Senate rejects electricity tariff increase

The Nigerian Senate has rejected plans to increase electricity tariffs.

At a recent press conference in Abuja, the Minister of Power, Mr Adebayo Adelabu, disclosed that the current electricity tariffs do not reflect the cost implications of electricity distribution. This hinders DISCOs from meeting revenue targets and investing in reducing technical, commercial, and collection losses.

Mr Adelabu said there is an N1.6tr shortfall in wholesale tariffs and 48% technical, commercial and collection losses, indicating that almost half of the electricity generated is not being paid for due to technical issues, theft and inefficiencies in billing and collection processes.

But during plenary following a motion moved by Senator Aminu Abbas (PDP, Adamawa Central) on the need to retain subsidy on electricity, the Senate resolved that on the backdrop of the prevailing economic hardship in the country, the current electricity tariffs should remain in place while electricity subsidy be retained.