FG, W’Bank Partner On Power Sector Reform


The Federal Government and the World Bank have come up with an action plan for the restructuring of the 11 electricity distribution companies, (Discos) for efficient service delivery.
The action plan is in line with power sector recovery programme (PSRP), a policy targeted at revamping the country’s power sector.
The Tide gathered that details of the action plan was the outcome of a workshop organised by the Ministry of Power, Works and Housing in Abuja, recently.
The plan which explained the working of the PSRP indicated that the government in planning to restructure the Discos to meet their responsibilities in the country privatised electricity market after a forensic review of their operations.
The report further made recommendations for the Nigeria Electricity Regulatory Commission (NERC) to engage the Discos on revised business plans, which will be negotiated, finalised and implemented.
It also urged the government to “start the process of restructuring Discos that are found to require new capital injections.
“This would involve the Nigeria Electricity Regulatory Commission (NERC), Bureau of Public Enterprises (BPE), the Discos and other relevant parties.
“This may also involve the takeover of Discos with degraded financial positions,” the report stated.
It also explained that before the takeover, technical competence reviews including forensic audits of all the Discos and the adequacy of their technical partners, should be undertaken to ensure that they had not failed in their initial agreements with the government after the privatisation exercise.
The report also revealed that there was an ongoing audit of the performance agreement and all direct agreements the government signed with operators in the sector to ensure that it was in compliance with the obligations.
It further explained that there should also be measures to address the operational challenges of the Discos which should include: Develop case studies to determine the level of load rejections in the network, develop investment plans with clear impact analyses for increase in loan across the network and in metering and ensure regulatory measures are enforced.”
In attendance at the workshop was the Minister of Power, Works and Housing, Babatunde Fashola and Heads of Parastatals in the ministry.