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Again, reps ask NERC to revert to old electricity tariff for Band A

Standard Bank: Nigeria loses $26bn yearly over power outages Standard Bank: Nigeria loses $26bn yearly over power outages

The house of representatives has again directed the Nigerian Electricity Regulatory Commission (NERC) to revert to the old electricity tariff for Band A.

The resolution was passed on Tuesday following the adoption of recommendations from the house committee on power, presented by Victor Nwokolo, the committee’s chairman.

The report was adopted by the committee of the whole, chaired by Benjamin Kalu, deputy speaker.

On April 3, NERC approved an increase in electricity tariff for customers under the Band A classification.

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The commission said customers under the category, who receive 20 hours of electricity supply daily, would begin to pay N225 per kilowatt (kW), starting from April 3 — up from N66.

The tariff was further reduced to N206.80/kW on May 6.

Defending the tariff hike before the senate committee on power on April 29, Adebayo Adelabu, minister of power, said the federal government could not afford to pay subsidies on power anymore.

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He said for the sector to be revived, the government needs to spend about $10 billion annually in the next 10 years.

Presenting the report, Nwokolo said NERC should revert to the previous tariff as earlier contained in the motion of the house when it was considered.

“And that within 60 days, they should comply with the provisions of Section 116(2d), (3b), of the Act,” Nwokolo added.

He said the house also resolved that an independent team of experts should be consulted by the joint committees to investigate what should be the actual cost of electricity tariff.

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Nwokolo said the lawmakers also resolved that all electricity distribution companies should revert to the old tariff pending the resolution of the matter by the house.

“In conclusion, the joint committees is that the implementation of the tariff increase should be over a period of time, it should be in phases not what they have just done, it should be in phases,” he said.

On April 30, the house of representatives asked NERC to suspend the implementation of the new tariff.

The lower legislative chamber passed the resolution during a plenary session, following the adoption of a motion of urgent public importance.

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The motion was sponsored by Nkemkanma Kama, a Labour Party (LP) lawmaker from Ebonyi state.

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