Electricity distribution companies (DisCos) have made some clarifications on the two-month cost-free electricity announced on Wednesday saying the service will not be a gift from them as the federal government will pick the bill.
The DisCos had said in a statement that they aligned with the national assembly and the federal government that Nigerians should get two months of free electricity to assuage the pain occasioned by the coronavirus pandemic.
“We are also completely aligned with the plans to ensure palliative measures, including ‘free electricity supply to all Nigerians for two months,’ to make life easier, during the lockdown period. Details of implementation to come soon.
“Again, as a key utility player in the Nigerian Electricity Supply Industry (NESI), we hereby reiterate our commitment to improving service delivery to the nation during this pandemic period and thereafter,” said the executive director, research and advocacy and spokesman for the Association of Nigerian Electricity Distributors (ANED), Mr. Sunday Oduntan in a statement on Wednesday.
Yesterday in another press release, Oduntan said there was need to make some clarifications.
He said the free electricity was not coming from them but from the federal government, in partnership with the national assembly
“There is a need to make the following clarifications. The energy to be supplied for the two months is not free from the DisCos but is being paid for by the federal government, in partnership with the national assembly.
“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 no-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,” he stated.
Later in a separate interview with ThisDay, Oduntan explained that the electricity DisCos supply does not belong to them but generating companies which use gas (raw material) that does not belong to them (generating companies) to generate the product.
“Remember, we (Discos) don’t own the product we sell. The product we distribute does not belong to us. Generating companies own the product and they use raw materials to generate it. The raw material, which is gas, does not belong to them. The federal government has to pay for the gas. We do not transport the product – the Transmission Company of Nigeria (TCN) does. So, all the stakeholders must be involved. We can’t unilaterally provide electricity free for Nigerians.
“The statement we issued was just a statement of support – a statement of intent. It was based on the proposal of the national assembly. Until they pass the stimulus package into law and government signs it, there is nothing we can do unilaterally,” he said.
