FG unveils new policy on electricity purchase

Posted by News Express | 5 December 2019 | 1,208 times

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• Minister of Power, Engr Sale Mamman

The Federal Ministry of Power has finally introduced the new Electricity distribution policy called “willing Seller, Willing Buyer”.

Under the new differential power distribution policy, electricity would be wheeled directly from the Generation Companies (GenCos) to willing consumers who are ready to fully settle their bills.

The willing consumers may include community and commercial clusters, industrial areas and hospitality sectors.

Speaking on a Freedom Radio Phone in programme in Kano, the minister of Power, Engr Sale Mamman said, the policy was designed to save energy losses in the power sector and assist GenCos who have not been getting the full payment for their generated power. 

The policy has already taken off as a pilot scheme in two states.

The minister revealed that DisCos have not been distributing all the power wheeled to them on the pretense that the consumers were unable to pay for the power.

This, he said necessitated the huge federal government’s subsidy intervention in the power sector by paying the GenCos for undistributed power.

Mamman lamented that last year the federal government approved an intervention fund of N700 billion to the GenCos and just recently another N600 billion was approved for the same purpose.

He explained that this huge subsidy was an overbearing burden on the government adding that over 2,000MW of electricity was not being distributed due to the failure of the distribution chain.

 

(Leadership)


Source: News Express

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