The House of Representatives took decisive action on Tuesday, directing the Nigerian Electricity Regulatory Commission (NERC) to halt the implementation of the recently announced tariff hike.
Additionally, the House called for the suspension of other conditions outlined in the newly issued review of the Multi-Year Tariff Order.
To delve deeper into the matter, the House established a special committee comprising members from the Committees on Power, Commerce, Delegated Legislation, and National Planning.
This committee is tasked with organizing a comprehensive hearing on the pricing regulation within the Nigerian Electricity Supply Industry (NESI).
The hearing will include key stakeholders such as the Minister of Power, Chairman and Commissioners of NERC, chief executives of all electricity utilities in Nigeria, as well as representatives from the Nigeria Labour Congress, the Trade Union Congress (TUC), and chambers of commerce.
Recognizing the need for expertise in regulatory matters, the House resolved to appoint a respected former regulator as a technical consultant.
This consultant will develop templates to assess the legality and reasonableness of NERC’s procedures in approving the tariff increase, as well as establish performance benchmarks for electricity distribution companies (DISCOs).
Furthermore, the consultant will collaborate with the special committee to draft a bill aimed at enhancing administrative procedures for tariff setting in the electricity and other public services sectors in Nigeria.
These resolutions stem from a motion of urgent importance introduced by Honorable Nkemkanma Kama. Kama emphasized that the motion seeks to address critical issues surrounding the sudden spike in electricity tariffs, including concerns regarding due process, fairness, and the impact on consumers. The motion aims to restore public trust, protect consumer rights, and ensure regulatory accountability within the NESI.
Key concerns highlighted in the motion include discrepancies in customer categorization, widespread complaints about inadequate service despite increased charges, and the potential threat to regulatory certainty and investor confidence in the sector.
The motion underscores the constitutional and moral obligations of legislative intervention to address the crisis and alleviate the burden on Nigerian citizens. It emphasizes the importance of legislative oversight over NERC and electricity utilities, advocating for fair and just pricing and consultation with stakeholders in tariff determination processes.
In conclusion, the motion emphasizes the necessity of legislative action to tackle the challenges facing the electricity sector, ensure equitable treatment of consumers, and promote transparency and accountability in regulatory decision-making.
