Senate has kicked against plans by the Ministry of Power to approve the proposed hikes in electricity tariff by Distribution companies.
The Senate also rejected plans to remove electricity subsidy given the present hardships in the country.
The Senate then called on the government to step down the idea of an increase in electricity tariff.
The upper chamber also directed the committee on power to investigate the N2tn required for electricity subsidy payment, other debts owed in the sector, and the state of metering in the country.
The resolution of the Senate followed its consideration and approval of a motion moved by Senator Aminu Abbas (PDP, Adamawa Central) during plenary on the need to retain subsidy on electricity in the country for the foreseeable future.
Last week, the Minister of Power, Adebayo Adelabu, disclosed at a press conference in Abuja that Nigeria was not likely to sustain the current electricity subsidy payment.
He explained that the indebtedness of the country’s power sector to electricity-generating companies (GenCos) and gas companies (GasCos) had risen to over N3tn.
He said, “Today, we owe a total of N1.3tn to the power generating companies, out of which 60 per cent is owed to gas suppliers. Today we have a legacy debt, before 2014, to the gas companies of $1.3bn; at today’s rate, that is close to N2tn.”
It will be recall that over the weekend its was reported the spokesperson of the Senate, Yemi Adraamodu, as saying that it would not allow any hike in the price of electricity that might add to the woes of Nigerians.
Abbas in his lead debate said the “Senate notes with greatest dismay the plan to increase electricity tariff by the relevant statutory authority in gross disregard of increased economic challenges with attendant widespread poverty and high cost of living.”
He added, “The Senate may note that the Hon. Minister of Power was reported saying ‘the nation must begin to move towards a cost-effective tariff model, as the country is currently indebted to the tune of N1.3tn naira to generating companies (GenCos) and $1.3bn owed gas companies.
“According to him, over N2tn needed for subsidy, only N450 billion was budgeted this year. The same electricity businesses are collecting money from customers for services not rendered. When they have not added anything to the equipment, they inherited it from PHCN.
“Communities buy transformers to replace damaged ones in addition to overburden bills and arbitrary estimates for unmetered customers.”
Senator Abbas further stated, “Cognizance that in a country where a greater population live below the poverty level, with stagnant wages, rising inflation and depreciating currency, the prospect of higher electricity bill is unattainable.
