The house of representatives committee on power has asked the National Electricity Regulatory Commission (NERC) to suspend the planned increase in electricity tariff.
NERC had directed the electricity distribution companies (DisCos) to enforce an upward review of the tariff starting from April 1.
But at its meeting in Abuja on Tuesday, Aliyu Magaji, the committee chairman, asked NERC to issue a directive suspending the upward review pending proper consultations on the matter.
Meanwhile,going by the Transmission Company of Nigeria’s (TCN) 2020 objective, some of the 11 electricity distribution companies (DisCos) operating in Nigeria may be forced out of the industry. TCN has pushed for the recapitalisation of DisCos to separate the wheat from the chaff in the new year.
The transmission firm plans to restructure the capital base of the distribution companies operating in the country.
The power sector in Nigeria was privatised in 2013 and the supply of the electricity was divided into several categories: six generation companies; 12 distribution companies covering all 36 Nigerian states, and a national power transmission company.
Since the power sector was privatised by the Goodluck Jonathan administration in 2013, the electricity supply hasn’t improved much, and every business continues to provide electricity for themselves mostly with petrol and diesel generators.
The Managing Director of TCN, Usman Mohammed, was of the opinion that the distribution companies within the country were not effectively disbursing their responsibility, so recapitalisation would improve their operation.
He said the capacity to duly supply electricity efficiently was lacking among the power distribution companies. Mohammed also opined that the recapitalisation of the power sector would attract investors to boost development.