24 Aug 2011
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| CEO of Nigeria Bulk Electricity Trading Company (NBET) Mr. Rumundaka Wonodi |
President Goodluck Jonathan yesterday said the setting up of the Board of Nigerian Bulk Electricity Trading Plc was to encourage investors to generate electricity and recoup their investments so that the drive for power sufficiency in the country would be achieved.
Jonathan said the setting up of the board headed by Coordinator of the Economic Management Team (EMT) and Minister of Finance, Dr. Ngozi Okonjo-Iweala, was part of the critical steps in implementing the Power Sector Reform Act 2005 to transform the sector.
Other members of the board are Saka Isan (vice-chairman); Minister of Power, Prof. Bart Nnaji; Chief Executive Officer of the company, Rumundaka Wonodi; Director-General, Bureau of Public Enterprises (BPE), Bola Onogoruwa; Chief Executive Officer of Abuja Electricity Distri-bution Company, Abdulganiyu Umar; Hon. Mohammed Kumalia; Haruna Mohammed; and Paul Usoro.
The president explained that part of the reasons investors were reluctant in going into power generation in the country was the problem of being paid for the power they supply since distribution companies were unable to collect enough money to pay the generating companies for power generated and supplied.
“The new body, also known as ‘Bulk Trader’, will act as a catalyst for new investment into the power generation market. “The Bulk Trader is equally expected to stabilise the market for those already in the business especially at this time when we have embarked on the privatisation of successor distribution companies of the PHCN,” he said.
He said efforts were to be geared towards ensuring that more electricity per capita was achieved as well as see to it that whatever power that is generated is transmitted, distributed and paid for through distributors providing meter for those who consume power to pay for it which will complete the cycle of stabilising power in the country.
“We are unfortunately faced with a situation where our power distribution companies find it challenging to collect enough revenue from their customers to pay for powers they receive from generating companies. In this situation, potential investors do not have the confidence that when they produce and deliver power, they will receive payment; they will not be encouraged to invest in the sector. Our goal of generating enough power for our people may therefore not be reached.
“Government has therefore incorporated the Bulk Trader as a guarantor to boost confidence to potential investors that they will be paid for the power they generate and sell to the distribution companies. I therefore expect that you would carry out diligently the job of negotiating and signing of future contract agreements with power producers. I have every confidence that you will faithfully execute this mandate of serving as a Bulk Board against the potential payment default by distribution companies until they become financially strong to directly enter into power purchase agreement on bilateral basis,” he said.
He further insisted that the transformational drive that would see to stable power supply must come with a high degree of transparency and greater accountability.
Responding to the president, Okonjo-Iweala assured Nigerians that the move would make a great deal of difference in the production, distribution and sales of power, adding that it was the most difficult area to tackle in the economy but said that they would put in their best and ensure progress in no distant future.
SOURCE: ThisDay Newspaper, 24 August 2011. http://www.thisdaylive.com
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