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PLAC

House To Investigate Excessive Electricity Charges Being Levied On Consumers By Distribution Companies (Discos) Through Prepaid Meters

The House of Representatives at its plenary session of Wednesday, 15th November, 2017 urged the Federal Ministry of Power, Works and Housing and the Nigerian Electricity Regulatory Commission (NERC) to investigate the quality of the new “MOJEC prepaid meters” being installed by Distribution Companies and phase them out if they do not meet up with the standard requirements.

Presenting the motion on the floor of the House Hon. Adedapo Lam Adesina (APC: Oyo) stated that the defunct Power Holding Company of Nigeria (PHCN) introduced electronic prepaid meters in 2007 to enable consumers pay for power services that were actually transmitted and used in their homes or offices after discontent was raised on the estimated billing system used by the PHCN. He further stated that the unbundling of PHCN in 2013 led to the emergence of eleven (11) Electricity Distribution Companies (DISCOs) and six (6) Electricity Generating Companies (GENCOs) to enhance efficiency in the power sector and give consumers value for money.

Speaking further, Hon. Adesina explained that the first set of prepaid meters installed at residential houses by the defunct PHCN satisfied the yearnings of consumers and led the Nigerian Electricity Regulatory Commission (NERC) to issue a directive that Distribution Companies install meters in consumers’ residences by November 30, 2016. However, this deadline was later extended to March 1, 2017 after considering appeals from the Distribution Companies.

He also alleged that Distribution Companies, in the effort to meet up with the deadline, commenced the installation of a new set of prepaid meters that have failed to satisfy the expectations of electricity consumers in the country. According to the lawmaker, many electricity consumers were suspicious that the newly installed MOJEC prepaid meters gobble up more units in comparison to the old prepaid meters installed by the defunct PHCN. He also expressed dissatisfaction over Distribution Companies failure to install meters that had long been paid for at the residence of some consumers; subjecting them to the outrageous estimated billing regime. He concluded that the motion was to protect the interest of electricity consumers.

The House has mandated its Committee on Power to ensure implementation and report back in six (6) weeks for further legislative action.

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