Fashola costs taxpayers’ funds on misguided tasks– Discos– Punch Newspapers

Okechukwu Nnodim, Abuja

The fight between the power circulation companies and the Minister of Power, Functions and Real Estate, Babatunde Fashola, continued Sunday, with the Discos firing back at the minister, accusing him of spending taxpayers’ cash on misguided projects.Responding to Fashola

‘s recent statements against its members, the Association of Nigerian Electrical Energy Distributors, the umbrella body of the power companies, stated Nigerians were not getting worth for taxpayers’funds being directed to misguided tasks by the Rural Electrification Company, Transmission Business of Nigeria and”buddies”under the watch of the minister.READ ALSO:< a href= http://punchng.com/four-cops-dismissed-for-extorting-n7m-from-cleric/ > 4 polices dismissed for obtaining N7m from cleric Fashola had on Friday lambasted ANED and condemned its reactions to his regulations to the Nigerian Electrical Energy Regulatory

Commission, Bureau of Public Enterprises and Nigeria Bulk Electrical power Trading Plc.The minister, who called the association’s spokesperson an interloper, stressed that his instructions were aimed at legal entities and not to an unlicensed

organisation, ANED, and that the Discos were undermining Nigeria’s economy through their actions.In a 28-page file launched in Abuja on Tuesday by ANED, the power suppliers had argued that the majority of the statements about the nation’s power sector that were made recently by

Fashola were false.It stated that comments made by the minister on metering, power generation and bandwidth and stranded electrical power, among others, were considerably distorted.This got the minister irritated, as he slammed the power companies as financial saboteurs on Friday.Reacting to Fashola’s most current comments, the Discos, in another file provided to our correspondent in Abuja on Sunday, mentioned that it was amazing and

complicated to note that under the minster’s watch, an agency like REA was currently executing a three-megawatt power task valued at N5.2 bn or$5.6 m per megawatt in Sokoto; and another two-megawatt plant in Anambra valued at N4.04 bn or $2.02 m per megawatt from taxpayers’funds.ANED said,”Why is this exceptional? It is amazing because the federal government has robustly challenged, as inflated, the proposed cost of$1.5 m/MW put forward by power developers from the economic sector and looked for a reduction of very same.”Are Nigerians really finest served by the different ‘tasks ‘being promoted by REA, TCN and pals? Are taxpayers genuinely getting worth for loan with these jobs? Should the unserved rural dwellers, who should be genuine recipients of REA’s financing and services, continue to reside in darkness due to the ministry’s and REA’s misguided concerns

?”The Discos further argued that REA was going outside its required, as it had actually left rural electrification and was presently investing taxpayers’ funds on the metropolitan areas.READ ALSO: State House, Budget Plan Workplace, 306 others spent N149bn illegally– Auditor-General They added,”

Should the TCN, an entity without a distribution licence, continue to participate in nontransparent’Eligible Customer ‘transactions, rather than investing its minimal funding in broadening and stabilising the grid, for increased energy to our consumers, offered its status as the weakest link in the Nigerian electricity supply industry value chain? “We think that Nigerian taxpayers should legally be asking,’With 65 per cent of rural occupants not linked to electricity, are the interests of these unserved residents best served by REA using up allocated, obtained and donor funding in city locations that are explicitly outside of its statutory mandate?”ANED likewise specified that power suppliers were losing

approximately N48 per kilowatt hour of electrical power as an outcome of the non-review of tariff considering that February 2016, a period of about 30 months.It included that the suspension of the tariff evaluation procedure, which should be done every 6 months by NERC under the Federal Minister of Power, Works and Real estate, had actually included to performance issues in a capital

intensive power sector.ANED stated,”Through the regulative and policy actions that have actually been mainly driven by the minister, the Discos have actually been required to sell their item, which ought to retail for an average retail tariff that is more than N80/kWh, at an average retail rate of N32/kWh.” While we acknowledge and are sympathetic to the federal government’s obstacle of keeping the balance between the myriad of its responsibilities and its financial restraint, continued failure

to address this prices gap suggests that we will only arrive at, and continue to exist in our present circumstance of N1.3 tn of market shortfall and growing, and absence of the pricing signal that will grow electricity supply along the worth chain.”Copyright PUNCH.All rights booked. This material, and other digital content on this site, may not be recreated, published, broadcast, rewritten or rearranged in whole or in part without previous reveal written approval from PUNCH.Contact:(Visited 790 times, 294 visits today)Get Alerts on: Whatsapp: +2349090060943, Twitter: @MobilePunch, BBM: C003D3DC0 Share your story with us: SMS: +2349090060943, Whatsapp: +2349090060943,