19 October 2013, Abuja – As part of the activities to facilitate handover of the recently privatised 15 power firms, Chairman of the Nigerian Electricity Regulatory Commission, NERC, Dr Sam Amadi has briefed the National Security Adviser, NSA, Rtd Col. Sambo Dasuki on ensuring a secure environment for a coordinated handover process.
Amadi who disclosed this at an investors’ workshop in Abuja stated that government would not neglect the consideration of major factors including security issues before handing over the privatised PHCN assets.
He maintained that NERC has opted for a coordinated handover of the firms to the new owners to avoid conflicting interest, adding that, “Taking over will require security and the National Security Adviser, NSA, has been briefed on that. We are doing well to ensure a coordinated process of take-over of the assets by the new owners.”
Minister of Power, Prof. Chinedu Nebo at the event tasked the new owners to strive in the attainment of a balanced commercial operations needed to secure their investments and boost profits in the new private sector-led electricity industry.
“We are also working to strengthen or create in some cases internal processes that will reposition the Ministry of Power to effectively address the new challenges that will emerge as we move closer to meeting the vision of the administration for the power sector,” Nebo said.
But new owners of the power firms in their presentation have expressed their dissatisfaction with the “Allowable Revenue” proposed by NERC for the interim electricity market.
An official, Robert Yates who made a presentation on behalf of four Distribution companies (Discos): Integrated Energy of Yola and Ibadan Discos, Kann Consrotium of Abuja Disco, and Aura Energy of Jos Disco noted that the proposed interim rule is yet to make provision for adequate liquidity in the firms’ operations.
He argued that Discos needed more than what NERC stated in the proposed rule, covering overhead and total cash transactions, Transmission Service Provider (TSP) costs and interest payments on the debts drawn from banks to acquire the assets during the estimated four months of interim operations.
*Simon Echewofun, Daily Trust