Home » FG to Revoke Licenses of Underperforming DisCos

FG to Revoke Licenses of Underperforming DisCos

by Motoni Olodun

The Federal Government of Nigeria has issued a stern warning to the electricity distribution companies (DisCos) in the country, threatening to revoke their licenses if they fail to improve their performance and service delivery. The Minister of Power, Sale Mamman, gave the warning on Tuesday, during a meeting with the DisCos and other stakeholders in the power sector.

The minister expressed his dissatisfaction with the poor performance of the DisCos, which he said was affecting the entire value chain of the power sector and hampering the government’s efforts to provide stable and affordable electricity to Nigerians. He said the DisCos had failed to meet their obligations in terms of metering, billing, collection, remittance and network expansion, despite receiving several interventions and bailouts from the government.

He also accused the DisCos of engaging in fraudulent practices, such as inflating their customer numbers, rejecting power allocation, and bypassing the regulatory framework. He said the government would not tolerate such acts and would take decisive actions against any DisCo that failed to comply with the performance agreements and the regulations of the Nigerian Electricity Regulatory Commission (NERC).

The minister said the government had initiated several reforms and initiatives to address the challenges of the power sector, such as the National Mass Metering Programme, the Presidential Power Initiative, the Siemens Project, and the Solar Power Naija Programme. He said these programmes were aimed at improving the generation, transmission and distribution of electricity, as well as expanding access to renewable and off-grid energy sources.

He urged the DisCos to cooperate with the government and the other stakeholders in the power sector, and to improve their efficiency and accountability. He said the government was committed to ensuring that Nigerians enjoyed reliable and affordable electricity supply, which he said was essential for the socio-economic development of the country.

The DisCos, on their part, acknowledged the challenges facing the power sector and appealed to the government to address the issues of liquidity, tariff, gas supply, security and infrastructure. They also pledged to work with the government and the other stakeholders to improve their performance and service delivery.

The power sector in Nigeria has been plagued by various problems, such as inadequate generation, transmission and distribution capacity, low revenue collection, high technical and commercial losses, vandalism, metering gap, and regulatory uncertainty. The government has been making efforts to reform and revitalize the sector, but the results have been mixed and the expectations of the consumers have not been met.

The government’s warning to the DisCos is a clear indication of its resolve to hold them accountable and to ensure that they deliver on their mandate of providing quality and efficient service to the electricity consumers in Nigeria.

 

Source: Nigerian Tribune

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