Fashola chides Discos on frustrating efforts to provide regular power

Babatunde Fashola the Minister of Power, Works and Housing has decried lack of support from the Distribution Companies of Nigeria (Discos)  on federal government efforts towards providing power to industrial clusters in the country.

Fashola while ‎speaking to issues confronting the power sector on Monday in Abuja  with a theme:”State of Play in the power sector and Next steps” said,government is worried due largely to lack of support Discos are showing towards government efforts in giving power Nigerians particularly industrial clusters and Small Scale businesses.

Fashola warned the Discos  not to monopolise the power sector distribution market, pointing out further that the space already created by their inefficiency has been taken over by generator and inverter companies all over the country.

‎”The government through the Rural Electrification Agency is providing power access  initiated Energising Economies Initiative (EEP) to help Nigeria’s major markets with challenges of stable power go off the national grid and stay connected to either solar or gas or gas sources power supply. It is planned to help them upgrade their economic activities and profitably, and not without resistance by Discos,” Fashola said.

“There are smaller areas you could franchise and not hold everything to your self yet not delivering. The Discos are not supporting the initiative,yet they are not providing the solution and needed power to those market areas,” Fashola said.

‎Using legal logic while quoting the Electricity Power sector Reform Act 2005,Fashola said,”The Laws does not anticipate exclusivity to any Disco,therefore the initiative to energise market clusters and industrial clusters cannot be frustrated by the Discos”

He clarified further,stating that,”There is no law restricting any Nigerian from ‎accessing power only from the distribution companies of Nigeria,that is why it is not offence to buy generators and use in your homes and offices,as well as making use of inverters.”

‎On the heels of this development,the Minister therefore directed the Nigerian Electricity Regulatory Commission to enforce it’s roles and sanction erring officials in the power value chain.

Meanwhile,while giving updates  on  the federal government efforts in ensuring the sector provides power to Nigerians said,”‎The Generation of power has improved to approximately 7000 megawatts,averaging an annual increase of 1000 megawatts per annum.

While doing a breakdown on government’s targeted increase on power generation,he said:,”The federal government is expected to add to already existing 7000 generated megawatts, 459 megawatts from Azura,259 megawatts in Kaduna,240 megawatss from Afam‎ power project and 40 megawatts from Kachimbilla,which is almost a total of 954 megawatts of electricity”

‎”As it stands now,we expect 400 megatts from Zungeru,700 megawats from Okpaitu.So,approximately  1 200 megawatts is expected in 2019.” Fashola said.

Also,the Generation and Transmission Companies have appreciated significantly in impacting in the privatised power sector.

According to Fashola,‎the Transmission capacity of Transmission Company of Nigeria,TCN has increased to 7124 megawatts in December 2017.This naturally gives average increase of 1000 megatts annual increase.

“There are currently about 90 Transmission projects currently on going in the country scheduled to be completed this year.‎Also,there is a Transmission Expansion Plan from 2018-2022,which the federal government is committed to‎.”Fashola explained further.

‎”Distribution has also improved from 2390 megawatts when we came in to distribution point of 5280 megawatts,averaging an increase of 844 megawatts per annum”he said.

“From 2016 when the Discos complained of lack of power to distribute,that is a thing of the past now,as we have 2000 megawatts of unused capacity‎. Also,there is a project of 1150 megawatts projected to come in before the year ends”he said.

Speaking further on what the government is doing to lift the sector,Fashola said,”The Central Bank of Nigeria has made available N213billion at concessionary interest rate to the electricity sector.”

Prior to the coming on the current administration,Fashola said the Gas suppliers are being underpaid,because of under-remittances by the Discos.The government intervened and provided over N700 payment assurance guarantee to ensure that payment to Generation companies improve”

‎While chiding Discos on arbitrary billing method,Fashola said hundreds of mails flood his office on daily basis registering concerns on exploitation through estimated billing system.

“The Discos should take responsibility .When you have issues with your SIM card,you don’t call the Minister of Communications commission,there are regulators and proper channels of communication in that sector,than ‎resorting to minister at least provocation”he adds further.

On government investment in the sector,he said,”As 40% share holder in the privatisation efforts,the federal government is determined to invest more N72 billion on installations to get the 2000 megawatts available to consumers.Adverts have been made to encourage Original Equipment Manufacturers take advantage of the procurement”

‎”We are also supporting the Nigerian Electricity Regulatory Commission on providing assistance to the Meter Asset Providers to enable metering of electricity consumers ,which he raised concern that Discos could not readily fill the gap.”

‎The Discos bought these assets with their eyes wide open,and must be ready to invest and compete favourably otherwise they exit”Fashola directed.

NERC must work assiduosly to expedite action according to its actions by ensuring the Discos improve on the capacities of their equipments,in order to optimise operations of generated power from Gencos.

“NERC in according to the provisions of the Act establishing it’s should protect the market in accordance to to its powers and ensure effective running of the power sector, according to Section 32 1A”‎Fashola directed.