House of Reps Moves To Stop Planned Electricity Tariff Hike

By Gloria Essien, Abuja

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The House of Representatives has urged the National Electricity Regulatory Commission, NERC, not to approve any increase in electricity tariff in Nigeria.

Adopting a motion by a member of Kano State Mr Aliyu Madaki, the House mandated the Committee on Power (when constituted) to interface with NERC to find a common ground towards addressing the proposed hike in the interest of Nigerians.

Leading the debate, Mr Madaki, stated that “recently, Distribution Companies (DISCOS) alerted customers of a planned electricity tariff hike hinged on the Multi-Year Tariff Oder, MYTO.

The Lawmaker said; “Under the planned hike, customers with prepaid metres, within ‘B’and ‘C’ with supply hours ranging from 12–16 hours per day will pay N100 per KWh, while Bands ‘A’ with 20 hours and above and ‘B’ with 1620 hours, would experience comparatively higher tariffs.”

He noted that “those on post-rand (estimated) billing, would also expect a significant increment.

“Also note that the circular issued by DISCOS stated that effective July 1, 2023, there would be an upward review of the electricity tariff influenced by fluctuating rates;

“Aware that under the MYTO, 2022 guidelines, the previous exchange rate of N 441/$1 may be revised to approximately N750/$1 which would have an impact on the tariffs associated with electricity
consumption.”

Mr. Madaki expressed concern that the proposed increase is coming despite the inability of the operators to meet the threshold of supplying at least 5,000 megawatts per year after signing the contract with the NERC.

He said that; “It is most inappropriate and insensitive to come up with a price increase of such magnitude at this time when many Nigerians are yet to come to terms with the increase in petrol prices.”

He added that the proposed increment is not in the best interest of the average Nigerian Citizen, neither is it for the common good of the citizenry adding that the proposed increment is an exploitation of the common citizen.

Contributing to the debate a member from Lagos state Mr Babajimi Benson, argued that the DISCOS and GENCOS should be invited to hear their side of the story due to the rise in the price of production and exchange rate.

For Bamidele Salaam from Osun state, the government should improve workers’ welfare to enable them to afford the new hike rather than stop it.

Adopting the motion, the Deputy Speaker, Mr Benjamin Kalu, who presided over the plenary referred it to the committee on power when constituted.

 

 

 

Mercy Chukwudiebere

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