Frustrated and disappointed by the abysmal performance of the electricity industry, especially the distribution companies and the Transmission Company of Nigeria TCN, the Senate said it might be compelled to introduce legislative measures to reverse the privatization policy in the electricity sector.
The Senators tinker with this idea while reacting to Senator Eyinnaya Abaribe, Chairman of the Senate Committee on Power, when he submitted his report for consideration.
Presenting the report of his Committee, Senator Abaribe highlighted the financial losses incurred each time the grid collapses in Nigeria.
According to him, restarting a power plant costs approximately $7.5 million. With three plants in operation, the total cost per grid collapse amounts to $25 million, stated he.
The lawmakers also intensely debated the persistent collapse of the national grid and inefficiencies in the power sector.
They expressed deep frustration over the current state of electricity generation, transmission, distribution, and privatisation policies.
He stated during the debate,“ I observed the DisCos have largely failed to deliver reliable electricity to Nigerian consumers
Senate President, Godswill Akpabio, making his own contribution to the debate, also criticised the privatisation of the power sector in 2013, questioning its efficiency till date.
Akpabio noted that despite privatisation of the power sector, the DisCos are unable to meet consumer demands, leading to deteriorating service quality in the electricity ecosystem.
The Senate President quipped: “Why do governors and individuals have to buy transformers and then hand over to DisCos and still pay for installation?”
Similarly, some other Senators suggested declaring a state of emergency in the sector, stating that the current inefficiencies should no longer be tolerated.
However, Senator Adams Oshiomhole from Edo State expressed regret over his earlier support for privatisation of the power sector.
The former President of the Nigeria Labour Congress (NLC) and Governor of Edo State, described the privatisation process as “ill-conceived and ill-executed.”
He lamented the fact that consumers are forced to pay for services not rendered
Meanwhile, the Senate has withdrawn the motion for consideration of the Committee’s report to allow for more actionable and comprehensive recommendations.
According to the Red Chamber of NASS, there is a need to expand the scope of investigation to include the probe of taxpayers’ money injected into the power sector over the past 10-20 years to determine their proper utilisation.
The Senate also noted the review of why DisCos are underperforming and failing to meet their obligations to energy consumers, as well as seeking answers to the frequent grid collapses, and revoking the laws that established privatisation of the power sector.
The Senators have given the Committee on Power six weeks to develop improved recommendations in connection with the apparent failure of the Transmission Company of Nigeria and electricity DisCos.
It is recalled the former President Goodluck administration, in 2013, had unbundled the PHCN and initiated privatisation programme of the power sector.
Though the privatisation exercise was aimed at improving electricity supply, the Senators, at the plenary Thursday, however, described the privatisation of the power sector as a failure.