No going back on electricity tariff hike — Fashola
Wed Jun 01, 2016 08:10:am National
3.6K By sosa hills
The Federal Government yesterday dashed the expectations of Nigerians on the possible reversal of 45% hike in electricity tariff made by the Nigeria Electricity Regulatory Commission (NERC), saying the decision to hike the tariff was irreversible.
It will be recalled that the Senate last February mandated its joint committee on Labour, Employment, Productivity and Power to carry out a public hearing after which a motion was moved to that effect by the Chairman, Committee on Labour, Nazif Suleiman (APC Bauchi North).
The Minister of Works, Power and Housing, Babatunde Fashola, and Acting Chairman of NERC, Dr Akah made this declaration at a Senate Joint Committee on Labour and Power during a public hearing session on the electricity tariff hike.
The Senate had in its resolutions on the motion, aside ordering for the public hearing, also ordered for reversal of the tariff hike by NERC which was, however, not complied with.
Explaining his refusal to obey the directive, the NERC boss told the committee that obeying such directive would have created series of avoidable setbacks in the sector like a market gap of about N575billion which would have compounded the initial market gap of N187 billion the take off tariff slammed on investors.
Akah said aside that, six generating companies (GENCO) had before the Senate's resolution, taken NERC to court over the hike and that they cannot do final order on reversal of tariff since the process that led to it was in compliance with Section 76 Sub-section 8 of the Act guiding the operations of the commission.
In his submission, Mr Fashola said the sector needed the market reflective tariff to survive.
(NAN)
It will be recalled that the Senate last February mandated its joint committee on Labour, Employment, Productivity and Power to carry out a public hearing after which a motion was moved to that effect by the Chairman, Committee on Labour, Nazif Suleiman (APC Bauchi North).
The Minister of Works, Power and Housing, Babatunde Fashola, and Acting Chairman of NERC, Dr Akah made this declaration at a Senate Joint Committee on Labour and Power during a public hearing session on the electricity tariff hike.
The Senate had in its resolutions on the motion, aside ordering for the public hearing, also ordered for reversal of the tariff hike by NERC which was, however, not complied with.
Explaining his refusal to obey the directive, the NERC boss told the committee that obeying such directive would have created series of avoidable setbacks in the sector like a market gap of about N575billion which would have compounded the initial market gap of N187 billion the take off tariff slammed on investors.
Akah said aside that, six generating companies (GENCO) had before the Senate's resolution, taken NERC to court over the hike and that they cannot do final order on reversal of tariff since the process that led to it was in compliance with Section 76 Sub-section 8 of the Act guiding the operations of the commission.
In his submission, Mr Fashola said the sector needed the market reflective tariff to survive.
(NAN)
Related News
Leave a comment...