Power distribution companies (DisCos) are to be blamed for the poor supply of electricity, Energy Minister Saleh Mamman said on Wednesday.
The Federal Executive Council (FEC) will now decide the fate of the DisCos, after reviewing the memorandum on their performance.
Your licenses may be under threat of revocation, as indicated by Mamman.
The supply of energy has not improved in the country, despite the promise of successive governments since 1999 and the privatization of the sector in 2013.
The minister said that DisCos has not fulfilled its obligations while the government is no longer willing to continue subsidizing them.
There are 10 DisCos. They are: Ikeja Electric, Benin DisCo, Abuja DisCo, Kano DisCo, Port Harcourt DisCo, Ibadan DisCo, Enugu DisCo, Eko DisCo, Jos DisCo and Kaduna DisCo.
The 11th, Yola DisCo, is now in the hands of the government.
To reduce the influence of DisCos, the minister said that the government “signed a memorandum of understanding with the German government and Siemens. They must line up between distribution, transmission and generation, so that if we generate 13,000 megawatts, the transmission will occupy 13,000 and distribute them. That way, Electricity Consumers in Nigerian will be happy and everyone will be provided with electricity 24/7. “
The minister added: “The DisCos are managing the distribution and that is why I submitted my observations to the government. It is left to the government to decide. We just have to sit down and see if they are capable, have the technical knowledge, because most of the problems we are facing today are technical and commercial losses.
“They will provide electricity and they will not be able to collect your money, or they will collect money and pocket the money, or they will be able to give electricity and you may not have a good substation that can collect this energy and distribute it to customers. This has been our biggest problem and it is the responsibility of DisCos to take care of that end ”.
Mamman said: “The government cannot keep decreasing because what they (DisCos) are doing is that they collect 3,000 megawatts and pay only 1,000 megawatts, that is, 15% of what they are collecting, so it is the government that makes the payment. We can’t go on like this.
“If they are ready to continue, that’s fine, but if they are not ready to continue, perhaps they should give way to those who are ready to come and invest. We are asking the government to review and see if they are capable, but if they are not capable, they must leave.
“Most of the problems that we are facing in this country and that we are unable to supply electricity properly and efficiently are because we have a distribution problem.
For Generation, there is no more problem. We can generate up to 13,000 megawatts, but transmission, those that are supplying electricity, can consume only 7,000 megawatts, even if they are not consuming all 7,000 megawatts, but only 4,500 megawatts and sending them to distribution. The distribution, in turn, receives only 3,000 megawatts. For technical and commercial reasons, they cannot contain all the energy generated.
“So, we have to fix the infrastructure. That is why I said that today I submitted my observation to the council and I believe that the government is involved.