On Monday, the Federal Government directed the Nigerian Electricity Regulatory Commission (NERC) to cancel the licenses of underperforming electricity distribution companies (DisCos). The government criticized the DisCos for failing to enhance supply despite available power on the national grid.
Minister of Power, Adebayo Adelabu, conveyed this during a meeting in Abuja, emphasizing the distribution segment’s crucial role in the electricity supply chain. Adelabu urged NERC to devise strategies, including imposing strict penalties and license revocation, to compel DisCos to improve supply. He advocated restructuring DisCos into smaller entities with one-state coverage each to enhance operational efficiency.
Adelabu highlighted that DisCos’ inadequate performance, including reluctance to accept allocated power, could warrant license revocation. He stressed the need for DisCos to uptake 90-99% of allocated load. Adelabu criticized ongoing electricity rationing and pledged to enhance power generation from 4,000MW to 6,000MW within six months by settling outstanding debts to power generation companies and gas suppliers.
While the government plans to sustain electricity subsidies temporarily, it aims to phase them out gradually over three years, transitioning to commercially viable tariffs. Engr. Sule Abdulaziz, Managing Director of the Transmission Company of Nigeria, discussed a recent fire incident at a substation in Kano, attributing it to maintenance activities. He assured that power restoration efforts were underway, with most areas already reconnected.