The Nigerian Electricity Regulatory Commission, NERC, yesterday, defied the directive by the Senate to abolish the Fixed Charges, FC, introduced by the commission, noting that there is nothing illegal about the charges.
Chairman of NERC, Dr. Sam Amadi, who spoke against the background of the motion by members of the red chamber, maintained that the electricity fixed charges are legal and cannot be abolished.
It will be recalled that the Senate had, last Tuesday, directed the commission to abolish the monthly fixed charges being collected from electricity consumers by the Distribution Companies, DISCOs.
The resolution followed a motion entitled, “Unfair trade practices of Electricity Distribution Companies in Nigeria,” sponsored by Senator Sam Egwu, Ebonyi and Senator David Umaru of Niger East Senatorial District.
But Amadi maintained that any attempt to promptly abolish the fixed charges will have adverse effect on the electricity market.
This is even as the commission has urged communities that are placed on bulk billing to not only reject it, but also insist on individual meters.
The commission also revealed that it has abolished the connection of new customers without meters.
According to Amadi, the fixed charges, which appear in different names, are not peculiar to Nigeria, as they are part of electricity markets across the world.
He, however, pointed out that the legacy problem of lack of generation capacity, which results in poor supply of electricity, could be the difference with Nigeria’s situation.
