‘Allow Nigerians Breathe’ – Senate Urges NERC, Power Distribution Companies

On Tuesday, July 25, the Nigerian Senate passed a resolution urging the Nigerian Electricity Regulatory Commission (NERC) and the 11 Electricity Distribution Companies (DisCos) to suspend their planned tariff increase and consider the plight of the citizens. The Senate emphasized the need to give Nigerians some breathing space amid economic challenges.

Furthermore, the Senate called on DisCos to adopt a fairer approach by allowing Nigerian communities to recover the cost of purchasing electricity transformers before imposing electricity bills on them. This move is aimed at easing the financial burden on communities and promoting a more equitable distribution of costs.

The Senate also took a strong stance against estimated billing, calling for an urgent and comprehensive rollout of prepaid meters at affordable rates across the country. By ensuring the availability of prepaid meters, electricity consumers will have more control over their usage and avoid the unpredictability of estimated billing.

Senator Yunus Abiodun Akintunde (APC – Oyo Central) spearheaded the motion titled: “Need to halt proposed increase in Electricity Tariff by 11 successor Electricity Distribution Companies (DisCos).” Following a thorough debate, the Senate passed several resolutions to address the electricity sector’s challenges.

Firstly, the Senate called on the Federal Government of Nigeria to intervene and stop the proposed tariff increase by the Distribution Companies. It also urged the Nigerian Electricity Regulatory Commission (NERC) to decentralize its engagement with stakeholders by holding discussions in the Six Geopolitical Zones. This approach is aimed at ensuring broader participation from all regions of the country.

Additionally, the Senate urged NERC to carefully review the rate applications filed by the Discos, taking into account the interests of citizens, affordability, and the need for improved service delivery. The focus is on finding a balanced solution that benefits both consumers and the electricity distribution companies.

The Senate also emphasized the importance of exploring alternative measures to address the financial challenges faced by the Discos. By improving operational efficiency, reducing technical and commercial losses, and enhancing revenue collection mechanisms, the electricity sector can become more sustainable and reliable.

The Senate’s resolution mandates the Committee on Power (when constituted) to engage with the Federal Ministry of Power, NERC, and other stakeholders to develop lasting solutions to the challenges facing the Nigerian electricity sector. Comprehensive sector reforms are also deemed necessary to address systemic issues.

In conclusion, the Senate called on DisCos to discontinue estimated billing and make prepaid meters available to all electricity consumers at affordable prices. This move is expected to bring more transparency and accuracy to the billing process, ensuring consumers pay for only the electricity they use. (CONTINUE READING HERE)