Why NASS directed DisCos to suspend increase in electricity tariff – Suswan

The leadership of the National Assembly, on Monday June 29, waded into the controversy on the planned hike in electricity tariffs from July 1st, 2020 and succeeded in convincing the Distribution Companies(DisCOs) to defer the plan till the first quarter of 2021.

Daily Trust reports that the Electricity Distribution Companies (DisCos) have denied claims that they initiated the suspension of the electricity hike slated to begin July 1.

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Sen. Gabriel Suswan (PDP-Benue) said the National Assembly directive to the DisCos not to increase electricity tariff was as result of the current economic challenges occasioned by COVID-19 pandemic across the country.

Suswan, Chairman, Senate Committee on Power, made the disclosure in an interview with the News Agency of Nigeria (NAN) in Abuja on Thursday.

He said that the increase in the tariff had to stop for now even when it was obvious that an increase, given the provision of necessary distribution infrastructure in the electricity market, would help the sector to be solvent.

Suswan noted that an increase in electricity tariff in this period would worsen the economic hardship faced by Nigerians, hence the intervention of the National Assembly to prevail on the DisCos to suspend the increase until first quarter of 2021.

“Under a normal situation, increase in tariff will help the operators to meet their remittances 100 per cent and government will not need to subsidize.

“Now, government all over the globe are giving palliatives to their citizens.

“In America for instance, most of the people who fought for palliatives for not being employed receive some stipends weekly.

“Now, here we have people who are unable to feed family because of the COVID-19 pandemic and DisCos is saying it will increase tariff at the same time.

“We are saying ‘yes, cost reflective tariff is the way to go because we need the sector to be solvent, but the timing is not auspicious.’

“So, that was why we stepped in and good enough with the decision we took, the president has agreed with us and said they should not activate the increase until certain things are in place,” he explained. (NAN)