NEW TARIFFS: NERC, DISCOs Ignores Senate, Floods Crazy Bills In February Bills

THE Senate of the Federal Republic of Nigeria in its resolution recently ordered the Nigerian Electricity Regulatory Commission (NERC), Power Distribution Companies (DISCOs) and the Ministry of Power, Works and Housing to halt the newly introduced electricity tariffs which took effect on February 1, 2016 till further notice.

This was in response to the public outcry over the forty-five per cent increment of electricity consumption bills issued to the consumers. The Senate had issued the order stating that the economic situation in the country is already biting hard on the average Nigerians and therefore unreasonable to introduce such painful tariff regime at the moment.

Earlier, the Senate moved a motion mandating the stakeholders (NERC and DISCOs) to remove the N750-service charge arbitrarily placed on the consumers as well as to discontinue serving consumers with unjustifiable ‘crazy’ bills among other resolutions, ostensibly, it fell on deaf ears.

From the investigation carried out during the weekend by Pinnacle InfoGallery BLOG, the February bills distributed by DISCOs particularly in Lagos retained the compulsory service charge against the resolution of the lawmakers, and above all, the new tariffs were implemented on the existing estimated ‘crazy bills’ platform. Under Eko Distribution Company Plc (EKDC), an electricity consumer in a two-bedroom apartment that was crying over a monthly ‘crazybill’ of N9,000 based on estimation prior to the new tariffs was during the week served with N19,000 for the month of February on account of the increment on tariffs.

In the developed and other developing nations of the world, the resolutions of the Senate are usually viewed with utmost regard and respected as that of a law court until the substantive court of competent jurisdiction rules otherwise. Unfortunately, Nigeria’s Senate is different. This is nothing other than impunity. 

If the Senate has lost its voice by passing ineffective resolutions, reasonably, the Chambers of the National Assembly could be converted to something else, perhaps, amusement park, and its members go back to their respective businesses. It is sad that with all the sitting allowances spent on its chamber, it only exists on myth, and never taken seriously except on political shows even after elections.

Apart from the Senate’s motion, the Nigeria Labour Congress and other Civil liberties have added voice and stood vehemently against the increment but seemingly, the coalitions opinions mean nothing to NERC and the DISCOs. As  at the moment, the threats from this bodies are gathering momentum.

Importantly, if at all the new tariffs would be considered, they cannot be implemented against consumers without prepaid meters. If not, the tendency of doubling the present unjustifiable crazy bills is high and such bills will pile up to constitute a further barricade to the consumers that would be willing to migrate to prepaid metering system. No doubt, the Minister of Power, Works and Housing gave sizeable reasons why the new tariffs should be accepted. Nevertheless, the regime cannot be implemented based on estimation platform.

Inarguably, the N750 fixed Service-Charge cannot remain in place alongside the new tariffs regime putting into cognizance that the cardinal objectives of any reform all over the world is to empower the common man in the society and boosting of the economy. The implementation of the new tariffs without expunging the fixed service charge which is accumulative is inimical and unacceptable.

The goal for the introduction of the prepaid meters which is principally to restore the consumers as the boss would be defeated if by the fixed charge, the consumers are indirectly forced to  pay for services they didn’t use. The whole idea of the prepaid meter is that a consumer can chose to use the services and not to use it. Unfortunately, by the fixed service charge, if a consumer chooses to use other sources of power, perhaps more favourable to him, the fixed service charge will keep accruing against his account or force him into using the services against his will. Logically, all charges on the consumers should be embedded into the charges such that the consumers pay it and others unknowingly as obtainable in GSM tariffs.

Furthermore, the reform which allows the existing customers who already paid for Analog meters to still pay for a prepaid version prior to migration despite the fact that the meters whether analog or digital are the properties of the DISCOs indeed is harsh and unfair to the consumers.

Power companies cannot operate different set of rules in the same society. As the meters are among the tools to render services, it should source for funds and install the prepaid meters to the existing customers as replacements rather than the present anomalies. It should be noted that the prepaid meters which consumers are being forced to buy afresh cannot be relocated along with the purchaser on moving from the area it was domiciled as they belong to the DISCOs, hence cannot be included among his personal effects. Anything short of this would certainly defeat the objective. Only new subscribers should pay for subscription fees which includes the prepaid meters.


Sadly, a member of the House of Representative, Hon Dino Melaye recently disclosed that the DISCOs had severally been funded to meter all its customers, yet majority of subscribers are subjected to the estimated billing system at the detriment of the consumers. What happened to the loans, its targets and what about its refund? Which way Nigeria! 

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