The 11 electricity Distribution Companies (DisCos) have decried the
failure of Federal Government to provide a N100 billion subsidy it
promised three years ago, after private investors took over about 18
power sector utilities on November 1, 2013.
The DisCos in a statement by its umbrella body, Association of
Nigerian Electricity Distributors (ANED) yesterday also faulted the poor
funding for the transmission section of the sector, which they said has
resulted in the huge load rejection cases.
The statement issued by ANED’s Director of Advocacy and Research,
Barrister Sunday Oduntan said government which holds 40 per cent equity
in the utilities stated many interventions in the Performance Agreement
of DisCos with the Bureau of Public Enterprises (BPE).
“To date, the government has not met the privatization transaction
foundational requirements of providing N100 billion in subsidies;
payment of MDA electricity obligations; ensuring that the DisCos have
debt free financial books; and implementing a cost reflective tariff,”
it said.
On transmission constraints, ANED doubted if the N50 billion
appropriated for TCN in the 2016 budget was released by half adding
that, “This funding level is even more pitiful when, especially,
measured against TCN’s estimate of $7.5 billion for its five-year
expansion plan that is expected to take us to 10,000 megawatt (mw), from
our current 4,500mw.”
The Daily Trust however reports that TCN’s former Managing Director,
Engr. Atiku Tambuwal Abubakar said in February 2017 that the 2016
allocation was released by over 90 per cent, adding that many networks
and substations were strengthened for efficient service delivery.
“Should the DisCos have to suffer financial losses due to the
limitations associated with TCN’s wheeling constraints?,’’ they queried
in the statement.
They decried the continued dearth of TCN funding, saying it impedes
the DisCos’ ability to distribute power and has led to crashes in power
turbines of Generation Companies (GenCos) due TCN consistent requests
for de-loading.
Popular Posts
-
Did you know that you can actually make money by having your own blog? How can you start one and how can you make it pro...
-
1 . Introduction This paper seeks to discuss the import and impact of the doctrine of separation of powers (‘the doctrine’) in South Af...
-
The Benue State Commissioner for Health and Human Services, Dr. (Mrs.) Cecilia Ojobo has said Benue State has not recorded any case of ...