Scrap fixed charge on meters, Senate orders

CHRIS EMETOH, Abuja​

The Senate has directed the National Electricity Regulatory Commission (NERC) to immediately abolish the fixed charge on electricity meters.

It also directed NERC “to a make a regulation to mandate the DISCOs to discontinue the practice of making consumers pay for meters, ‎poles and transformers which by law are property of the DISCOs, but where the consumers provide those items, they should give notice of the provision to the DISCOs and should be entitled to recover their expenses from subsequent consumption of electricity”.

The senate further directed NERC to ask “the DISCOs to discontinue the practice of compulsory bulk metering of villages and communities in the rural areas as a c‎onsumer should have the right to elect to be part of bulk metering scheme or not.”

It equally called on the nation’s electricity regulator “to bring an end to the monopoly of the D‎ISCOs on the sales of energy meters to enable consumers to purchase them either from the DISCOs or from any other supplier subject to the regulation and specification of NERC, and also account for all the money that has been so far collected on fixed charges across the country.”

In a motion moved yesterday by Senator Sam Egwu (Ebonyi North), the senate said it was aware that the electricity distribution companies (DISCOs) since their take-off had been ripping off consumers through fixed charges and bulk metering across the country.

It observed that some areas in the country were still billed through the estimated billing system, which it said “does not make provision for payment of only what is consumed, and bills are dished out without commensurate services being offered by the distribution companies.‎”

The senate said it was concerned that “despite all efforts‎ by the government, there has been a constant level of arbitrariness, whereby electricity consumers are charged extortionate and fixed rates, based on the use of the billed meters installed by the then Power Holding Company of Nigeria (PHCN).”

Debating the motion, Ben Murray-Bruce (Bayelsa) argued in support of checking the “excesses” of the DISCOs.

He said at his company, “Silverbird”, the electricity distribution company keeps sending conflicting bil‎ls in the range of about N20 million a month.

‎Also speaking, Clifford Odia (Edo) aligned himself with Murray-Bruce’ argument, and stated that the senate must take a tough stand against the unsavoury practices of the DISCOs.

Samuel Anyanwu (Imo), in his argument, called on the senate to give “teeth” to its resolutions by making sure that erring electricity distribution company are held accountable.

Other senators who spoke followed the same pattern of expressing support for the motion.

After the senate resolved to direct NERC to stop fixed charges on electricity, Bukola Saraki, senate president,‎ hinted that a public hearing on power would he held by the senate to look at ways of moving the sector forward.

Meanwhile, some electricity consumers on Tuesday lauded the Senate directive to the Nigerian Electricity Regulatory Commission to halt community metering and the monthly fixed charges on electricity bills to consumers.

They said in Lagos in separate interviews that the directive was long overdue because it was exploitation for services not rendered.

The National President, National Association of Electricity Consumers of Nigeria (NAECN), Mr Ganiu Makanjuola, said it was out of place for consumers to pay the charges after paying their monthly bills.

“Why the N750 fixed charge when consumers will have to pay their monthly bills. Senate should be lauded for the demand for a halt to the payment of fixed charges on electricity,” he said.

According to him, consumers should not be the ones to take the operational cost of electricity distribution companies.

“Paying a fixed charge on electricity is like ripping one off. It is like stealing from you. We know we are yet to fully enjoy stable power supply in Nigeria,” Majuola added.

Mr Gracious Omatseye, the Chairman of Nigerian Institution of Electrical and Electronics Engineers (NIEEE), said the halt would enable the DISCOs concentrate on their work.

“The charges are a fraud and the Senate directive is in good order,” Omatseye said.

The President, Amuwo Odofin New Town Residents Association, Mr Owas Owabumuwa, said that consumers had kicked against the charges.

“Fixed charges are part of extortion, we have been clamouring against it. The move by the Senate is a good one and they should continue with the good work,” Owabumuwa said.

Mr Sunday Idowu, a power expert, said that the fixed charge should be stopped because electricity consumers were not enjoying stable electricity supply.

According to him, the policy that a consumer is exempted from paying the charges if he experienced a blackout for 15 days is populist in nature and only meant to assuage consumers.

Managing Director, Dulip Engineering Ltd, Mr Dennis Francis, also condemned the N750 monthly fixed charge, and described estimated billings as crude in nature.