Senate: TCN, DisCos Have Failed
The Senate has criticized the poor performance of TCN and DisCos since the power sector’s privatization, with plans to propose bills reversing the policy, calling the privatization a failure.
The Senate has bemoaned the absymal performances of both the Transmission Company of Nigeria, TCN, and Electricity Distribution Companies, DisCos, since the privatisation sector in the country, threatening to initiate bills to reverse the policy.
The Senate made this known on Thursday,
when the Chairman of the Senate Committee on Power, Senator Eyinnaya Abaribe, submitted his report on power for consideration, even as the upper chamber described the privatization of the power sector as a failure.
Abaribe who led the debate, noted that both the TCN and the Discos had largely failed to deliver reliable electricity to Nigerians, triggering concerns about the effectiveness of the 2013 privatization programme, which aimed at improving power supply through private sector involvement.
Presenting the report, Abaribe highlighted the financial losses incurred each time the grid collapsed, pointing out that, restarting a power plant costs approximately $7.5 million. He further noted that, with three plants in operation, the total cost per grid collapse amounts to $25 million.
The Senate engaged in a detailed discussion of the persistent collapse of the national grid and inefficiencies in Nigeria’s power sector, leading most senators to express deep frustration over the state of the country’s electricity distribution and privatization policies.
In his comments, the Senate President, Godswill Akpabio, criticized the privatization of the power sector, questioning its efficiency,
According to Akpabio despite privatization, DISCOs, were still unable to meet consumer demands, leading to deteriorating service quality.
“Why do governors and individuals have to buy transformers and then hand over to Discos and still pay for installation?” Akpabio queried.
Other lawmakers like Osita Izunaso suggested declaring a state of emergency in the sector, stressing that the current inefficiencies should not be tolerated, even as the former governor of Edo State
However, Adams Oshiomhole, expressed regret over his earlier support for privatization, describing the process as “ill-conceived and ill-executed.”
Oshiomhole further regretted the fact that consumers were forced to pay for services not rendered.
Presenting the report, Abaribe highlighted the financial losses incurred each time the grid collapsed, pointing out that, restarting a power plant costs approximately $7.5 million. He further noted that, with three plants in operation, the total cost per grid collapse amounts to $25 million.
The Senate engaged in a detailed discussion of the persistent collapse of the national grid and inefficiencies in Nigeria’s power sector, leading most senators to express deep frustration over the state of the country’s electricity distribution and privatization policies.
In his comments, the Senate President, Godswill Akpabio, criticized the privatization of the power sector, questioning its efficiency,
According to Akpabio despite privatization, DISCOs, were still unable to meet consumer demands, leading to deteriorating service quality.
“Why do governors and individuals have to buy transformers and then hand over to Discos and still pay for installation?” Akpabio queried.
Other lawmakers like Osita Izunaso suggested declaring a state of emergency in the sector, stressing that the current inefficiencies should not be tolerated, even as the former governor of Edo State
However, Adams Oshiomhole, expressed regret over his earlier support for privatization, describing the process as “ill-conceived and ill-executed.”
Oshiomhole further regretted the fact that consumers were forced to pay for services not rendered.
This was before the motion was withdrawn to allow for actionable and comprehensive recommendations.
The senate resolved to expand the scope of investigation to include the probe of funds injected into the power sector over the past 10-20 years to determine their utilization; a review of why DisCos are underperforming and failing to meet their obligations to consumers; answers to the frequent grid collapses as well as revoking the laws that established privatization of the country's power sector.
At this juncture, the Senate Committee on Power was then given six weeks to develop improved recommendations concerning the non-functionality of the TCN and DISCOs.
The senate resolved to expand the scope of investigation to include the probe of funds injected into the power sector over the past 10-20 years to determine their utilization; a review of why DisCos are underperforming and failing to meet their obligations to consumers; answers to the frequent grid collapses as well as revoking the laws that established privatization of the country's power sector.
At this juncture, the Senate Committee on Power was then given six weeks to develop improved recommendations concerning the non-functionality of the TCN and DISCOs.
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