Business Hilights
Tracking Nigeria's Headline Business News Online

Lack of commercial viability forcing us to reject power—Discos open up

The spokesman of the Association of Nigerian Electricity Distributors (ANED) and Director of Advocacy and Research, Sunday Olurotimi Oduntan in Abuja on Thursday opened up on why many power Distribution Companies (Discos) engage on load rejection.

Nigeria is currently serviced by 11 Discos.

He explained that Discos actually reject electricity sent to them for their customers based on the commercial viability of locations and areas meant to be served.

The power load is supplied by the Transmission Company of Nigeria (TCN) who evacuates it from Generation Companies (Gencos).

While stressing that TCN is always in the habit of supply more than requested especially in areas of low need.

Oduntan averred that “It is true that we sometimes reject load, but it is not often, and it is because TCN gives us electricity where it is not commercially viable”.

He stressed that Discos usually consider giving more supply to places where the customers pay bills promptly and record low cases of energy theft to recoup the cost of energy production and distribution in the electricity value chain”.

He explained further that rejected power is due to excess supply for an area and not a ploy by ANED or Discos to starve customers.

Business Hilights recalls that government had at some time, warned Discos to stop rejecting supplied power in their districts but look out for more customers.