Association assures speedy resolution of suspension of DISCOs

The Association of Nigerian Electricity Distribution (ANED) says it is working with stakeholders in the power sector to address issues that led to the suspension of some of its members.

Executive Director, Research and Advocacy of ANED, the umbrella body of electricity distribution companies, Sunday Oduntan, disclosed this in Abuja on Tuesday.

Oduntan said the association has taken practical steps to address the issues that led to the disconnection of some facilities of its members by the Transmission Company of Nigeria (TCN).

“We will continue to work with all stakeholders in the industry. Our members will also continue to do their best to meet our obligations to the market.

“However, we want people to realise that electricity is a utility which has to be paid for. People must know that we have to pay to the transmission companies just as we also enjoin our customers to also pay to us,’’ he said.

Oduntan explained that the disconnection of the DisCos was a direct effect of liquidity crisis in the Nigeria power sector, adding that “the liquidity crisis that we have, has brought about a very huge short fall in the market.

“This is making it impossible or difficult for market participants to meet their obligations. In the case of DisCos, we are under-selling our products because we are buying at a higher price than the price we are selling to electricity consumers.

“So it has become difficult for us to pay our creditor. That is what is going on,’’ he said.

In the last few weeks, suspension and disconnection orders have been issued against, Kano, Port-Harcourt, Enugu, Eko and Ikeja DisCos .

The suspension order followed default of the market conditions/market participation agreements by the DisCos.

TCN has however, lifted the suspension on Enugu, Eko and Ikeja DiScos after they complied with the agreement while Port-Harcourt Disco is still on suspension.