Speaker of the House of
Representatives, Hon Yakubu Dogara, says the House is concerned about the
seeming injustice to the Nigerian public through continous increment of
electricity tariff, after the federal government bailed the energy sector with
a whooping sum of N123 billion.
Speaking on Monday at a public
hearing organised by the House Ad-Hoc Committee To Interface With the Nigerian
Electricity Regulatory Commission (NERC) and other stakeholders “to examine and
re-assess all inputs and assumptions in the Multi-Year Tariff-Order (MYTO)
system in our electricity industry in Nigeria, the speaker said the probe is
aimed at putting an end to the trend.”
He said: “There has been a
prolonged public outcry over the continuous increase in the unit price of
electricity, which many believe is not in tandem with the current realities in
electricity supply.
“The tariff has continued to
increase from an average of N10 per kw/h in 2007 to an average of N24.20 kw/h
in 2017 without substantial improvement in power supply. Despite, the 123 billion
Naira Nigerian Electricity Market Stabilization Fund (NEMSF) provided by the
Federal government as subsidy to the Sector operators, the situation still
remains unpleasant.
“The House is concerned about the
seeming injustice to the Nigerian public, and wishes to examine the possibility
of redressing the trend.
“It is needless to say that
adequate electricity supply in our country will stimulate economic activities
and reduce unemployment, which will invariably ameliorate youth restiveness and
the high crime rate.
“As stakeholders, we must all
join hands to find a lasting solution the challenge of unstable electricity
supply in the country, and in particular, the issue of excessive electricity
tariff that seems to be incongruous with the quality and quantity of
electricity supplied”.
The lawmaker charged the
committee and stakeholders to come up with a draft realistic tariff regime that
will address public outcry against the current tariff system.
Dogara added: “The Multi-Year
Tariff Order (MYTO) methodology was designed to provide correct pricing of
electricity, taking into consideration the key principles of cost reflectivity,
affordability, incentives for efficient operations and other assumptions such
as price escalators, model building blocks/parametres, etc.
“It is needless to say that
adequate electricity supply in our country will stimulate economic activities
and reduce unemployment, which will invariably ameliorate youth restiveness and
the high crime rate.
“As stakeholders, we must all join
hands to find a lasting solution the challenge of unstable electricity supply
in the country, and in particular, the issue of excessive electricity tariff
that seems to be incongruous with the quality and quantity of electricity
supplied.”
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