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Reps direct NERC to revert to old electricity tariff for Band A
The House of Representatives has once again instructed the Nigerian Electricity Regulatory Commission (NERC) to revert to the old electricity tariff for Band A customers.
This resolution was passed on Tuesday after adopting recommendations from the House Committee on Power, chaired by Victor Nwokolo.
The report was adopted by the Committee of the Whole, chaired by Deputy Speaker Benjamin Kalu.
On April 3, NERC approved an increase in electricity tariff for Band A customers, who receive 20 hours of electricity supply daily. The tariff was raised to N225 per kilowatt (kW) from N66, but was later reduced to N206.80/kW on May 6.
Defending the tariff hike before the Senate Committee on Power on April 29, Adebayo Adelabu, Minister of Power, stated that the federal government could no longer afford to subsidize power. He emphasized the need for the government to spend about $10 billion annually for the next 10 years to revive the sector.
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Presenting the report, Nwokolo reiterated that NERC should revert to the previous tariff as stated in the initial motion considered by the House. He added that NERC should comply with the provisions of Section 116(2d), (3b) of the Act within 60 days.
Nwokolo also noted that an independent team of experts should be consulted by the joint committees to determine the actual cost of electricity tariff. Additionally, he said that all electricity distribution companies should revert to the old tariff until the matter is resolved by the House.
“The joint committee concluded that the implementation of the tariff increase should be phased over a period of time, not implemented abruptly as it has been,” Nwokolo stated.
Previously, on April 30, the House of Representatives had asked NERC to suspend the implementation of the new tariff.
This resolution was passed during a plenary session following the adoption of a motion of urgent public importance sponsored by Nkemkanma Kama, a Labour Party (LP) lawmaker from Ebonyi state.