The Senate Sparks Showdown Over Shocking Electricity Tariff Hike

  • Senate paused report on new electricity tariff hike due to court case.
  • Senators criticised tariff increase, calling for sanctions on DISCOs.
  • The committee urged NERC to enforce KPIs and address power scarcity.

The Senate paused adopting a report from the Committee on Power recommending suspending the new electricity tariff hike. Deputy Senate President Barau Jibrin endorsed this decision after Senator Titus Zam (APC, Benue North-West) raised a point of order, noting the matter is before a federal high court in Kano.

Senator Jimoh Ibrahim (Ondo South) supported Zam’s observation. Two weeks ago, the Senate Committee on Power, chaired by Eyinnaya Abaribe (APGA, Abia Central), held an investigative hearing on the tariff hike. The meeting included the Minister of Power, Adebayo Adelabu, DISCO managers, and NERC executives.

Abaribe’s committee recommended that NERC suspend the tariff hike, which increased rates from N68/kWh to N225/kWh, to allow more customer consultations. The report stressed the need for stakeholder engagement under Section 48 of the Electricity Act 2023.

The committee urged the Ministry of Power and NERC to address power scarcity instead of manipulating prices. They recommended that NERC enforce compliance with Key Performance Indicators (KPIs) for DISCOs, including capital and operational expenditures, customer metering, and service quality.

Senators expressed displeasure at the planned tariff increase. Senate Minority Leader Abba Moro called the hike fraudulent, noting it did not match the power supplied by DisCos. He urged the adoption of the committee’s recommendations and sanctions for non-performing DisCos.

Kebbi Central lawmaker Adamu Aliero criticised NERC for deciding without proper consultation, noting the impact on manufacturers and the economy.

Following Zam’s point, Jibrin ruled that the report should be stepped down for further consultation.

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