Situating the true position of the power sector performance

Operators and experts in their assessment of the power sector are of the views that there have been minor improvements in terms of visible results even as the Federal Government renews its drive for improvement.

They observed that the Nigerian power sector despite its huge potential recorded minor improvement in the last 12 months.

According to them, “From all indications the Federal Government has reiterated its commitment to ensure there is improvement in the supply of power for commercial and domestic use”.

Industry watchers in assessing the performance of the sector praised Babatunde Raji Fashola, Minister of Power, Works and Housing for the Declaration of Eligible Customer, pursuant to Section 27 of the Electricity Power Sector Reform Act 2015.

They observed that this is a step in the right direction at this point in the NESI as it will go a long way to liberalise the market and bring competition. “This new policy declaration will promote national economic development through supplying electricity to the productive sector of the economy”, she said.

To them, the power sector is a value chain where all players must contribute their quota to ensure there is power for all but this is not the case. The energy sector is currently plagued with major inadequacies. The transmission and distribution infrastructures are in a deplorable state.

“Over three years after privatisation, the 11 Distribution Companies are still unable to distribute and account properly for power purchasers and distributed, while the GenCos are bearing all the burden which comes with the liquidity squeeze in the market”, they added.

“The debt being owed the power generation companies between November 2013 and September 2017 has increased to N1trillion. In addition, there is need for investment in the national grid. According to recent update from TCN, about 16,729 megawatts of electricity was wasted in seven days, from September 18 to 24.The Regulators also need to be active and ensure contract defaulters are penalised”. Analysts said.

Ayodele Oni, an energy expert and partner Bloomfield Law Practice in his assessment of the power sector so far commended the Minister of power who he said appears hands-on saying that a lot is being done.

Industry analysts observed that it is commendable that Electricity distribution Discos now understand that if consumers are not energised (i.e. provide electricity), they do not generate income so there is more drive especially in those metered areas to ensure that more consumers are energised more frequently especially because of the abolition of the fixed charge component of the electricity distribution tariffs.

They are equally impressed that the Rural Electrification Agency is currently doing a lot to get more people in the rural areas energised and a number of states like Lagos and Plateau States are providing exceptional support.

According to them, “The Regulators NERC appear to be putting in renewed efforts and with more clarity expected in connection with the eligible customer policy, more people are set to pay more and have more stable and better quality electricity.

“The Development Finance Institutions appear still interested in working with the Nigerian government to achieve success and the private sector (particularly Nigerian, Asians and Europeans) which interest was waning now appears to have renewed its attention”. They added.

Oni is of the opinion that to achieve sustainable improvement, the electric power sector recovery plan, must be well implemented and the politicians should focus on results. Where the foregoing, is done, we should see sustainable incremental electric power supply which becomes stable and then ultimately, uninterrupted electric power supply across the country.

KELECHI EWUZIE