08 January 2015, Lagos — THE Ministry of Power is confident the Transitional Electricity Market, TEM, will increase performance and enhance discipline in the market.
With the commencement of TEM with immediate effect, all contracts entered into at privatization are to be activated and activities in the electricity market would carry the obligations outlined in the contracts.
According to the ministry, Prof. Chidi Onyia, the Chief of Staff to the Minister of Power, Prof. Chinedu Nebo, disclosed that while the benefits of the power sector reform are expected to be gradual due to decades of neglect suffered by the sector.
“It demonstrates that the power sector is maturing and advancing in the right direction under the right conditions, within the right environment,” Onyia is quoted as stating.
“All parties pay for services received and are paid for services rendered. Unlike before, there are consequences for market participants who fail to deliver on contracted services. It is expected that the activation of contracts will lead to market behaviour that will produce sustainable and comprehensive electricity supply to Nigerians.”
A statement by the Power ministry said on additional implications of this to Nigerian electricity users, Onyia said, “As it is in other climes, tariff will adjust automatically when there are changes in key market inputs such as gas within a regulatory framework.”
He added that tariff adjustments would attract investments into the sector.
“The National Electricity Regulatory Commission, in its role as the power sector regulator, will ensure that there is no abuse of market power or exploitation of its customers.”
*Okoro Chinedu – CajNews