Reps order NERC to suspend electricity tariff hike

The House of Representatives has directed the Nigerian Electricity Regulatory Commission (NERC) to suspend the implementation of the new electricity tariff.

This followed the adoption of a motion by Nkemkanma Kama (LP-Ebonyi) at the plenary in Abuja on Tuesday, April 30, 2024.

It would be recalled that NERC, on April 3, approved an increase in electricity tariff for customers who enjoyed 20 hours of electricity daily classified as Band A users.

Moving the motion, Kama said the aim was to restore public trust, protect consumer rights, and ensure regulatory accountability in the Nigerian Electricity Supply Industry (NESI).

He said the facts presented showed that the approval granted by NERC resulted in a staggering 300 per cent rise for certain consumers.

The lawmaker said: “What is more concerning are the reports indicating discrepancies in customer categorisation and widespread complaints regarding inadequate service despite increased charges.

“This situation has not just sparked national anxiety, but it also threatens regulatory certainty and investor confidence in the sector, demanding immediate attention.

‘It’ll increase suffering’: LP calls for electricity tariff hike reversal

“This motion argues for legislative intervention, underlining our constitutional and moral obligations to address the crisis and alleviate the burden on Nigerian citizens.

“It places a strong emphasis on the legislative oversight role over NERC and the electricity utilities, stressing the need for fair and just pricing and consultation with stakeholders in tariff determination processes.

“This is not just a responsibility, but a duty we owe to our constituents.”

The lawmaker alleged failure of due process in approving the tariff increase which raised concerns over discriminatory practices and disputed the nature of government subsidies to Electricity Distribution Companies (DisCos).

Sequel to the adoption of the motion, the House ordered NERC to suspend the operation of the recently announced tariff increases and other conditions in the newly issued review of the MYTO.

The lawmakers also resolved to set up a special committee made up of the Committees on Power, Commerce and National Planning to convene a public hearing on price regulation.

The lawmakers resolved to appoint a well-regarded former regulator as a technical consultant to the House to develop templates for the determination of the legality, reasonableness of the procedure adopted by NERC in approving the tariff increase and establishing the performance benchmarks for the Discos.

Speaking, the Speaker of the House, Tajudeen Abbas, said the relevant committees should ensure compliance.

The Star