Respect Electricity Contracts- DISCO Tells FG

The Federal Government to respect the different agreements it entered into with the investors in the Nigerian electricity supply industry (NESI).

Naija News understands that the electricity Distribution Companies (DisCos) on Tuesday, September 17, gave the urge.

The Executive Director, Research and Advocacy, Association of Nigerian Electricity Distributors (ANED), Barrister Sunday Odutan gave the urge while recently speaking with correspondents of The Nation.

In his statement, Odutan was quoted to have insisted that “the federal government of Nigeria must respect the sanctity of contracts.”

He advised the Federal Government to realign the electricity market for the DisCos so as to perform optimally.

While proffering solution to the power sector liquidity crisis, Odutan asked the government to realign the sector holistically.

In his words, Odutan said; “There is the need for an alignment of the value chain: technical and commercial alignments. If there is problem with generation, it will affect distribution. “If there is a problem with transmission it will affect distribution. Performance of one is dependent on the performance of the other. That is why it is called a value chain.

“The problem of the sector is misalignment. They need to align the value chain. There should be commercial and technical alignment.

“Commercial alignment is if you are generating 10,000mw, you must be able to transmit 10,000 megawatts. You must be able to distribute 10,000mw.

“Then the technical alignment if you are buying electricity at this price, you must not be forced to sell below the cost. That is commercial alignment.”