Senate descends on NERC, Discos; abolishes fixed charges, estimated billing

Respite may be coming the way of electricity consumers in the country as the Senate has charged the Nigerian Electricity Regulatory Commission, NERC, to immediately adhere to the abolition of N702 fixed charges currently being collected from consumers across the nation.

Similarly, the Senate ordered Distribution Companies, Discos, to stop the practice of compulsory bulk metering of villages and communities in rural areas and that consumers should be at liberty to choose whether to be part of bulk metering scheme or not.

The senators further directed Discos to henceforth stop the practice of making consumers bear the cost of meters, poles and transformers, which by law, were their properties, with a condition that where same had been purchased, the consumers should give notice to the Discos and should be entitled to recoup their expenses from subsequent consumption of electricity.

These directives were resolutions arising from a motion moved on Tuesday by Senator Sam Egwu and Senator David Umaru, titled: “Unfair Trade Practices of Electricity Distribution Companies in Nigeria”.

Leading the debate, Egwu noted that NERC was established to among others, license and regulate persons engaged in the generation, transmission, system operation distribution and trading of electricity.

Continuing, he said the same NERC was also empowered by Section 32(1) (d) of its enabling legal regime to make sure that the prices charged by licenses are fair to customers and are sufficient to allow the licenses to finance their activities and allow for reasonable earnings for efficient operation.

The former Ebonyi State Governor however argued that the Commission, while exercising its powers under Section 32(2)(d) of the Power Sector Reform Act, licensed a number of companies including Discos, who, since take off, had been ripping off consumers through fixed charges and bulk metering across the country.

He bemoaned the fact that the electricity firms still engage in arbitrary estimated billing system of some areas in the country, in such ways that are not commensurate with the power available to the consumers.

He said: “The high tariff being charged by Discos does not make provision for payment of only electricity that is consumed even though bills are dished out without commensurate services being offered by the distribution companies.”