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Babatunde
Fashola, has accused Electricity Distribution Companies (DisCos) of forming
themselves into an association.
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Babatunde Fashola,
minister of power, works and housing, on Monday, told electricity distribution
companies that nobody forced them to acquire power assets.
TheCable
report continues:
The
minister chided DisCos over their inability to meet the electricity needs of
consumers.
Speaking
in Plateau state during a monthly meeting of stakeholders in the power sector,
Fashola told DisCos to stop complaining while reacting to their reasons for being
unable to fulfil their obligations.
“What
the public need to know and which your statement is silent about is that you
are entitled to fully recover your cost and investment by law. And this is the
function of how tariff are also calculated. So if you make your investment, the
cost is passed through to consumers,” he said.
“Therefore,
if government holds 40% of the shares of DisCos on behalf of the state and
local governments and the Nigerian people, I believe that the government has
the duty to ensure that you buy your parts and equipment at reasonable and
competitive market prices and not through inflated contracts to relatives as we
have seen in some DisCos in respect of which NEC will take a decision in due
course and sanction those who are involved.
“You
also issued a statement regarding the declaration of eligible customers, your
statement claimed that this provision which allows certain classes of consumers
to deal directly with generation companies is premature and will result in
extra cost to the consumers.
“Your
statement is however silent on the inability of some of your members to invest
in feeders and distribution equipment to get the power to the consumers, this
has led to the emergence of the terminology of ‘load rejection’ for an economy
that does not have enough power and enough crude.
“Your
statement that money does not address the illogic standing in the ways of the
consumers seeking to get by himself what the service providers or DisCos have
failed or was unable to give him.
“As
for the alarm and the panic which your statement seeks to raise about the
increase eligible customer declaration is not compulsory and applied to only
those who were left to benefit from it.
“And
they are in the position, I believe, to decide whether the tariff of over ₦60
per kilowatt hour through generation by diesel which they currently use is
preferable to investing in the distribution facilities that give them power at
a lower term. What is important is that the law is followed; consultations are
held with those prescribed before decisions are taken.
“Rather
than complain about old infrastructure, I wish to remind you that nobody forced
you to buy these assets, and that you knew what you were buying when you bought
them.
“As
for the ₦709 billion intervention, let me say that it is consistent with our
government policy and determination to enable businesses flourish and it was
intended to save the GenCos and the gas companies and their financiers who were
providing service from collapse.
“Your
statement did not tell members of the public that these companies were not
getting paid because you were not remitting all what you are supposed to be
remitting to the market operators.”
Fashola Chides DisCos
For Forming Themselves Into Associations
The
Guardian reports that the Minister of Power, Works and Housing, Mr. Babatunde
Fashola, has accused Electricity Distribution Companies (DisCos) of forming
themselves into an association.
He
said his ministry will not deal with an association because the Bureau of
Public Enterprises (BPE) acting for the National Council on Privatization (NCP)
did not contract the asset sales and performance agreements with an
association.
Fashola
who stated this at the 19th monthly meeting of his ministry with power sector
stakeholders yesterday in Jos, Plateau State, alleged that the objective of
disseminating information to members of the public on what is being done to
resolve the problems of electricity and provide service is being frustrated by
the Electricity Distribution Companies in the country.
According
to him, the objective is not being fully achieved or at worst is being
frustrated by the DisCos that have formed themselves into an Association of
Distribution Companies, and have persistently issued statements on issues they
either did not present for discussion at meetings, or which contradict the
communiqué that is jointly agreed and released after each meeting.
“While
the right of association is a constitutional right which they are entitled to
exercise, the Ministry of Power, Works and Housing also reserves the right to
recognize or deal with the companies as an association.”
He
narrated that the government contracted with 11 investors in the distribution
companies and the Commission licensed 11 distribution companies, adding that
Government will continue to relate with the distribution companies as such,
through meeting, or individually to ensure that they discharge their duties to
consumers.
On
the unfortunate electrocution incident in Calabar, Cross Rivers State, the
Minister said while the incident was regrettable and the consequences very
saddening, they were clearly man-made and avoidable, adding that it occurred as
a result of non-compliance with laws and regulations.
Governor
Simon Lalong of Plateau State said the state government is in active
collaboration with the Power Sector, Jos Electricity Distribution Company
(JEDC) PLC and Nigeria Electricity Supply Company (NESCO) Ltd are located in
Plateau State, adding that the active collaboration with both JED Company and
NESCO to ease their operations, by creating the enabling environment in terms
of security and community relations, as well as investing in the provision of
power distribution assets in rural communities.
Lalong
added that the state government is in support of the National Power Goal of
30:30:30 being pursued by Nigeria towards not just improving power supply, but
doing so with emphasis on increasing the contribution of renewable energy in
the National Energy Mix.
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