Rising electricity tariff is Alarming and worrison -House of Representatives

The Nigeria green chamber House of Representatives are worry over the rising electricity tariff which it described as unjustifiable considering the commitment of N213 billion to the operators.

The lower chamber said that the government had injected huge amount into the wobbling power sector to boost supply to Nigerians.

the House said the increment was not in accordance with the economic realities of the country where Nigerians were facing hardship.

During a plenary sitting,the motion was move by Shehu Musa (Bauchi-APC) on the “need to evaluate the multi-year tarried order system of electricity tariff in Nigeria.’’

Musa recalled that in 2008, Nigeria Electricity Regulatory Commission (NERC) adopted Multi-Year Tariff Order (MYTO) methodology to regulate electricity tariff and the tariff setting, in consultation with stakeholders, labour and consumers.

The Honourable memeber said it was to provide correct pricing of electricity, taking into consideration the key principles of cost reflectivity, affordability, incentives for efficient operations and other assumptions, including tertiary rates, exchange rates, inflation, gas prices and subsidies.

According NAN, he Said, the new tariff regime continues to increase from an average of N10 per kwh in 2007 to an average of N24.20 per Kwh in 2017 without significant improvement in power supply.

“We are concerned by the quantum of public outcry over the continuous increase in the unit price of electricity set under this new tariff regime.

“This is in spite of the N213 billion-Nigerian Electricity Market Stabilization Fund provided by the Federal government as subsidy to the industry operators.

“We should be concerned that even the presently fixed price unit of electricity is said to be under-priced and that plans are underway to gradually increase the tariff to cover full costs

“Equally of concern is that the tariff is not in tandem with economic realities of Nigeria, coupled with attendant hardships being experienced by Nigerians due to the collapse of small and medium-scale businesses and industries,” Musa said.

After contributions by members, the motion was unanimously adopted.

The house therefore mandated an ad hoc committee to interface with NERC and other stakeholders to critically evaluate the MYTO system.

The committee will also re-assess all its inputs and assumptions in order to come up with a realistic tariff regime and report back to the house within six weeks.

About KokoLevel Blog Staff

Advertisement, Content marketing and  sponsored post: contact : Kokobest04@gmail.com
View all posts by KokoLevel Blog Staff →