The Power Distribution Companies (DisCos) are likely to lose as the Federal Executive Council (FEC) set to take a stand on the sale of power sector.
Specifically, FEC blame the DisCos for poor electricity supply in Nigeria.
The Federal Executive Council (FEC) will now decide the fate of the DisCos, after reviewing a memo on their performance.
It would be recalled that the Federal Economic Council had earlier setup a committee led by Kaduna State governor, Malam Nasir El-Rufai.
The committee which is receiving imputs from Nigerians, had earlier complained that the DisCos failed to improve on the power sector despite billions spent by the federal government on the power sector.
Minister of Power Saleh Mamman,on Wednesday, said the DisCos are to be blame for poor power supply.
Mamman said the licences of the DisCos may be revoc because the power supply has not improve in the country in spite DisCos promise that it will improve after privatization.
Nigeria has about 10 DisCos which uncludes: Ikeja Electric, Benin DisCo, Abuja DisCo, Kano DisCo, Port Harcourt DisCo, Ibadan DisCo, Enugu DisCo, Eko DisCo, Jos DisCo, and Kaduna DisCo.
Yola DisCo which is suppose to be private is in the hands of government.
To reduce the influence of the DisCos, the minister said the government had “signed a Memorandum of Understanding with the German government and Siemens.
They are to align between distribution, transmission and generation so that if we generate 13,000 megawatts, transmission will take the whole 13,000 and will distribute same. That way, Nigerians will be happy and everyone will have 24/7 electricity supply.”
The minister added: “The DisCos are manning the distribution that is why I have submitted my observations to the government. It is left for the government to decide. We just have to sit and see whether they are capable, have the technical know-how because most of the problems we are having today is technical and commercial losses.
“They will give you electricity and may not collect your money or they will collect the money and pocket, or they may send electricity and you may not have good sub-station that may collect this power and distribute to customers. This has been our major problem and it is the responsibility of the DisCos to take care of that end”.
Mamman said: “Government cannot continue subsiding because what they (DisCos) are doing is that they collect 3,000 megawatts and pay for only 1,000 megawatts, that is 15 per cent of what they are collecting, so government is the one completing the payment. We cannot continue like that.
“If they are ready to continue, fine but if they are not ready to continue maybe they should give way to whoever that is ready to come and invest. We are asking the government to review and see if they are capable, but if they are not capable, they should give way.
“Most of the problems we are facing in this country that we cannot get electricity supplied adequately and efficiently is because we have a problem in distribution. Generation, no more problem. We can generate up to 13,000 megawatts, but the transmission, those who are taking the electricity supply can only take 7,000 megawatts, even at that they are not taking the whole 7,000 megawatts but only 4,500 megawatts and then send to distribution. The distribution in turn receives only 3,000 megawatts. Because of technical and commercial reasons, they cannot contain the entire power that has been generated.
“So, we have to correct the infrastructure. That is why I said that today, I submitted my observation to council and I believe the government is on it.
Mamman who said government has intervene alot in the power sector, said: “If they are ready to continue, fine, but if they are not ready to continue maybe they should give way to whoever is ready to come and invest.
“We are asking government to review and see if they are capable but if they are not capable they should give way.’’