Power Supply Hiccups: FG Set To Unbundle Regional DisCos Into Different Franchise States

Federal Government has hinted plans to unbundle various regional power Distribution Companies (DISCOs) into different franchise States for efficient performance.

Minister of Power, Chief Adebayo Adelabu, gave this indication saying that no meaningful  transformation in the power sector can be achieved without active involvement of states in order to ensure “more localized oversight.”

Adelabu spoke in Abuja while receiving Abia State Governor, Dr. Alex Otti in company of Abia State Power Commissioner, Engr. Ikechukwu Monday and other key officials of the state, who were on a courtesy visit in respect of finding solutions towards enhancing power supply in the state.

The Minister highlighted the pivotal role of the State’s involvement in the distribution segment, encompassing infrastructure enhancement, reducing metering gap, enforcing bills collection, rural electrification, combatting power theft, preventing asset vandalization, and securing right-of-way for transmission lines.

To achieve this, he said the Ministry plans to collaborate closely with state Ministries of power, energy and public utilities.

Further, the Minister elaborated on his short, medium, and long-term strategies, emphasizing the need for State collaboration.

Adelabu recognized that addressing challenges in the distribution segment requires unified efforts from sub-national governments due to its retail nature.

He underscored the vested interests of state governments in distribution, being closer to DISCOs and better positioned to support and monitor them to achieve their performance improvement plans.

To expedite state involvement, the Minister proposed unbundling various regional DISCOs into different States, allowing for more localized oversight.

“Financial collaboration modalities between the Federal and State governments will be explored, possibly involving a swap of federal government stakes in DISCOs with State’ stakes in the Niger Delta Power Holding Company (NDPHC)”.

Adelabu also highlighted collaboration opportunities in rural electrification, encouraging States to establish active rural electrification boards working in tandem with the Ministry’s Rural Electrification Agency (REA).

“Support from state governments in the provision of distribution transformers and replacement of weak power lines is deemed crucial for achieving reliable and functional power supplies”, he noted

The Minister also announced plans for an inaugural ministerial retreat for the power sector from December 12th to 14th, 2023, where these issues would  be extensively discussed.

Adelabu extended invitation to attend the retreat to Governor Otti, while emphasizing the sector’s importance for economic growth and industrial development at both National and State levels.

In response, the Abia State Governor,  accompanied by key officials, commended the Minister’s well-thought-out strategies and expressed support for his transformative efforts.

He pledged attendance at the upcoming retreat, aligning state-level thoughts with the Minister’s vision. 

In the entourage of the governor were Senator Patrick Ndubueze, Hon. Chidi Nwogu and Abia State Power Commissioner, Eng. Ikechukwu Monday who commended the Minister and affirmed support for his drive to transform the Power Sector.