The House of Representatives on Thursday condemned rising electricity tariff in the country.
This followed a motion by Rep. 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.
He 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.
“We are concerned by the quantum of public outcry over the continuous increase in the price unit of electricity set under this new tariff regime.
“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.
The motion was unanimously adopted when it was put to voice vote and an ad hoc committee was asked to interface with NERC and other stakeholders to critically evaluate the MYTO system.
Meanwhile. Minister of Power, Works and Housing, Babatunde Fashola, has advised Nigerians to accept the reality of increased electricity tariff.
He said the increment was effected so that Nigerians can enjoy reliable power supply.
The minister urged Nigerians to ask that meters be supplied instead of getting court injunctions against tariff review.