BPE will determine listing of DisCos on NSE

The Association of Nigerian Electricity Distributors (ANED) says listing shares of Electricity Distribution Companies (DisCos) on the Nigerian Stock Exchange (NES) will be determined by the Bureau of Pubic  Enterprises (BPE).

The Chief Executive Officer of ANED, Azu Obiaya, said this in an interview with the News Agency of Nigeria (NAN) in Abuja on Thursday.

He said that the listing of the DisCos shares at the stock market could only be possible at the expiration of the five-year agreement entered with the BPE.

“From our perspective at the moment, the transactional agreement that the DisCos have with the Bureau of Public Enterprises, (BPE) essentially describes a five –year approach to the listing of shares in the stock market.

“For us that is what we believe to be the guiding framework in terms of the listing of our share and unless that changes, we really cannot speak on the plan that the government currently has.

“From our own perspectives, what is guiding us, in terms of listing of the DisCos shares is the share sale agreement that the DisCos have with the BPE.

“So unless we are informed that it has changed, that continues to be the guiding frame work for us.’’

Babatunde Fashola, Minster of Power, Works and Housing presented a Memo to the Federal Executive Council in February as measure to mitigate the challenges of liquidity in the power sector.

The Memo tagged “Power Sector Recovery Plan” outlined various proposal on reviving the sector. Part of the proposal was government’s plans to get the Discos to list their shares on the NSE.

On the declaration that GenCos can sell power direct to some categories of customers, Obiaya said that the minster had the right to declare Customer Eligibility in the sector as stipulated by Power Sector Reform Act 2005.

He, however, said that the DisCos were still monitoring the situations.

“We are reviewing the impact of such a declaration on our businesses and commercial affairs.” “It is too early for us to make any declaration, at a future date if need be, we will make our comment.’’

The Generating Companies through its associations had welcomed the declaration of the Eligible Customers in the sector.

They had said that the move by Federal Government would help address the issue of electricity load rejection and improve generation.

Obiaya also told NAN that the DisCos were sensitive to the concerns on how to improve liquidity in the sector

“We believe that liquidity is directly linked to all players in the value chain to recover their cost of doing business.’’

He said that the sector did not have a tariff that allowed operators recoup the cost of doing business, impacting negatively on their revenue.

Ministries, Departments and Agencies (MDA) debt, owed DisCos, he said government was yet to settle all outstanding debt adding that only Abuja Electricity Distribution Company (AEDC) had received part payment.