Chineme Okafor in Abuja


The Power Sector Recovery Programme (PSRP) recently developed by the federal government and the World Bank to revive Nigeria’s ailing power sector, has come up with an action plan for the sweeping restructuring of the 11 electricity distribution companies (Discos) that would enable government to take over any Disco found to be insolvent.

Details of the action plan, which THISDAY got from a workshop organised by the Ministry of Power, Works and Housing to educate the media on the expected workings of the PSRP, indicated that the government is planning to restructure the Discos to meet their responsibilities in the country’s privatised electricity market after a thorough forensic review of their operations.

The workshop was held on Wednesday evening in the ministry in Abuja. It had in attendance the Minister of Power, Works and Housing, Mr. Babatunde Fashola, the two ministers of state – Mr. Mustapha Shehuri and Mr. Suleiman Hassan – as well as heads of parastatals in the ministry, all of whom took time to explain the government’s plan in the PSRP.

The report further made recommendations for the Nigerian Electricity Regulatory Commission (NERC) to engage the Discos on revised business plans, which will be negotiated, finalised and implemented.

It also requires the government to “start the process of restructuring Discos that are found to require new capital injections”.

“This would involve NERC, BPE (Bureau of Public Enterprises), the Discos and other relevant parties. This may also involve the takeover of Discos with degraded financial positions,” said the PRSP report.

It however explained that before the takeover, technical competence reviews including forensic audits of all the Discos and the adequacy of their technical partners, should be undertaken to ensure that they had not failed in their initial agreements with the government after the privatisation exercise.

The document also revealed that there was an ongoing audit of the performance agreements and all direct agreements the government signed with operators in the sector to ensure that it was in compliance with its obligations.

It explained that there should also be measures to address the operational challenges of the Discos, which should include: “Develop case studies to determine the level of load rejections in the network, develop investment plans with clear impact analyses for increase in load across the network and in metering, and ensure regulatory measures are enforced.”

Also at the workshop, the Managing Director of the Nigerian Bulk Electricity Trading Plc (NBET), Dr. Marilyn Amobi, debunked claims by the Discos through their umbrella association, the Association of Nigerian Electricity Distributors (ANED), that the electricity they distribute to Nigerians at an average of N31 per kilowatts hour (kWh) is retailed to them at N68/kWh.

Amobi, in her response to a question on how much the NBET really sells the electricity it procures from the generation companies (Gencos) to the Discos, stated that its retail price per kWh of electricity to the Discos had not exceeded N18/kWh.

Meanwhile, NERC has invited car dealers in the country to bid to supply it seven sport utility vehicles (SUV) for its commissioners.

The regulator, in a procurement notice it recently put out, requested bidders to supply the vehicles with specifications that include 4.6-litre engine capacity and V8 type. It equally noted that vehicles should have full options and must be 2018 models.

The commission, however, did not specify the exact make of the vehicles it wants to buy, but a price survey conducted by THISDAY on the commission’s specifications for the SUVs showed that a Toyota Land Cruiser V8 2018 model with full options currently starts from N55 million.

During the time of the Dr. Sam Amadi-led board, the commission reportedly bought Ford SUVs for its commissioners who left office in December 2015 when their tenure expired. It was not certain if the retired commissioners left with the SUVs.

In the tender notice, NERC said successful bidders would be given just six weeks from the date of the award of the contract to deliver the vehicles.

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aolawale025:
Doesn't look good. The DISCOs should work out their own restructuring plans based on each ones business model. The less involvement of government in public utilities the better in the long run

greatiyk4u:
That is a good warning To put the discos. On their toes


However, the attitude of nigerians towards payment of electricity Bills especially those in the villages is not encouraging nd will continue to hinder the progress of. Discos

Keneking:
Ok

dre11:

The discos have really failed!
I used to pay about N7000 monthly
When Fashola was on their neck, they managed to install meter for me only to discover that my real consumption was N1000
The interesting part is that I discovered the same way they installed meter for me is the same way the transmission company has meter for them, so they are always very happy and comfortable when there is no light because they are the ones gaining while Nigerians are losing
It was very sad to hear that about 2000MW were stranded with the GenCos last month when people don't have light to use







https://www.thisdaylive.com/index.php/2017/11/17/fg-comes-up-with-action-plan-for-takeover-of-distressed-discos/

greatiyk4u:
That is a good warning To put the discos. On their toes


However, the attitude of nigerians towards payment of electricity Bills especially those in the villages is not encouraging nd will continue to hinder the progress of. Discos

greatiyk4u:
That is a good warning To put the discos. On their toes


However, the attitude of nigerians towards payment of electricity Bills especially those in the villages is not encouraging nd will continue to hinder the progress of. Discos

incemay:


Not just those in the village. Even some educated people don't pay electricity bills. My house is a 4 flat residence here in Lagos with over average electricity supply. My neighbors do not pay bills but they can run gen overnight if there's no supply of electricity.
We really need to change our attitude if we really want power.