Power distribution companies have generated over N81 billion as fixed charges from Nigerians since November 1, 2013, when they took over the assets from the erstwhile government- owned Power Holding Company of Nigeria (PHCN).
The N750 fixed charge, which ends today following the approval of a new tariff regime by the Nigerian Electricity Regulatory Commission (NERC) was collected from over Power distribution companies have generated over N81 billion as fixed charges from Nigerians since November 1, 2013, when they took over the assets from the erstwhile government- owned Power Holding Company of Nigeria (PHCN).
The N750 fixed charge, which ends today following the approval of a new tariff regime by the Nigerian Electricity Regulatory Commission (NERC) was collected from over four million customers monthly, whether they enjoyed power supply or not.
Investigations by New Telegraph revealed that the new investors in the 11 distribution companies raked in over N3 billion monthly as fixed charges on both the pre-paid and post-paid customers in the last 27 months. While the pre-paid customers were, according to findings by this newspaper, made to pay fixed charges while trying to pre-load their cards, the charges were built into the bills of post-paid customers.
NERC had once ordered that fixed charges should not be paid when customers are not supplied electricity for 15 consecutive days, but customers were made to pay the money regardless of their supply status. A document of the Association of Nigeria Electricity Distributors (ANED) showed that the DISCOs have an estimated four million customers in Nigeria, although the figure has been disputed to be grossly undervalued.
The number of houses in Lagos, based on the figure from Lagos State Signage and Advertisement Agency (LASAA), is in conflict with the figure from the duo of Ikeja and Eko DISCOs. While Ikeja DISCO, which extends to parts of Ogun State, said that it had 716,000 customers, the Eko DISCO disclosed that it has 402,000 customers.
These figures have been disputed by the Lagos State agency figure, which showed that the houses in Lagos alone, even in 2011, were about 1.2 million. Based on the four million figure of ANED, however, the DISCOs across the country had been collecting over N3 billion monthly from Nigerians between November 1, 2013 and January 31, 2016, a figure, which has accumulated to N81 billion. In Abuja, about 350,000 of about 700,000 total customers in the entire franchise area of the Abuja Electricity Distribution Company (AEDC) or Abuja DISCO are without meters, an indication that the distribution company may have collected over N6.3 billion fixed charges in the last two years.
From the billing period, which starts today, residential customer classification (R2) in Abuja DISCO will have their energy charge increased by N9.60. Also, residential customers (R2 customers) in Eko and Ikeja electricity distribution areas will be getting N10 and N8 increase respectively in their energy charges. Consumers in Kaduna and Benin will see an increase of N11.05 and N9.26 respectively in their energy charges. Minister of Power, Works and Housing, Mr. Babatunde Fashola (SAN), however, said that the new Multi Year Tariff Order due to commence today, would end the fixed charges regime and correct the whole system in the entire value chain of the power sector, adding that it remained the most viable means to achieve steady power supply in the country.
The minister noted that the power sector would receive the necessary boost if the new tariff was accepted. Fashola maintained that the new tariff regime is better for willing buyer and willing seller.exploitation of the already exploited Nigerians. Both the NLC and TUC Presidents, Ayuba Wabba and Bobboi Kaigama, while expressing their displeasure, disclosed that the due process in the extant laws for such increment was not followed in consonance with Section 76 of the Power Sector Reform Act, 2005.
They further noted that apart from the fact that there has been no significant improvement in service delivery, many consumers are yet to be metered in accordance with the signed privatisation Memorandum of Understanding (MOU) of November 1, 2013, which specified that within 18 months, all consumers are to be metered.
The two labour leaders added that the planned increase is in violation of an existing order by Justice Mohammed Idris of a Federal High Court in Lagos which restrained NERC from implementing any upward review of electricity tariff, pending the hearing and final determination of a suit filed by a lawyer and rights activist, Toluwani Yemi Adebiyi. Consequently, the labour bodies are calling on the NERC to immediately halt the planned hike in electricity tariff or risk a total shut down of all DISCO offices across the country. The workers’ unions are also calling on Nigerians to resist the new electricity tariff.
In the meantime, Justice Idris has adjourned further hearing of Adebiyi’s suit till February 11. Adebiyi, in the suit, is seeking an order restraining NERC from implementing any upward review of electricity tariff without a meaningful and significant improvement in power supply at least for 18 hours in a day in most communities in Nigeria.
He also wants an order restraining NERC from foisting compulsory service charge on pre-paid meters not until “the meters are designed to read charges per second of consumption and not a flat rate of service not rendered or power not used.”
Also, the House of Representatives has resolved to summon the top management of the commission this week. Chairman of the House Committee on Media and Public Affairs, Hon. Abdulrazak Namdas, said the position of the lower chamber has remained unchanged. Namdas frowned at the attitude of the NERC in defying the resolution of the House, urging them to stay action on the planned upward review of tariff.
He explained that the House was currently investigating the activities of DISCOs and for the NERC to suddenly increase the tariff when the issue was ongoing showed ‘total disregard for the legislature’.
