THE House of Representatives has proposed that only electricity distribution companies (DisCos) with a minimum capital base of N500 billion should be permitted by the Federal Government to operate.
According to the legislative body, this requirement would ensure that only financially capable DisCos can deliver optimal consumer satisfaction.
This resolution was passed during a plenary session yesterday after the adoption of a motion sponsored by Ibrahim Isiaka, a representative from Ogun State.
Isiaka argued that the actions of some DisCos are jeopardizing Nigeria’s economic stability and the well-being of its citizens.
He highlighted that while consumers paid for electricity meter installations, DisCos are now demanding additional payments for replacing these meters under questionable circumstances, eroding consumer trust and adding to financial pressures.
Isiaka expressed concern over the undue strain this practice places on households and businesses already grappling with economic challenges.
The lawmaker also criticized DisCos for undermining economic development, using essential services as leverage against citizens they are meant to serve, thus stifling growth and progress.
Despite regulatory oversight and demands for accountability from the Committee on Power, Isiaka noted that DisCos continue to operate with impunity, disregarding consumer rights.
The motion was adopted unanimously through a voice vote led by Speaker Tajudeen Abbas.
Following this, the House urged the Ministry of Power to classify DisCos as non-state actors and take immediate steps to address their harmful actions that threaten the nation’s economy.
Additionally, lawmakers recommended that DisCos undergo recapitalization with a minimum threshold of N500 billion, allowing only those with sufficient financial capacity to operate.
They also directed the House Committee on Power to investigate the operations of DisCos to ensure accountability and protect consumer rights.
