Power supply: FG urged to provide 40% funding ake to DISCOS

Some stakeholders in the power sector have called on the federal government to fulfill its 40 percent funding to electricity distribution companies (DISCOS) to enable them function effectively.

The stakeholders made the call in interviews with newsmen following reports that government was considering repossession of the 10 DISCOS as one of the options to rescue the nation’s troubled electricity sector.

This is coming ahead of the scheduled final performance review of the private firms that bought into the distribution companies, carved out from the defunct Power Holding Company of Nigeria (PHCN).

According to experts, government will require up to $2.4 billion (N736 billion) to repossess the privatised distribution assets from the core investors, if it finally takes the decision.

Mr Kola Adesina, Chairman, Ikeja Electric, urged government to give cost-reflective tariff to revamp the sector.

Adesina said the inability of government to provide funding for its own 40 per cent stake also contributed to the ineffectiveness of the DISCOS.

He called on government to ensure clarity in regulatory framework, adding that there was need for government to ensure prompt payment of Ministries, Department and Agencies’ (MDAs) debts.

According to him, government needs to ensure symmetry in the value chain and align tariff to fiscal regimes.

“Government has failed to deliver on its own part, and went to sign expensive power with Azura and 7energy, in a market that is cost-ineffective.

“Government’s changing rules and policies everyday are also not helping the sector,” Adesina said.

Mr Adetayo Adegbenro, Chairman, Light up Nigeria, said that there was actually no need for government to continue to meddle with the semi-private sector.

Matched content

Be the first to comment

Leave a Reply

Your email address will not be published.