While we await the final decision of NERC and ANED on the decision to escrow DisCos accounts. More allegations have been laid against the National Electricity Regulatory Commission.
The President, Nigeria Gas Association, Mr. Dada Thomas, has declared that the nation’s gas to the power sector is virtually dead as it does not generate enough money to sustain all the components of the value chain stating that;
“the price we were paying for electricity was about the lowest in the world meaning that the end price of the product is not enough to cover the cost of production along the value chain.The second is that the DISCOS were expecting to be given 5.5 gigawatts of power to sell on a daily basis. But how much power do we produce on the average? Sometimes we produce 2 GW or 3 GW, the highest we produced was 5.6GW in February
Thomas, who also is the Chief Executive Officer of Frontier Oil Limited, explained that at the time DISCOs were being bought, most calculations were based on assumption of getting certain amount of electricity to sell but that today most DISCOs find it difficult to get their money from consumers who enjoy services but are not ready to pay.
He remarked further;
“There had been repeated interference in that process which prevents the changes in electricity tariff from reflecting the macroeconomic changes that had taken place in the country.
“There had been judicial interference, people are taking operators to court and the courts are ruling on commercial matters which should not be”, he said.
“I said earlier on that the government and the DISCOs have their blames because when these franchises were bought, there were contractual and performance agreements that both parties had to fulfill”.
“The DISCOs, federal government and NERC have totally failed all of us. The Nigeria Bulk Electricity Trading has failed woefully in trying to make sure they fulfill their role to bridge the gap between the shortfall of money they have provided to the DISCOs and gas producers pending when the money will be out. They haven’t done this”, he said
Do you agree with these views or not? let us know in the comment section.