Electricity Commission calls
for private sector intervention in power crisis
By DESMOND MGBOH, Kano
Thursday, May 8, 2008
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Photo:
Sun News Publishing |
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The Chairman, Nigeria Electricity Regulatory Commission, Dr
Ransome Owan has said that the only way out of the current
power crisis in the country is for more private investors
to intervene in the energy sector, by complimenting the efforts
of the Federal Government, through the establishment of their
own power plants while, adding that government cannot do it
all alone.
“The thing we have to do is to encourage more individuals
to come into the energy sector and build more power plants.
If we do not manufacture electricity, we would not have electricity
at any price. The problem has been that we have not focused
on electricity as a manufacturing sector and because we haven’t
done that, demand has over stripped supply,” he declared.
Speaking to news men in Kano, Dr. Owan said that from their
assessment, the private sector would be very willing to invest
in the sector, if they are assured of the correct pricing
of electricity supply, adding that it is for the same reason
that the regulatory commission took up the matter with the
federal government.
“What we have done is to look at what it cost to produce
electricity and then once we determine the unit price of electricity,
we now went to government with a new deal’ he said,
adding that as a result of this, the federal government has
approved a new tariff regime, from N6 per unit to 11 naira
per unit of electricity, starting from July 1, 2008, adding
that it has also agreed to subsidize the new tariff over the
next 36 months, to the tune of 177 billion naira to cover
the shortfall that the average customer is not able to pay.
He added that after the first 36 months, government would
gradually begin to withdraw and allow the customers who have
seen the advantages of a regular power supply to take over
the cost of the pricing.
We believe that if we produce more power and stabilize the
power supply to the consumer, he would be willing to pay more,
he declared while adding that in that way the sector would
become supportive of its self.
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