The electricity distribution companies (Discos) on Tuesday said that current efforts to achieve a stable, uninterrupted electricity in the country was not feasible in the immediate term, predicting that such a feat could be achieved in five years time.
The power sector entities hinged their position on the prospects of improved electricity on the current myriad of challenges facing the operators in the sector.
The operators, at a press conference in Lagos, specifically identified the lack of funds to invest in critical power generation, transmission and distribution as the most formidable challenge that should be addressed in order to realize Nigeria’s dream on stable electricity nationwide.
Speaking at the forum, the Executive Director, Research and Advocacy, Association of Nigerian Electricity Distributors (ANED), Mr Sunday Oduntan, stressed the need for the government to put in place a cost-reflective tariff structure in order to enable operators optimize their services profitably.
He explained: “There is a need for collaboration among stakeholders in the sector to proffer solutions to the problems. So, we are willing any day; if we are called today for discussions, we will be there because we know that our businesses are at risk. This is very important for all of us to note: if the Discos collapse today, many Nigerian banks will collapse too.
“In case you don’t know, when they were selling the entities, only one of the Discos had foreign direct investment. All the others borrowed money from local banks, and they paid for the assets in dollars.
“The point is that those who have put their money in the sector will be the first persons to wish that the system succeeds, because the failure of the system means their money is also going down the drain”, Oduntan added.
Reacting to the Minister of Power, Works and Housing, Mr. Babatunde Fashola, comments a few days ago which reflected government’s dissatisfaction with Discos’ performance, the ANED chief cautioned that politicizing the situation in the power sector would not help in any way to improve the system.
He clarified: “We should not continue to politicise issues in the power sector. Whatever ANED has said so far, I implore fellow Nigerians to please check whether we are lying. Let’s discuss issues and not personalities.
“We have no reason to lie. For us, we have a lot of things at stake because if there is sufficient power supply, efficient distribution by us and if we do all that we are supposed to do, then we will make more money.
“So, it is in our interest for all of us to work together and find solutions to the problems of the sector. If we do that, everybody will be happy and the customers will be very happy”, the ANED spokesman stressed.
Oduntan alleged that it appeared the issue of metering had been politicised despite the readiness of Discos to support the recently introduced Meter Assets Provider (MAP) Regulations.
The Regulations introduced by the Nigerian Electricity Regulatory Commission is aimed at ending estimated billing practice, attract private investments in meter provision, and close the metering gap through accelerated meter rollout.
According to the ANED top shot, the issue of metering is no more in the hands of any Disco as government, through the Federal Ministry of Power, Works and Housing, has taken over the issue of metering with the release of MAP Regulations.
He assured that the Discos were ready and willing to cooperate with the NERC to ensure that the metering project becomes successful, adding however the enforcement of the MAP Regulations would complement the Discos’ metering services and by so doing, fast-track the distribution of meters to customers nationwide.
Oduntan assured: “We are hoping to do everything possible to make the MAPs successful from our end as Discos, and we are ready to partner and cooperate with the Federal Government in any way possible but we should not all forget that the sector is bleeding, and that is why we are where we are.”
