In a decisive move on Tuesday, the House of Representatives directed the Nigerian Electricity Regulatory Commission (NERC) to suspend the implementation of the recently announced tariff increase.
This decision came alongside a call for the suspension of other conditions outlined in the newly issued review of the Multi-Year Tariff Order.
A specialized committee, composed of representatives from the Committees on Power, Commerce, Delegated Legislation, and National Planning, has been established to onduct a thorough hearing on the pricing regulation within the Nigerian Electricity Supply Industry (NESI).
This hearing is set to include “prominent figures such as the Minister of Power, Chairman and Commissioners of NERC, chief executives of all electricity utilities in Nigeria, Presidents of the Nigeria Labour Congress and the Trade Union Congress (TUC), as well as leaders of chambers of commerce Nigeria.”
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In a bid to ensure a comprehensive evaluation, the House resolved to appoint “a respected former regulator as a technical consultant. The consultant’s primary task would be to develop templates to determine the legality and reasonableness of the procedures adopted by NERC in approving the tariff increase, along with establishing performance benchmarks for the Distribution Companies (Discos).”
Additionally, the House authorized the consultant to collaborate with the special committee in drafting a bill aimed at instituting administrative procedures that guarantee proper consultation and legislative review processes for tariff setting in the electricity and other public services in Nigeria.
The motive behind these resolutions stemmed from a motion of urgent importance introduced by Honorable Nkemkanma Kama.
Speaking on the motion, Kama highlighted “the need to address critical issues surrounding the sudden surge in electricity prices, emphasizing concerns over due process, fairness, and consumer impact.”
According to Kama, “The motion seeks to restore public trust, protect consumer rights, and ensure regulatory accountability within the NESI. It underscores the constitutional and moral obligations to address the crisis and alleviate the burden on Nigerian citizens.”
The motion also stressed “the failure of due process in approving the tariff increase, discriminatory practices, and the contested nature of government subsidies to electricity distribution companies (Discos).”
In response to the Senate Committee on Power during a hearing, Minister of Power Adebayo Adelabu defended the tariff hike, citing the “Federal Government’s inability to sustain subsidies on power.”
Adelabu underscored “the necessity for substantial investments in the sector, signaling increased investor interest following the tariff adjustments for Band A customers.”