It’s been quite a decade or more of passivity in the power sector and it seems like the entire country is a roller coaster. However, stability may have finally found its way to the country’s energy sector or so it appears.
The Federal Government and Organised Labour have taken on, for implementation, the report of the Technical Committee on Electricity Tariff (TCET). Labour and Employment Minister, Dr Chris Ngige, in a recent meeting, did announce that there would be substantial changes in relation to the power sector. One of the major highlights is to lower gas price which the generation companies use to power the turbines.
A reduction in gas pricing for gas sold to GenCos would automatically mean a decrease in the price of electricity per unit which will be very beneficial to consumers. Another resolution reached at the meeting is to have a representative of the labour union on the Nigerian Electricity Regulatory Commission (NERC); hence transforming TCET into a standing body to implement these new agreements.
If you quite remember, one of the major bottlenecks encountered by the power sector is the liquidity crisis. Well, this was equally addressed and the decision was taken to seize selling gas to GenCos in dollar given that they themselves (GenCos) sell in naira.
Nigeria currently stands as the 5th largest exporter of gas, with about 42 per cent of its annual production and has over 200 trillion cubic feet of gas in the country, the government ought to be able to fulfil the domestic component of the Nigerian Gas Master Plan and sustain its commitment to international buyers.
Finally, from all these resolutions being made, we can only hope it would unlock new levels and mitigate some of the challenges bedevilling the power sector, and in turn, create a more affordable and stable electricity tariff.