Fresh details have emerged revealing that government is now closing in on how best to resolve the intractable funding crisis rocking virtually all the 11 electricity Distribution Companies (Discos) operating in Nigeria.
It would be recalled that since the unbundling of the National Electric Power Authority (NEPA) into three key segments including generation, distribution and transmission companies and privatized except the TCN, none of the companies have reported profit at the end of any financial year.
But the tide is set to change as from Wednesday, September 13, the Nigerian Electricity Regulatory Commission (NERC), will commence stakeholder engagement over review of the drafts of the Multi Year Tariff Methodology (MYTO), Business Continuity regulation for the Nigerian Electricity Supply Industry (NESI) and Eligible Customer declaration regulations.
Details smoked out by our correspondent indicated that the engagements coming on the renewed plan by the apex government, under the Ministry of Power, Works and Housing, will start in Lagos on the first day and move to the nation’s capital five days later.
The stakeholders’ consultations will then move to other Discos formations including Yola, Port Harcourt, Enugu and others.
There are of speculations that at the end, a clearer funding formula may be evolved which may be driven by a tariff hike which will be stoutly supported by the government.
Before now, industry experts had continued to query the rationale considered by government in not revoking the entire power sector privatization following clear indications that they lacked both the technical and financial muscles to deliver services over the years.