Discos jittery over $2.5bn losses as FG finalizes “Eligible Customer” policy

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Power Distribution Companies (Discos) are getting jittery over an impending loss of $2.5 billion investments as the Federal Government finalizes the take off of the “Eligible Customer” policy, which allows high-end consumers to buy power directly from Generating Companies (Gencos) and completely bypass the (Discos), The Sun reports.

The Discos, through their umbrella body, Association of Nigerian Electricity Distributors (ANED), are vehemently opposing the move, saying the electricity market was immature and not competitive enough to declare eligible customers. They fear huge revenue losses, inability to recoup their investments and imminent job losses, as some Discos’ workers may become redundant, among other worries.

ANED’s spokesman, Mr. Sunday Oduntan said; “I would not want to say much on the eligible customer declaration. But ANED is talking with the Federal Government. We will collaborate with the government on what is best for the country. We will also support any action done in accordance with the laws. We have contracts and agreements with the government on power and that should guide us.”

“As for bypassing Discos, put us in your shoes and know what the implication might be. Our understanding is that eligible customers may only be declared by the Minister when a competitive market exists in the Nigerian Electricity Supply Industry (NESI),” he went on to add.