Electricity Featured

TCN recommends DisCo for liquidation as FG pays N105bn to GenCos for unused electricity

The Managing Director Transmission Company of Nigeria (TCN), Usman Gur Mohammed, on Thursday disclosed that the TCN recommended that one of the 11 distribution companies (DisCOs) in the company be liquidated.

 Mohammed disclosed this to the new Minister of Power, Engr. Mamman Sale and the Minister of State, Goddy Jedy Agba, at their inaugural briefings from the Ministries, Department and Agencies heads in Abuja.

 He did not mention the name of the company but stressed the recommendation was due to lack of performance of the DisCo.

 According to him, the TCN has the power under its act to make such recommendation.

“Honorable Ministers as we speak with you, we have actually recommended the liquidation of one DisCo for lack of performance,” he said, adding: “There is no reason why we cannot change this despicable and miserable narrative.

 “This is what Nigeria Nigerians expect from us as we begin this new journey. We must therefore brace up to face this challenge.”

 Managing Director Nigeria Bulk Electricity Trading (NBET) Company, Dr. Marilyn Amobi, noted the company has borne a payment of N181billion to five generation companies for electricity that Nigerians did not use.

 According to her, in the context of the N701billion power sector intervention fund, the federal government paid N105billion as five percent to GenCos for unused electricity.

 The payments, she said, were due to the power purchase agreements that government had with the companies.

 Reacting to the comment, the Permanent Secretary, Louis Edozien, told the minister that Nigerians were agitated about the quality of service in the industry.

 He submitted: “We created an industry that places a huge continent liability on the government. We have to apply our intellect to this problem to solve it …

 “The Minister of State I know that t is an area you are familiar with. Both of you have to lead us out of this quagmire.”

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