The Association of Electricity Distribution Companies (ANED) has appealed to the Federal Government to provide the N100 billion subsidy it promised after private investors took over the power sector utilities on November 1, 2013.
ANED, in a statement by its Executive Director, Sunny Oduntan, also appealed to the government to inject funds into the transmission section of the sector.
It blamed the huge loss and rejection of electricity load on inadequate funding of the Transmission Company of Nigeria (TCN).
According to the statement, the government which holds 40 per cent equity in the utilities, pledged to provide many interventions in the Performance Agreement between DisCos and the Bureau of Public Enterprises (BPE).
It reads: “To date, the government has not met the privatisation transaction foundational requirements of providing N100 billion in subsidies, payment of MDA electricity obligations. It has not ensured that the DisCos have debt free financial books; and the implementation of a cost reflective tariff.”
It said that the funding level of TCN was inadequate, given TCN’s estimate of $ 7.5 billion for its five-year expansion plan designed to increase its capacity to wheel 10,000 megawatt (mw), from the current 4,500mw.
It said that the DisCos could only recoup their investments when they have more energy delivered by TCN in the area where they have customers. Click to signup for FREE news updates, latest information and hottest gists everyday
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Discos are bunch of rogues without any developmental projects planned within the power sector.Since privatization they have not made any meaningful moves supplying most customers with prepaid meters or in supply of stable electricity, now they want the government to provide them cash promised them by the ousted irresponsible and unethical Jonathan administration.Nigerians must remember that this same Discos contributed billions of Naira to Jonathan's reelection campaign,money they could had pumped into the power sector.I pity this country called Nigeria
ReplyDeleteAbsolutely correct! Why should government pay tgem for service tgey have not rendered. Only in Nigeria this kind of demand can be initiated. They need be slapped for making such a stupid demand. Bunch of rogues! !!
ReplyDeleteThe Discos are rogues, government should not give them a dime, we need service, the same way bailout was giving to the Airlines during Jonathan era and the funds were embedded. Jimoh Ibrahim took the bailout and shut Aair Nigeria down six months after. Bailout is fraud. If they can not invest in the business, they should sell to serious minded people who can raise funds and make it work.
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