Power Dialogue: Consultant wants FG, stakeholders to change strategy
An energy consultant, Engr. Belije Madu, has charged the Federal Government and other stakeholders to change their communication strategy.
He made this known at the March edition of the monthly Power Dialogue, organized by Nextier Power, in Abuja.
Madu, who spoke on the topic, Market Design: Achieving Bankability in Nigeria's Electricity Supply Industry, said it is not proper to tell the consumer that there is going to be a tariff increase, because "we try to save money for the consumers, because self-generation is far more expensive than grid based or off grid supply.
“What we try to do is to bring tariffs to cost reflective levels such that we can supply you electricity 24/7 and you can keep away your generator."
He added that, "If it is not cost saving then it is not worth it, because if for instance you spend N50, 000 for your diesel generator, we should be able to give it to you at roughly N30, 000:00, or at least N40, 000:00, that is what makes it a good proposition for you. The essence is to make sure you replace your generators.
"The leadership of not just the minister of power, Babatunde Fashola, but the entire power industry, the Distribution Companies, DISCOs, Generating Companies, GENCO, Transmission Company of Nigeria, TCN, they need to change the dialogue."
Also speaking at the event, the Senior Adviser, Department of International Development, DFID, Keith Hammond, who spoke on "Utility Financing: Best Global Practices,” said that, "There are challenges in each of these areas. Probably the biggest single challenge is the amount of money being collected which is a function both of the tariff and collection losses. If enough is being collected the problems of splitting up the money and raising new capital become much more easily solvable.
The founder, Nextier Power, Patrick Okigbo, said the forum was created to share ideas on the power sector, seek solutions, platform for networking to bring people who have business ideas and those who have funding."