FG Directs Revocation of Licenses for non-performing DisCos

In a bid to enhance the nation’s power supply, the Federal Government has issued a directive to the Nigerian Electricity Regulatory Commission (NERC) to revoke licenses of non-performing electricity distribution companies (DisCos).

Adebayo Adelabu, Minister of Power, made this known during a crucial meeting with agency heads held in Abuja on Monday. Addressing the gathering, Adelabu emphasised the imperative of improving distribution, labeling it as the weakest link in the electricity supply value chain despite the availability of power on the national grid.

“Distribution is our weakest point and the closest to the consumers. If we don’t get distribution right, we’re not doing justice to Nigerians. We need to channel our efforts into this crucial aspect,” stated Minister Adelabu during the meeting.

Highlighting the urgency of the situation, he stressed the necessity of compelling the DisCos to perform, asserting that their performance is pivotal for the success of generation and transmission efforts. Adelabu reiterated that the government is committed to addressing the performance issues plaguing electricity distribution companies across the nation.

“While we are crafting new policies in our power sector framework to address long-term issues in distribution, we must also devise short-term solutions to the ongoing crisis,” Adelabu continued.

The Minister outlined key strategies to remedy the situation, including capitalisation of DisCos to bolster infrastructure, restructuring DisCos along state lines to enhance manageability, and issuing new franchises to smaller DisCos to cater to underserved areas.

Adelabu underscored the gravity of underperformance by warning that DisCos failing to meet standards would face license revocation. He reiterated that epileptic power supply and willful refusal to take up available power are grounds for severe actions, including license revocation.

“I’ve said it before that non-performance of DisCos qualifies as a basis for revocation of license. DisCos found wanting will be severely dealt with as their actions directly affect the sector’s performance,” emphasised Adelabu.

The Minister concluded by emphasising the need for DisCos to pick up 90-99 percent of the allocated load, reiterating that failure to do so would have serious consequences.