House of Representatives on Tuesday ordered the Nigerian Electricity Regulatory Commission, NERC, to suspend the implementation of the recently announced new electricity tariff increase.
The Reps also called for the suspension of other conditions attached in the newly issued review of the Multi-Year Tariff Order.
This was stated by the House special committee made up of the Committees on Power, Commerce, Delegated Legislation, and National Planning. The Committee had been charged to organize a well-structured hearing on the price regulation of the Nigerian Electricity Supply Industry (NESI).
According to mandate, the hearing would be with the participation of the Minister of Power, Chairman and Commissioners of NERC. Also to participate, is the Chief Executives of all electricity utilities in Nigeria, Presidents of the Nigeria Labour Congress and the Trade Union Congress (TUC). As well as leaders of Chambers of Commerce in Nigeria.
The House also agreed to appoint a well-regarded former regulator as a technical consultant. The regulator is to develop templates for determination of the “legality, reasonableness of the procedure adopted by NERC in approving the tariff increase. It will also establish the performance benchmarks for the Disco’s.
The House also resolved to authorize the consultant to work with the special committee to draft a bill to provide for administrative procedures. That will entrench proper consultation and legislative review of process for tariff setting in the electricity and other public services in Nigeria.
The House adopted the resolutions after a motion of urgent importance was moved by Hon Nkemkanma Kama.
Moving the motion, Kama said the legislative motion on increase in electricity tariff seeks to address key issues surrounding the sudden hike in electricity prices in Nigeria.
“It highlights concerns over due process, fairness, and the impact on consumers. The motion aims to restore public trust and protect consumer rights. It also ensure regulatory accountability in the Nigerian Electricity Supply Industry, NESI.
“The facts presented include the alarming tariff increase announced by the Nigerian Electricity Regulatory Commission (NERC) on April 1, 2023. Resulting in a staggering 300% rise for certain consumers.
“However, what’s more concerning are the reports indicating discrepancies in customer categorization 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. It, therefore, demands immediate attention.”
Kama said the motion argues for legislative intervention. It underlies the 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.
“Key issues highlighted include the failure of due process in approving the tariff increase and concerns over discriminatory practices. And the disputed nature of government subsidies to electricity distribution companies (DISCOs).
“The motion proposes resolutions to suspend the recent tariff increases. Establish a special committee for hearings involving relevant stakeholders. Appoint a technical consultant to assess the legality and reasonableness of NERC’s procedures. And draft a bill to improve regulatory processes in tariff setting.
“Overall, this motion underscores the importance of legislative action to address the challenges facing the electricity sector. And to ensure fair treatment of consumers while promoting transparency and accountability in regulatory decision-making.”
In a related development, the Minister of Power, Adebayo Adelabu appearing before the Senate Committee on Power, defended the new tariff increase.
The Minster stated that the Federal Government could no longer afford to provide subsidies on power.
Adelabu stated that for the sector to be revived, the Government needs to spend about $10 billion annually in the next 10 years.
“This is because of the infrastructure requirement for the stability of the sector. But the Government cannot afford that,” the Minister said.
Speaking further, Adelabu informed that the electricity sector is attracting more investors. He said this is due to the increase in electricity tariff for Band A customers.
source: Vanguard
