Outages: FG plans sanctions for non-performing Discos

Power distribution companies that are performing below stipulated standards in the Nigeria Electricity Supply Industry are going to lose 50 per cent of their operating expenditures, the Federal Government declared on Monday.

It made the declaration through the Nigerian Electricity Regulatory Commission at the 1st NESI Stakeholders Meeting of 2024 in Lagos, stressing that the individual performances of the Discos shall be examined on a case by case basis going forward.

Officially, Nigeria has 11 power distribution companies that supply electricity to over 12 million registered power users across the country.

The successor Discos were privatised in November 2013, alongside the power generation companies that produce the electricity supplied to the national grid.

He was quoted as saying, “NERC will look at performance on a case by case basis. Sanctions and actions will not be the same. Ensure that you (Discos) improve your efficiency.

“If your efficiency is at the level expected, you will get your full OPEX (operating expenditure). If you don’t perform, you will only get 50 per cent of your admin OPEX.”

NERC, as the regulator of the power sector, has the power to approve the operating expenditures of Discos and other key operators in the industry, and it has been doing this over the years.

Speaking on the operationalisation of Ministries Departments and Agencies centralised billing platform, Useni told his audience that this was being handled by the finance ministry.