FG Devises Action Plan for Takeover of Distressed DisCos

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The Power Sector Recovery Programme (PSRP) recently developed by the federal government and the World Bank to revive Nigeria’s ailing power sector, has come up with an action plan for the sweeping restructuring of the 11 electricity distribution companies (Discos) that would enable government to take over any Disco found to be insolvent, THISDAY reports.

Details of the action plan, seen at a workshop organised on Wednesday by the Ministry of Power, Works and Housing to educate the media on the expected workings of the PSRP, indicated that the government is planning to restructure the Discos to meet their responsibilities in the country’s privatised electricity market after a thorough forensic review of their operations.

The report further made recommendations for the Nigerian Electricity Regulatory Commission (NERC) to engage the Discos on revised business plans, which will be negotiated, finalised and implemented. It also requires the government to “start the process of restructuring Discos that are found to require new capital injections.” “This would involve NERC, BPE (Bureau of Public Enterprises), the Discos and other relevant parties. This may also involve the takeover of Discos with degraded financial positions.”

Source: Energy Mix Report

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