By Musa Adamu
Abuja
The minister of power, works and housing, Babatunde Fahola has once again spoken in defence of the electricity distribution companies (DISCOs) when he declared that due process must followed in discipling erring DISCO.
He as a responsible government that inherited a legally backed transaction that gave majority sharing holding to the private sector it cannot act arbitrarily.
He said government must act according to the due process else it would contend with avalanche of court cases.
Fashola who spoke at two-day public hearing on electricity tariff hike organised by the joint committees’ of labour and power, steel development also wondered how DISCOs could be sanctioned when they were not given tools to work with.
He therefore, said government lacks the moral right to sanction as any government agencies still owing large sums of money to these entities through many years of un-paid bills.
He said the issue of tariff, contrary to insinuations, was not arrived at arbitrarily as the Electricity Power Sector Reform Act 2005 (ESPR Act 2015) provided for consultations with all stakeholders.
He assured all concerns to explore within the Act the for adjudication as the tariff was not fixed irrevocably.
He said the processes of determining tariffs were clearly outside the control of government, adding that with the liquidation of Power Holding Company of Nigeria (PHCN), government had become a minority shareholder which meant that things must be done on commercial basis by the regulator.
He said the electricity market was now directed by the Nigerian Electricity Regulatory Commission (NERC), working with the DISCOs, GENCOs, Bulk Trader, TCN and other agencies.
While requesting for time for the sector to withstand shocks presently being experienced, the Minister added that the transition period of 2013 to 2016 was not long t enough to comlian that the priviatsation was not working since it was badly managed for upward of 60 years.
He assured that nothing was permanent in tariff regime, calling on those clamouring for tariff should not lose hope, but insisting the conditions as stipulated in the law must be met.