This situation has not just sparked national anxiety, but it also threatens regulatory certainty and investor confidence in the sector, demanding immediate attention.
By Deborah Hassan
365Daily – House of Representatives has asked the Nigerian Electricity Regulatory Commission (NERC) to suspend the operation of the recently announced tariff hike and other conditions in the newly reviewed Multi-Year Tariff Order.
It made this call as part of resolutions of a motion of urgent importance moved by Hon Nkemkanma Kama, which were adopted by the House.
This is just as it set up a special committee made up of the Committees on Power, Commerce, Delegated Legislation and National Planning to organise a well-structured hearing on the price regulation of Nigerian Electricity Supply Industry (NESI).
The Minister of Power, Chairman and Commissioners of NERC, the chief executives of electricity utilities in Nigeria, Presidents of the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC), as well as leaders of chambers of commerce Nigeria are expected to be in attendance.
Similarly, the House resolved to appoint a well-regarded former regulator as technical consultant to develop templates for determination of the “legality, reasonableness of the procedure adopted by NERC in approving the tariff increase and establishing the performance benchmarks for the DisCos”.
The consultant is to work with the special committee to draft a bill to provide for administrative procedures for proper consultation and legislative review of process for tariff setting in the electricity and other public services in Nigeria.
Moving the motion, Kama noted that the legislative motion on increase in electricity tariff seeks to address key issues surrounding the sudden hike in electricity prices in Nigeria.
He explained that the motion “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).’’
Going further, he added, “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.
“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).”