The Senate has explained the rationale behind halting the proposed tariff increase effective, 31 July by the Nigerian Electricity Regulatory Commission (NERC).
The Chairman, Senate Committee on Power, Sen. Gabriel Suswam, who gave the explanations, cited the contraction of the nation’s economy, the hardship occasioned by the effects of COVID-19 pandemic and the seemingly overburdened Nigerian people.
This is even as he commended NERC for their efforts in ensuring sustainable Nigeria Electricity Supply Industry (NESI).
He spoke while responding to presentations made by the Chairman of NERC, Professor James Momoh, while the members of the Senate Committee on Power visited NERC Corporate Headquarters on oversight function.
While giving insight to Journalists, he said that the tariff increase would certainly take effect in due course when Nigerians must have recovered from the hardship imposed by the Covid-19.
According to Senator Suswam, “The Commission as a regulator has responsibility to regulate the power sector. The empowers them to review the Multi Year Tariff Review.To a large extent, they would have done that but we find ourselves in a situation where the economy contracted as a result of the COVID-19.
“They suppose to activate the Multi Year Tariff by end of this month, 31 July. But we met with them at the level of the National Assembly and said that given the circumstances of the COVID-19, that they should tarry a while and let Nigerians recover from the economic shock before they can activate that tariff.
“As difficult as it was, they were able to accede to our appeal. That is why the activation of the tariff increase has not take off.
“That is not to say that it will not eventually take effect because the only way the sector can become liquid is for the proper tariff to be charged, the people to be metered and a host of other things.
“So, it was an appeal we made to them and they respected that because they are also Nigerians and they have relatives and they know the burdens people are carrying right now.”
The Senate Committee on Power Chairman further gave indication that a comprehensive Electricity Act would presented before the National Assembly in August, 2020.
He said: “The legal framework that we have in place was set up in 2004 just to enable the government to privatise the sector. But now we have gone beyond privatisation and there has to be Electricity Act for the country.
” In doing that, we set the legal framework for the Act that will make provision for punishment for energy theft, protect investors and so on. So, NERC is supporting us financially. By August we should be able to put that Act before the National Assembly.”
Earlier in his presentation, the NERC Chairman, Prof. James Momoh, solicited the support of the National Assembly for adequate funding of the sector to beef up the infrastructural facilities power generation, transmission and Distribution.
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