• Thursday, May 02, 2024
businessday logo

BusinessDay

Reps back passage of estimated billing prohibition law

businessday-icon

The House of Representatives on Tuesday passed through second reading a bill which seeks to prohibit imposition of estimated billings on Nigerian consumers across the country.

The proposed bill also seeks to criminalize estimated bill by electric distribution companies and provide for compulsory installation of pre-paid meters to all power consumers in Nigeria and for other related matters.

According to the proposed amendment to sections 35(2), 67(1), 68, 69, 70, 71 and 94 of the Electric Power Sector Reforms bill, sponsored by Femi Gbajabiamila, Majority Leader, anyone found culpable is liable to six month imprisonment and fine of N1 million or both, with prejudice to the right of Nigerian Electricity Regulatory Commission (NERC) to cancel or suspend any license of the erring operator(s).

In his lead debate, Gbajabiamila (APC-Lagos) who described the estimated billings as the “biggest economic rip-off in the history of Nigeria”, alleged that DISCOs who acquired the power assets privatised by the immediate past administration, are all “out to defraud Nigerians”.

The Lagos lawmaker who frowned against the activities of accomplices of conspiracy of silence against millions of Nigerian citizens, harped on the need for the intervention of the House, to stop the extortion.

New subsection 68 which prohibits estimated billing methodology, further provides that ” every electricity consumed in Nigeria shall apply to the electricity distribution company carrying out business within his jurisdiction for a pre-paid meter such consumer shall pay the regulated fee for pre-paid meter to be installed in his premises and the Electricity Distribution Company shall within 30 days of receiving the application and payment install the pre-paid meter applied for in the premises of the consumer.”

Section 69 also provides that “upon connection, the electricity company serving the consumer must inform must inform the customer in writing on the nature of the meter installed, tariff methodology and all other services available to the consumer.

Section 71 further stated that: “all cases of illegal disconnection, refusal of the relevant distribution company to connect a consumer after application, unmetering within 30 days of a consumer applying for a pre-paid meter and estimated billing shall attract both civil and criminal liability.”

Speaking further, Gbajabiamila who argued that the DISCOs are holding Nigerians into ransom on continuous basis, emphasised the need to end all forms of exploitation through strong legislation, such as the provision law on concessioning of Ajaokuta steel which was done in public interest.

“What our constituents are witnessing is what I call estimates streaking or estimated theft where an household is compelled to pay N10,000 and jerked up to N100,000 without commensurate service,” he observed.

While noting that the DISCOs have argued about low tariff, the Majority Leader who nited that any breach in the agreement signed between Federal Government and the new investors who argued are “running a cartel and stealing through the lines”, warned that such costs should not be transferred to the consumers.

The lawmakers also decried the failure of the DISCOs to provide meters to willing consumers especially those who have paid for several months, because of the greed of the operators, adding that, where consumers have procured meters they don’t get electricity supply like where the DISCOs offer estimated billings.

He maintained that any regulatory framework initiated by NERC which was saddled with the responsibility of regulating the power sector is subject to the provisions of the Act of Parliament, adding that the estimated bill was not conceived when the Power Sector Reform Act was passed into law.

On his part, Speaker Dogara noted that DISCO in charge of his residence in his Constituency in Bauchi state was charging him N80,000 monthly in an unoccupied residence, hence called for disconnection of the

In his contribution, Pally Iriase, Majority Deputy noted that his constituency in Edo State has been disconnected for over six years for protesting against outrageous estimated billings.

“Everyone is under the oppression of DISCOs who were benefitting from the public assets handed over to them through privatisation policy,” Iriase noted, just as he chided the DISCOs for failing to attend the forum initiated by the regulatory agencies.

He noted that the only powers to salvage Nigerians from the level of impunity being perpetuated by the DISCOs is through legislation.

On his part, Mohammed Mungonu noted that while in Sudan and Chad where he visited, observed that all their houses and business outlets have installed meters, hence the need to outlaw it in Nigeria with huge economic potentials.

He also expressed the need to come up with compelling legislation that will stem the level of corruption in the polity.

Following robust debate on the bill which was supported by the members, Speaker Dogara referred the bill to the House Committee on Power for the further legislative action.

 

KEHINDE AKINTOLA, Abuja