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Nairametrics
Home Breaking News

FG threatens to revoke license of DisCos over poor power supply  

Cyrus Ademola by Cyrus Ademola
March 6, 2024
in Breaking News, Energy, Sectors, Spotlight
DisCos
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The federal government has threatened to revoke the licenses of power distribution companies (DisCos) over the incessant power shortage nationwide.  

The Minister of Power, Adebayo Adelabu, said this in a statement on Wednesday in Abuja.  

According to Adelabu, the ministry is deeply concerned about the ongoing inadequate electricity distribution by the Discos, despite the generation companies increasing power output to 4000MW. 

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The minister further noted that he has summoned chief executives of Abuja Electricity Distribution Company (AEDC) and Ibadan Electricity Distribution Company (IEDC), alongside the Managing Director of the Transmission Company of Nigeria (TCN) to explain the ongoing challenges in power distribution across the country.  

Recommended reading: Electricity supply: Only 13 million Nigerians are registered customers – TCN 

He said, 

  • “The Ministry has been exerting pressure on the Generating Companies (GENCOs) to enhance their performance, resulting in a recent increase in generation to over 4000MW.  
  • “Despite this progress, certain distribution companies are failing to adequately distribute the power supplied by TCN, while vandalism of power infrastructure exacerbates the problem in regions such as Abuja, Benin, Port Harcourt, and Ibadan. 
  • “Moving forward, I am committed to holding all distribution companies accountable for their performance.  
  • “Willful non-performance will not be tolerated, and severe consequences, including license revocation, may be imposed.  
  • “Additionally, I have instructed TCN to prioritize repair works on damaged transmission towers and power lines to improve supply in affected regions.”  

Speaking further, Adelabu revealed that steps are being taken to cleat the debts owed to companies involved in power generation and gas supply, a move that will reduce financial burdens and enhance power generation across the country. 

  • “Plans are underway to settle outstanding debts owed to power generation and gas supply companies, which will alleviate the financial strain and contribute to improved generation levels nationwide.  
  • “I urge electricity consumers to remain patient as we work tirelessly to address these issues and provide better service to all Nigerians,” he added.  

Backstory  

Earlier, Nairametrics reported that the Federal Government levelled accusations against certain electricity distribution companies (DisCos).  

  • It claims these companies are intentionally not accepting power supply from the Transmission Company of Nigeria (TCN), which is exacerbating the ongoing power crisis. 
  • This refusal to take up electricity from TCN by the DisCos is seen as a significant factor contributing to the persistent issues within the power sector, leading to widespread electricity shortages across the nation. 
  • The Minister of Power, Adebayo Adelabu, through a statement from his Special Adviser on Strategic Communication and Media Relations, Bolaji Tunji, expressed his concerns over the deteriorating power supply situation.  
  • In response to these challenges, Adelabu disclosed that the Federal Government is preparing to issue queries to the power distribution companies that are underperforming. 
Recommended reading: Power crisis: FG accuses DisCos of refusing to take up power supply from TCN

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Tags: DISCOSDisCos licenseMinister of PowerPower supply
Cyrus Ademola

Cyrus Ademola

  • Cyrus Ademola is an energy and economy analyst with over half a decade experience in journalism, research-based oped, economic reportage and energy analysis. His works have been featured on different media outlets, covering from oil and gas to business trends.

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Comments 1

  1. Chuma says:
    March 6, 2024 at 6:27 pm

    Any reasons why the DISCOS have refused to take up the eletricity supply from the GENCOS? It would be good to hear from them as well.

    Reply

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