Peter Obi to remove defaulting investors from DisCos if elected

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Labor Party presidential candidate Peter Obi plans to weed out bad-paying investors from distribution companies (DisCos) if he is elected president in 2023.

This is in accordance with his campaign manifesto, which was officially released on Sunday, December 4. In the manifesto, it was stated that, if elected, the Obi administration will impose the removal of investors who do not perform to the accepted standard.

Naijaonpoint had previously reported that Peter Obi plans to reform the entire power sector value chain – generation, transmission and distribution to maximize performance for the benefit of Nigerians.

Necessary criteria for DisCo investors: According to the manifesto, DisCo investors will need to demonstrate adequate ability to upgrade their network, improve service quality and customer satisfaction, as well as demonstrate adequate ability to continue to operate their franchises satisfactorily, including investments in technology, human capacity and customer offers.

  • However, Peter Obi plans to offer support in the following areas of power distribution.
  • End of estimated billing: Peter Obi plans to end estimated billing, which is an opaque and unsustainable way of measuring and selling energy to consumers.
  • The manifesto states that Obi will support DisCos that provide optimum performance, and will ensure that the Nigerian Electricity Regulatory Commission (NERC) continues to ensure cost-reflective power tariffs.

Measure: Peter Obi’s manifesto promises to ensure the completion of the National Mass Metering Program (NMMP) and will require DisCos to replace all damaged and obsolete meters under the NMMP, in strict compliance with the Metering Code and other existing regulations by the end of 2023.

Coping with losses: Peter Obi will support DisCos with distribution and transmission bottlenecks by the end of 2023. This will help reduce technical and business losses to single digits in the Nigerian Electricity Supply Industry (NESI).

  • To understand why addressing business losses in the power distribution subsector, it is instructive to know that NERC data says the total power received by all distribution companies (DisCos) in Q4 2021 was $7,912.05. gigawatts per hour (GW/h), while the total billed energy was 6,057.78 GWh and the billing efficiency was 76.56%.

What does this mean: A billing efficiency of 70% means that for every N10.00 of electricity delivered to consumers by a DisCo over a given period, the DisCo can only issue bills to cover N7.00 of energy, with N3.00 of energy running out. billing, for reasons ranging from power theft, poor distribution infrastructure, and inadequate customer enumeration.

For the record: NERC data further indicated that DisCos are unable to identify who is consuming all of their power due to poor customer enumeration and undermetering.

  • The report indicated that billing efficiencies combine technical and business efficiencies.
  • Data from the National Bureau of Statistics (NBS) says Nigerians measured as of the second quarter of 2022 were 4,958,795.

… Peter Obi will remove defaulting investors from DisCos if he is elected Read more in … Naijaonpoint.

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