…Says Elites More Involved In Energy Theft
Yemisi Izuora
The federal government will announce a new policy regulation that will stimulate new Investment in the power sector in line with ongoing review of the power industry privatization which has run into glitches.
The power, works and housing minister, Babatunde Fashola who gave the indication in Lagos today at a power dialogue round table organized by the Lagos Chamber of Commerce and Indust, LCCI, said the new regulations will be made public in October.
He said the Nigerian Electricity Regulatory Commission, NERC, along side other agencies in the ministry are holding stakeholders meeting across the country with a view to get Industry wide opinion, commitment and input into the regulation to make it acceptable.
He chided elites as being into energy theft than other Consumers.
Giving an insight into what the regulation would address, the minister said the new policy will address the lingering metering issues, eligible customer consideration, tariffs structure all of which will help boost investors confidence and accelerate Investment recovery.
Fashola said government is not unaware of the liquidity crises in the system as well as other critical challenges that has caused some Set back but assured that the upcoming regulations would bring reprieve to operators in the sector.
He admitted that government failed to fully assess the debt profile in the industry before privatization, adding however that some of the debts are being identified and carefully being verified.
Fashola however stated that already Government has verified most of the debts owed by Ministries Departments and Agencies of government and are waiting for validation.
He disclosed that government has also approved a payment assurance guarantee for all power produced to the grid and that some payments have been made and others are being processed adding that the Ministry of Finance has announced a programme to issue promissory notes for inherited debts subject to Parliamentary approval.
The minister hinted however that in consideration of incremental power generation policy, government can still license more generation and distribution companies without jeopardizing the economic interests of existing operators.
On the issue of outsourcing, Fashola, explained that the new policy would create opportunities that will allow operators window to outsource some of their operations.
He said for instance, the new regulation will license new meter manufacturing firms to produce meters to support metering project of Distribution Companies.
Speaking on tariff adjustment, the minister expressed worries that the huge metering gap has been a major challenge as any adjustment with adequately metering customers will present more problems.
He expressed concern over inability of Discos to recover debts and improve on bill collection, there should be enforcement of metering system.
Fashola was deeply disappointed that the problems ranging from metering, estimated billing, gas supply shortfall, weak grid and distribution network, high Aggregate Technical, Commercial and Collection (ATC&C) losses, have continued to challenge the industry.
He assured investors that the Federal Government recently launched Nigerian Power Sector Recovery Programme: 2017 – 2021, which lays out plans to improve the financial capacity of Nigerian Bulk Electricity Trading’s (NBET) and improve the viability of the distribution companies in the country, will facilitate Investment recovery.
Earlier, president of LCCI, Dr. Nike Akande challenged government on repositioning the power sector, stating that a virile power sector with Stable electricity Supply will help promote ease of doing business in the country.
Akande, regretted that a situation where the country generates 6,000 megawatts and loses 2,000 megawatts due to transmission and distribution challenges is causing distress to commerce and Industry.
She said government should be bold and resolute in fixing the power sector value chain to encourage the business community.
