Though it has not publicly disclosed the content of a recovery plan – Power Sector Recovery Programme, it initiated to save Nigeria’s electricity market from collapsing, the federal government, through the Minister of Power, Works and Housing, Mr. Babatunde Fashola, on Tuesday disclosed that the programme has already taken off and was in operation, ThisDay reports.
Fashola, stated that the programme which the government developed in partnership with the World Bank, would correct the reported troubles of the power sector. According to him, the recent N701 billion payment guarantees government approved for power generation companies (Gencos), reconstitution of a board for the Nigerian Electricity Regulatory Commission (NERC) and Rural Electrification Agency (REA), as well as the declaration of an ‘eligible customers’ regime for the market, are some of the dictates of the recovery programme.
He also reiterated that government would not heed the call for cancellation of the power privatisation exercise, but will use the recovery plan to solve existing challenges in the exercise. He said going forward, government will punish operational acts that distort the market, adding thus: “These are some of the reforms that will ultimately improve competition, and wherever you have competition, really, you will have productivity. With competition, everybody can play, we set the rules and if you break the rules, we’ll blow the penalty.”