Going by the strong signals transmitted from this week’s Federal Executive Council (FEC) meeting on Wednesday, announcement of the revocation of electricity distribution companies (Discos) licenses any moment from now would not be any surprise to Nigerians.
This assumption stemmed from the memo presented before FEC meeting that lasted several hours, by the Minister of Power, Saleh Mamman on the electricity distribution companies (Discos).
Addressing the press at the end of the meeting, the aggrieved Minister expressed worries on why Discos failed to honour their commitments to buy and distribute adequate power generated for them by the generation companies (Gencos).
Though the minister was economical with the punitive measures Federal Government would take on Discos, who are already warming up to hike tariff from April 1, he accused the sector of systemic corruption that cannot be allowed to continue.
Observers say with such mindset of the Federal Government, any move to truly hike tariff would end up in revocation and sacking of all the 11 Discos to pave way more credible investors who are ready to put deep fund in reviving the nation’s energy sector.
The minister, who made it clear that going forward, government won’t provide any form of fund intervention again, averred that “We would no longer extend subsidies to the Discos because they have failed to make optimum use of the financial interventions.”
According to him, Discos have resorted to choosing how many quantity of power to take from Gencos who had been doing their best in producing enough power.
He said Discos do not evacuate all of the about 13,000 megawatts generated by the Gencos rather they chose less than what was produced for them which is not acceptable.
He further explained that the way and manner Discos chose what they will evacuate and not have been hobbling the performance of Gencos.
The Minister decried that of the 7,000 megawatts transmitted; the Discos manage to pay for only 15 per cent of the 3,000 megawatts they distribute.
In his view, such business scenario only encourages gross economic loss, as the Gencos do not get value for the electricity they generate, while consumers also do not get adequate electricity despite the output of the Gencos.
