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Power firms, others Lost N268bn in 6 months

Power firms, others Lost N268bn in 6 months

The losses incurred in Nigeria’s power sector have been on a persistent rise as the Federal Government and electricity distribution companies continue to disagree over issues affecting the industry.

Latest data obtained from the Advisory Power Team in the Office of the Vice President on Friday showed that between January 1 and July 19, 2018, the sector lost N268.4bn.

This represents an increase of N67.1bn when compared to the N201.3bn lost by the sector from the first day of this year to June 5, 2018.

On June 7, 2018, The PUNCH exclusively reported that the daily financial losses in the Nigeria’s power sector since the beginning of the year to June 5 rose to N201.3bn.

Outlining some of the causes for the persistent losses being recorded in the sector in their report on Friday, the Advisory Power Team said insufficient supply of gas, poor distribution and transmission networks, as well as water reserves constraint contributed to the losses.

“The estimated amount lost to insufficient gas supply, distribution, transmission and water reserves to date in 2018 is N268,374,000,000,” the team said.

The persistent losses in the sector, among other issues, have led to disagreements between the Federal Government and some private operators, particularly power distribution companies.

The bickering between the government and Discos became worse in the past two weeks, as the Minister of Power, Works and Housing, Babatunde Fashola, while speaking at recent a press briefing in Abuja, blamed power distributors for the many lapses currently observed in the sector.

But the power firms absolved themselves of the blame as they argued that most of the statements about Nigeria’s power sector that were made by the minister at the briefing were false.

According to them, comments made by the minister on metering, power generation and transmission capacities, stranded electricity, among others, were significantly distorted.

Fashola, who was displeased by the 28-page reaction of the Discos to almost all the issues he raised at the briefing, fired back at the power firms on Friday and condemned the Association of Electricity Distributors’s reactions to his directives to the Nigerian Electricity Regulatory Commission, Bureau of Public Enterprises and Nigeria Bulk Electricity Trading.


Tags: Economy, Federal Government, Power
Source:Punchng.com

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