Government to revoke licenses of underperformed power companies
The Federal Government of Nigeria has announced that it will not renew licensing agreements for electricity distribution and generation companies that have underperformed in the country.
The Minister of Power, Adebayo Adelabu, delivered this message during the opening ceremony of the Nigerian Electricity Supply Industry, NESI, Market Participants and Stakeholders Roundtable in Abuja.
Expressing concern over the failure of power sector operators to achieve set objectives.
READ ALSO: President Tinubu enacts Electricity Act 2023 to spur power sector development
According to the minister: “I mentioned that ten years later, the licences are expiring, and it’s time for renewal. Renewal is not automatic. Any privatised companies that have not lived up to expectations will not have their licence renewed. We have to know whether you have complied with the terms and conditions of the licence you have been given.
“I mentioned in my speech that most countries do not privatise their electricity supply value chain from generation to transmission to distribution. But bad enough, we have done this; how can we work around the current status to achieve our priorities and objectives?
“And I said it’s not a job for one person or a set of stakeholders. It’s a job for everybody. We all have a role to play.
“We must all come together and play our roles so that we come out strong and achieve success in the industry.
“We’ll look at the technical capacities of the GenCos and the DisCos. We will look at the financial capabilities of the DisCos. How much investment have you made since you got this licence? How much improvement have you made to the infrastructure? Which AT&C losses have you reduced based on the agreement when you were given the licence? These are the very serious conversations we need to have with the private sector operators at the distribution and the generating companies level.”
Follow the Neptune Prime channel on WhatsApp: https://whatsapp.com/channel/0029Va74ZvU2v1IqKByXoX3d
Do you have breaking news, interview request, opinion, suggestion, or want your event covered? Email us at neptuneprime2233@gmail.com
