Reps to FG: Only DisCos with N500bn capital base should be allowed to operate

The house of representatives has asked the federal government to allow only electricity distribution companies (DisCos) with a capital base of N500 billion to operate.

The parliament said financially capable DisCos would ensure maximum consumer satisfaction.

The lower legislative chamber passed the resolution during a plenary session on Wednesday following the adoption of a motion sponsored by Ibrahim Isiaka from Ogun state.

Moving the motion, Isiaka said the actions of DisCoS are “posing a threat to economic stability and welfare of the Nigerian populace”.

The lawmaker said consumers paid for electricity meters installation but DisCos are “demanding additional payments for replacement of these metres under dubious pretences, undermining consumer trust and exacerbating financial burdens”.

He said consumers are being “coerced into paying for meters which they have earlier financed, causing financial strain on households and businesses already facing economic challenges”.

Isiaka said the activities of DisCos are “sabotaging economic development”.

“Despite constant regulatory oversight and demand for accountability by the committee on power from these companies, DisCos remained recalcitrant in operating with impunity and disregard for consumer rights,” he said.

The legislator said there is a need to stand against injustices by protecting the rights of constituents.

The motion, which was not debated, was unanimously adopted when it was put to a voice vote by Tajudeen Abbas, speaker of the house.

Consequently, the house asked the ministry of power to “declare DisCos as non-state actors and take immediate measures to address their reckless actions threatening the nation’s economy”.

The parliament also demanded that DisCos should “undergo recapitalisation of not less than N500 billion, and only those with the required financial muzzles that can provide maximum satisfaction to consumers are allowed the space to continue to operate”.

The lawmakers mandated the committee on power to investigate the activities of DisCos to hold them accountable and safeguard the rights of consumer.