GENCOs, DISCOs failed to meet obligations-Reps

The House of Representatives has disclosed that, Power Generating Companies (GENCOs) and Distribution Companies (DISCOs) have failed Nigerians by not meeting their obligations after taking over the defunct National Electric Power Authority (NEPA).
This was disclosed at the inaugural Investigative hearing by the Adhoc Committee on Power Sector Reform set up by the House on Wednesday.
In his address, Chairman of the Adhoc Committee, House Majority Leader, Alhassan Ado Doguwa said the committee was inaugurated by the Speaker following a Resolution of House at Plenary, to investigate and review activities in the power sector.
“Since then, we have made efforts to carry out our mandate genuinely and painstakingly. We communicated with experts and relevant and relevant stakeholders, and today we are hosting this hearing.
“There is no gainsaying that the power sector is critical to our nation’s industrialisation and development. Interestingly, we are made to understand that the greatest issues bedeviling the sector after the unbundling of the defunct National Electric Power Authority is the inability to effectively transmit and distribute electricity supply across the country.
“The inability of some of these institutions to meet the covenant obligations they entered into at the time of privatization has reduced the capacity to enable reliable and quality electricity supply for both domestic and commercial use,” he said.
Doguwa said, the power sector is also confronted with liquidity and other issue as Gas Suppliers are claiming billions of Naira being owed them while operators are saying that the tariffs are not cost reflective.
He added that, while Nigerians appreciate the efforts of institutions created from the unbundling exercise, particularly the GENCOs who now have the capacity to generate over 10, 000 megawatts, it is becoming clearer that the DISCOs and transmission companies must do more to improve electricity supply in the country.
“Sadly, it appears to the common man that there is hike in electric tariff without corresponding increase in quantity and quality of electricity supply. This is indeed the crux of the matter under the mandate of this ad hoc committee,” he added.


The Adhoc committee chairman informed that, as part of Federal Government’s effort to improve the situation brought about by the inability of value chain players to meet their basic obligations, it invited the German government to help the poor state of power in Nigeria.
“This is the situation that crystallised in what is now called the Siemens Intervention deal.lncidentally, the above and many other concerns are the reasons we invited various stakeholders and well-meaning Nigerians to this Hearing,” he said.
On his part, the Speaker House of Representatives, Femi Gbajabiamila disclosed that, the protracted power sector problem leading to poor supply of electricity over the years is dampening the hope of Nigerians for industrialization and overall development.
“It is no longer news that despite huge investments in the power sector, little progress may have been made. It is becoming increasingly, worrisome that successive governments have been unable to fix the issue of power in our country; with the current state of electricity supply apparently dampening the hopes of landmark industrialization and national development,” he said.
“It is our belief that you shall be equipping the Committee with ample information on the status of the power sector, next lines of action and the inter-play between major players in the sector,” he added.
On his part, the Speaker House of Representatives, Femi Gbajabiamila disclosed that, the protracted power sector problem leading to poor supply of electricity over the years is dampening the hope of Nigerians for industrialization and overall development.
“It is no longer news that despite huge investments in the power sector, little progress may have been made. It is becoming increasingly, worrisome that successive governments have been unable to fix the issue of power in our country; with the current state of electricity supply apparently dampening the hopes of landmark industrialization and national development.
“This investigative hearing is the premise upon which the House of Representatives shall amass adequate information to guide us in causing the required and appropriate legislative intervention in the power sector.
“I am glad that the Ad Hoc Committee led by the Leader of the House of Representatives has not rested on its oars since its inauguration, culminating in today’s event. It is my utmost belief that they are up to speed in their plan of activities and may turn-in a report within the stipulated time frame.
“I therefore wish to appreciate members of the Ad Hoc Committee and make bold to claim that the membership selection has been vindicated by your performances thus far,” he said.

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