NationalMirror Handover of DISCOs, GENCOs to new owners by Our Reporter on Oct 4, 2013 | Posted under: Editorial The formal handover by President Goodluck Jonathan of share certificates and operating licences to the new private sector owners of 10 power distribution companies (DISCOs) and five power generation companies (GENCOs), the successor companies of the impotent and roundly corrupt Power Holding Company of Nigeria (PHCN) last Monday was, without doubt, a flattering turning point in the tortuous journey towards retrieving the nation’s power sector from the woods. It was, on the face of it, a demonstration of political will, like the president himself said, to pull through Federal Government’s power sector reform project, despite the stubborn insistence of PHCN workers to the contrary. Hopefully, the feast of inefficiency and endemic corruption in the sector would soon be over. The Jonathan administration deserves commendation even at this teething stage for taking the significant step in the process of the power sector reform, which commenced during the second term of ex-President Olusegun Obasanjo administration; and is currently being tackled headlong by Jonathan. To be taken cognizance of, too, were the protests staged by electricity workers against the handover, their grouse being FG’s inconclusive payment of their severance benefits before the government invited the new owners of the DISCOs and GENCOs to take over the power sector. Like President Jonathan advised, however, the workers should lament less about the escape of their cash cow – the PHCN, and reflect more on the “tremendous possibilities that the revitalization of the sector holds for the future of the country”. This is the time for the erstwhile PHCN workers to demonstrate patriotism by cooperating with all the actors in the privatization and reform process. But as it were, reports yesterday said the FG had resolved all labour issues related to the privatization of the PHCN; and that by the end of this week, about 38,000 workers yet to get their pay would receive same. Indeed, this is the time for the FG to prove its mettle and demonstrate faith in and commitment to power sector reform that it had so well propagated by resolving all the issues that had obstructed effective hand over of the power distribution and generation companies to the new investors. Thus, in addition to expediting action on the payment of the PHCN workers severance entitlements, other outstanding gray areas to resolve without further delay include among others, accurate pre-paid metering of electricity consumers, validation of the marketing operators’ settlement systems and processes, the creation of a dispute resolution panel to settle grievances in the power sector and the inauguration of the Transition Electricity Market-(TEM) for the electric power corridor. It is imperative, in our view, at this critical stage of power sector reform, for all stakeholders to cooperate with and support the government and the private investors to usher in an era of regular, efficient and fair pricing of electricity service to consumers and thus provide the fertile ground for rapid industrial and technological advancement of the country. It is important to warn, at this juncture, that the mere handover of the DISCOs and GENCOs would not necessary result in the successful completion of the privatization process. One of the likely impediments to the conclusion of the process would be precipitous changes of ministers in the Ministry of Power. It is very likely that had Professor Barth Nnaji not been politicked out of the said ministry, the handover of the DISCOs and GENCOs might have been completed long before now. We therefore, strongly advise that the power ministry should be spared the sweeping changes currently going on in Jonathan’s cabinet. A sudden change of power minister now would be counter-productive, as it could further delay or even complicate the consummation of the handover process. There is the urgent need to make reliable power infrastructure available as quickly as possible to stem the growing tide of unemployment and the incidental resort to violent crimes by many these days. With power infrastructure in place, industries and businesses that relocated to other neighbouring African countries like Ghana, et cetera, would prefer to return to Nigeria because of its large market. One of the keys that unlock the gates of development in modern times is enhanced electricity generation and distribution. Nigeria has overlooked this statement of fact for too long, and to its detriment.
Posted on: Fri, 04 Oct 2013 08:38:24 +0000
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