Tuesday, November 19

FG Worried Over Discos’ Performance, May Review Privatisation

By Dayo Omoogun

The Federal Government is worried about the dismal performance of the Distribution companies (Discos) despite its several financial interventions and may be considering wielding the big stick.

 

The Minister of Power, Saleh Mamman, disclosed this while briefing State House correspondents at the end of the Federal Executive Council, FEC, presided over by President Muhammadu Buhari at the Council Chamber, Presidential Villa Abuja.

He told the correspondents that his Ministry submitted a memo to the Federal Executive Council in which its achievements, constraints and suggested way forward were highlighted.

“What I want to say is that most of the problem we are facing in this country that we cannot get electricity supplied adequately and efficiently is because we have a problem in distribution. “Generation is no more problem. We can generate up to 13,000 megawatts but the transmission, those who are taking the electricity supply can only take 7,000 megawatts, even at that they are not taking the whole 7,000 megawatts but only 4,500 megawatts and then send to distribution. “The distribution, in turn, receives only 3,000 megawatts.

On the several financial interventions he had this to say “That is what we are saying, government cannot continue to subsidize because what they are doing is that they collect 3,000 megawatts and pay for only 1,000 megawatts, that is 15 per cent of what they are collecting. “So, the government is the one completing the payment. So, we cannot continue like that. So, if they are ready to continue, fine but if they are not ready to continue maybe they should give way to whoever that is ready to come and invest. So we are asking government to review and see if they are capable fine but if they are not capable they should give way.

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