Thursday, December 26, 2024

Representatives push to remove universities from Band A electricity tariff

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The House of Representatives said it would ensure that federal universities were removed from the Band A electricity rate plan to reduce their massive electricity bills.

The Chairman of the House of Representatives Committee on University Education, Abubakar Fulata, said this in a statement on Friday in Abuja after the committee's oversight of federal universities in the North East.

Some of the federal universities visited, according to him, include Abubakar Tafawa Balewa University, Bauchi, and Kashare Federal University, Gombe State.

In April, the federal government announced an increase in electricity rates, affecting Category A customers, who represent 17 percent of customers who consume 40 percent of electricity production.

The policy allowed DISCOs to increase electricity prices to ₦225 ($0.15) per kilowatt-hour from ₦68, in exchange for ensuring 20 hours of electricity supply per day.

The government explained that the decision to implement the tariff increase was to improve liquidity in the downstream electricity sector, as it had become difficult to sustain the subsidy in the sector.

Recently, students from the Universities of Benin and Ibadan protested against inadequate power supply in their institutions.

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Mr Fulata said efforts were underway to remove universities and other tertiary institutions from the Group A electricity users.

He said lawmakers were determined to remove obstacles to the smooth running of schools.

He expressed optimism that the government would listen to them and remove universities from the Band A electricity user plan, as they did with IPPIS.

The lawmaker said most universities are struggling to pay electricity bills due to rising tariffs.

Mr. Fulata also instructed the management of the two universities to try as much as possible to comply with relevant laws, in particular the Appropriations Law.

A committee member, Victor Ogene, drew the attention of ATBU management to some irreconcilable figures regarding the school's income and expenditure between 2021 and 2023.

He said it was not appropriate for a government institution to spend more of its income on a revenue-generating facility like a guest house.

“Would it be appropriate to receive less than N800,000 for the school boarding house and spend more than N5 million to maintain it?” Mr Ogene asked.

Another member, Adamu Gamawa, said extra-budgetary spending was not allowed because it was unconstitutional.

“For example, you cannot budget N10 million and spend N15 million. That is why there is room for a supplementary budget,” Gamawa said.

The Vice Chancellor of Abubakar Tafawa Balewa University Bauchi, Professor Sani Kunya, commended the committee and sought the support of lawmakers to address the challenges facing the institution.

In the same vein, the Vice Chancellor of Federal University Kashare, Gombe State, Usman Pate, commended the lawmakers for visiting the school.

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