DisCos Express Concern Over Revenue Loss Due to Low Electricity Allocation

The electricity distribution companies (DisCos) have raised alarm over revenue losses resulting from the challenges of low power allocation, primarily caused by the inadequate supply of gas to power-generating companies.

DisCos lamented that the insufficient power allocation has severely impacted their operations, making it challenging to meet financial obligations such as staff salaries and other expenses.

For over a month, Nigeria has grappled with low power supply as gas suppliers have halted the supply of gas to power plants due to outstanding debts amounting to about N1.3 billion, according to the Minister for Power, Bayo Adelabu.

In an exclusive interview with our correspondent, Sunday Oduntan, the Executive Director of Research and Advocacy of the Association of Nigerian Electricity Distributors, emphasized the detrimental effects of the prevailing challenges in the power sector on DisCos’ financial health.

He highlighted that the current situation is pushing DisCos further into debt, adversely affecting their liquidity and operational efficiency. Oduntan stressed that DisCos, being the frontline service providers, often bear the brunt of customer dissatisfaction, despite the underlying issues lying beyond their control.

Furthermore, Oduntan underscored the critical role of gas-fired thermal power plants in Nigeria’s energy mix, explaining that the country heavily relies on gas-powered stations for electricity generation. He pointed out that disruptions in gas supply significantly impact power availability, thus affecting DisCos’ revenue streams and exacerbating the challenges they face.

In light of these pressing issues, Oduntan urged the Federal Government to engage stakeholders in constructive dialogues to find lasting solutions to the current predicament in the power sector.