customers in the country.

Perhaps, the only differing senator on the matter was Adamu Aliero (Kebbi North) who pleaded with his colleagues to give the distribution companies some time to improve on their services.

Aliero was of the view that given that most of the distribution companies were new on the job, it was imperative that they would falter initially, and adjust with time.

On his part, Senator Danjuma Goje (Gombe Central) argued that all the new owners of the electricity chain, including those involved in generation, transmission and distribution had all failed the nation and should be made to sit up.

Senator Ben Murray Bruce (Bayelsa East) narrated a sad experience he went through with the DISCO whereby he was first slammed with a bill of N10m in the first month and later another N20m, and urged that the service providers must be called to order.

Senator Athan Achonu (Imo North) simply lamented that at a time, “the electricity companies nearly destroyed my businesses.

In his concluding remarks, Senate President, Bukola Saraki, lamented that after the unbundling of the power sector, there is yet to be any noticeable change in the country.

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Saraki also pointed out that there is something fundamentally wrong with the privatisation programme, hinting that it was either that those that bought the distribution companies lacked the financial capacity to deliver, or they simply ignored them.

He said Nigerians are hoping for changes in electricity supply, adding that it is time the government reviews the challenges facing the power sector reform.

Meanwhile, Deputy Managing Director, Transmission Company of Nigeria, TCN, Dr. Atiku Abubakar, yesterday said about N15bn was required for the nation to generate 8,000 megawatts of electricity by 2016.

Abubakar made this known during inspection of some ongoing electricity projects at the sidelines of a training programme for auditors in Lagos.

He disclosed that electricity generation in the country recently improved and attributed it to improved gas supply to generating stations.

He said: “We have been able to reach the highest peak so far in July of about 4,652 megawatts while the transmission capacity remains a little above the power generated so far.”

He said that contrary to other opinions, TCN had the capacity to transmit about 5,300 megawatts of electricity.

“As generation is improving, we are expected to expand transmission capacity to be able to evacuate all that is being generated in the stations for distribution.

“l can assure that we have our plans, targeting projects that are very critical which have been mapped out so that within the shortest possible time, will be able to hit 8,000 megawatts transmission capacity by end of 2016,” he said.

Abubakar said interested investors, who were willing to invest in the transmission segment had been shortlisted, adding that over 30 investors that could deliver on project had been chosen.

He said that he would not disclose the names of the investors now, adding that “we are trying to see that they are capable both technically and financially, because it is expected that they will fund the project.

“Presently, we are in the process of coming up with the framework which will enable them to recover their investment in time.

“Since Federal Government will not give them sovereign guarantee, we are coming up with modalities of repayment from our billing charges and internally generated revenue for over a period of time,” Abubakar said.