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Fresh FM Nigeria| Keeping you fresh all day > Blog > News > Reps Call On NERC To Pause Electricity Tariff Increase
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Reps Call On NERC To Pause Electricity Tariff Increase

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Last updated: April 30, 2024 3:49 PM
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The House of Representatives has called for the suspension of the new electricity tariff by the Nigeria Electricity Regulatory Commission.

The call for suspension came after Nkemkanma Kama (Labour Party-Ebonyi) moved a motion during Tuesday’s plenary.

NERC approved an electricity tariff increase on April 3 specifically for Band A users who receive 20 hours of electricity daily.

Moving the motion, Mr 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.

Mr Kama 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. 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,” he said.

The lawmaker alleged a failure of due process in approving the tariff increase, which raised concerns over discriminatory practices and the disputed nature of government subsidies to electricity distribution companies.

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

The lawmaker resolved to appoint a well-regarded former regulator as a technical consultant to the house to develop templates for determining the legality and reasonableness of the procedure adopted by NERC in approving the tariff increase and establishing the performance benchmarks for the DisCos.

In his ruling, Speaker Tajudeen Abbas said that the relevant committees should ensure compliance.

 

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TAGGED:Electricity tariff hikeHouse of RepresentativesNigeria Electricity Regulatory Commission (NERC)

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