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13/07/2016

Reps Urge FG To Halt Planned 100% Electricity Tariff Increase

Abuja - The House of Representatives on
Wednesday urged the Federal Government to halt
any plan to increase electricity tariff by 100 per centin the country.

This followed the unanimous adoption of a motion
under matters of urgent public importance raised by
Rep. Aliyu Madaki (APC-Kano).

Moving the motion, Madaki said that the plan by
Electricity Distribution Companies (Discos) to
increase electricity tariff from N24 to N50 per
kilowatt for residential consumers was not in the
interest of Nigerians.

He expressed worry that erratic power supply by the
distribution companies had persisted and affected
households and commercial activities across the
country.

He pointed out that the planned new tariff would
amount to a disobedience of an order of the
Federal High Court, Lagos, restraining the National
Electricity Regulatory Commission (NERC) from any
increase in electricity tariff.

``I recall that in February, 2016, NERC increased
electricity tariff by 45 per cent with no
corresponding impact on supply; rather, electricity
supply has dropped, affecting both households and
commercial activities.

``The planned 100 per cent increase in electricity
tariff by NERC on the request of distribution
companies is illegal and an abuse of court process.

``If the proposed hike in electricity tariff is not put
on halt, its multiplier effect on the economy and the
social wellbeing of Nigerians cannot be quantified,’’
Madaki said.

In his contribution, Majority Leader of the house,
Rep. Femi Gbajabiamila (APC-Lagos), said that
there was the need to review the sale of Discos to
private individuals.

Gbajabiamila said that the companies lacked
financial and infrastructural capacity to deliver
quality services to Nigerians.

``The issue of Discos is the biggest scam; people
are paying huge money and Discos are smiling to
the banks without commensurate services.

``In other countries, they do not privatise a large
life-wire of their economies.

``It is as if somebody powerful somewhere is
protecting the Discos; so this house must remain
resolute in finding out why the companies disobey
resolutions and court orders,’’ he said.

In his ruling, Speaker of the house, Mr Yakubu
Dogara, referred the matter to an ad hoc committee
to investigate the sale of power assets.

The committee was also mandated to investigate
the rationale behind the last increase in electricity
tariff by the Discos.