The funding gap in the power sector has deepened to between N900billion and N1trillion, Chief Executive Officer of Eko Electricity Distribution Company, DisCo, Dr Oladele Amoda, said at the weekend
The Eko Disco Boss told The Nation that liquidity issue and non-cost-reflective tariff were some of the major challenges facing the DisCos.
He said these problems were caused by huge debts owed power generation (GenCos) and DisCos by consumers. According to him, debts owed EkoDisCo by ministries, departments and agencies (MDAs) across all levels of government is estimated at N10.7 billion as at last July.
Others include non-cost-reflective tariff, energy theft through meter bypass, illegal connection double feeding, vandalism of transformers, cables and power equipment.
Meanwhile, following persistent poor grid output, Eko Electricity Distribution Company (EKEDC) has completed arrangement to generate 598 megawatts (Mw) electricity from embedded generation (off-grid electricity by private generators).
Amoda said power supply from embedded generation had become imperative to enable the utility firm meet the consumption needs of its customers.
He said the company gets 140Mw through dedicated power supply and has prequalified 10 firms as successful bidders for the supply of 458Mw.
According to him, 100Mw comes from the rehabilitated STO6 or unit 6 of Egbin Power Station. Unit 6 was not part of the units privatised by the government. Paras Energy Limited is supplying 40Mw.
