Senators were divided on Thursday over the ongoing implementation of the 200% increase in electricity tariffs by the Nigerian Electricity Regulatory Commission (NERC) and power distribution companies (DisCos) in the country.
The increase had seen a jump in electricity cost from N68 to N225/kwh under NERC’s Multi-Year Tariff Order (MYTO), 2024.
Protests had trailed the new tariff regime across the country with labour unions led by the Nigerian Labour Congress (NLC) picketing NERC’s and DisCoS’ offices.
The Senate had intervened by investigating the matter.
On Thursday, its Committee on Power, which conducted the investigation, laid its findings and recommendations for consideration by senators.
The committee, which was chaired by Sen. Enyinnaya Abaribe, recommended that (NERC) and the DisCos should suspend the new tariff regime to “allow for robust consultation with customers on the various bands on the cost of service instead of heavy reliance on feeder location and duration of service, which are difficult to determine and monitor.”
It also recommended that NERC should ensure full compliance with the mandatory requirement of “stakeholder consultation under Section 48 of the Electricity Act, 2023, regarding future regulatory decisions to avoid a repeat of the confusion and public outcry that trailed the recent tariff increase.”
However, further actions on the report were stalled as senators were divided over whether it was appropriate to consider it or step it down.
The senators opposing the consideration of the report had pointed out that it would be prejudicial proceed with it as the matter was before a law court.
The Chairman, Senate Committee on Rules/Business, Sen. Titus Tartenger-Zam, citing Order 52 of the Senate’s rules, noted that the issue of tariff increase was pending before a law court in Kano
“A Federal High Court in Kano has already directed NERC to halt the implementation of the tariff.
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“It will amount to prejudice to take any further actions here until the case is disposed of”, he said.
A former All Progressives Congress (APC) governorship aspirant in Ondo State, Sen. Jimoh Ibrahim, aligned with Tartenger-Zam.
“When a matter is pending in court, let’s allow the judiciary to perform its role.
“There are converging issues in this report. We can’t be the judge here, we are to make laws.
Let’s step down this report on the grounds that it’s subjudice”, Ibrahim told his colleagues at the session, which was presided over by the Deputy President of the Senate, Sen. Barau Jibrin.
But, the Senate Whip, Sen. Ali Ndume; former governor of Kebbi State, Sen. Adamu Aliero; Sen. Abaribe, among others, were for the consideration of the report.
For instance, Abaribe remarked that the application of the order cited by Tartenger-Zam was dependent on the “opinion” or view of the presiding officer and did not automatically bar the Senate from doing its work.
Aliero, while contributing to the discussion, said the tariff increase was done against the provision of the law, arguing that customers were not consulted, besides the timing being wrong.
Aliero added, “Nigerians are confronted with the increase in fuel price and exchange rate volatility. The cost of living has been very high.
“Now, you want to increase the price of electricity. This should be halted. Manufacturers are even closing down because they just can’t afford to pay this tariff increase.
“We should not debate the tariff further but to approve the recommendations of the committee.”
But, the DSP, Jibrin, opted to exercise caution by advising that there was no need for the Senate to rush the consideration of the report, but should first seek the opinion of its legal department.
“If there is a court order stopping the increase in tariff, we need to look at both sides.
“We need to consult our legal department and get the way forward. We will step down the report”, he ruled.
The report was subsequently stood down till further notice.
Other recommendations of the committee were, “That the Ministry of Power and NERC should in the meantime adopt measures to address the problem of power scarcity holistically rather than its preoccupation with price manipulation which has proven to be counterproductive.
“That NERC should hold the DISCOs accountable on Key performance Indicators (KPIs) including failure to deliver on CAPEX and OPEX allocations, customer metering obligation under the Electricity Act, 2023, essential customer service obligations including customer sensitization, implementation of energy credits for customers who invested in transformers meters and other assets on the DISCO networks.
“That rate designs should only be cost-reflective if proper account is taken of the relevant macroeconomic environment that determine the affordability of electricity to the different segments of the market.
“That the Federal Government metering intervention should be encouraged and intensified to address current metering gap of 6.3 million and this must be pursued by the FGN without prejudice to the statutory obligation of DISCOS to meter their customers as provided under Section 68(1)(b) of the Electricity Act, 2023. In this regard, Mr. President should be commended for the introduction of the Presidential Metering Initiative.
“The Federal Ministry of Power should be advised to intensify efforts towards honouring the subsisting contract with Ziklagsis Networks Ltd (ZNL) for the manufacture, supply, installation, management and maintenance of Pre-Paid Meters (PPMs) in Nigeria including the recent Tripartite Metering Project Consortium Agreement between ZNL and De-Haryor Global Services Limited and the Nigerian Army dated 7th September, 2023 which was signed by ZNL for the metering of Army Barracks and other Military Facilities or in the alternative refund the initial funding to the Federal Government.
“That vigorous implementation of power decentralization provided for under the Constitution of the Federal Republic of Nigeria, 1999 (As Amended) and the Electricity Act, 2023 to relieve the Federal Government of the pressure to electrify every nook and cranny of this country should be encouraged.
“The Ministry of Power should establish an Electricity Consumer Protection (ECP) Unit to develop, implement and enforce the Electricity Consumer Protection component of the Electricity Act, 2023. 34(2)(c) and 119 (1)(f).”
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