Reps moves to suspend electricity tariff hike due to present hardship

*Probe DISCOs transfer of consumer debts

Tom Okpe, Abuja

In view of the present hardship confronting the nation, the House of Representatives has urged the Federal Government to direct the Nigerian Electricity Regulatory Commission to decline its decision to increase electricity tariff proposed for June, 2021.

The House reached this resolution on Thursday at plenary, adopting a motion sponsored by Aniekan Umanah (PDP, Akwa-Ibom), mandating the Committees on Power, Poverty Alleviation and Labour, Employment and Productivity to ensure compliance.

While moving the motion, Umanah recalled that the Electric Power Sector Act of 2005 established the Nigerian Electricity Regulatory Commission with a mandate to license Distribution Companies (DISCOs), determine operating codes and standards, establish customer rights and obligations and set cost-reflective industry tariff.

According to the lawmaker, the Electric Power Sector Act prescribed its funding from 15% of electricity charges paid by customers to Distribution Companies.

He noted that NERC, working with Distribution Companies, has increased electricity tariffs five times since 2015, the latest, 1 January 2021.

He said: “Despite those increases, Nigerians have not enjoyed significant improvement in power generation, instead, daily grappling epileptic services from the DISCOs and unilateral exploitation in the name of estimated billing arising from non- metering of over 50% of consumers.”

He observed that poor services by the DISCOs have impacted negatively on the socio-economic growth of the country as the International Monetary Fund (IMF) Report of 2020 on Nigeria indicated that the manufacturing sector lost over $200 billion to inadequate power supply while a whopping $21 billion was said to have been spent by Nigerians on generating sets within the period under review.

He expressed concern that at a time governments all over the world are adopting measures to cushion the devastating effects of the dreaded COVID–19 pandemic on their citizens by providing a wide range of palliatives to losses of loved ones, jobs, businesses and general distortion in the social life, NERC is tinkering with the idea of a further increase in electricity tariff after that of 1 January, 2021, in a country where 2/3 of the 200 million population is grappling with the crippling effects of the pandemic.

The former Akwa-Ibom State Commissioner for Information also observed that; “the Nigerian masses have gone through so much hardship in recent times arising from acts of terrorism, banditry, kidnappings, farmers and herdsmen’s crisis with its toll on agricultural activities, displacement from ancestral homes, loss of loved ones, starvation arising from inability to return to daily occupation and loss of personal properties running into several million of naira.”

Umanah was also concerned that the current economic recession made worse by hyperinflation has resulted in skyrocketing prices of foodstuffs, while the increase in prices of Petroleum Products has also triggered the further increase in transport costs and rents with unemployment rates at a frightening 33.3% while the spending power of an average Nigerian has drastically reduced, any further hike in electricity tariff at this time will amount to overkill, lack of empathy and height of insensitivity.

In a similar development, the House also resolved to investigate transferred debts incurred by old electricity customers to new users by the Distribution Companies in Nigeria.

It mandated the Committee on Power to engage the Distribution Companies and other relevant Regulatory Agencies, particularly NERC to find a lasting solution and report within four (4).

The Green Chamber urged the Power Committee to investigate the status of prepaid meters as a policy of the Federal Government, mandating the Committee on Legislative Compliance to ensure compliance.

In a motion moved by Shoyinka Olatunji from Lagos State, he lamented the constant complaints by electricity consumers on the poor services provided by DISCOs which are also in the habit of transferring outstanding debts of old customer to new users.

“Also concerned that if nothing is done to curb the act of transferring debts incurred by other consumers to new consumers, the later will continue to bear the burden of paying for the electricity they did not consume.

“Aware that the Distribution Companies, which are responsible for the collection of payments for services rendered to consumers allow unpaid bills to accumulate, do not follow the laydown principles and guidelines by Regulatory Authorities towards unpaid bills and disconnection of non paying customers.”