The 11 electricity distribution
companies (Discos) in Nigeria’s electricity market Tuesday accused the
federal government of lying on its claims of improvement in power
generation in the country, stressing that generation capacity as at
January 2015 was 6,421 megawatts (MW) and not 4,000MW as often claimed
by the government......
The operators also took a swipe at the
federal government for asking them to either upgrade their efficiency
levels in the market or quit the stage, saying that such orders would
not stop the imminent collapse of the electricity sector.
Speaking through the Executive Director,
Research and Advocacy of their umbrella association, Association of
Nigerian Electricity Distributors (ANED), Mr. Sunday Oduntan, the Discos
explained that the government has largely created more confusion in the
operations of the country’s electricity sector, than it had helped it.
Reacting to the government’s claims that
power generation had peaked to 7,000MW since President Muhammadu Buhari
came into office in May 2015, Oduntan explained that as at January
2015, Nigeria already had close to that generation figure.
He also described as false, the government’s repeated claim that an excess generation of 2,000MW was idle.
He said: “A review of NERC’s “Daily
Energy Watch” for January 28, 2015 would indicate a generation
availability of 6,421MW – divided into peak of 4,230MW and constrained
energy of 2,191MW. In other words, it is misleading to state that
available generation has grown from 4,000MW in 2015, as a measure of
progress, given that a volume of generation slightly under 7,000MW
already or previously existed, prior to the beginning of this
administration.
“Furthermore, there is no stranded
2,000MW. While there is an available capacity of 7,000MW, the best that
can be generated, at this time, is 5,000MW. This is because there is
insufficient gas to power the thermal plants due to gas line limitations
– for instance, the non-completion of the Oben pipeline, and the
absence of a commercial framework that would encourage gas exploration.”
According to him, generation that is
constrained by gas amounts to an average 1,500MW daily, adding that 25
out of 28 generation plants are fuelled by gas.
He explained that transmission grid
frequency, line limitation and water management made up the difference
of the balance 500MW of constrained generation.
He added: “In simple terms, the
often-advertised and pronounced Disco limitation to take on 2,000MW of
additional generation is not consistent with the facts or reality. This,
therefore, shows that very little has actually changed contrary to the
minister’s constant pronouncements.
“It is with much regret that we feel
compelled to respond to the significantly distorted picture that has
been painted of the Discos by the Minister of Power, Works and Housing
(Mr. Babatunde Fashola), in his press briefing of Monday, July 9, 2018.”
He said the challenges of the Nigerian
Electricity Industry (NESI) could not be turned around based on a
culture of misrepresentation, adding that the Discos had declined to
rebut previous inaccurate assertions by the minister and other
government functionaries in good faith.
He said the ministers’ recent
pronouncement was a clear attempt to demonize the Discos, who by the
structure of NESI, are the faces of a difficult sector.
Oduntan, in an interaction with
journalists in Abuja Tuesday, also faulted the government’s order to the
Nigerian Electricity Regulatory Commission (NERC) through Fashola, to
get them to buckle down or shape up, adding that no amount of
government’s order would correct the failings of the sector, which they
added would lead to its collapse.
He further said: “We are also left
wondering whether such demonisation of the Discos is camouflage for the
absence of the effective policy leadership that is desired for
implementing the enabling environment that is necessary for the
viability and sustainability of NESI?
“We recognize that we are on the crux of
a political season, in which all manner of advantage is being sought by
political contenders, we however do not want to be used as the whipping
dog to advance other people’s agenda.”
He stated: “Our members, the Discos, are
not politicians, even though they distribute a product that is of great
importance to politicians, in view of the needs of their constituents.
Our constituency which consists of customers, employees, bankers,
vendors and investors have a greater interest in improved service
delivery than the adoption of cheap theatrics and propaganda for
political advantage.”
He noted the Discos were committed to
their obligations, as well as meeting the performance obligations of the
agreement that they have with the Bureau for Public Enterprises (BPE).
He also stated that the Ministry of
Power had taken away the independence of the NERC by constantly imposing
on it orders to execute in the sector.
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