‘N1.6tr shortfall caused power crisis’ – Discos

Electricity distribution companies (DisCos) at the weekend blamed the woes in the power sector on N1.6 trillion shortfall.

The Executive Director, Research and Advocacy, Association of Nigerian Electricity Distributiors (ANED), Mr Sunday Oduntan, in a telephone interview, said it would be wrong to accuse a segment of the value chain of causing the challenges in the sector.

According to him, the shortfall accumulated over a period of time.

The entire sector is battling a shortfall of N1.6 trillion, which represents the revenues that are supposed to have come to the operators in the value chain namely the power generation companies (GenCos), energy distribution firms and others.

“Of the three key stakeholders in the sector, DisCos operate as the collectors of the funds or money in the sector. I disagree with figures that are not true, but are being bandied about in the sector because they are not true,” he said.

The Federal Government had signed a Memorandum of Understanding (MoU) with Siemens, a German firm, to produce 25, 000 megawatts (Mw) for the country, over a period.

This is being done that the issue would put an end to power outage in the country.

Currently, the sector is experiencing low productivity, occasioned by problems such as funding, shortage of gas, deficiencies of equipment used in transmitting electricity to the energy distributors and accumulated bills.

 

Source: The Nation

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