Nigerian Senate yesterday, urged the Nigerian Electricity Regulatory Commission (NERC) and the 11 Electricity Distribution Companies (DisCos) to halt their proposed tariff increase and “allow Nigerians to breathe”.
The Senate’s resolutions, which were sequel to a Motion, titled: “Need to halt the proposed increase in electricity tariff by eleven successor electricity distribution companies, DISCOs”, sponsored by Senator Yunus Akintunde and two others, called on the Federal Government to intervene and halt the proposed increase in electricity tariff by the DISCOs.
It urged the Nigerian Electricity Regulatory Commission, (NERC) to decentralize the proposed engagement with stakeholders, scheduled for Abuja, to the six geo-political zones of the federation for effective participation by all.
The regulator also urged the DisCos to henceforth allow Nigerian communities to recover their cost of buying electricity transformer before asking them to pay bills and also called for a halt to estimated billing by urgently supplying all electricity consumers with prepaid meters at affordable rates across the country.
Leading debate on the Motion, Senator Akintunde, noted that the 11 successor DISCOs have applied for rate review with the NERC, saying that “the request for rate review is premised on the need to incorporate in macro-economic parameters and other factors affecting the quality of service, operations and sustainability of the companies.”
Senator Akintunde expressed concern 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”.
The Senate, in its further resolutions, urged NERC to explore alternative measures to address the financial challenges faced by DISCOs such as improving operational efficiency, reducing technical and commercial losses, and enhancing revenue collection mechanisms.
It also asked DISCOs to henceforth discontinue estimated billing and make available to all electricity consumers prepaid meters at affordable prices.
Thereafter, the Senate mandated its Committee on Power, when constituted, to engage with the Federal Ministry of Power, the NERC and other stakeholders to find lasting solutions to the challenges facing the electricity sector, including the need for comprehensive reforms.
