How House of Reps Ordered NERC To Suspend Implementation of New Electricity Tariff

The New Diplomat
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By Abiola Olawale

The House of Representatives has directed the Nigeria Electricity Regulatory Commission (NERC) to discontinue the implementation of the new tariff.

The lower legislative chamber passed the resolution during the plenary session on Tuesday, following the adoption of a motion sponsored by Hon Nkemkanma Kama, a Labour Party (LP) lawmaker representing Ivo/Ohaozara/Onicha Federal Constituency in Ebonyi state.

Kama in his argument emphasized the urgency of addressing the sudden rise in electricity prices in Nigeria. He highlighted concerns regarding discrepancies in customer categorization and widespread grievances about inadequate service despite increased charges. He underscored the national anxiety and the threat posed to regulatory certainty and investor confidence in the sector, calling for immediate action to address these issues.

After several deliberations on the motion, the House directed NERC to halt the implementation of the new tariff. Additionally, it has decided to establish a special committee comprising members from the Committees on Power, Commerce, Delegated Legislation, and National Planning.

It would be recalled that on April 3, NERC approved an increase in electricity tariff for customers under the Band A classification.

The commission said customers under the category, who receive 20 hours of electricity supply daily, would begin to pay N225 per kilowatt (kW), starting from April 3 — up from N66.

This also comes after the Minister of Power, Adebayo Adelabu, during a hearing at the Senate Committee on Power defended the tariff hike by stating that the Federal Government could no longer afford to provide subsidies on power.

He had said for the sector to be revived, the government needs to spend about $10 billion annually in the next 10 years.

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