Friday, 10 April 2020

DisCos: FG will pay for proposed two months free electricity

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The electricity distribution companies (DisCos) say the proposed free electricity for Nigerians will be funded by the federal government.
On Wednesday, the DisCos had said they were working to provide free electricity to all Nigerians for two months to mitigate the hardship caused by the COVID-19 pandemic.
Stating the modalities for the proposal, Sunday Oduntan (pictured), Association of Nigerian Electricity Distributors (ANED) executive director of research and advocacy, said whether or not Nigerians get free electricity is dependent on the stimulus package bill passed by the national assembly.
The Association of Nigerian Electricity Distributors (ANED) is the umbrella body of DisCos.
“The energy to be supplied for the two months is not free from the DisCos but is being paid for by the federal executive, in partnership with the national assembly,” Oduntan said.
“As such, the ability for the DisCos to go forward is subject to the stimulus package being passed by the national assembly and signed into law by Mr President.
“While this palliative seeks to mitigate the economic challenges that Nigerians are being subjected to during this COVID-19 period, it is our hope that we do not lose sight of the non-cost-reflective tariff challenges that the DisCos continue to suffer under.
“Regardless, we laud Mr President, members of his government and the national assembly for this initiative.”
The financial cost of the proposed initiative to the federal government as electricity tariffs differ amongst DisCoElectricity generation companies would also have to be considered in the initiative.


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