The Federal Government has approved a 50 per cent subsidy for the electricity consumed in public hospitals across the nation.
This followed a promise by the Minister of Power, Adebayo Adelabu, that the federal government would subsidise electricity in hospitals and universities, even if they were on Band-A feeders.
The approval came as Eko Electricity Distribution Company, Eko DisCo, yesterday disconnected power supply to the University of Lagos, Akoka, over unpaid electricity bills, despite government's promise to aid public universities in this regard.
The Minister of State for Health and Social Welfare, Dr. Tunji Alausa, announced the approval at the National Neo-Psychiatric Hospital in Barnawa, Kadunas State, yesterday.
He was at the hospital to unveil the electronic health records and an alternative power supply source at Lawal Jafaru Isah Emergency Complex and the solarisation project at the dialysis unit, which includes a solar-powered borehole.
According to him, this gesture aims to reduce the running costs for public hospitals and alleviate the impact on patients.
Recall that the Power Minister, Adelabu, had said government would not subsidise private businesses operating in the universities and hospitals.
The minister disclosed that the government was aware that universities and hospitals were having challenges paying high bills.
However, he said the federal government was planning to meter all businesses running in each of the institutions to prevent paying subsidies to private businesses.
"We know they are development institutions, they are social institutions. But inside the health and educational institutions, private businesses are hiding under them. These people charge their customers commercially and they expect to be subsidised because they are located within the territories of these institutions.
"We said no, go and do a proper search and meter everybody. For the ones that are properly health and education-related, we are ready to subsidise them, even if they are on Band A.
"We are compiling our data, DisCos will collect a certain amount and the government will pay the balance. But we must get the data right, so we are not subsidising a private business that is charging its customers commercially. That will be an abnormal profit and it is unfair," he stated.
After the federal government removed subsidies from customers categorised as Band A and upgraded their daily electricity supply to a minimum of 20 hours daily, universities and public hospitals cried out that their bills had skyrocketed.
The Ministry of Power has yet to give details of the subsidy arrangement for the institutions, according to spokesman of the minister, Bolaji Tunji.
N300m debt: Eko DisCo disconnects UNILAG
Meanwhile, despite government's promise to subsidise electricity tariffs of public universities Eko Electricity Distribution Company has disconnected the power supply to the University of Lagos, Akoka, over unpaid electricity bills.
The university which disclosed this in a statement on Wednesday, has been grappling with the burden of rising electricity costs.
This challenge was further made worse when EKEDC upgraded the university's tariff category from "Band B" to "Band A," resulting in a hike in monthly electricity bills.
Before the upgrade, UNILAG was said it be paying between N150 million and N180 million monthly.
However, the June bill under the new "Band A" tariff nearly doubled, reaching almost N300 million, a 100% increase that the university is struggling to manage. The institution's management expressed regret over the blackout that has hit the campus since Tuesday.
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The management explained that despite ongoing negotiations with EKEDC and a recent payment of N180 million on August 20, the university was abruptly disconnected from the power supply on August 27, without any prior notice.
"Just two weeks after our meeting, we were hit with a staggering bill of nearly half a billion naira (N472 million) for July, further increasing our debt burden!
"We kept our promise and paid N180 million on August 20, yet on August 27, EKEDC disconnected us without notice and has refused to reconnect the university to the national grid," " the statement read
The management assured the university community that efforts were being made to resolve the issue with EKEDC.
It called for calm and announced that power supply across the campus would be rationed until further notice.
