House of Reps Gives Strong Warning to NERC, DisCos to Reverse New Electricity Tariff
- Lawmakers in Nigeria's lower chamber have ordered NERC and DisCos to restore the previous Band A electricity tariff
- Members of the House committee emphasised that Nigerians cannot afford the new rates, hence the need to revert to the former
- The committee advised that if at all a tariff increase, the implementation should be over a period of time
Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology and the stock market.
The House of Representatives has once again instructed the Nigerian Electricity Regulatory Commission (NERC) and electricity distribution companies (DisCos) to revert to the previous electricity tariff for Band A.
This decision was made on Tuesday, July 23, 2024, after the recommendations of the House Committee on Power, led by its chairman, Victor Nwokolo, were adopted.
Source: UGC
According to The Guardian, the report was approved by the Committee of the Whole, chaired by deputy speaker Benjamin Kalu.
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Background to tariff hike
It would be recalled that in January 2024, FG had given approval to NERC to carry out an upward review of electricity tariffs.
On April 3, NERC sanctioned an increase in the electricity tariff for customers in the Band A category.
According to the commission, these customers, who receive 20 hours of electricity daily, were to start paying N225 per kilowatt (kW) from April 3, up from N66.
However, the tariff was later reduced to N206.80/kW on May 6.
Reps urge reversal of tariff hike
While presenting the report, Victor Nwokolo stated that NERC should revert to the previous tariff as indicated in the earlier motion considered by the House, emphasising that Nigerians cannot afford the new rates.
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He mentioned that the House also decided that the joint committees should consult an independent team of experts to determine the actual cost of the electricity tariff.
Nwokolo added that the lawmakers resolved that all electricity distribution companies should revert to the old tariff until the House resolves the matter.
Nwokolo said:
“In conclusion, the joint committees is that the implementation of the tariff increase should be over a period of time, it should be in phases not what they have just done, it should be in phases.”
On April 30, the House of Representatives previously requested that NERC suspend the implementation of the new tariff after adopting a motion of urgent public importance.
A Lagos high court had also issued an interim ruling prohibiting NERC and the DisCos operating in Nigeria from raising tariffs.
Segun Ogunlola, a social commentator told Legit.ng that the involvement of Nigerian lawmakers in addressing the electricity tariff hike is a welcome development.
He said:
"With the cost of living already high, an increase in electricity tariffs would further burden citizens. Lawmakers must balance the need for sustainable energy infrastructure with affordability for the average Nigerian.
"Their intervention should focus on ensuring that tariff adjustments are justified, transparent, and accompanied by tangible improvements in electricity supply. Additionally, exploring alternative energy sources and investing in efficient energy distribution can help mitigate future hikes."
He added that this proactive stance by lawmakers could lead to more equitable and sustainable energy policies in Nigeria.
Employers seek reversal of electricity tariff hike
In related news, Legit.ng reported that the Nigeria Employers Consultative Association (NECA) has expressed concern over the rise in electricity tariffs.
The association said the move negatively impacts businesses and the general public and should be reconsidered.
NECA's director general, Adewale Smatt-Oyerinde, explained in an interview that the tariff hike has resulted in higher costs for goods and services.
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Source: Legit.ng
