Reps decries rising electricity tariff, seeks downward review

House of Representatives

The House of Representatives has decried the rising electricity tariff in the country.

The lawmakers said the increases were not justified considering the commitment of N213billion to the operators that has failed to boost supply to Nigerians.

In addition, the lawmakers said the increments were not in tandem with the economic realities of the country with Nigerians being confronted with several economic hardships.

As a result, the House has mandated an ad hoc Commitee to interface with the National Electricity Regulatory Commission (NERC) and other stakeholders to critically evaluate the Multi Year Tariff Order (MYTO) system and re-assess all its inputs and assumptions in order to come up with a realistic tariff regime.

The Committee has six weeks to carry out the assignment and report back to tell House.

Sponsor of the motion, Shehu Musa (APC, Bauchi) recalled that in 2008, NERC adopted the MYTO methodology to regulate electricity tariff and the tariff setting in consultation with industry stakeholders, labour and consumer groups to provide a correct pricing of electricity, taking into consideration the key principles of cost reflectivity, affordability, incentives for efficient operations and other assumptions such as in tertiary rates, exchange rates, inflation, gas prices and subsidies.

“The new tariff regime continues to increase from an average of N10 per kwh  (RI) in 2007 to an average of N24.20 per Kwh (RI) in 2017 without significant improvement in power supply.

“We are concerned by the quantum of public outcry over the continuous increase in the price unit of electricity set under this new tariff regime, despite the N213billion Nigerian Electricity Market Stabilisation Fund provided by the Federal Government as subsidy to the industry operators.

“We should be concerned that even the presently fixed price unit of electricity is said to be underpriced and yet plans are underway to gradually increase the tariff to cover full costs

“Equally of concern is that the increments were not in tandem with the economic realities of Nigeria,  coupled with the attendant untold hardships being experienced by Nigerians due to the  collapse of small and medium scale businesses and industries,” he said.

The motion was unanimously adopted after it was put to a voice vote by Speaker Yakubu Dogara.


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