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Sunday, 14 February 2016

 FG to float power sector bond

By Adewale Sanyaolu

TO ensure that operators in the entire power sector value chain have access to finance, the Nigerian Bulk Electricity Trading Plc (NBET) has disclosed plans to float a power sector bond.

The disclosure was made by NBET at the second monthly meeting of operators in the power sector chaired by the Minister of Power, Works and Housing, Mr. Babatunde Fashola, in Lagos last week.

NBET purchases electricity from the generating companies through Power Purchase Agreements (PPAs) and sells to the distribution companies through Vesting Contracts. The generating companies include the recently privatised PHCN successor companies, the Niger Delta Power Holding Companies (NIPPs), the already existing Independent Power Producers (IPPs) and the new IPPs.

According to NBET, the bond will cover present and future projects until 2018.

The decision to float a power sector bond by NBET may not be unconnected with liquidity constraints, which had prompted the Central Bank of Nigeria (CBN) to provide operators with the N213 billion intervention fund.

Fashola equally announced plans to resolve all issues surrounding the inability of power firms to have access to gas.

The meeting, which had in attendance all operators within the power sector value chain, including top executives of the Nigerian National Petroleum Corporation (NNPC) and Nigerian Gas Company (NGC) committed to ensure that all obstacles in the gas to power initiative were tackled.

The power distribution firms at the meeting promised a more aggressive commitment towards metering of electricity consumers across the country, in a bid to address the issue of estimated billings while ensuring that consumers get value for money.

The power firms equally promised to have a robust customer-friendly desk, which would be customer centric and swift in resolving consumer complaints within a reasonable time frame.

On safety in the power sector, Nigerian Electricity Management Services Agency (NEMSA) emphasised the need to improve safety standards by Discos and their contractors in order to reduce accidents and deaths.

With the passage and signing into law of the Nigerian Electricity Management Services Agency Act, 2015, NEMSA said it has formally commenced the duties of ensuring the efficient production and delivery of safe, reliable and sustainable electricity power supply to guarantee lives and property in the sector.

The 7th National Assembly passed the bill, which former President Goodluck Jonathan signed into law on May 26, 2015.

NEMSA took over the functions of inspection, testing and certification of all electrical installations hitherto carried out by the Director of Electrical Inspectorate Services and the Electrical Inspectorate Services Division of the Federal Ministry of Power.



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