House of Representatives Urges NERC to Halt Electricity Tariff Increase

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The House of Representatives has called on the Nigeria Electricity Regulatory Commission (NERC) to immediately suspend the planned increase in electricity tariff. In response to the concerns raised by Deputy Minority Whip, Aliyu Madaki, regarding the proposed hike in electricity tariffs by Distribution Companies (DISCOs), the House has directed its Committee on Power to engage with NERC to find a solution that benefits the Nigerian populace.

The DISCOs had recently notified customers about their intention to raise electricity tariffs based on the Multi-Year Tariff Order (MYTO), citing fluctuations in the naira-to-dollar exchange rate as a significant factor. The proposed MYTO, 2022 guidelines suggest revising the previous exchange rate of N 441/$1 to approximately N750/$1, which would substantially impact electricity consumption tariffs.

Under the planned tariff hike, customers falling within Bands ‘B’ and ‘C’, with electricity supply hours ranging from 12 to 16 hours per day, would face a N100 per KWh charge. Meanwhile, those in Bands ‘A’ with 20 hours and above, and ‘B’ with 16 to 20 hours, would experience even higher tariffs for prepaid meter users. Post-paid (estimated) billing customers are also expected to see a significant increase.

The impending tariff increase has caused widespread apprehension in the country, especially considering the distribution companies’ inability to meet the contractual threshold of supplying at least 5,000 megawatts per year, as agreed with NERC.

Furthermore, the timing of the proposed increase has raised concerns about its appropriateness and sensitivity, given the recent petrol price hike, which many Nigerians are still grappling with.

As a result, the House of Representatives has taken a proactive stance to halt the tariff increase and seek a resolution that considers the welfare of Nigerian citizens, urging NERC and the distribution companies to carefully reconsider the implications of their proposed action.

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