DisCos dismiss FG’s takeover of power firms

Association of Nigerian Electricity Distributors (ANED) has dismissed reports that the Federal Government will take over some distribution facilities.

Ahead of planned review of the sector in December, there were indications that government would, in line with the provisions of the share sale agreement, stake about $2.4 billion (about N736 billion) to repossess some of the investments that failed.

But ANED stated yesterday that government would only address the challenges affecting retail electricity distribution in the country.

Vice President Yemi Osinbajo had insisted that the Federal Government is already creating policies that would open up the nation’s electricity market to new investors in generation, transmission and distribution infrastructure, stressing that the current structure remained a mirage.

This corroborated earlier confession by President Muhammadu Buhari that his administration had not performed satisfactorily in solving the power challenges.

Executive Director, Research and Advocacy of ANED, Chief Sunday Oduntan, urged the public to dismiss claims that government would pay N736 billion to repossess the distribution infrastructure from investors.

His words, “The Federal Government and the DisCo (distribution companies) investors remain committed to working in partnership to address the current challenges of retail electricity distribution, as evidenced by the recent Siemens initiative and recent regulatory activities.

“It is the hope and expectation of the DisCo investors and operators that, collectively, the aforementioned initiatives and activities, in tandem with respect for sanctity of contract, will provide the enabling environment that will result in a Nigerian Electricity Supply Industry (NESI) that is commercially viable and sustainable.”