Suspension of Electricity Tariff Hike
In a recent development, the House of Representatives has directed the Nigeria Electricity Regulatory Commission (NERC) to halt the implementation of the new incremental tariff on Band A customers. This decision, reached during a plenary session, reflects the concerns raised by lawmakers regarding the significant tariff increase.
The resolution stemmed from a motion of urgent public importance raised by Kama Nkemkanma, highlighting the impact of the tariff hike on consumers. The directive aims to alleviate the burden on Band A customers, who face a substantial increase from ₦68 to ₦225 per kilowatt hour.
NERC’s decision to raise the tariff for Band A customers by 230 percent has sparked widespread debate and criticism. Band A customers, who receive an average daily supply of electricity for 20 hours or more, constitute a significant portion of electricity consumers in the nation.
According to Vice Chairman of NERC, Musliu Oseni, Band A accounts for 15 percent of the 12 million electricity consumers nationwide. However, due to concerns about meeting the required electricity supply hours, some Band A customers have been reclassified to Band B.
In response to these concerns, the House of Representatives has called for a suspension of electricity tariff hike, emphasizing the need to protect consumers from undue financial strain. The decision underscores the importance of balancing the interests of consumers with the financial viability of the electricity sector.
Meanwhile, during a Senate Committee hearing on the proposed tariff increase, Minister of Power Adebayo Adelabu clarified that Band A customers not currently enjoying 20-hour electricity will not be subject to the new tariff. This clarification aims to address concerns about fairness and accessibility in electricity pricing.
As discussions continue on the future of electricity tariffs in Nigeria, it is essential to prioritize the interests of consumers while ensuring the sustainability of the electricity sector. Transparency, accountability, and stakeholder engagement will be crucial in navigating these complex challenges and finding equitable solutions.
Reference
Suspend Implementation Of New Tariff, Reps Tell NERC published in Channels By Terry Ikumi