The Federal Government, yesterday, issued a marching order, asking the Nigeria Electricity Regulation Commission, to withdraw licenses of non-performing electricity distribution companies, DISCOs.
This is even as power generation dropped year-on-year, YoY, by 21 per cent to 3,475MW in March 2024, from 4,404MW in the corresponding period of 2023, due to many problems, especially low investment and inadequate gas supply.
But, on month-on-month, MoM to 3,475 megawatts, MW in March 2024, from 4,043MW in February 2024, thus causing many Electricity Distribution Companies, DISCOs, to embark on loading.
Data obtained by Vanguard from the National System Operator, a unit in the Transmission Company of Nigeria, TCN, indicated that supply remains low, thus impacting negatively households and businesses nationwide.
The government accused the DisCos of not doing enough to improve supply despite the availability of power on the national grid.
The Minister of Power, Adebayo Adelabu who stated this during a meeting with the head of the agencies in Abuja said the distribution segment remains the weakest link in the electricity supply value chain.
Adelabu stressed that NERC must look for creative ways of getting the DISCOs to improve supply including the imposition of stiff sanctions on utilities which fail to pick their allocations and outright cancellation of lincences.
He insisted that the franchise areas covered by the DISCOs were too large, adding the government would pursue a restructuring that would create smaller DISCOs with companies restricted to one state each.
“I’ve been to a number of the generating companies and I confirmed that they have this installed capacity. And a large percentage of this installed capacity is operational, but they are not available because of low or shortage in gas supply. Once there is gas supply, we want to ramp up generation to a minimum 6,000MW”.
He noted that while the Federal Government would continue to pay electricity subsidies in the short-term, it plans to gradually phase it out in the next three years and return the sector to a commercially driven tariff.
Speaking to journalists after the meeting, the Managing Director of the Transmission Company of Nigeria, Engr. Sule Abdulaziz explained that the fire that engulfed its substation in Kano happened while its engineers were trying to fix a leakage from one of its transformers.