DISCOs go tough on MDAs, other huge debtors

09 May 2016, Abuja – Barring any last minute truce, electricity distribution companies in the country are poised for a showdown with their historic debtors as they (the debtors) face the possibility of mass disconnection of electricity supply in the days ahead.

Power transmission station

Power transmission station

The electricity distribution companies have, for months, been groaning under severe liquidity constraints because of unpaid utility bills, from Residential customers to Commercial, Industrial and particularly, from the Ministries,

The electricity distribution companies have, for months, been groaning under severe liquidity constraints because of unpaid utility bills, from Residential customers to Commercial, Industrial and particularly, from the Ministries,

Industrial and particularly, from the Ministries, Departments and Agencies, MDA, across the three tiers of government. Military and security agencies are similarly guilty of huge indebtedness to the distribution companies.

Mr Sunday Oduntan, a lawyer and the Executive Director, Association of Nigerian Electricity Distributors, ANED, disclosed that, as of the end of April, the total indebtedness of MDAs, military and security agencies inclusive, stood at approximately N93 billion made up of N39.1 billion pre-privatisation and N39.5 billion

Mr Sunday Oduntan, a lawyer and the Executive Director, Association of Nigerian Electricity Distributors, ANED, disclosed that, as of the end of April, the total indebtedness of MDAs, military and security agencies inclusive, stood at approximately N93 billion made up of N39.1 billion pre-privatisation and N39.5 billion post privatization as well as outstanding interest of N15 billion, which the bulk trader charges Discos for late payment of their Energy bills arising from non-settlement of utility bills.

A breakdown of the sum is as follows: Abuja DISCO -¦ 18.6 billion; Eko DISCO- ¦ 8.6 billion; Kaduna – ¦ 8.2 billion; Enugu- ¦ 7.2 billion; Ibadan- ¦ 6.8 billion;Ikeja- ¦ 5.9 billion; Port Harcourt-¦ 6.8 billion; Benin-¦ 5.8 billion; Jos-¦ 6.5 billion; Yola – ¦ 2.4 billion; and Kano-¦ 1.2 billion. T0 fully appreciate the impact of the non-payment of utility bills by government agencies,

It should be recalled that last October, the Distribution companies, together with National Electricity Regulatory Agency, NERC, the Nigerian Bulk electricity Trader, NBET and electricity generating firms met with the Vice President, Professor Yemi Osinbajo and a modality for settlement of outstanding receivables from the government agencies was worked out.

 

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