Fashola, DisCos, Others to Discuss N800 Billion Debts

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The over N800 billion debts owed the 11 power distribution companies (DisCos) by Ministries, Departments and Agencies (MDAs) will take the centre at the next sectoral meeting scheduled for this month.

The meeting, held monthly, will discuss problems hindering the growth of the sector and proffer solution to them.
It was gathered that the debts are having a negative consequence on the operation of the sector, such that the DisCos are finding it difficult to operate without the money.
Industry sources said the meeting, which is at the instance of the Minister of Power, Babatunde Fashola, would discuss the debts and proffer solution to it.
It was also learnt that the meeting, which will be hosted in any of the five states under the watch of the Ibadan Electricity Distribution Company(IBED), will discuss issues such as improvement in power generation and distribution, metering and others that are vital to the growth of the sector.
‘’There is no doubt that the issue of the over N800billion debts would be discussed at the next meeting. The energy distribution entities are yet to show remarkable progress, due to poor funding. The firms are not happy, due to the fact that they are unable to finance some transactions because of low liquidity.’’ a source close to one of the DisCos said.
The Chief Executive Officer, Eko Electricity Distribution Company (EKEDC), Oladele Amoda, said there was no investment in the sector, due to lack of fund.

He said the rate at which operators were investing in the sector had gone down considerably, adding that banks were not lending to the industry.
He urged the banks and investors to show interest in the industry, by injecting funds into the sector in order to make it competitive.
According to him, the inability of the operators to re-invest in the sector is the bane of the industry, advising operators to galvanise the potential of the sector for improved performance.
Fashola had at the last meeting in Lagos, urged power firms to meter their customers across the country.
He said metering is important to the growth of the sector, advising the DisCos to solve financial problems bedeviling them, by providing meters to their customers. He said, due to lack of fund, the operators are unable to provide meters to their customers.

Source: iwin

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