Reps ask NERC to sanction DisCos over poor service delivery

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BY MAYOWA SAMUEL

The House of Representatives has urged the Nigerian Electricity Regulatory Commission to compel the Distribution Companies to discontinue the extortive practice of estimated/arbitrary billing systems with immediate effect.

This followed the adoption of a motion sponsored by Afuape Moruf (APC-Ogun) at the plenary on Tuesday.

The House resolved that the companies should be reprimanded for the abysmal services being rendered to consumers nationwide.

While moving the motion, the lawmaker pointed out that the Electricity Act, 2023, prescribed a comprehensive and institutional framework to guide the operation of a privatized, contract, and rule-based electricity market.

He said that it was within the ambit of which every participant in the Nigerian Electricity Supply Industry must operate.

He said that the NERC as the NESI regulator has among other obligations to ensure adequate supply of electricity to consumers.

According to him, “it is expected to ensure that prices charged are fair to consumers, though sufficient to allow the finances of Disco’s activities, as well as enable them to make a reasonable profit for efficient operation.”

Afuape said that 11 Electricity Distribution Companies were entities established by the Electric Power Sector Reform Act, 2005, to supply electricity to power consumers with obligations to the respective operational areas.

He said that the companies have the statutory duties to provide for power transmission facilities and other ancillary services to ensure reliability and support the transmission of electricity from generation sites to consumers.

“Concerned that the distribution companies raked in a whooping N247.33 billion in the first quarter of 2023 as against N232.32 billion generated in fourth quarter of 2022, representing a rise by 20.81 per cent compared to N204.74 billion generated first Quarter of 2022 (year-on-year consideration).

“Whereas, electricity supply declined from 5,956 (Gwh) in first Quarter of 2022 to 5,852 (Gwh) first Quarter of 2023 (year-on-year consideration), despite the increase in earnings.

“Concerned that the distribution companies have demonstrated unfaithfulness toward the social contract with Nigerians, as enshrined and enhanced by the transitional effect of the Electric Power Reform Act, 2005 to the Electricity Act, 2023, having been inefficient in their services.

“They have condemnable attitudes towards expected investments, abdicating their statutory responsibilities for communities, private and other public entities, despite their humongous earnings, as extracted from the Q1 2023 report of the National Bureau of Statistics on a performance review of the 11 distribution companies,” he said.

He expressed worry that the NERC had watched helplessly while communities, individuals, and corporate organisations assumed the responsibilities of providing electricity transmission facilities (meters, cables and transformers) where they are either not available or repaired, where the same are faulty.

The house urged the NERC to put in place an effective metering plan, which assures consumers of fair billing.

The lawmaker tasked NERC to invoke relevant provisions of the law and other extant agreements to penalise DisCos for exploiting and abusing the rights of consumers.

The House charged NERC to evolve a methodology along with the distribution companies to compensate communities, individuals, and other private and public entities for their investments in the distribution network.

The motion was unanimously supported by members when it was put into voice vote by the Speaker, Tajudeen Abbas and mandated the Committee on Power when constituted to interface with the NERC and the distribution companies to work and resolve limitations to provide excellent service delivery to Nigerians.