Discos to sell franchise to third parties

Lagos -- The Nigerian Electricity Regulatory Commission, NERC, has revealed that the electricity distribution companies or Discos in the country will sell franchise to third parties and that the process will be through competitive bidding.

In a consultation paper on the development of a regulatory framework for electricity distribution in Nigeria released by the commission, it said the move was necessary because the distribution companies have been unable to render satisfactory service to customers under their respective jurisdiction.

According to the paper, the provision of service by the Discos on a non-discriminatory basis is a fundamental requirement arising from the natural monopoly they enjoy as distribution network service providers.

“The sustainability of this traditional regulatory framework is increasingly becoming difficult due to continued technological improvements and advancement in the capabilities of Distributed Energy Resources (DER). Additionally, since the commencement of the power sector reforms in 2005, the Discos in Nigeria are unable to satisfactorily meet stakeholders’ expectations in the provision of access to safe and reliable electricity services to all customers within their franchise territories, especially those areas that are not

The Chief Operating Officer, IBEDC, Mr. John Ayodele, said that in response to the appeal from the governor and the people of Ilesha, the company would commence initial preparations required to restore service from this week.

Ayodele said IBEDC had committed to sending an advance party comprising of its technical and administrative staff to critically assess and see what could be done for gradual restoration of power.

He said the administrative staff would also commence the cleanup and tidying of the office facilities for resumption.

Ayodele also said some staff in Ilesha had been replaced and qualified indigenes of Ilesha recruited to ensure better service to customers, to engender confidence from the community.

"In resolving one of the major issues that led to the crisis, which is metering and estimated billing, IBEDC will within the next few weeks clear the backlog of meters as all customers that paid under the previous metering schemes that show evidence of payment will be metered.