Regional DisCos will be unbundled into individual states – FG

Plans have been announced by the Federal Government (FG) to divide up the several regional electricity distribution companies (DisCOs) into several states in order to provide more granular control.

This was even as it was pointing out that the industry will be significantly transformed by state governments’ active participation.

When Abia State Governor Mr. Alex Otti paid him a courtesy call at his Abuja office, Minister of Power Adebayo Adelabu revealed the information.

In the distribution sector, he emphasised the responsibilities of the states, which includes infrastructure development, closing the metering gap, ensuring bill collection, electrifying rural areas, preventing asset vandalism, fighting power theft, and securing transmission line right-of-way.

As to his statement, the retail aspect of the distribution segment necessitates coordinated efforts by sub-national governments to tackle issues.

He added the ministry would work closely with the state ministries of power, energy, and public utilities to accomplish this.

“The federal and state governments will investigate financial collaboration modalities, potentially involving the exchange of federal government stakes in DISCOs for state stakes in the Niger Delta Power Holding Company (NDPHC).”

Along with highlighting prospects for cooperation in rural electrification, Adelabu urged governments to set up functional rural electrification boards that would cooperate with the Ministry’s Rural Electrification Agency (REA).

“In order to achieve dependable and functional power supplies, it is believed that support from state governments in the provision of distribution transformers and replacement of weak power lines is essential,” he continued.

In response, the governor of Abia State, accompanied by important officials, praised the minister’s well-planned tactics and pledged support for his efforts to bring about transformation.