Senate, House of Reps Kick Against Proposed Hike In Electricity Tariff

The Senate (The Red Chamber)
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Senate, House of Reps Kick Against Proposed Hike In Electricity Tariff

The Senate has urged the Federal Government to halt the proposed electricity tariffs by the Distribution companies.

It also urged the Nigerian Electricity Regulatory Commission to decentralize the proposed scheduled stakeholders meeting to the six Geo political Zones.

These resolutions were taken after the lawmakers deliberated on a motion sponsored by Senator Yunus Akintunde Representing Oyo Central.

In a lead debate, Senator Akintunde explained that huge sums of money were spent by senators across the country in the procurement and installation of transformers, through their Zonal intervention Projects, which are yet to be energized by the Disco.

Senator Akintunde was worried that despite an increase in Tariff before now, there has not been any improvement in their service delivery.

The motion enjoyed unanimous support of the Senate.

The lawmakers thereby urged the Discos to discontinue estimated billing and make prepaid meters available at affordable prices.

Similarly, the Upper chamber urged Nigerian Electricity Regulatory Commission to explore alternative measures to address the financial challenges by the Discos, and look into the review application filed by the Discos considering the interest of the citizens.

House of Reps Opposes Proposed Increase In Electricity Tariff

In a related development, the House of Representatives also have urged the federal government to intervene and halt the proposed increase of electricity tariff.

The House of Representatives has kicked against an increase in electricity tariff proposed by distribution companies to the National Electricity Regulatory Commission (NERC).

The resolution was reached following a motion presented by Honourable Aliyu Madaki. The lawmaker disapproved of the price hike, considering the recent increase in petrol prices.

Madaki stressed that it is inappropriate and insensitive to introduce such a significant tariff increase when citizens are still grappling with the impact of the petrol price surge.

Reacting to the motion, the House has mandated its committee on power, once constituted, to engage in discussions with NERC to seek a mutual understanding and find a middle ground to address the proposed tariff hike.

Also, the lawmakers said the House remains committed to safeguarding the interests of Nigerians and ensuring that decisions made by regulatory bodies are in line with the welfare of the citizens.

The Federal Government disclosed that the 11 power distribution companies in the country have submitted applications for the revision of their electricity tariffs.

NERC who announced the applications, stated that the request for rate review is based on the need to incorporate changes in macroeconomic parameters, as well as other factors that impact these companies’ quality of service, operations, and sustainability.

NERC said the distribution companies’ applications for rate review are in accordance with Sections 116 (1) and 2(a) and (b) of the Electricity Act 2023, as well as other relevant regulations.

Some power distribution companies had recently announced that tariffs would be raised, with the increase set to take effect on Saturday, July 1.
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