Juliet Akoje in Abuja
The House of Representatives has urged the National Electricity Regulatory Commission (NERC) not to approve any increase in electricity tariff in Nigeria.
The resolution followed the adoption of a motion on ‘Suspense over Planned Electricity Tariff Hike’ moved by Hon. Aliyu Sani Madaki at plenary on Thursday.
Madaki notified the House that recently, electricity distribution companies (Discos) alerted customers of a planned electricity tariff hike hinged on the Multi Year Tariff Oder (MYTO).
He noted that the circular issued by the Discos stated that effective July 1, 2023, there would be an upward review of the electricity tariff influenced by fluctuating rates.
Under the MYTO 2022 guidelines, the previous exchange rate of N441/$1 may be revised to approximately N750/$1 which would have an impact on the tariffs associated with electricity consumption.
According to the lawmaker, “Under the planned hike, consumers within ‘B’ and ‘C’ with supply hours ranging from 12, 16 hours per day will pay N100 per KWh, while Bands ‘A’ with 20 hours and above and ‘B’ with 16-20 hours, would experience comparatively higher tariffs, that is, for customers with a prepaid metre whereas, for those on post paid (estimated) billing, a significant increment is expected to be higher.
“Concerned about the widespread apprehension in the country over the planned introduction of a new electricity tariff regime by the distribution companies (Discos). Also concerned that the recent statement by the Abuja Electricity Distribution Company (AEDC) directing its consumers to disregard the earlier notice of the increase in the electricity tariffs hike is confusing as members of the public are confused as to what to believe.”
He further stressed that the proposed increase is coming despite the inability of the operators to meet the threshold of supplying at least 5,000 megawatts per year after signing the contract with the NERC.
“I believe that it is most inappropriate and insensitive to come up with a price increase of such magnitude at this time when many Nigerians are yet to come to terms with the increase in petrol prices. Cognizant that the Constitution of the Federal Republic of Nigeria, 1999 (as amended), in Section 16 (2) (b), has provided that the material resources of the nation be harnessed and distributed as best as possible to serve the common good.
“At this point in time, the proposed increment of electricity tariff by the Discos is not in the best interest of the average Nigerian citizen, neither is it for the common good of the citizenry. The proposed increment is an exploitation of the common citizen, which is not in line with Section 17 (2) (d) of the constitution which states that the ‘exploitation of human resources in any form whatsoever for reasons other than the good of community should be prevented’,” he said.
However, the House has mandated its Committee on Power (when constituted) to interface with NERC with a view to finding a common ground to addressing the proposed hike in the interest of Nigerians.
