Discos operating in the country has claimed that the Federal Government has failed to release the N100bn subsidy it promised operators in the sector right after the take-over on November 1, 2013.

Speaking under the umbrella of the Association of Nigerian Electricity Distributors, the power handlers have blamed their huge load rejection to the poor funding of the transmission unit of the power sector.

Mr. Sunday Oduntan who is Director, Advocacy and Research, ANED, explained in a statement issued in Abuja that the Federal Government held 40 per cent equity in the power distribution firms and noted that it committed to many interventions in the performance agreement between the Discos and the Bureau of Public Enterprises.

“To date, the government has not met the privatisation transaction foundational requirements of providing N100bn in subsidies, payment of the MDAs’ electricity obligations, ensuring that the Discos have debt free financial books and implementing a cost-reflective tariff,” Oduntan said.

“This funding level is even more pitiful when, especially, measured against the TCN’s estimate of $7.5bn for its five-year expansion plan that is expected to take us to 10,000 megawatts from our current 4,500MW,” Oduntan said.

The Discos said they only way they could bounce back was if more energy was delivered by the TCN in the areas where they had customers.

“Should the Discos suffer financial losses due to the limitations associated with the TCN’s wheeling constraints?

“The TCN has remained underfunded over several decades. Such limited or underfunding has resulted in poor transmission infrastructure and planning, with the consequences of grid instability and limited wheeling capacity, adversely impacting the distribution and generation of electricity,” the director concluded.

 

Leave a Comment