NEW TARIFFS: Senate Moves Against NERC, Power Companies

The Senate yesterday moved a motion to put on hold the newly introduced 45 per cent increase on electricity tariffs by the Nigerian Electricity Regulatory Commission (NERC) in conjunction with the power companies in the country.

This development was prompted by a meeting held between the leadership of the Senate,  Minister of Power, Works and Housing, Mr. Babatunde Fashola (SAN) and his counterpart in the Labour and Employment ministry, Dr. Chris Ngige which eventually ended in deadlock.

Earlier, following the public rejection of the new tariffs which led to a call on the upper chamber for intervention, a motion to to that effect specifically to suspend the implementation of the new tariff was moved by Senator Suleiman Nazif (APC, Bauchi).

Supporting the motion, Deputy Senate President, Ike Ekweremadu, Senators Albert Bassey and  Dino Melaye stood vehemently against the increment re-echoing one another that the economic situation in the country at the moment was inconsistent with increment of prices on essential goods and services.

"I want to join the Labour unions in protest. The Senate must take a stand to protect the interest of Nigerians. How can anyone increase the tariff when things are high? Why will a government agency do that? We need to be firm," Bassey said.

 

However, Melaye emphatically enjoined his colleagues to look beyond the increment and suspension but to critically demand for various loans the power companies secured from the federal government in view of improving the sector particularly for procurement of prepaid meters for electricity consumers, adding that since the privatisation took effect in the country, the latest increment was the fourth in series but still nothing to show for it. 

"This increase makes it the fourth time that electricity tariffs will be up after the privatisation of the power sector. their excuse has always been that they want to improve on the electricity. There was a time that the government gave loans to distribution and generation companies to buy meters and give to customers. they are yet to pay back that loan.

"We need to take a stand and mandate the government to reduce the tariffs. There was no negotiation with the Senate or the labour. They arbitrarily increased the tariffs and expect us not to talk," Melaye stated.

Ruling on the matter, the Senate President, Dr.Bukola Saraki mandated the Committee on Labour and Power to meet with the agencies of the government and to put a machinery in place for public hearings towards amicable resolution of the matter.

"NERC should forthwith suspend the implementation of the new tariff. I believe that when we have a public hearing, these issues will be addressed. Until then, the new regime stands suspended," Saraki ruled.