UPDATED: Suspend Implementation Of New Electricity Tariff, Reps Tells FG

The House of Representatives has called for the suspension of the new electricity tariff implementation by the Nigeria Electricity Regulatory Commission (NERC)

This was revealed by the House of Representatives during a plenary session on Tuesday, where it passed a resolution urging NERC to halt the implementation of the recently approved electricity tariff hike. It also called for the suspension of other conditions in the newly issued review of the Multi-Year Tariff Order.

The motion, sponsored by Nkemkanma Kama, a Labour Party (LP) lawmaker from Ebonyi state, was adopted as a matter of urgent public importance.

NERC granted a tariff increase on April 3, specifically targeting customers categorized under the Band A classification.

However, the lower legislative chamber suspended the move over the potential impact of the tariff hike on consumers.

Also, a special committee comprising members from the Committees on Power, Commerce, Delegated Legislation, and National Planning was established to conduct a thorough hearing on regulating prices in the Nigerian Electricity Supply Industry (NESI).

The hearing according to the House will involve the Minister of Power, Chairman and Commissioners of NERC, CEOs of all electricity utilities in Nigeria, Presidents of the Nigeria Labour Congress and the Trade Union Congress (TUC), as well as leaders from chambers of commerce in Nigeria.

The House decided to appoint a respected former regulator as a technical consultant to develop templates for assessing the “legality and reasonableness of the procedures used by NERC to approve tariff increases and establish performance benchmarks for the Discos.”

Furthermore, the House resolved to authorise the consultant to collaborate with the special committee in drafting a bill aimed at establishing proper consultation and legislative review processes for tariff setting in the electricity and other public services in Nigeria.

Kama said: “It highlights concerns over due process, fairness, and the impact on consumers. The motion aims to restore public trust, protect consumer rights, and 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 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.”

Kama emphasized that the motion argues for legislative intervention, highlighting both the constitutional and moral responsibilities to tackle the crisis and ease 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, 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 ensure fair treatment of consumers while promoting transparency and accountability in regulatory decision-making,” he added.