By Olubunmi Omoogun – The House of Representatives in Nigeria has moved swiftly to protect the rights of the consumers with a legislative motion to halt the implementation of a badly drawn up electricity tariff regime in the country.
A federal regulatory agency, the Nigerian Electricity Regulatory Commission (NERC) had earlier approved an unpopular increase in electricity tariff for a specified level of customers. A move that would inflict more untold hardship on the people if not checked.
While responding to the deep dissatisfaction expressed by electricity consumers, a Member of the parliament, Rep. Nkemkanma Kama, Member representing Ohaozara/Onicha/Ivo federal constituency (Labour Party LP-Ebonyi, South East Nigeria) last week moved the motion calling for the suspension of the hike in electricity tariff by the Nigerian Electricity Regulatory Commission (NERC) at plenary.
It would be recalled that NERC had on April 3, 2024 approved an increase in electricity tariff for customers who enjoyed 20 hours of electricity daily classified as Band A users.
While moving the motion, Kama said that the aim was to restore public trust, protect consumer rights, and ensure regulatory accountability in the Nigerian Electricity Supply Industry (NESI).
The Ebonyi state federal legislator said that facts presented showed that the approval granted by Nigerian Electricity Regulatory Commission (NERC) resulted in a staggering 300 per cent rise for certain consumers.
Reading the motion under matters of urgent public importance, he said, “What is 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.
“This motion argues for legislative intervention, underlining our constitutional and moral obligations to address the crisis and alleviate the burden on Nigerian citizens.
“It places a strong emphasis on the legislative oversight role over NERC and the electricity utilities, stressing the need for fair and just pricing and consultation with stakeholders in tariff determination processes.
“This is not just a responsibility, but a duty we owe to our constituents,”
The federal lawmaker alleged failure of due process in approving the tariff increase, which raised concerns over discriminatory practices, and disputed nature of government subsidies to Electricity Distribution Companies (DISCOs).
Sequel to the adoption of the motion, the House ordered the Nigerian Electricity Regulatory Commission (NERC) to suspend the operation of the recently announced tariff increases and other conditions in the newly issues review of the Multi-Year Tariff Order 2024 (MYTO).
The House resolved to set up a special committee made up of the Committees on Power, Commerce and National Planning to convene a public hearing on price regulation.
The lawmaker resolved to appoint well-regarded former regulator as technical consultant to the House to develop templates for determination of the legality, reasonableness of the procedure adopted by NERC in approving the tariff increase and establishing the performance benchmarks for the Distribution Companies (Discos).
The Speaker of the House of Representatives, Rep. Tajudeen Abbas urged the relevant committees to ensure compliance.
While noting the dysfunction in the electricity system in the country, the masses feel that the recent increase in tariffs with the so-called Band system, indicates the lack of ideas and an introduction of an apartheid system in a free country. Nigeria needs to unbundle power supply town-by-town, city-by-city, state-by-state or region-by-region to function effectively and efficiently.
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