INTRO: There are reports that the Electricity Distribution Companies (DISCOs) in Nigeria have written the Bureau of Public Enterprises (BPE)to return the power distribution assets acquired by them through the privatization of the power sector in 2013. Although, the Director-General of the Bureau of Public Enterprises, Mr Alex Okoh dispelled the report saying that the Bureau has not received any communication from the DISCOs that they want to relinquish the distribution companies.
This notwithstanding, the Managing Director (MD) of one of the DISCOs who would not want his name in the prints told Vanguard Newspaper that the reason for the move to pull out was the undue interference by government which include the forensic audit order on the DISCOs by the Federal Government, and also the CBN directive to banks to start collecting electricity tariff.
In the words of the anonymous MD, “I am aware that the DISCOs have reported the situation to BPE. Many people and institutions have not been fair to the DISCOs.
“The privatization of the assets was based on an agreement to be kept by the DISCOs and the government, which still has 40 per cent interest in the companies.
“In looking into our operations, the first thing should be to find out the content or details of that agreement. The next thing should to look at the steps taken by all parties to comply.
“As far as we are concerned, the DISCOs have done a lot to comply with the terms of the agreement because without such compliance, the privatization would not work.
“It is not fair for some authorities to start talking about forensic audit and using alternative options to collect the tariff, which is the major obligation of the DISCOs.
“We have reviewed these and other issues severally among ourselves. We have also made our position known to relevant government agencies, including BPE and the Nigerian Electricity Regulatory Commission, NERC.”
Well, I have considered the alleged interferences and found out that they are not anything to fret about, except someone whose deals are shady. It has been said that the intention of the directive by CBN to commercial banks on collecting electricity tariff was a kind of security to the loans given the DISCOs by banks, which enabled them to procure the distribution assets. This is not an issue to be afraid of unless the DISCOs have no intention of paying back their loans in the banks. Their pull out from the electric distribution chain does not remove sleep from my eyes because they have not done anything different from the pre-privatization era.
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