Reps Reject Move to Increase Electricity Tariffs

The House of Representatives has rejected a move by the Nigeria Electricity Regulatory Commission (NERC) to approve any increase in electricity tariff.

The resolution followed a motion by the Deputy Minority Whip,  Aliyu Madaki at the plenary in Abuja on Thursday.

In his motion, he expressed concern over the suspense created by the planned increase in electricity tariff by Distribution Companies (DISCOs)

The lawmaker recalled that DISCOs recently alerted customers of a planned electricity tariff hike,  hinging it on the Multi-Year Tariff Order (MYTO).

He cited a circular issued to that effect by the distribution firms, adding  that effective July 1, 2023, there would be an upward review of the electricity tariff influenced by fluctuating rates.

He said, under the MYTO, 2022 guidelines, the previous exchange rate of N 441/$1 might be revised to approximately N750/$1 which would have an impact on the tariffs associated with electricity.

He said under the planned hike, consumers within ‘B’ and ‘C’ with supply hours ranging from

12–16 hours per day would pay N100 per KWh, while Bands ‘A’ with 20 hours and above

He said consumers within and ‘B’ with 16–20 hours, would experience comparatively higher tariffs, for customers with prepaid metre, whereas, for those on estimated billing, a significant increment was expected.

He said 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 was confusing.

He added that members of the public were confused as to what to believe.

The lawmaker said the proposed increase is coming in spite of the inability of the operators to meet the threshold of supplying at least 5,000 megawatts per year.

This,  he said, was after signing the contract with NERC, adding that it was insensitive to come up with price increase of such magnitude at this time when many Nigerians were yet to come to terms with the fuel increase.

Contributing to the motion,  Babajimi Benson (APC-Lagos) and  Olumide Oshoba (APC-Ogun) called for caution in view of the pain the Nigerians are going through occasioned by the removal of fuel subsidy.

Benson noted the increase cost of infrastructure, which companies must strive to cover.

Osoba however said that it was impossible to control prices for a deregulated market.

July 20, 2023