12 January 2015, Abuja – The Federal Government on Monday commenced moves to enforce all contractual agreements in the Nigerian electricity supply industry on operators in the sector.
This is coming as the Minister of Power, Works and Housing, Babatunde Fashola, officially inaugurated a monthly sectoral meeting for the operators in the industry.
In his welcome address at the meeting, which was held at the headquarters of the Transmission Company of Nigeria, the Permanent Secretary in the ministry, Louis Edozien, said the meeting was called to ascertain the level of compliance with contractual agreements in the sector.
Early last year, the Federal Government signalled the commencement of the Transitional Electricity Market and mandated the operators to live up to stipulated agreements and contracts in order to meet requisite obligations that would ensure sustainable power supply.
Since the start of TEM, the power distribution and generation companies have been complaining that the sector is not ready for this stage of the market.
But speaking at the inaugural sectoral meeting on Monday, Edozien stated that every player was expected to behave according to the terms of their contracts since the TEM had been declared.
He said, “This meeting is supposed to be a follow-up on our entering into a Transitional Electricity Market where everybody behaves in a contractual manner. So, we thought it expedient to invite the leadership of the operators of the industry to examine all the constraints we are experiencing in the industry in a very focused manner so as to operate a market-driven and contract-driven industry.
“And arising from the deliberation, we will begin to focus on how to resolve all of the problems one by one.”
Making further explanation on why the meeting was important for the sector, Fashola, who was later joined at the venue by the Minister of State for Petroleum Resources, Ibe Kachikwu, said the forum was approved by President Muhammadu Buhari and Vice President Yemi Osinbajo.