The House of Representatives has urged the National Electricity Regulatory Commission (NERC) not to approve any increase in electricity tariff in Nigeria. 

The resolution was passed after the adoption of a motion by Hon. Aliyu Sani Madaki in the plenary on Thursday titled “Suspense over Planned Electricity Tariff Hike.” 

Madaki informed the House that recently, electricity distribution companies (Discos) had informed their customers of an impending increase in electricity rates based on the Multi Year Tariff Order (MYTO).

He pointed out that according to the Discos’ circular, the electricity tariff would be reviewed upward on July 1, 2023, as a result of changing rates.

The previous exchange rate of N441 to $1 may be changed under the MYTO 2022 regulations to approximately N750 to $1, which would have an effect on the tariffs related to electricity consumption.

“Under the planned hike, consumers within Bands ‘B’ and ‘C’ with supply hours ranging from 12, 16 hours per day will pay N100 per KWh, while Bands ‘A’ with 20 hours and above and ‘B’ with 16-20 hours, would experience comparatively higher tariffs,” the lawmaker said. This is true for customers with prepaid metres, whereas a significant increase is anticipated for those on post-paid (estimated) billing.

“Concerned about the widespread apprehension in the nation regarding the proposed implementation of a new electricity tariff regime by the distribution companies (Discos).” Also concerned that the recent statement by the Abuja Electricity Distribution Company (AEDC) directing its consumers to disregard the earlier notice of the increase in the electricity tariffs hike is confusing as members of the public are confused as to what to believe.”

He emphasised further that the increase is being proposed despite the operators’ inability to supply at least 5,000 megawatts annually following the signing of the contract with the NERC.

“I believe that it is most inappropriate and insensitive to come up with a price increase of such magnitude at this time when many Nigerians are yet to come to terms with the increase in petrol prices. Cognizant that the Constitution of the Federal Republic of Nigeria, 1999 (as amended), in Section 16 (2) (b), has provided that the material resources of the nation be harnessed and distributed as best as possible to serve the common good.

“At this point in time, the proposed increment of electricity tariff by the Discos is not in the best interest of the average Nigerian citizen, neither is it for the common good of the citizenry. The proposed increment is an exploitation of the common citizen, which is not in line with Section 17 (2) (d) of the constitution which states that the ‘exploitation of human resources in any form whatsoever for reasons other than the good of community should be prevented’,” he said.

However, the House has instructed its Committee on Power to speak with NERC when it is formed in order to find a middle ground to address the proposed hike in Nigerians’ best interests.