FG Plans Sanctions for Non-performing Discos Amid Power Outages

The Federal Government declared on Monday that power distribution companies performing below stipulated standards in the Nigeria Electricity Supply Industry are going to lose 50 per cent of their operating expenditures.

It made the declaration through the Nigerian Electricity Regulatory Commission, NERC at the 1st NESI Stakeholders Meeting of 2024 in Lagos, stressing that the individual performances of the Discos shall be examined on a case-by-case basis going forward.

Officially, Nigeria has 11 power distribution companies that supply electricity to over 12 million registered power users across the country.

The successor Discos were privatised in November 2013, alongside the power generation companies that produce the electricity supplied to the national grid.

The Transmission Company of Nigeria transmits the power produced by the Gencos to the Discos for onward distribution to users nationwide.

But the sector has been plagued by series of concerns, top among which is the issue of poor liquidity, and complains around the inability of Discos to make adequate financial remittances to the industry to guarantee power production.

But in a series of posts on the power sector regulator’s official X handle on Monday, it was stated that the Vice Chairman, NERC, Musiliu Useni, urged Discos to improve their performance or suffer consequence.

NERC, as the regulator of the power sector, has the power to approve the operating expenditures of Discos and other key operators in the industry, and it has been doing this over the years.

Speaking on the operationalisation of Ministries Departments and Agencies centralised billing platform, Useni told his audience that this was being handled by the finance ministry.

He further noted that the sector must be run sustainably in terms of payment obligations by various operators.