Oil & Energy
FG Dispels Fears Of Foreigners Dominating Power Sector
Fears that foreigners would take control of the nation’s power sector, post-privatisation have been dispelled by the Federal Government.
The Federal Government gave the assurance even as it has shifted the handover date of the privatized assets of the Power Holding Company of Nigeria (PHCN) to new investors to September 2013.
Making the disclosure during the commissioning of some injection sub-stations under Eko Electricity Distribution Company in Lagos last week, the Minister of Power, Prof. Chinedu Nebo said the gesture was part of government’s plan to promote local content in the nation’s power sector.
Nebo stated that workers of the PHCN would play prominent roles when new investors take over the assets.
He charged the workers to be committed to their duties and gear up to work with the new investors.
His words: It will not be acceptable, our people must be seen working with them. We have told the investors ahead of time to provide their work company structures and schedule ahead of time. While those of them who will bring foreigners should indicate their roles and positions they will be occupying, so as to involve Nigerians in their duties and dealings”.
According to him the final handover of the PHCN assets to investors which was fixed for next month has been shifted to September to enable them effect the payment of 75 percent balance on the assets.
“They have been given timeline of end September, 2013 to pay up and we’re hoping that by then, they will be through, but we are eager and gingering them to make it happened before that time. I am one of those that think that the revolution that would soon happen in the power sector will beat that of telecommunications”, Nebo said.
In his remark, the Chief Executive Officer, Eko Electricity Distribution Company Mr, Aladel Amoda, pointed out that funding has been a major challenge of the zone.
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Delta Targets 120MW Power Boost, Moves To Cut Reliance On National Grid
The State Commissioner for Works (Rural Roads) and Public Information, Charles Aniagwu, disclosed this at a press conference in Asaba, weekend, noting that the initiative was part of wider reforms aimed at opening up the power sector to private investors.
Aniagwu, who was accompanied by the Executive Assistant to the Governor on New Media, Felix Ofou, said the state was exploring alternative sources of electricity to support businesses, households and communities while reducing pressure on the national grid.
He said the government was particularly interested in exploiting Delta’s abundant natural gas resources for power generation, pointing to the Kwale Free Trade Zone, which is part of the state’s special economic zone, as a major opportunity for investors.
According to him, prospective investors were taken to the zone during the state’s recent economic summit to enable them to assess the availability of gas as a key raw material for electricity generation. ComparePower Rates
The commissioner explained that generating more electricity locally would not only increase supply in Delta but also free up power on the national grid for use by other consumers.
Aniagwu cited the 8.5MW Independent Power Plant located behind the state secretariat in Asaba as an example of what could be achieved through alternative power sources.
He said the facility had enabled the secretariat complex to operate independently of the national grid, thereby making the electricity that would otherwise have been consumed there available to other users.
He added that the planned 120MW partnership with Supply Power would further strengthen the state’s electricity supply capacity and provide a more reliable power base for small and medium-sized enterprises.
Aniagwu said the state government was also intervening in areas traditionally regarded as the responsibility of electricity distribution companies because inadequate power supply could no longer be allowed to constrain economic development. LearnQuantum Physics
He identified the extension of the electricity grid from Abraka towards the Ndokwa axis as one of the interventions being undertaken to connect more communities to electricity.
The commissioner, however, raised concerns over the burden placed on communities that are often required to provide transformers and other electricity infrastructure, only for distribution companies to take over the facilities and subsequently collect electricity bills without adequately accounting for the investments made by the communities.
He said the state would continue to support efforts aimed at energising communities, noting that improved electricity supply would stimulate businesses, create jobs and help tackle social problems associated with unemployment and idleness.
On regulation, Aniagwu said the government was working with the Ministry of Energy and a committee set up to develop an appropriate regulatory framework for the state’s emerging power sector. SwitchEnergy Plans
He said the proposed energy commission would be responsible for regulating new electricity producers, determining appropriate tariffs and overseeing distribution networks.
The commissioner stressed that liberalising the sector required effective regulation to protect consumers and investors, adding that decisions on power distribution infrastructure, including the use of overhead or underground lines, must take into account the peculiarities and safety requirements of each location.
He warned that power expansion without adequate regulation could expose residents to electrocution and other hazards, stressing the need to protect electricity infrastructure while ensuring consumers were not subjected to unfair pricing.
Aniagwu said the state government’s broader objective was to build an efficient and sustainable electricity market driven by private investment and capable of powering businesses, households and communities across Delta State.
