The last Power Dialogue of the year 2020 was held on the 17th of December and it was awesome! The discussion was centered on highlights of the year 2020 and projections for 2021 in the Nigeria electricity market. Kofoworola Olokun-Olawoyin, head Legal Advisory, and Contracts, Eko Electricity Distribution Plc moderated the event and key stakeholders such as the Nigeria Electricity Regulatory Commission (NERC), Association of Power Generation Companies (Gencos), and Distribution Company of Nigeria (DisCos) were represented.
Dafe Akpeneye, the Commissioner, Legal, Licencing, and Compliance, highlighted the achievements of NERC this year explaining that everyone in the power sector worked collectively in ensuring an adequate supply of electricity. The commission was able to implement service-reflective tariffs as individuals are ready to pay for power on the basis of the service provided and not on promises, he said.
Despite the covid-19 pandemic which affected all the sectors of economies around the world, NERC ensured that business continuity arrangement was made for all units within the power sector to ensure the provision of electricity to its customers while they were on lockdown. As the lockdown measures eased, the drive towards the implementation of service-based tariffs continued. The unit has acquired various intervention funds from the government to ensure Gencos get paid. In addition, the central bank of Nigeria also stepped in this year with the approval from the world bank released funding to ensure the financial obligations of the sector be met.
Dr. Adakole Elijah, Head of Corporate Communications at Jos Electricity Distribution Plc expressed that the DisCos experienced a pathetic situation this year. As a result of the pandemic, most plans they had set out to achieve was crippled. To maximise their efforts, structural readjustments had to be made. DisCos faced challenges with the collection of payments from customers. According to him, as of now, no DisCo has recovered from the effect of covid-19. He also projected success for the coming year as he explained that with the metering of customers around the federation and the work towards infrastructural stability, the power sector would function better.
Dr. Joy Ogaji, the Executive Secretary, Association of Power Generating Companies, who spoke on behalf of the GenCos, expressed bitterness towards the power sector. She explained that the year 2020 wasn’t any different from the previous years as it has been gloomy for the GenCos since the onset of electricity privatisation. According to her, investors regret investing in this sector and there is no policy directive for 2021. She said the power sector has been crawling since its privatisation and wonders if there is an actual energy demand in the country. According to her, it is saddening that the ratio of electricity generated to that utilised is very low. She however expressed hope that there would be improved transmission and utilisation of grid power.
To wrap up, 2020 has been an incredible year for the world and the power sector was not left out. The pandemic affected all units especially the DisCos. Despite these, the industry moved a step closer to implementing cost-reflective tariffs. The sector is optimistic about the coming year with all the work in progress and there are hopes to see an improved power supply, eradication of electricity thefts, and optimum utilisation of electricity generated.