Jonathan inaugurates board of electricity trading company

President Goodluck Jonathan on Tuesday inaugurated the board of the Nigerian Bulk Electricity Trading Plc (Bulk Trader), with the minister of Finance, Ngozi Okonjo-Iweala, as chairperson.

Speaking at a short ceremony at the chambers hall of the Presidential Villa, Mr Jonathan told the board members that government expects them to use their experiences and skills to add value to the work "in our ongoing efforts to transform the power sector".

"As you know, the Bulk Trader is a critical component of the implementation of the Electric Power Sector Reform Act of 2005," he said. "The company is to 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 company of the PHCN".

He said it was regrettable that the country is faced with a situation where power distribution companies find it challenging to collect enough revenue from their customers to pay for power 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," he said.

"They will not be encouraged to invest in the sector. Our goal of generating enough power for our people may, therefore, not be reached."

Mr Jonathan also said government has to incorporate the Bulk Trader as a guarantor to boost confidence of potential investors that they will be paid for the power they generate and sell to distribution companies. "I, therefore, expect that you would carry out diligently the job of negotiating and signing of future contracts agreements with power producers,"

Mr Jonathan said. "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.

"This administration has placed a premium, not only on delivering more electricity per capita to people and businesses in Nigeria, but also ensuring that whatever power generated is faithfully transmitted and distributed and paid for. The distribution companies would, therefore, continue to put in place measures to ensure that everyone is provided with a meter so that they can capture the generated revenue and thereby ensure sustainable supply of electricity to the public."

Here to stay

He, however, told the board to demonstrate a greater degree of transparency in the way it works; so as to continue to attract the confidence of consumers and the goodwill of international partners, including the World Bank, which is providing a partial risk guarantee that will support the Bulk Trader Contract.

"Let me restate that the power sector reform has come to stay," Mr Jonathan said.

"This government shall continue to do all that is necessary to ensure that the process needed to transform the sector are not abridged in any manner or form. We are quite determined to conclude all processes that would lead to generation, transmission and distribution of improved steady stable and regular power supply to our people."

Mrs Okonjo-Iweala assured the president that the group would do their utmost "to use the instrument as one of the means to ensure progress in the power sector".