Fund­ing gap in elec­tric­ity sec­tor now N300bn – Dis­cos

Daily Trust - - BUSINESS - By Si­mon Echewo­fun Sun­day

The 11 elec­tric­ity Dis­tri­bu­tion com­pa­nies (Dis­cos) have said the fund­ing gap in the power sec­tor is now over N300 bil­lion. They are there­fore im­plor­ing the fed­eral gov­ern­ment to cre­ate mech­a­nisms to drive fur­ther in­vest­ments in the sec­tor.

Brief­ing news­men in Abuja yesterday, spokesman of the As­so­ci­a­tion of Nige­rian Elec­tric­ity Dis­trib­u­tors (ANED), Bar­ris­ter Sun­day Odun­tan, said a fair Multi Year Tar­iff Or­der (MYTO) was meant to cush­ion the im­pact but has not been cost re­flec­tive un­til the re­cent one signed in December 2015.

Mr. Odun­tan said the MYTO 2.1 was then sus­pended till Fe­bru­ary 2016 not­ing that the pri­va­tised com­pa­nies bore the rev­enue gap of Jan­uary when the MYTO was not en­forced.

The spokesman also urged the fed­eral gov­ern­ment to strengthen trans­mis­sion ser­vices by do­ing a proper con­ces­sion on man­ag­ing and in­vest­ing in the Trans­mis­sion Com­pany of Nige­ria (TCN).

He said the Dis­cos could dis­trib­ute over 10,000mw but that the trans­mis­sion in­fra­struc­tures were in­ad­e­quate, cit­ing in­stances of poor al­lo­ca­tion to the Kano Disco.

IMF Man­ag­ing Di­rec­tor Chris­tine La­garde

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