The ongoing power sector reform is no doubt
accelerating following compliances and successes at different stages
with an indication of a possible shift from reformation to regulation.
Most recently, 75% payment of the unbundled Power Holding Company of Nigeria (PHCN) Generation companies (Gencos) and Distribution companies (Discos) was made by the new owners. Analysts have described this as a major breakthrough in the annals of Africa's largest privatisation exercise.
With this acquisition, the Federal Government is faced with the herculean task of immediately handing over power firms to the successful owners and declaring open the Transitional Electricity Market (TEM), a much awaited stage by anxious owners and power sector stakeholders.
The Minister of Power, Professor Chinedu Nebo in his recent update on the power reform said about 70 percent of PHCN staff have been paid off to confirm speculation by the Presidential Taskforce on Power that, 2013 would witness the commencement and conclusion of payment of labour severance packages to former PHCN staff as part of the handing over processes.
While a huge number of the labour force is being laid off due to the reform, the big poser is that, another vast majority may face possible retrenchment or unemployment in the wake of a skyrocketing electricity tariff system. The National Electricity Regulation Commission (NERC) recently declared a full implementation of the Multi Year Tariff Order 2 (MYTO-2) which saw a huge number of enterprises squealing for help as the charges were taking their toll on them.
Nonetheless, the reform process is gravitating, with a shift from the National Council on Privatisation (NCP) and Bureau of Public Enterprises (BPE) which were in charge of bidding and other reform processes, to the regulatory and bulk market agencies.
Permanent Secretary, Ministry of Power and Chairman, PHCN Labour Committee, Ambassador Godknows Igali, last Wednesday declared open the commencement of formal registration of all National Electricity Regulation Commission (NERC) licenced market participants in the Nigerian Electricity Market. It opened up a gateway for the successful owners of privatised power firms to fully register under Operators of the Nigerian Electricity Market (ONEM) awaiting commencement of formal electricity business.
Most recently, 75% payment of the unbundled Power Holding Company of Nigeria (PHCN) Generation companies (Gencos) and Distribution companies (Discos) was made by the new owners. Analysts have described this as a major breakthrough in the annals of Africa's largest privatisation exercise.
With this acquisition, the Federal Government is faced with the herculean task of immediately handing over power firms to the successful owners and declaring open the Transitional Electricity Market (TEM), a much awaited stage by anxious owners and power sector stakeholders.
The Minister of Power, Professor Chinedu Nebo in his recent update on the power reform said about 70 percent of PHCN staff have been paid off to confirm speculation by the Presidential Taskforce on Power that, 2013 would witness the commencement and conclusion of payment of labour severance packages to former PHCN staff as part of the handing over processes.
While a huge number of the labour force is being laid off due to the reform, the big poser is that, another vast majority may face possible retrenchment or unemployment in the wake of a skyrocketing electricity tariff system. The National Electricity Regulation Commission (NERC) recently declared a full implementation of the Multi Year Tariff Order 2 (MYTO-2) which saw a huge number of enterprises squealing for help as the charges were taking their toll on them.
Nonetheless, the reform process is gravitating, with a shift from the National Council on Privatisation (NCP) and Bureau of Public Enterprises (BPE) which were in charge of bidding and other reform processes, to the regulatory and bulk market agencies.
Permanent Secretary, Ministry of Power and Chairman, PHCN Labour Committee, Ambassador Godknows Igali, last Wednesday declared open the commencement of formal registration of all National Electricity Regulation Commission (NERC) licenced market participants in the Nigerian Electricity Market. It opened up a gateway for the successful owners of privatised power firms to fully register under Operators of the Nigerian Electricity Market (ONEM) awaiting commencement of formal electricity business.
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