FG Threatens Takeover of DISCOS and GENCOS and Pay Them Off
Federal Government has said the operators of Electricity Generating Companies (GENCOS) and Electricity Distribution Companies (DISCOS) must signed a performance bond.
Power Minister, Adebayo Adlabu, says the performance bond would be signed before the end of the year.
He explained that federal government has the right to revoke the operational licenses and recover power facilities and pay them off.
Adelabu speaking with newsmen in Abuja on Wednesday, said federal government would also investigate why the operational licenses of the discos, and GENCOS were unilaterally extended.
According to the minister, the licenses issued to them in 2013 was scheduled to have expired by now before the Nigerian electricity regulatory commission extended it by five years shortly before President Tinubu assumed office.
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On what becomes the fate of the Discos, Mamman said, “the DisCos are the ones manning the distribution, that is why I have submitted by observations to the government, it is left for the government that will have 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 the loss- technical loss and commercial loss.
“They will give you light and may not collect your money or they will collect the money and pocket, or they may send light 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.
Asked what other steps the Federal Government has taken to address the problem, the minister said, “One of the things I will tell you is that government has signed memorandum of understanding with the German government, Siemen. They are to align between distribution and transmission and also generation.
So that at the end of the day 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.”
