The House of Representatives will investigate the recent electricity tariff hike imposed by the Federal Government through the Nigerian Electricity Regulatory Commission (NERC) on Tuesday.
This special investigative hearing on the price regulation of the Nigerian Electricity Supply Industry (NESI) was referred to the joint Committees on Power, Commerce, National Planning, and Delegated Legislation, following the adoption of a motion passed on Tuesday, April 30, 2024.
The House also urged the Federal Government to suspend other conditions in the newly issued review of the Multi-Year Tariff Order (MYTO) price regulation of the Nigerian Electricity Supply Industry (NESI).
In accordance with the House resolution, several stakeholders are expected to attend the hearing, including the Minister of Power, NERC Chairman and Commissioners, Chief Executives of all electricity utilities in Nigeria, Presidents of the Nigeria Labour Congress and the Trade Union Congress (TUC), and leaders of the Chambers of Commerce in Nigeria.
The House resolved to appoint a well-regarded former regulator as a technical consultant to develop templates for determining the “legality and reasonableness of the procedure adopted by NERC in approving the tariff increase and establishing performance benchmarks for the DISCOs.”
Lawmakers also authorized the consultant to work with the special committee to draft a bill that would establish administrative procedures ensuring proper consultation and legislative review of the tariff-setting process in the electricity and other public services sectors in Nigeria.
During the debate on the motion, lawmakers expressed serious concerns over several key issues, including the failure to follow due process in approving the tariff increase, concerns about discriminatory practices, and the disputed nature of government subsidies to electricity Distribution Companies (DISCOs).
While emphasizing the need for due process, fairness, and consideration of the impact on consumers, the House reaffirmed the importance of restoring public trust, protecting consumer rights, and ensuring regulatory accountability in the Nigerian Electricity Supply Industry.
Previously, during the debate on a motion of urgent public importance sponsored by Hon. Ali Jesse on June 5, 2024, the House urged the Federal Government to consider the necessity of fixing a living wage for Nigerian workers and halting the increase in electricity tariffs to alleviate the current economic hardship.
