The Federal Government and the new owners of the recently privatised electricity companies in Nigeria have expressed different positions on the challenges affecting the privatised power companies.
While the investors were of the opinion that challenges in the sector were bigger than they thought, the Federal Government said the new owners should not be expected to start making money in the short run due to the inherent challenge of dilapidated infrastructures.
The investors had disclosed that their reality checks on the power systems they took over indicated that the system seemed to be “upside down.”
The aggrieved power sector investors made their complaints known to the Nigerian Electricity Regulatory Commission (NERC) at a meeting, which was the first, since they physically took over their electricity assets from the Federal Government on November 1.
Managing Director of Kano Electricity Distribution Company, Dr Jamil Gwamna, said the market rules, especially with regard to the Multi Year Tariff Order (MYTO-II), had been turned upside down.
Managing Director of Kano Electricity Distribution Company, Dr Jamil Gwamna, said the market rules, especially with regard to the Multi Year Tariff Order (MYTO-II), had been turned upside down.
“In terms of complying with rules especially those in MYTO, the reality on the ground in Kano Disco is that all the assumptions in the MYTO model have been turned upside down. Load allocation to Kano is so bad that for the last three days we are getting as low as 40 megawatts (MW) to cover
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