Senate Probes Hike In Electricity Tariff, Threatens Sanction Against Power Firms

The Nigerian Senate has embarked on an investigative hearing to address the surge in electricity tariffs affecting 11 states within the country.

During the ongoing meeting held at the Senate wing of the National Assembly on Monday, the Red Chamber emphasized its resolve to penalize any individual or entity found responsible for exacerbating the plight of Nigerians due to the tariff increment.

Last week, the Senate, through its Committee on Power, extended invitations to Adebayo Adelabu, the Minister of Power, and heads of agencies under the ministry, to participate in the investigative hearing concerning the recent electricity tariff adjustments.

Senator Eyinnaya Abaribe, the committee chairman, announced that the Senate’s authorization of the investigative hearing, scheduled for April 29, 2024, affirmed that key government agencies would be called upon to provide clarifications.

He said, “We have summoned the National Electricity Regulatory Commission (NERC). We will allow them to speak about the electricity tariff hike. The minister of power is, of course, expected to appear too.”

Addressing players at the hearing, Senator Abaribe reiterated that the investigative proceedings were instigated by two motions tabled at plenary sessions on July 25, 2023, and February 21, 2024.

The motions according to him, mandated the Committee on Power to engage with the Federal Ministry of Power, Nigerian Electricity Regulatory Commission (NERC), and other stakeholders to address the challenges plaguing the Nigerian Electricity Sector, including the imperative for comprehensive sector reforms.

The committee chairman while highlighting the scope of the inquiry, said it encompasses probing into the over N2 trillion subsidy requirement disclosed by the Minister of Power, as well as the outstanding debts owed to generating and gas companies.

He said, “We are also to investigate the over N2tn subsidy requirement as stated by the Minister of Power to avoid the repeat of fuel subsidy scenario and the statement made by the Honourable Minister with regard to the N1.3tn the Ministry is owing generating companies and $1.3bn owed to gas companies, (which I believe has increased as at today),

“Investigate the role of the Ministry of Power, NERC, and ZIGLAKS COMPANY on their failed agreement to provide meters and ensure Nigerians are not shortchanged.”

As part of the investigative process, stakeholders in the electricity sector were called upon to elucidate when NERC transitioned from the previous customer classes to the present BANDS system for electricity customers.

“NERC migrated from the previous customer classes of Residential (RI, R2, R3), commercial (C1 and C2), and Demand (D1 and D2) to the present BANDS (A, B, C) for electricity customers,” the committee chairman said.

Abaribe however said that the committee also aimed to scrutinize the role played by the Ministry of Power, NERC, and ZIGLAKS COMPANY in their contractual obligations related to meter provision.

He added, “Let me right from the onset and restate the determination a commitment of the Committee and indeed that of the 10th Senate to as a matter of urgency, stringently carry out this assignment to alleviate the sufferings of Nigerians and that we will not hesitate to sanction anybody or any agency found culpable.”