Unbundling the unbundled Discos

The unbundling of the former National Electric Power Authority followed the signing into law by former President Obasanjo of the Electric Power Sector Reform Act which led to the formation of the

But 10 years thereon, that prospect has turned down a pipe dream as no significant improvement has since been recorded in that critical sector of the national economy. Rather, it has been more of business as usual raising questions on the appropriateness of the implementation and execution of the exercise.

Four of the Discos are under the management of the banks for their inability to pay the loans with which they acquired the companies, while the remaining one was taken over by AMCON. The Abuja Disco is under the management of the United Bank of Africa UBA while Fidelity Bank manages the Benin Disco, Kaduna Disco and Kano Disco. The Ibadan Disco is under AMCON management.

Whatever the case, it is important that the government takes a holistic and more enduring perspective of its plans for effective electricity generation and distribution in the country. Adequate safeguards should be made to guard against the mistakes of the past.Before selling off the ailing Discos, the government must be clear with its plans on unbundling along state lines and franchising within the uncovered areas.

Overall, the measures earmarked by the government to ensure efficiency in the power sector are high-minded. It is clear from the woeful performances of the Discos that the privatisation of the power sector failed to deliver on its mandate. Both in terms of its execution and implementation, the privatisation process fell short of its laudable objectives.

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