The House of Representatives has asked the Federal Government to suspend plans to Increase the multi year Tarrif until adequate consultations are concluded regarding the matter.
The order was given on Tuesday when the Regulatory Agency and the Ministry of Power appeared before the House Committee on Power
Chairman of the committee, Representative, Magaji Aliyu said the committee was displeased by the recent development and asked the minister to produce all documents the committee could work with.
Representative of the Nigeria Regulatory Commission Sharffudeen Mahmoud had during the briefing explained the Agency had decided on the Tarrif increase because of the falling exchange rate of the naira to the Dollar and other inflationary factors
The recent ‘minor review’ of electricity tariff by the NERC, expected to commence in April is not going down well with Nigerians who are already hard pressed with the harsh economic situation in the country.
The house of representatives being the representatives of the people decided to wade into the situation by summoning all the concern parties to throw more light on the sudden hike in electricity tariff.
Efforts by the National Electricity Regulatory Commission to convince the legislators were not really convincing as they picked holes in all the excuses given despite pointing to the act that set up the agency.
Lawmakers also knocked the recent presidential directive relocating the Nigeria Bulk Electricity Trading Company from the Power Ministry to Finance saying it is unconditional.
They say the move is an abuse of the law.
In their submission, the committee resolved that the proposed power hike must be put on hold until unresolved issues are ironed out by all stakeholders.
Issues such as estimated billing system, compulsory metering of all Nigerian homes, conflicts between the Disco’s and Genco’s and others.
Other issues include the 701 billion naira subsidy by the federal government on electricity tarrif, the 231 billion naira given to discos and if such loans have been repaid or captured in the 2020 budget.