The House of Representatives has urged the Nigeria Electricity Regulatory Commission (NERC) to halt the proposed increase in electricity tariff at this time. In response to this matter, the House has tasked its Committee on Power (once constituted) to engage with NERC and work towards finding a solution that considers the best interests of the Nigerian people.
The decision to intervene came after the Deputy Minority Whip, Hon. Aliyu Madaki, raised concerns about the looming increase in electricity tariff by Distribution Companies (DISCOs), causing uncertainty among customers. The DISCOs had notified their customers about the planned tariff hike, which would be linked to the Multi-Year Tariff Order (MYTO), and attributed the increase to fluctuating exchange rates. As per the MYTO, the previous exchange rate of N 441/$1 might be revised to approximately N750/$1, resulting in higher tariffs for electricity consumption.
Under the proposed hike, customers in Bands 'B' and 'C' receiving electricity for 12-16 hours per day would be charged N100 per KWh. However, those in Bands 'A' with 20 hours and above and 'B' with 16-20 hours would experience comparatively higher tariffs. Prepaid meter users would also face higher charges, while significant increments are expected for post-paid (estimated) billing customers.
Hon. Aliyu Madaki pointed out that the planned increase has caused widespread apprehension among the public, especially given that the DISCOs have struggled to meet the minimum requirement of supplying 5,000 megawatts per year after signing the contract with NERC. He emphasized that such a substantial price increase is inappropriate, especially when many Nigerians are still grappling with the rise in petrol prices.
During the discussions on the matter, Babajimi Benson and Olumide Oshoba emphasized the need for caution, considering the escalating infrastructure costs that the companies have to cover. Oshoba argued that prices cannot be controlled in a deregulated market.
On the other hand, Satomi Ahmed and Ali Isa JC opposed the tariff hike, asserting that the burden of subsidy removal on Nigerians is already substantial and difficult to bear, let alone adding an electricity tariff increase to the mix. Ahmed lamented the lack of investment in infrastructure since the DISCOs took over power distribution, leading communities to purchase transformers to get connected.
In light of these differing perspectives, the House of Representatives has taken a stand against the planned increase and called on NERC to address the concerns and uncertainties surrounding the proposed hike in electricity tariffs.
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