National leadership of NASS intervenes in planned hike in Electricity Tariff

Halts Move, says it should be deferred until 2021

National leadership of NASS intervenes in Planned Hike in Electricity Tariff
Senate

By Henry Umoru – Abuja

The National management of the National Assembly has intervened within the deliberate hike of electrical energy tariff by the suppliers, saying that this was not the time to hold out such an motion.

According to the National Assembly, it won’t be possible for the Distribution Companies (DISCOs) to hold out with the proposed hike on July 1st, 2020, simply because the Leadership of each the Senate and the House of Representatives to instantly have been in a position to persuade them to defer the plan until the primary quarter of 2021, to which they agreed with.

With this improvement, the management of the National Assembly has succeeded in convincing the DISCOs to defer the plan till the primary quarter of 2021.

The President of the Senate, Ahmad Lawan, the Speaker of the House of Representatives, Rt. Hon. Femi Gbajabiamila and different principal officers of the 2 Chambers met on the National Assembly with the Chief Executives of the federal government electrical energy regulatory physique and DISCOs throughout the nation.

READ ALSO: NASS convinces DISCOs to droop tariff enhance plan until 2021

Also in attendance have been the Chairmen of the Committees on Power from the Senate and House of Representatives.

The National Assembly leaders have been emphatic on the assembly that the timing of the deliberate hike was improper although they’d not many points with the necessity to introduce a cost-reflective tariff for the facility sector to draw the much-needed funding.

In the course of the assembly, the DISCOs too admitted that they weren’t nicely ready for the deliberate hike in tariffs although they a lot desired the rise.

According to an announcement, late Monday night time by the Special Adviser, Media to the President of the Senate, Ola Awoniyi, the assembly agreed to defer the deliberate hike until the primary quarter of subsequent yr whereas the management of the National Assembly promised to satisfy with President Muhammadu Buhari on the difficulty.

At the top of the assembly, Lawan mentioned, “The settlement right here is that there’s not going to be a rise within the tariffs on July 1st.

“The Speaker and I, we’re going to take acceptable motion and meet with the President.

“We are in settlement right here that there isn’t a query on the justification of the rise however the time is solely not proper and acceptable measures should be put in place.

“So between now and the first quarter of next year, our task will be to work together with you to ensure that we put those blocks in place to support the eventual increase in tariffs ”

Lawan who famous that the federal government has been doing rather a lot as a part of its obligations to supply some type of Intervention, mentioned, “I’m fairly conscious that for this yr, most likely ranging from final yr, over N600 billion was earmarked for this sector to enhance.

“The potential enhance within the tariffs is unquestionably one thing that can be of concern to us within the National Assembly.

“There is an excessive amount of stress within the lives of Nigerians at this time and certainly the world over due to the challenges imposed by COVID-19 pandemic and even earlier than then, we had points that may at all times make it powerful for our individuals to successfully pay the tariffs.

“One way or the other, for this business to flourish, for this sector to be appropriately fixed, for it to attract investment, something has to give way, there is no doubt about that but it is also crucial that we look at the timing for any of our actions ”

Similarly, the Speaker, House of Representatives, Gbajabiamila who famous that the National Assembly was on the identical web page with the DISCOs on the difficulty of cost-reflective tariffs, mentioned, “There is time for all the things. A well-intended programme or coverage of presidency can fall flat on the face and by no means get better when you do it on the improper time. I feel all of us agree with that.

“There can’t be a time as unhealthy as this for us to extend something. Forget about electrical energy, something. Whereas, even in time of lowering income, we’re even decreasing the pump value. I don’t know the way we will justify a rise in the price of electrical energy right now in Nigeria.

“The good thing is that we have agreed that we need to do something about the cost.”

READ ALSO: COVID-19: CSOs demand reversal of electrical energy tariff hike

Gbajabiamila posed some inquiries to DISCOs and the Nigerian Electricity Regulatory Commission(NERC): “How did we arrive on the tariffs or prices. Who have been the stakeholders that have been current? What was the position of the National Assembly? More importantly, is the President conscious of this as a result of the President is maybe the largest stakeholder of all, other than the Nigerian individuals.

“Whatever will affect his government is something that should concern all of us. I think this will affect his government. This timing. Not the increase. The timing. I think it will affect his government and if it is going to affect his government, we should all rally around our people, our president, and the government to make sure we do the right thing,” Gbajabiamila mentioned.

The representatives of the DISCOs mentioned if the deliberate hike is finally deferred until subsequent yr, the federal government ought to proceed to bear the distinction within the current tariff and what was thought-about as the suitable tariff.

In attendance on the assembly have been the representatives of NERC, Kano Electricity Distribution Company, Ikeja Electricity Distribution Company, Kaduna Electricity Distribution Company, and Eko Electricity Distribution Company.

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National leadership of NASS intervenes in planned hike in Electricity Tariff

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