Thursday, November 30, 2017 7.00pm / Proshare WebTV
Stakeholders in the Nigerian power sector reached a consensus that the “Cost Reflective Tariff” is the way forward for achieving a significant step in addressing the liquidity issues, amongst others in the sector.
This resolution was the outcome of the 2017 Price Water House Coopers(PwC) Power and Utilities roundtable in Lagos, which brought together key players from the public and private sector.
Setting the pace for the discourse, Mr Ian Aruofor the Deals Advisory Leader, PwC Nigeria shared that its recent survey across the country revealed that 40% of respondent received less than 5 hours of power a day, while 80% of respondents receive less than 10 hours of power a day and over 80% of respondents were willing to pay an increased tariff for uninterrupted electricity.
Aruofor speaking further asserted that the objective of the forum, was to move the conversation in the power sector, from enunciating the challenges and issues to taking ownership and focusing on the pathway to recovery in the sector.
Keynote speaker and Commissioner for Energy and Mineral Resources in Lagos Mr Olawale Oluwo acknowledged the efforts of the Federal Government in the “Power Sector Recovery Program” for a sector that is greatly challenged. The Energy Commissioner advocated a Value proposition that is credible, with a clear roadmap for the sector.
He called for a restructuring which should see the Federal Government privatize the Transmission Company of Nigeria, privatize the remaining power plants, the Nigerian Gas Company and the full divestment of the government holding in the generation and distribution companies through the stock exchange.
Mr Oluwo also called for the full implementation of the Cost Reflective Tariff structure, while the FG should assist States in the area of embedded power programs that will boost power supply in the country.
The Commissioner noted that Lagos was vital to Nigeria’s Power sector recovery as the major consumer of power and the planned leading net exporter in the country. He affirmed that the economic capital of Nigeria was focused on generating over 3,000mw for the State and the nation, while working assiduously to ensure the efficient interplay of the entire power value chain.
In terms of challenges he identified gas supply issues, which has to be addressed to witness a significant leap in power generation across the nation. Olawale Oluwo decried the fact that there was no law criminalizing power theft in the country.
Panelists at the roundtable explored the robust pathway to recovery in the power sector, examining the current policy drive of the Federal Government and the way forward. They all agreed that the “Cost Reflective Tariff” structure was one of the viable steps, to addressing the power sector liquidity issues.
The Managing Director, Sahara Power Dr George Oluwande asserted that the CRT was important because tariffs play a key role in attracting strategic investments into the power sector.
On his part the Deputy Director and Project Manager, Nigeria Power Sector Reform Programme, with the Bureau of Public Enterprises (BPE) Mr Amaechi C. Aloke said there is no running away from the CRT, considering the challenges in designing a multi-year tariff order(MYTO).
From the Distribution Company (Disco) perspective the MD, Benin Power Distribution Company Mrs Funke Osibodu noted that the CRT was key and believed that despite the political issues involved a proper reorientation programme should be organized for Nigerians, on the need for the electricity tariff review.