Electricity Tariff: Senate Halts Adoption Of Report Demanding Suspension Of Implementation

The Senate has temporarily stepped down adoption of a report asking the National electricity regulatory commission (NERC) to suspend the ongoing implementation of the multi-year tariff order (MYTO), 2024, which approved over 200% upward review of the previous tariffs from N68/kWh to N225/kWh.

The decision by Senate is to allow for robust consultation with customers on the various bands on the cost of service.

The suspension came minutes after the submission of an investigative report of the Committee on Power on the planned hike in electricity tariff and the need to halt the proposed increase by Distribution Companies amidst the economic situation in Nigeria by Senator Enyinnaya Abaribe.

In the 46 page report, the committee had also recommended that NERC should ensure full compliance with the mandatory requirement of stakeholder consultation under Section 48 of the Electricity Act, 2023 regarding future regulatory decisions, to avoid a repeat of the confusion and public outcry that trailed the recent tariff increase.

The report also recommends that NERC to adopt measures to address the problem of power scarcity holistically, rather than its preoccupation with price manipulation which has proven to be counterproductive.

In the robust debate, most lawmakers expressed the urgent need to adopt the recommendations.

However, Chairman Senate committee on rules and business, Senator Titus Zam, as well as Senator Jimoh Ibrahim, raised objections over the adoption.

They asserted that the matter be stepped down, citing pending case in court, necessitating the need to temporarily suspend further debate on the report.

A Federal High court had on May 3, issued an order restraining the National Electricity Regulatory Commission and the Kano Electricity Distribution Company from implementing the new electricity tariff for Band A consumers.