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NERC Dares Senate …‘Why We Can’t Abolish Fixed Charges’
The Nigerian Electricity Regulatory Commission (NERC) says it will meet the Senate soon to inform it why fixed charges cannot be abolished now.
Chairman, Dr. Sam Amadi NERC made the disclosure to newsmen yesterday in Lagos.
According to Amadi, there is communication gap which needs to be filled on the electricity fixed charges.
“This is because it was the same National Assembly that legislated on the fixed charges which was embedded in the Power Reform Act.
“There is the need to visit the Senate to explain reasons why fixed charges cannot be totally abolished because it’s the responsibility of NERC to implement it.
“We believe that fixed charges are regulated, we share their concern as legislators who represent the people at their various constituencies,’’ he said.
Amadi said that NERC would discuss with the Senate to have better insight on the fixed charges which was regulated.
He added that the legislators had the right to make a resolution on fixed charges but they should be well informed about it.
The NERC chairman said that there was need to encourage investors who had invested so much in the sector to recover their funds.
It would be recalled that the Senate on August 11, directed the NERC to abolish the monthly fixed charges collected by distribution companies (DISCOs) from consumers.
It also directed NERC to ask the DISCOs to discontinue the practice of compulsory bulk metering of villages and rural communities.
The resolution followed a motion titled “Unfair Trade Practices of Electricity Distribution Companies in Nigeria’’, sponsored by Sen. Sam Egwu of Ebonyi State and Sen. David Umaru of Niger East Senatorial District.
The Senate accused the DISCOs of conspiracy to rip off innocent customers in spite of epileptic power supply to homes and business premises.
It urged NERC to inquire into the numerous complaints before it in line with the provisions of Section 74 (1) (b) of the Power Reform Act.
Fixed charges have been in existence since 2003 when the Federal Government introduced prepaid meters.
The fixed charges are the component of the electricity bill from which the DISCOs replace damaged or faulty distribution facilities — transformers, cables, feeders and so on, without bothering the consumer.
Initially, the fixed charge for prepaid meters increased from N225 to N500 and presently stands at N750.
There has been an outcry since the increase, prompting NERC, an independent regulatory agency to appeal for understanding.
Meanwhile, President Muhammadu Buhari has in Abuja pledged that his administration would ensure steady electricity supply for faster socio-economic development
Buhari stated this after being briefed by the Permanent Secretary, Federal Ministry of Power, Amb. Godknows Igali.
According to the president, his administration will give the fullest possible attention to boosting power supply in Nigeria because it was convinced that steady electricity will launch the country into faster economic growth.
He said that the Federal Government had already identified the critical problems in Nigeria’s power sector and was taking appropriate actions to address them.
The president revealed that his administration had also prioritised certain measures in its action plan to boost electricity supply in Nigeria.
“The problems besetting our power sector are not difficult to identify. Therefore, priorities can be easily set in order to tackle them.
“The problems are more with transmission than generation, and we equally need to secure the power infrastructure round the country. “We will address all these issues,’’ he assured.
Igali had informed the president that power generation in Nigeria, which was 1,750megawatts (MW) in 1999, had now peaked at 4,600MW.
He added that gas was available to take generation to 5,500 MW in a short time, but that the country needed to expand its electricity infrastructure to accommodate additional power generation.
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