The House of Representatives resumed plenary session on Tuesday after recess and directed the Nigerian Electricity Regulatory Commission (NERC) to halt the implementation of the recently announced tariff increment.
In addition, the House also ordered the suspension of other conditions in the newly issued review of the Multi-Year Tariff Order.
The House then set up a special committee comprising the Committees on Power, Commerce, Delegated Legislation, and National Planning to organize a well-structured hearing on the price regulation of the Nigerian Electricity Supply Industry (NESI).
The hearing would include the participation of the Minister of Power, Chairman and Commissioners of NERC, the chief executives of all electricity utilities in Nigeria, Presidents of the Nigeria Labour Congress and the Trade Union Congress (TUC), as well as leaders of chambers of commerce in Nigeria.
The House resolved to appoint a well-regarded former regulator as a technical consultant to develop templates for the determination of the legality and reasonableness of the procedures adopted by NERC in approving the tariff increase and establishing the performance benchmarks for the Discos.
It also resolved to authorize the consultant to work with the special committee to draft a bill to provide for administrative procedures that entrench proper consultation and legislative review processes for tariff setting in the electricity and other public services in Nigeria.
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These resolutions followed the adoption of a motion of urgent importance moved by Hon. Nkemkanma Kama at the plenary.
While moving the motion, Hon. Kama said that the legislative motion on the increase in electricity tariff “seeks to address key issues surrounding the sudden hike in electricity prices in Nigeria.
According to him, “It highlights concerns over due process, fairness, and the impact on consumers. The motion aims to restore public trust, protect consumer rights, and ensure regulatory accountability in the Nigerian Electricity Supply Industry (NESI).
“The facts presented include the alarming tariff increase announced by the Nigerian Electricity Regulatory Commission (NERC) on April 1, 2023, resulting in a staggering 300% rise for certain consumers.
“However, what’s more concerning are the reports indicating discrepancies in customer categorization and widespread complaints regarding inadequate service despite increased charges.
“This situation has not just sparked national anxiety, but it also threatens regulatory certainty and investor confidence in the sector, demanding immediate attention.”
He said the motion argues for legislative intervention, underlining the constitutional and moral obligations to address the crisis and alleviate the burden on Nigerian citizens.
According to him, “it places a strong emphasis on the legislative oversight role over NERC and the electricity utilities, stressing the need for fair and just pricing and consultation with stakeholders in tariff determination processes. This is not just a responsibility but a duty we owe to our constituents.
“Key issues highlighted include the failure of due process in approving the tariff increase, concerns over discriminatory practices, and the disputed nature of government subsidies to electricity distribution companies (DISCOs).
“The motion proposes resolutions to suspend the recent tariff increases, establish a special committee for hearings involving relevant stakeholders, appoint a technical consultant to assess the legality and reasonableness of NERC’s procedures, and draft a bill to improve regulatory processes in tariff setting.
“Overall, this motion underscores the importance of legislative action to address the challenges facing the electricity sector and ensure fair treatment of consumers while promoting transparency and accountability in regulatory decision-making.”
When the motion was put to voice vote by the Speaker, Hon. Tajudeen Abbas, who presided over the plenary, it was unanimously supported by members.
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