Nigeria’s transitional electricity market takes shape as EMS comes on board
Last week, the Federal Government inaugurated the management team of the Electricity Management Services Limited (EMS), a new company that will take over some non-core professional services of the Power Holding Company of Nigeria (PHCN), which had been unbundled into 11 distribution companies, six generation companies and a transmission company.
It would be recalled that 14 bidders for 15 of the successor companies had recently paid the 75 percent balance of the bid prices of the assets, and would be handed over to their new owners starting from October 1, 2013, according to the Bureau of Public Enterprises (BPE).
The Nigerian Electricity Power Sector Reform Act 2005 provided for the EMS, which has been incorporated as a government-owned limited liability company under the ministry of power.
According to Chinedu Nebo, minister of power, at the inauguration, PHCN would be confirmed defunct in a few weeks after the declaration of the Nigerian transitional electricity market.
The transitional electricity market will be declared open after all the conditions have been put in place to ensure a smooth take-over by the private sector.
“The post privatisation challenges of the rapidly evolving private sector-led power industry cannot be overemphasised, hence the establishment of the EMS as a player in providing sector wide services,” said Nebo.
He said the importance of establishing the EMS was informed by the need to have a professional and technical agency of government at this crucial stage of the power sector reform to close up the technical gaps, which might have been created, adding that the EMS must be able to provide the needed services to drive support and sustain the emerging private sector-led electricity industry in Nigeria.
The mandate of the company, according to the minister, includes providing all needed ancillary and support services to the Nigerian electricity supply industry, which include engineering laboratory, meter test stations, central stores system as well as testing and certification of major electrical equipment.
Other activities include providing the platform for standardisation in the industry, archiving the power sector data and information management.
He, however, said the newly inaugurated EMS would not receive all the subventions it needed to work from the government as it was expected to make profit for its operation and for the national treasury.
Speaking at the ceremony, Peter Ewesor, managing director, EMS, pledged the loyalty of the management in realising the vision for establishing the company.
“We realise from past experience that the job is challenging and we will brace ourselves for the task with the greatest determination to succeed,” he said, adding the management was committed to the vision of the administration to deliver uninterrupted power to Nigerians.
The Federal Government through the Electric Power Sector Reform Act (EPSR) 2005 established PHCN (the initial holding company) to take over the National Electric Power Authority (NEPA), a wholly state-owned enterprise responsible for generation, transmission and distribution. PHCN was subsequently unbundled into eighteen successor companies and officially meant to last only a few months before giving way.
In addition to other functions, the new body, Nebo said, would ensure strict technical enforcement of regulations put in place by the Nigerian Electricity Regulatory Commission (NERC).
The company is also saddled with the responsibility of ensuring quality and standardisation of materials, equipment and machines used for electricity generation, transmission and distribution networks in the country.
The management team had the task of repositioning EMS into a technically and financially efficient, sustainable and commercially viable company
Members of the management team of the EMS include Peter Ewesor (managing director/CEO); Tukur M. Gidado (executive director, technical services); Ikechi Clara Nwosu (executive director, human resources and corporate services); Ayuba J. Ngbako (executive director, commercial services) and Funke Sam-Stanford (general manager, legal services/company secretary).
Others are Oyinnemi Gbeworo (general manager, finance & accounts); E.O. Adeniyi (GM, procurement); Aneke Uche (GM, public affairs); Tijani Baba (GM, audit) and Okwudili Ezegwa (an engineer and GM, meter test station).