Court Case Halts Senate’s Bid to Stop Electricity Tariff Increase

A court case instituted in Kano has thrown a wrench into the Nigerian Senate’s efforts to prevent the planned increase in electricity tariffs. The Senate, led by Enyinnaya Abaribe, Chairman of the Senate Committee on Power, had initiated steps to address the recent surge in electricity tariffs through a comprehensive investigation.

Following a public hearing involving various stakeholders, the committee submitted its findings and recommendations to the Senate for consideration. In his report, Abaribe outlined ten recommendations, urging the Senate to persuade the Nigeria Electricity Regulatory Commission (NERC) to suspend the implementation of the Multi-Year Tariff Order (MYTO) 2024. This order sanctioned a significant increase in tariffs, soaring from N68/kWh to N225/kWh, representing over a 200 percent hike.

The committee’s recommendations advocated for a suspension of the tariff hike to facilitate thorough consultations with customers across different service bands, emphasizing the need to move away from reliance on feeder location and service duration for tariff determination.

Moreover, the committee underscored the imperative for NERC to adhere to the mandatory stakeholder consultation requirement under Section 48 of the Electricity Act, 2023, to avert the confusion and public outcry witnessed during the recent tariff adjustment.

Additionally, the committee advised the Ministry of Power and NERC to implement comprehensive measures aimed at tackling the persistent issue of power scarcity in the country.

However, despite the Senate’s concerted efforts, a court case in Kano has temporarily thwarted their plans. This legal challenge has left the fate of the tariff increase and the Senate’s proposed interventions uncertain, pending the outcome of the court proceedings.

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