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FG laments blackout despite 65% subsidy, warns Discos

by Ikenna Ngere
March 12, 2024
in Business News, News
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Adelabu Launches $23.2bn Energy Plan to Boost Nigeria’s Power Sector
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Power distributors that reject electricity allocated to them by the Transmission Company of Nigeria shall be dealt with severely going forward, the Federal Government declared on Monday.

It also revealed that in the next three to six months, it would ramp up power generation and supply to between 6,000 and 6,500 megawatts.

The Minister of Power, Chief Adebayo Adelabu, who disclosed this in Abuja before commencing a meeting with heads of agencies under his ministry, also disclosed that the Federal Government was subsidising the electricity bills of consumers nationwide by about 65 per cent.

“I am holding this meeting with all the directors in the Ministry of Power and the CEOs of our agencies in order to address the lingering crisis in the power sector,” Adelabu stated.

According to him, what the country is witnessing currently with respect to power supply is not acceptable, adding that “the situation is getting worse, and in the last two, three weeks the level of power supply to Nigerians has not been good enough.”

Commenting on the performances of power distribution companies, the minister stated that the Discos would be dealt with severely for power load rejection.

He said, “We must address the issues of distribution, and I’ve said before now that the non-performance of Discos in terms of epileptic power supply qualifies as a basis for the revocation of licence.

“Any Disco that is found wanting will be severely dealt with; I’ve had discussions with the chairman of NERC. Their (Discos) actions or inactions directly affect the performance of the sector, and we must take it seriously.

“If we ramp up generation to 6,000MW as planned in three to six months, and ramp up our infrastructure in transmission to get power to the Discos within the next couple of days, if the Discos are not picking this power, it amounts to nothing.

“So the refusal to take up and supply power by the Discos is a qualified basis for the revocation of licence. Therefore the Discos should not frustrate our efforts in generation and transmission.”

The minister said he had discussed with NERC to come up with adequate performance measurement standards for Discos, stressing that laggards should be fished out and sanctioned.

“We should not be toothless bulldogs, barking and barking without biting. We should bite, for by the time we sanction two, three Discos heavily, others will sit up, and it will serve as a deterrent to others that we mean business.

“Their actions and inactions are causing us damage as a country. So they must know that it is no longer business as usual. We should have performance information, for example, last week, a number of the Discos did not pick up the power provided by TCN, throwing a number of communities into darkness,” he stated.

Recall that The PUNCH exclusively reported last week Tuesday that despite the widespread blackout and the worsening state of electricity supply in Nigeria, figures on the daily load summary of power distribution companies indicated that the firms failed to distribute about 1,769.91 megawatts of electricity between February 1 and 14, 2024.

The report stated that data from the Transmission Company of Nigeria showed that though some of the power firms received excess electricity load allocation during the period, most of them failed to utilise all the quantum of energy allocated to them by TCN.

Nigeria has 11 power distribution companies and they include Abuja, Benin, Eko, Enugu, Ibadan, Ikeja, Jos, Kaduna, Kano, Port Harcourt and Yola Discos.

The report stated that on February 1, 2024, for instance, seven of the power distributors failed to utilise a total of 128.62MW of electricity, as the load rejection by the power firms lingered during the review period.

Adelabu declared that the rejection of electricity would no longer be allowed in the sector, stressing that “they must take up a minimum of 90 to 95 per cent of power supplied to their jurisdiction.”

SOURCE: PUNCHNG

Tags: 65% subsidyDiscosFG. Blackout
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