The Senate has temporarily halted the adoption of a report that requested the National Electricity Regulatory Commission (NERC) to suspend the ongoing implementation of the Multi-Year Tariff Order (MYTO), 2024. This order had approved a significant upward revision of previous tariffs, increasing them from N68/kWh to N225/kWh, representing a rise of over 200%.
The Senate’s decision aims to facilitate extensive consultations with customers regarding the various cost bands associated with the provision of service. This suspension was implemented shortly after the Committee on Power submitted an investigative report.
This report, initiated by Senator Enyinnaya Abaribe, addressed concerns about the proposed electricity tariff hike and advocated for a halt to the increase by Distribution Companies, especially considering Nigeria’s current economic situation.
In the 46-page report, the committee also suggested that NERC ensure complete adherence to the obligatory stakeholder consultation as outlined in Section 48 of the Electricity Act, 2023 for forthcoming regulatory decisions. This recommendation aims to prevent a recurrence of the confusion and public backlash witnessed following the recent tariff hike.
Furthermore, the report advises NERC to tackle the issue of power scarcity comprehensively rather than focusing solely on price adjustments, which have proven to be ineffective.
During the vigorous debate, the majority of lawmakers stressed the immediate adoption of these recommendations. However, Senator Titus Zam, Chairman of the Senate Committee on Rules and Business, along with Senator Jimoh Ibrahim, voiced objections to the adoption. They proposed that the matter be deferred, citing an ongoing court case, which necessitates a temporary halt to further deliberations on the report.
On May 3, a Federal High Court issued an order restraining the National Electricity Regulatory Commission and the Kano Electricity Distribution Company from implementing the new electricity tariff for Band A consumers.