Senate halts debate on electricity tariff hike

Juliet Anine
3 Min Read

The Senate halted a debate on a proposed increase in electricity tariffs. This decision followed a point of order raised by Senator Titus Zam (APC, Benue North West), who noted that the matter was currently before a federal high court in Kano.

Deputy Senate President Barau Jibrin, who presided over the session, supported Zam’s point, leading to the suspension of deliberations on the report. Ondo South Senator Jimoh Ibrahim also backed Zam’s observation.

Two weeks ago, the Senate Committee on Power, led by Senator Eyinnaya Abaribe (APGA, Abia Central), held an investigative hearing on the tariff increase. The meeting included the Minister of Power, Adebayo Adelabu, managers of Electricity Distribution Companies, and executives from the National Electricity Regulatory Commission.

Presenting the committee’s 44-page report, Abaribe recommended suspending the new tariff hike. The report suggested that NERC halt the implementation of the Multi-Year Tariff Order 2024, which increased tariffs from N68/kWh to N225/kWh. This suspension would allow for thorough consultations with customers.

The report stated, “NERC should ensure full compliance with stakeholder consultation requirements under Section 48 of the Electricity Act, 2023, to prevent confusion and public outcry over future tariff increases.”

Additionally, the report urged NERC and the Ministry of Power to address power scarcity instead of focusing on price increases. It called for holding DISCOs accountable for failing to meet Key Performance Indicators and customer service obligations.

Senators expressed their displeasure with the planned tariff increase. Senate Minority Leader Abba Moro called the increase fraudulent, stating, “The price increase is not commensurate with the supply of electricity. We provide transformers for our communities, but DISCOS demand money to install them.”

Moro urged serious sanctions against the distribution companies for their failures. Senator Adamu Aliero criticized NERC for making decisions without proper consultation, saying, “This increment was done without the provisions of the law. Nigerians face rising costs in exchange rates and petrol, and now another increase.”

Following these observations, Deputy Senate President Jibrin ruled that the report be stepped down for further consultation.

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