ANED defends DisCos

Our Reporter

EXECUTIVE Director, Research and Advocacy of Association of Electricity Distributors (ANED) Chief Sunday Oduntan, declined comment on DisCos performance last night.

However, at a news conference in July 2018, he said a reversal of the power sector privatisation will make investors lose confidence in Nigeria.

ANED is the umbrella body of all the electricity distribution companies (DisCos).

According to him, the problems being experienced by the DisCos are caused by the government. He said none of the promises made by the Federal Government prior to the takeover of the assets by the power investors have been met.

He said these commitments were fundamental to the DisCos, ability to meet the obligations of their Performance Agreement with the Bureau of Public Procurement (BPE) which requires them to improve customer service delivery, meter 1.7 million customers, expand the distribution network and minimize power interruptions.

Read Also: NERC directs DisCos to hike tariff

Oduntan said the issue of non-exclusivity of DisCos franchise areas is a reminder of our nation’s inability to optimise its prospects as a preferred investment destination of choice, based on a constant reoccurring deficiency – lack of sanctity of contract. This issue, he said, is even more worrisome when put in the context of the $1.4 billion that the DisCos’ investors paid into the coffers of the Federal Government. He further queried the use of Rural Electrification Agency’s (REA) ‘Energizing Economies’ initiative to cannibalize and infringe upon DisCos franchise areas as being a wrong model.

Oduntan said the indebtedness of the DiscCos to Nigerian Bulk Electricity Trading (NBET) will remain a reoccurring decimal as long as a cost reflective tariff was not put in place, noting that the current electricity tariff does not cover the cost of the supply of energy to consumers, a development which is a product of ministerial directives and the regulator’s lack of independence.