The Senate Committee on Power has recommended the suspension of the planned hike in electricity tariff, following the presentation of a report by the Chairman of the panel, Senator Enyinnaya Abaribe, during plenary.
Most senators who contributed to the debate commended the panel’s recommendations and urged President Bola Tinubu to suspend the implementation of the tariff hike. However, further deliberations on the issue were postponed due to its pending status before a Federal High Court in Kano.
The committee’s report recommended, among other things, the suspension of the ongoing implementation of the Multi Year Tariff Order (MYTO) 2024 by the Nigerian Electricity Regulatory Commission (NERC). This suspension aims to allow robust consultation with customers on the various bands of the cost of service.
Additionally, the report advised that the Ministry of Power and NERC should adopt measures to address power scarcity comprehensively, rather than focusing solely on price manipulation. It also called for greater accountability from Distribution Companies (Discos) on Key Performance Indicators (KPIs) and essential customer service obligations.
The report highlighted the need for cost-reflective rate designs, increased federal government metering intervention, and the establishment of an Electricity Consumer Protection Unit within the Ministry of Power.
Regarding the penalty imposed on Discos for non-compliance with the Capping Order, the committee found that it was not a cash payment but rather a reduction in their approved operating expenses. Moreover, it lamented the absence of a consumer affairs department/unit in the Ministry of Power to address demand-side issues in the sector.
During the debate, several senators hailed the committee’s report and recommendations. However, the matter was interrupted when Senator Titus Zam raised a point of order, citing the subjudice status of the issue due to a federal high court injunction in Kano.
Senator Jimoh Ibrahim supported Zam’s position, stating that it would be inappropriate for the Senate to debate a matter that is subjudice. Consequently, the Deputy Senate President, Jibrin Barau, ruled that the legal department should be consulted, and further legislative actions on the report should be postponed.
