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We can’t scrap fixed charges now, NERC tells senate

The Nigerian Electricity Regulatory Commission (NERC) says it is not yet time to abolish fixed charges on electricity metres.

Last week, the senate directed the commission to abolish the monthly charges collected by distribution companies (DISCOs) from consumers.

It also told NERC to ask the DISCOs to discontinue the practice of compulsory bulk metering of villages and rural communities.

But speaking to NAN in Lagos on Thursday, Sam Amadi, chairman of NERC, said the commission will soon meet with the senate to explain why it cannot comply with the directive.

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Amadi explained that there is a communication gap which needs to be filled on the electricity fixed charges.

“This is because it was the same national assembly that legislated on the fixed charges which was embedded in the power reform act,” he said.

“There is the need to visit the senate to explain reasons why fixed charges cannot be totally abolished because it’s the responsibility of NERC to implement it.

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“We believe that fixed charges are regulated, we share their concern as legislators who represent the people at their various constituencies.”

Amadi said that NERC would discuss with the senate to have better insight on the fixed charges which was regulated.

He added that the legislators had the right to make a resolution on fixed charges but they should be well informed about it.

Amadi said there was need to encourage those who had invested so much in the sector to recover their funds.

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Fixed charges have been in existence since 2003 when the federal government introduced prepaid meters.

They are the component of the electricity bill from which the DISCOs replace damaged or faulty distribution facilities — transformers, cables, feeders and so on, without bothering the consumer.

Initially, the fixed charge for prepaid meters increased from N225 to N500 and presently stands at N750.

There has been an outcry since the increase, prompting NERC, an independent regulatory agency to appeal for understanding.

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5 comments
  1. Service charge is for service rendered and not for any other thing, Sam Amadi. Service charge for electricity not supplied through transformers, cables, feeders and so on is simply day light robbery. If consumers are made to pay for only electricity supplied, you would see meters everywhere in three months.

  2. He should tell us if such money is used in buying those facilities…!!! Incase of vandalization pple gather money them selves to buy it… Either cable or the transformer… I don’t think he knows what he’s saying…

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