By Christiana Ekpa
The House of Representatives has waded into the controversy surrounding the recent increase in electricity tariffs, warning that any significant hike could have far-reaching consequences for the economy and the livelihoods of Nigerians.
The Speaker of the House, represented by his deputy, Benjamin Kalu, spoke at a special public hearing on the tariff increase, saying that the decision has sparked widespread discontent and apprehension across the nation.
He noted that the fears expressed by many Nigerians are valid, as a sharp increase in electricity tariffs could exacerbate economic hardships and lead to increased prices for goods and services.
He said: “The recent decision by the Nigeria Electricity Regulatory Commission to increase electricity tariffs has sparked widespread discontent and apprehension across the nation. The rationale provided for this tariff hike, as outlined by NERC, is to address the industry’s mounting debt and ensure the continued functioning of the power sector.
The speaker said the decision to increase her tariff has not been well-received by Nigerians with several people including organized labour and industry experts voicing strong opposition to this decision.
He said: “The fears expressed by many are valid – that such a sharp increase in electricity tariffs will only exacerbate the economic hardships already faced by our people. There are genuine concerns that higher utility bills resulting from this tariff hike could have a ripple effect on operational costs for businesses, potentially leading to increased prices for goods and services
“Electricity as we know, is not just a commodity; it is a lifeline for many households and businesses across our nation. Any significant rise in tariffs could have far-reaching consequences for our economy and the livelihoods of our people.
“Therefore, it is essential that we carefully assess all factors before making any decisions that may affect the affordability and accessibility of electricity for our citizens. It is imperative that we engage in constructive dialogue to address these issues and ensure that any adjustments made are fair, transparent, and ultimately beneficial to all parties involved.
“As representatives of the Nigerian people, it is our duty to carefully consider the implications of such policies on our constituents’ well-being and livelihoods. Our goal is to ensure that any adjustments made to electricity tariffs are fair, equitable, and ultimately beneficial to all stakeholders involved.
“We must strive to strike a balance that safeguards the interests of consumers while also enabling sustainable growth and development within the energy sector.”
The Speaker emphasized the importance of engaging in wider consultations with all relevant stakeholders before any tariff adjustments, stressing that this approach aligns with Section 33 of the Electricity Act 2024, which mandates a just and fair electricity price regime.
He also stressed the urgent need to address critical issues within the electricity value chain that contribute to technical and commercial losses which ultimately serve as a burden to consumers who are indirectly compelled to bear these costs.
He called for constructive dialogue from stakeholders and provided valuable insights that will guide the House in finding a balanced solution to this pressing issue.
He stressed the commitment of the House to working closely with the executive to transform the Nigerian power sector into a model of efficiency and sustainability as outlined in our Legislative Agenda, while also pledging to provide legislative support to the efforts of President Ahmed Bola Tinubu’s Administration in reforming the power sector.
Chairman of the Committee, Hon. Victor Nwokolo (PDP, Delta) said since the decision of the Nigeria Electricity Regulatory Commission announced an increase in electricity tariff from N64 to N225 per kilowatts, the Committee has received a lot of complaints about misgivings on both the process and the substance of the regulatory action of NERC.
He said many of the complaints relate to the lack of consultation by the regulator as required by law before approving the increase. Others relate to the lack of 20 hours of electricity supply as promised by the regulator which is not been delivered.
Nwokolo stressed that as representatives of the people we commit to take up these complaints and ensure that the Minister, the regulator and the operators provide the need information for us to report to the plenary on how legal, rational and reasonable all parties have exercised their mandates.
He said the House recognize that the legislature has granted NERC the powers to approve tariffs, adding that this power can only be validly exercised when the regulator has observed regulatory due process.
He said the power of a regulator to approve tariff increases has to be justified by evidence and logic that show that the reviewed tariff is fair and just and apportioned to different customer classes according to the real costs of serving them.
He said the Electricity Act authorises NERC to allow an operator to recover the costs of electricity supply, but only after the operator has established that it has prudently incurred the costs, adding however that the regulator cannot impose a burden on customers to bear imprudent and unnecessary costs.
