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Reps order NERC to suspend hike in electricity tariff

Credible News by Credible News
April 30, 2024
in Development, Economy, Human Interest, News
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Reps order NERC to suspend hike in electricity tariff
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The House of Representatives has ordered the Nigeria Electricity Regulatory Commission, NERC to suspend the implementation of the new tariff.

This is following the adoption of a motion moved by Rep. Nkemkanma Kama, LP-Ebonyi at the plenary on Tuesday, stating that the aim was to restore public trust, protect consumer rights, and ensure regulatory accountability in the Nigerian Electricity Supply Industry.

He said facts presented showed that the approval granted by NERC resulted in a staggering 300 per cent rise for certain consumers.

“What is more concerning are the reports indicating discrepancies in customer categorization 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.

READ ALSO: Reps probe Multichoice for N1.8tn, $342m tax fraud

“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 failure of due process in approving the tariff increase which raised concerns over discriminatory practices, and disputed nature of government subsidies to Electricity Distribution Companies.

Sequel to the adoption of the motion, the house ordered the NERC to suspend the operation of the recently announced tariff increases and other conditions in the newly issues review of the MYTO.

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

They also resolved to appoint well-regarded former regulator as technical consultant to the house 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 Speaker of the house, Rep. Tajudeen Abbas in his ruling said the relevant committees should ensure compliance.

It would be recalled that NERC had one April 3, approved an increase in electricity tariff for customers who enjoyed 20 hours of electricity daily classified as Band A users.

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Tags: House of RepsNigeria Electricity Regulatory CommissionRep. Tajudeen AbbasSpeaker of the house
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