House of Representatives Directs NERC to Revert to Previous Electricity Tariff for Band A
The House of Representatives has once again instructed the Nigerian Electricity Regulatory Commission (NERC) to revert to the previous electricity tariff for customers under Band A.
This decision was made on Tuesday after the House Committee on Power, led by Chairman Victor Nwokolo, presented their recommendations. The committee’s report was adopted by the Committee of the Whole, chaired by Deputy Speaker Benjamin Kalu.
On April 3, NERC approved an increase in the electricity tariff for Band A customers, who receive 20 hours of electricity daily. The tariff was raised to N225 per kilowatt (kW) from N66 per kW. However, it was later reduced to N206.80 per kW on May 6.
Defending the tariff hike before the Senate Committee on Power on April 29, Minister of Power Adebayo Adelabu stated that the federal government could no longer afford to subsidize power. He emphasized that to revive the sector, the government would need to spend about $10 billion annually over the next ten years.
Presenting the report, Nwokolo insisted that NERC should revert to the previous tariff as stated in an earlier motion by the House. He added that NERC should comply with the provisions of Section 116(2d) and (3b) of the Act within 60 days.
Nwokolo also mentioned that the House resolved to consult an independent team of experts to determine the actual cost of electricity tariff. Additionally, all electricity distribution companies should revert to the old tariff until the House resolves the matter.
“In conclusion, the joint committees recommend that the implementation of the tariff increase should be gradual and phased, not abrupt as currently done,” he stated.
On April 30, the House of Representatives had already asked NERC to suspend the new tariff implementation. This resolution was passed during a plenary session following a motion of urgent public importance sponsored by Nkemkanma Kama, a Labour Party lawmaker from Ebonyi State.
(cable)