The Nigerian Senate recently debated the sensitive issue of increasing electricity tariffs and arbitrary billing imposed on unmetered customers by power distribution companies (DisCos). This discussion, which took place during a plenary session in Abuja, highlights the growing economic challenges facing the Nigerian population and raises important questions about the viability and fairness of current tariff policies.
Senator Aminu Abbas noted that the announcement of an increase in electricity tariffs comes against a backdrop of widespread poverty and ever-increasing cost of living in Nigeria. He also criticized that some electricity companies collect money for services not provided, arbitrarily charge unmetered customers and fail to comply with energy billing caps set by the Electricity Regulatory Commission of Nigeria (NERC).
Senator Abbas also highlighted the Nigerian government’s past commitments on prepaid meterage to end unfair billing. Despite the measures taken, infringements by DisCos persist, particularly impacting small and medium-sized businesses which are faced with exorbitant electricity charges.
In response to these concerns, the Senate decided to mandate the Energy Committee to investigate electricity subsidy requirements, debts owed to production companies, and mismanagement of funds allocated to prepaid footage. He also called for concrete measures to ensure fair and transparent pricing for all consumers, as well as a thorough review of the practices of DisCos to ensure their compliance with existing laws and regulations.
This Senate intervention highlights the critical importance of a fair and transparent energy policy to support Nigeria’s economic and social development, and highlights the need to ensure equitable access to electricity for all citizens.