News
Raise Investment To N500bn Or Exit -Reps Tell DisCos
The House of Representatives on Wednesday called for a minimum of N500 billion recapitalisation threshold for the 11 electricity Distribution Companies (DisCos) in the country if they must remain in business.
The call is coming amidst concerns that a number of the distribution companies in the country have low financial capacity to make the necessary investments in power infrastructure for efficient service delivery.
The 11 distribution companies operating in the country include; the Eko Electricity Distribution Company Limited (Eko DisCo), Ikeja Electricity Distribution Company Limited (Ikeja DisCo), Kano Electricity Distribution Company (KEDCO), Yola Electricity Distribution Company (YEDC), and Jos Electricity Distribution Company (JEDC).
Others are; Abuja Electricity Distribution Company (AEDC), Ibadan Electricity Distribution Company (IBEDC), Enugu Electricity Distribution Company (EEDC), Kaduna Electricity Distribution Plc (Kaduna Electric) and Port Harcourt Electricity Distribution Company (PEDC).
The House said the move was part of measures aimed at ensuring that only distribution companies with financial strength that could provide maximum satisfaction to consumers are allowed to operate in the power distribution sector.
This is just as the House urged the Federal 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 resolutions followed the adoption of a motion moved by Rep. Ibrahim Ayokunle Isiaka at the plenary yesterday.
Presenting the motion, Isiaka lamented the activities of the DisCos in the country, saying that some of their recent actions were posing a threat to economic stability and welfare of Nigerians.
He noted that Nigerian consumers, despite paying for electricity meters’ installation in their houses, DisCos were demanding additional payments for replacement of their outdated meters “under dubious pretenses, undermining consumer trust and exacerbating financial burdens.”
Rep. Isiaka lamented that consumers are being coerced by the DisCos into paying for meters which they had earlier financed, causing financial strain on households and businesses already facing economic challenges.
He lamented what he described as “the sabotage of economic development” by DisCos, where essential services are used against citizens intended to serve, thereby stifling growth and development.
He said: “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”.
The House adopted the motion and mandated the Committee on Power to investigate the activities of the Distribution Companies (DisCos) in Nigeria, with the intent to hold them accountable and safeguard consumers’ rights.
The House also mandated the committee to examine the implementation of the regulations governing the operations of DisCos, to ensure transparency and fairness in dealings with consumers.
It also called for public awareness campaigns and initiatives to educate consumers about their rights and the proper channels for addressing grievances related to electricity services.
The committee is to report within four weeks for further legislative action.
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