Reps Grill NERC over Non-remittance of Operating Surplus to Rural Electrification Agency

Udora Orizu

The House of Representatives Committee on Public Accounts yesterday grilled the Chairman, Nigeria Electricity Regulatory Commission (NERC), Sanusi Garba and the Executive Commissioner in charge of Finance, Nathan Shatti over the non-remittance of operating surplus of the agency to the Rural Electrification Agency (REA).

The Chairman of the Committee, Hon. Oluwole Oke, who presided over the hearing noted that REA was one of the key government agencies established by government under the Electricity Reform Act passed by the National Assembly and enjoined the agency to maximise its potential for national development in power sector.

He also noted that the provision of the law was clear that the agency as a regulator of the government agencies and power distribution companies should pay its operating surplus to the government agency in charge of power at the rural areas.

He demanded that the provision of the law on the payment of operating surplus by Ministries, Departments and Agencies (MDAs) of government be complied with by these organisations forthwith.

However, responding to the queries raised by the Auditor- General of the Federation (AuGF), NERC Chief Executive said that the agency had paid up all its outstanding operating surplus to the REA.

He told the lawmakers that the idea of payment of operating surplus to the government was to improve access to electricity in the rural areas by agencies of government, adding that in 2012 N4 billion was paid to the coffers of government.

Ruling, Oke expressing dissatisfaction with his explanation, directed the Clerk of the Committee to write the REA to submit to the Committee details of payment of operating surplus by NERC from 2015 till date.