Federal Government Orders NERC To Withdraw Licenses Of Non-Performing DisCos

Federal Government directed the Nigerian Electricity Regulatory Commission (NERC) to revoke licenses of non-performing electricity distribution companies, also known as DisCos.

Speaking during a meeting in Abuja on Monday, Power Minister Adebayo Adelabu said that this meeting is being held to address the lingering crisis in the power sector across the country. He noted that the distribution of power is the weakest point, adding that it is the closest to the consumers.

"If we don't get distribution right, to Nigerians, we're not doing anything. So, efforts need to be put on this. In fact, we must intensify our efforts in ensuring that we address all issues relating to distribution," he said, Vanguard reported.

He added, "It is true that the distribution companies are in the hands of the private sector. We don't have direct control. But we need to compel them for performance. They must perform. If they do not perform, all our effort in generation, in transmission is zero."

Adelabu said that he had a meeting with the Chairman of NERC on how to address the performance issue of the electricity distribution companies. He said that they have new policies ready which will be finalized soon and address the long-term issues in the distribution sector.

However, he stressed the need to provide short-term solutions to the lingering crisis.

The minister of power noted that the government is thinking about restructuring the DisCos along state lines, to make them manageable in size and issuing new franchises to smaller DisCos to take over areas not being served or underserved by the existing ones.

"I've said it before now that non-performance of DISCOs in terms of epileptic power supply qualifies as a basis for revocation of license. Any DISCO that is found-wanting will be severely dealt with because their actions or inactions directly affect the performance of the sector," he said.

He pointed out that the current electricity rationing nationwide is unacceptable and revealed that the government aims to increase power generation to 6,000 megawatts in the next six months from existing 4,000 megawatts.

The minister explained that the government is aiming to reach a minimum of 6,000 megawatts through an agreement within the next three to six months, noting that the highest generated was 5,700 megawatts, which happened around three years ago, in November 2021.