‘Power challenges to persist unless stakeholders realign value chain’

Business

Electricity workers at work on a pole.

Inherent challenges in the supply of gas to power plants, power generation, transmission, and distribution capacities may persist unless holistic realignment of the value chain is addressed, distribution companies (DisCos) have said.

The Association of Nigerian Electricity Distributors (ANED), also accused the Minister of Power, Saleh Mamman, of spreading misleading information and making pronouncement that may further affect the outlook of the Nigerian Electricity Supply Industry (NESI).ANED noted that the level of generated and transmitted electricity in the country is overrated. 

Executive Director, Research and Advocacy, ANED, Sunday Oduntan, insisted that solutions to Nigeria’s electricity market can only come from a collaborative and partnering framework and improved environment.

Advertisement

Advertisement

“Of greater importance is the need, at a minimum, for the realignment of gas, generation, transmission and distribution capacities that will provide the country with a level of consistent power supply. Any unsupported or inaccurate information amounts to deviation from this minimum and needless distraction from issues of sectoral urgency,” he stated ANED reiterated that to date, DisCos have not received any subsidy from the federal government, saying that references to the payment of N1.7trillion in subsidies are associated with payments made to the generating and gas supply companies, under the Payment Assurance Guarantees (PAG) initiative, and the Nigerian Electricity Market Stabilization Fund (NEMSF).

“Under the NEMSF N210billion initiative, of the N189.1billion that has been disbursed, the DisCos have only received N49.89billion or 26.3 per cent. Importantly, this is money owed to the DisCos by the consumers, due to the non-cost reflective tariff of MYTO 2.0, and the government’s failure to inject the associated N100billion in subsidies, a commitment under the privatisation agreements,” ANED said.

The DisCos discredited Mamman’s comments, which alleged that Nigeria currently generates 13,000 megawatts (MW) of electricity, and transmits 7,000MW to Discos, who, unfortunately, can only distribute 3,000MW to end users, stating that such an assertion was inaccurate and misleading.

Advertisement

Advertisement

The Guardian

Leave a Reply