The Association of Electricity Distribution Companies (ANED) has
appealed to the Federal Government to provide the N100 billion subsidy
it promised after private investors took over the power sector utilities
on November 1, 2013.
ANED, in a statement by its Executive Director, Sunny Oduntan, also
appealed to the government to inject funds into the transmission section
of the sector.
It blamed the huge loss and rejection of electricity load on inadequate funding of the Transmission Company of Nigeria (TCN).
According to the statement, the government which holds 40 per cent
equity in the utilities, pledged to provide many interventions in the
Performance Agreement between DisCos and the Bureau of Public
Enterprises (BPE).
It reads: “To date, the government has not met the privatisation
transaction foundational requirements of providing N100 billion in
subsidies, payment of MDA electricity obligations. It has not ensured
that the DisCos have debt free financial books; and the implementation
of a cost reflective tariff.”
It said that the funding level of TCN was inadequate, given TCN’s
estimate of $ 7.5 billion for its five-year expansion plan designed to
increase its capacity to wheel 10,000 megawatt (mw), from the current
4,500mw.
It said that the DisCos could only recoup their investments when they
have more energy delivered by TCN in the area where they have customers.
