BUSINESS
Minister lauds Ibadan Disco over improved assets
The Minister of Power Works and Housing, Mr Babatunde Fashola, has commended the management of Ibadan Electricity Distribution Company, IBEDC for the progress the company had recording in improving their distribution assets.
Fashola made the commendation at the 12th Monthly Power Sector and Stakeholders Meeting in Ibadan hosted by Ibadan Electricity Distribution Company on Monday.
He said that such massive progress recorded should be communicated beyond his monthly visit.
According to Fashola, “It will be helpful if this kind of communication is shared with the governor in this state, local government chairmen, traditional rulers and community-based organisations because they are really the people you serve.
“And while they know that you have challenges, they may unmindful of the efforts you are making and the progress you are recording unless you have interactive sessions with them.
So, I will encourage you to hold more of this kind of meeting at the local level, especially in locations and communities where these facilities are being installed.
“ Let the local people be part of the handover and maintenance process; they will also develop an ownership for the assets when they are involved in its delivery so that they will ensure the safe-keeping,’’ he said..
On the problems in the industry, Fashola said sabotage of gas assets and pipelines has decommissioned power plants and their ability to provide up to 3,000 megawatts of power.
He said that the 3,500 to 3,800MW that we have been able to keep on the grid over the last few months will be assisted greatly if we can have the gas pipelines back and that 3,000MW to it.
According to him, that means we will be able to deliver well over 6,000MW if the gas pipelines are safe.
“That sabotage has also created debt problem, short-fall in power expectation, and therefore, short-fall in recovery because consumers are more resistant to payment when they don’t have electricity, and I will be too and you will be too.
“ And we see that they pay more when the power is more stable. Of course, there are issues also at the retail end – metering, estimated bills.
“Now, the reason why I have gone through this is just to reiterate that all of us have an understanding of the problems and all of us have different roles to play in solving those problems.
“You will see that government has begun to act. The vice president, representing the president, is going round those Niger Delta communities, engaging them more openly, more robustly.
Fashola said that the idea is to bring them to the table to stop the vandalism while the issues that agitate them can be treated and resolved.
“I believe that if we are successful as we expect to be, we should be able to sometimes this year recover all the 3,000MW that has been lost to gas pipeline outages.
“But beyond that government is also taking some steps to ensure that solutions are provided this year so that results begin to reach where the people are.
“ One of the steps that government has taken is to constitute the regulatory commission, and the appointment of new managing director for TCN.
The minister said that government had made some progress in resolving some of the liquidity issues.
He said “I believe that within the last one month, some of the payments that were due to some of you ought to have been remitted by NBET as they promised.
“ If they haven’t been remitted, I sure you it is only procedural process. The approvals have been given; you will get the money.
“ But what is more important is that we have spent the last month holding top-level government meetings to identify the debts owed to the gas companies and the generation companies and in the shortest possible time that it will require us to do so, we intend to settle the outstanding liabilities, debts and to provide a comfort assurance from government that every month those who actually produce power will get paid. So, we will conclude that very soon.
As for the Discos, Fashola said that without prejudging the report we will get today in terms of claims and proof of debts from the office of the senior special assistant to the Vice President who is managing the verification of claims of Discos.
“I believe that after this meeting it will no longer necessary and obligatory for us to wait for all Discos to prove their debts. We will decide to pay those who prove their debts on a first-come-first-served basis and move on.
Commenting on complaints regarding service delivery from a town called Ago-Iwoye under IBEDC’s distribution area, Fashola said the community was complaining about incessant load shedding of power supply and this is a matter for TCN really.
He advised that there is need to install an additional 60MVA transformer, which is currently going on actually at Ijebu-Ode.
According to him, I am told that the project has since stalled; so TCN to note and brief us in the course of local issues on transmission.