House of Reps Calls for Suspension of Electricity Tariff Hike 

The House of Representatives has directed the National Electricity Regulatory Commission (NERC) to halt the implementation of the recent electricity tariff increase for Band A customers, pending further investigations by the House.

During a plenary session, Hon. Kama Nkem-Kanma raised a motion to criticise the sudden tariff hike and its discriminatory nature.

In response, the House set up a special committee to investigate the power sector comprehensively.

Additionally, the House instructed NERC to suspend other conditions outlined in the Multi-Year Tariff Order review.

The special committee, comprising representatives from various committees and stakeholders, will conduct hearings to review the tariff-setting process and assess its legality and reasonableness.

Moreover, the committee will collaborate with a former regulator to draft a bill to improve administrative procedures in tariff setting.

These measures were reportedly prompted by concerns over due process, fairness, and the impact on consumers, particularly in light of reports indicating discrepancies in customer categorisation and complaints about inadequate service despite increased charges.

During the plenary session on Tuesday, Hon. Nkem-Kanma stated:

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 specific 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.

The motion proposes resolutions to suspend the recent tariff increases, establish a special committee for hearings involving relevant stakeholders, appoint a technical consultant to assess the legality and reasonableness of NERC’s procedures and draft a bill to improve regulatory processes in tariff setting.

Overall, this motion underscores the importance of legislative action to address the challenges facing the electricity sector and ensure fair treatment of consumers while promoting transparency and accountability in regulatory decision-making.

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