Senate Asks NERC To Suspend Execution Of New Electricity Tariff

The Senate, yesterday, called on the Nigerian Electricity Regulatory Commission (NERC), to suspend the ongoing implementation of the multi-year tariff order (MYTO), 2024, which approved an over 200% upward review of the previous tariffs from N68/kWh to N225/kWh.

The Senate Committee on Power made the recommendation for the suspension of the controversial tariff hike in its report on the investigative hearing on the recent tariff increase amidst the economic situation in Nigeria.

The Senate at its plenary sittings of Tuesday, July 25, 2023 and Wednesday, February 21, 2024, considered two motions on the “Need to Halt the Proposed Increase in Tariffs by 11 Successor DISCOs”; and “The Planned Hike in Electricity Tariffs by the Distribution Companies of Nigeria (DISCOs), Amidst the Economic Situation in Nigeria”.

After exhaustive deliberation on the motions, the Senate resolved amongst others to mandate the Senate Committee on Power to: engage the Federal Ministry of Power, NERC and other stakeholders to find a lasting solution to the challenges facing the Electricity Sector, including the need for comprehensive sector reforms.

It also mandated the committee to investigate the over N2 trillion subsidy requirement as stated by the Minister of Power to avoid the repeat of the fuel subsidy scenario, and the statement made by the minister with regard to the N1.3 trillion the ministry is owing generating companies, and $1.3 billion owed to gas companies.

The committee was also mandated to investigate the role of the Ministry of Power, NERC and Ziklagsis Networks Limited on their roles in the failed agreement to provide prepaid meters and ensure Nigerians are not short changed; engage NERC to come up with a lasting solution to the energy billing system in the country and other related issues.

It was also asked to investigate the Federal Government’s directive and release of funds for mass prepaid metering; ensure the judicious utilisation of the N10.5 billion penalty imposed on DISCOs.

Also the Committee was given the mandate to investigate the operations of DISCOs to ascertain the current status of metering and the extent of compliance with relevant legal and regulatory frameworks in service delivery.

Presenting the report of the Committee on the floor of the Senate yesterday for consideration, the Chairman of the Senate Panel, Senator Enyinnaya Abaribe, said that committee recommended outright suspension of the implementation of the new tariff to allow for robust consultation with customers on the various bands on the cost of service instead of heavy reliance on feeder location and duration of service which are difficult to determine and monitor.

Meanwhile, it is instructive to note that the Senate later stepped down further consideration of the report, following a point of order raised by Senator Titus Zam (Benue North West), drawing the attention of the Upper Chamber that the matter was pending in court in Kano State.

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