The planned takeover of three power distribution companies by Fidelity Bank, as well as the restructuring of two others by the Federal government, has sparked a heated battle between the Discos and the government.
The Federal Government is supporting Fidelity Bank’s takeover of the three discos through the Bureau for Public Enterprise. This came as finding revealed that discos have continued to launch new legal battles to prevent government and bank takeovers.
However, industry stakeholders are split on the issue, with both parties receiving praise and condemnation from power sector experts.
While industry stakeholders expressed varying perspectives on the development, it was discovered on Monday that power generation on the national grid fell by approximately 141.3 megawatts when
The Federal Ministry of Power showed that power generation rose to a peak of 3,992.6MW on July 9, 2022, but the peak generation on July 10, 2022, fell to 3,908.8MW.
This dropped further on Monday, as data from the FMP showed that power generation on the grid as of 6 am on July 11, 2022, was 3,851.31MW, indicating a drop of 141.3MW when compared to figures posted on July 9, 2022.
Meanwhile, industry experts have raised diverse concerns over the planned takeover and restructuring of some power distribution companies as recently announced by the federal government.
Last Tuesday, the Federal Government announced the planned takeover of Kano, Benin, and Kaduna electricity distribution companies by Fidelity Bank Plc after the bank initiated action to take over the boards of the three discos.
It was also announced through the Bureau of Public Enterprises that with the takeover of Ibadan Disco by the Asset Management Corporation of Nigeria, the BPE had obtained approval from NERC to appoint an interim managing director for the distressed power firm.
The government had further stated in last Tuesday’s restructuring notice that it was restructuring the management and board of Port Harcourt Disco to forestall the imminent insolvency of the utility. The notice was signed by the Director-General, BPE, Alex Okoh; and the Executive Chairman, NERC, Sanusi Garba.
But in reaction to the announcement, the receiver/manager’s nominee of Integrated Energy Distribution and Marketing Company argued on Wednesday that it was the legal and beneficial owner of 60 percent (controlling and managing) of the shareholding interests in the Ibadan Electricity Distribution Company.
Also, the management of the Benin Electricity Distribution Company Plc had argued on Wednesday that there was no legal basis for the takeover of the company following the purported activation of the call on its collateralised shares by Fidelity Bank.