The Senate has called upon the Federal Government to abandon its proposed escalation of electricity tariffs by withdrawing electricity subsidies.
In a session held in Abuja on Wednesday, the upper legislative chamber voiced its concerns through a motion adopted during the plenary.
The motion, titled “Planned Increase in Electricity Tariff and Arbitrary Billing of Unmetered Customers by Distribution Companies (DisCos),” was introduced under matters of urgent public importance by Senator Aminu Abbas (PDP Adamawa) alongside 10 co-sponsors.
Abbas expressed dismay at the prospect of escalating electricity tariffs amidst mounting economic challenges, including widespread poverty and a soaring cost of living across Nigeria.
He highlighted statements attributed to the Minister of Power, who articulated the necessity of transitioning towards a cost-effective tariff model due to Nigeria’s substantial debts to Generating Companies (GenCos) and gas suppliers amounting to N1.3 trillion and $1.3 billion, respectively.
Abbas underscored the discrepancy between the required subsidy of over N2 trillion and the allocated budget of N450 billion for 2024.
He further lamented the unjust practices of electricity distributors, who continue to bill customers for services not rendered and impose arbitrary charges on unmetered consumers.
The senator referenced the Nigerian Electricity Regulatory Commission’s (NERC) report, revealing widespread non-compliance with energy billing regulations by DisCos and the subsequent imposition of a N10.5 billion penalty on DisCos guilty of overcharging unmetered customers.
Despite previous directives to transition to prepaid metering and multiple sanctions imposed by NERC, Abbas expressed frustration at DisCos’ persistent disregard for regulatory measures.
In response, the Senate mandated the Committee on Power to investigate the purported N2 trillion subsidy requirement, the outstanding debts owed by the Ministry of Power to GenCos and gas companies, and the failed prepaid metering agreement involving the Ministry of Power, NERC, and Ziglaks Company.
Additionally, the committee was tasked with engaging NERC to devise a sustainable solution to the energy billing system and overseeing the judicious utilisation of the N10.5 billion penalty imposed on DisCos.
The Senate further called for a comprehensive investigation into DisCos’ operations to assess metering status and compliance with regulatory frameworks, directing NERC to furnish relevant documentation to the committee for further legislative action.
