NERC needs to implement workable rules for electricity market to thrive- experts

Any plans to address the challenges in the electricity market needs an effective implementation of lay down rules. Industry experts have advised.

Industry experts maintain that if the laws and rules of the sector are fully implemented, the lingering problems hampering the sector would be resolved.

According to them, “The very first objective of Nigeria Electricity Regulatory Commission NERC is to set up the electricity market on actual rules and institutions rather than on PowerPoint slides.

Lanre Babalola, former Minister of Power from 2008-2010 said that the causes and failings of the power sector are more rooted in economics than administration and governance.

Babalola while speaking as a panelist at the Nextier Power Dialogue with the theme Power Sector Reform: My Reflections and Way Forward said that there is need to change strategies. Adding that Nigeria is going to have a proper electricity market, we must go back to the rules that were initially setup.

According to him, “If the current model in the power sector isn’t working, we need to change it adding that when we learn to do what we ought to do, this will bring the needed solution in power sector.

Batholomew Nnaji, former minister of power from 2011-2012 on his part said the electricity market has failed, saying that there is need for courage to get the tariffs to where it needs to be.

He observed that consistency in policy and respect of agreements are some of the issues in the power sector. “There’s a need for us to reflect on the past in other to improve on the future”. He said.

He further said that Nigeria Electricity Regulatory Commission should consider raising the threshold for regulations from 1 megawatts to 5-10 megawatts adding that government should use Central Bank of Nigeria as an organ to infuse liquidity to ensure the system does not totally collapse.

He opines that Nigeria’s ability to transit from government control to private sector control in 2013 was a great achievement.

“We’ve achieved a lot even if power hasn’t grown as fast as we want. There are many experts now and people who want to invest in power”, he said.

On his part, Chinedu Nebo, a former Minister of power in his panel discussion at the event said inspite of performance of the industry, the creation of Discos and Gencos is a huge improvement in the power sector.

Nebo observed that managing the market viably was quite a challenge during his time as minister, saying that it influenced tariff modifications depending on what was happening in the market.

To him, “Privatisation is the best thing for Nigeria. Unfortunately some of those who acquired the assets have no business running them”.

On the way forward, he said government needs to encourage embedded generation and distribution of captive power adding that support for renewable energy, solar is key for Nigeria and Africa.

KELECHI EWUZIE