House of Reps orders NERC to stop estimated billing.

On Tuesday, the Nigerian House of Representatives issued a directive to the Nigerian Electricity Regulatory Commission (NERC) to intervene and put an end to the practice of estimated billing by electricity distribution companies (DisCos) throughout the country.

Additionally, the House called on NERC to take measures to penalize DisCos for their inadequate power supply to consumers and to devise compensation packages for individuals, communities, private, and public entities that have invested in the distribution network.

To address the challenges affecting the effective distribution of power in the country, the House instructed its Committee on Power (when formed) to engage with NERC and DisCos.

The motion, presented by Afuape Moruf, a representative from Abeokuta South Federal Constituency of Ogun State, highlighted the subpar services provided by the 11 DisCos across the nation, in violation of the Electricity Act, 2023.

Moruf expressed concern that consumers are burdened with the cost of meters, cables, and transformers, yet they are frequently disconnected at the discretion of the DisCos. The motion aimed to address the issues faced by electricity consumers and ensure that distribution companies adhere to the appropriate regulations and provide better services.

He said, “The Distribution Companies raked in a whopping N247.33 billion in the first quarter of 2023 as against N232.32 billion generated in the 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 the first quarter of 2022 to 5,852 (Gwh) first quarter of 2023 (year-on-year consideration), despite the increase in earnings; 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.

“NERC has 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.

“Whereas, the commission can act within the ambit of its own created service charter that outlines consumer rights, obligations, expected service levels, and redresses applicable to them.

“While NERC watches the DisCos abdicate their responsibilities to communities, individuals, corporate bodies, and public institutions, no compensation mechanism has been evolved to ensure either an outright refund of these third-party investments in the distribution network or a possible conversion of same to electricity credits for the use of these ‘investors.”