FG orders NERC to revoke licences of non-performing DISCOs

The Federal Government has issued a marching order, asking the Nigerian Electricity Regulatory Commission (NERC), to withdraw licenses of non-performing electricity distribution companies (DISCOs).

This is after power generation dropped year-on-year, by 21% 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.

FG blamed the DisCos for 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: “Distribution is our weakest point and it is the closest to the consumers. If we don’t get distribution right, to Nigerians, we’re not doing anything. So, efforts need to be put on this. In fact, we must intensify our efforts in ensuring that we address all issues relating to distribution.

“It is true that the distribution companies are in the hands of the private sector. We don’t have direct control. But we need to compel them for performance. They must perform. If they do not perform, all our effort in generation, in transmission is zero. I’ve also had a meeting with the Chairman of NERC on how we’re going to address these performance issues of the electricity distribution companies across the nation.

“Why we have new policies in our power sector policy framework, which we’re going to finalize to address long-term issues in distribution, we must proffer short-term solutions to the lingering crisis.

“Before we get to that, we’re talking about the issue of the capitalization of the discourse, for them to inject funds, to improve infrastructure.”

“We are talking about issues of restructuring the DISCOs along state lines, to make them manageable in size. Also, issuing new franchises to smaller DisCos to take over areas not being served by the existing ones or that have been underserved by the existing ones.

“I’ve said it before now that non performance of DISCOs in terms of epileptic power supply qualifies as a basis for revocation of license.

"Any DISCO that is found-wanting will be severely dealt with because their actions or inactions directly affect the performance of the sector”.

BEB