Senate decries MDAs’N288bn debt to power firms

The Senate decries lack of financial resources in the power sector, stating that ministries, departments and agencies (MDAs) are owing Distribution Companies (Discos) over N98 billion for electricity consumed.
The Niger Delta Power Holding Company (NDPHC) also claimed that it was being owed N190 billion as at the end of May 2020 for power generated from its plant at the national grid.
The Chairman of the Senate committee on Power, Senator Gabriel Suswam, was speaking at the end of a three-day Investigative Public Hearing entitled “Power Sector Recovery Plan and the Impact of COVID-19 pandemic”.
He stated that the problem with the power sector was lack of financial resources, stating that Discos are being owed N98 billion by the MDAs “and unfortunately the Discos have not been able to collect the debts being owed them over time”.
“We are spending huge amount of money paying for debt that is already owed. We must begin to focus on how to address the issue of infrastructural deficits in the power sector. Let’s spend money on metering. Let’s at least meter about 80 per cent of those connections leading to the network and then be able to collect enough money to make the sector liquid. There are a lot of issues and those issues must be aligned. And that is what we are trying to do in this public.”
“The blame game among them has to stop. Once there is an alignment and proper coordination, that yes, if we generate 13,000 megawatts, and transmission is able to transmit at least 10,000 megawatts, and discos are able to absorb the 10,000, and there is proper tariff, it makes the sector solvent.
“Once there’s money in the sector, the other potential investors will come in. The banks will be able to also put in more money, so that the sector will begin to run on its own. But where we are now, it will be unthinkable that government will stop providing the intervention. Once that stops, everything will collapse.
“But where we are now, it will be unthinkable that the government will stop providing the intervention. Once that stops, everything will collapse.
“We are spending huge amount of money paying for debt that is already owed.
“We must begin to focus on how to address the issue of infrastructural deficits in the power sector. Let’s spend money on metering. Let’s at least meter about 80% of those connect led to the network and then be able to collect enough money to make the sector liquid.
“The problem is, the sector is insolvent. The discos are unable to collect money, money from MDAs, owing N98 billion and individuals.
“There are a lot of issues and those issues must be aligned. And that is what we’re trying to do in this public”, Suswam said.
The Chairman also blamed the federal government as well as the stakeholders for the lack of sincerity of purpose in the power sector.