The Federal Government says it has put in place mechanisms to ensure that tariff shortfall in the Nigerian Electricity Supply Industry (NESI) is completely defrayed by December this year.
Engr Belije Madu, of the Power Sector Recovery Programme (PSRP) Secretariat, disclosed this on Wednesday while making a presentation at a one-day workshop for media organised by the Nigerian Electricity Regulatory Commission (NERC) in collaboration with the Power Sector Recovery Operation (PSRO) Secretariat.
He observed that all though efforts have been on since 2005 to ensure the incremental recovery and growth of the country’s power sector, financing model had been missing in all documented reform policy including the Power Sector Reform Act of 2005.
He assured that the long years of experimentation of the sector is now over, as a credible financing plan for the PSRP Programme that identifies how tariff shortfalls will be paid and promotes sustainable growth of the Nigerian Electricity Supply Industry, has been approved.
“PSRP Financing Plan approved (November 2021): A credible Financing Plan for the PSRP Programme that identifies how tariff shortfalls will be paid and promotes sustainable growth of the Nigerian Electricity Supply Industry, was approved.
“Tariff shortfall payment has been cut down from a historical accumulation of N891billion to N247 billion in 2021, and programme is on course for elimination by December 2022″ he said.
Madu also stated that a Disco Performance Improvement Plans was approved and it became effective July 1st,2021.
The DisCos Performance improvement Plans that ensure DisCos Implement service improvements with measurable indicators, to track quality of service improvements and monitored by NERC, was approved and became operational, adding total PIP investments are envisaged to be approximately N871Bn across the 11 Discos, with funding from DisCos’ financing and Government interventions.
In his remarks,Engr. Sanusi Garba, Chairman, Nigerian Electricity Regulatory Commission (NERC), assured that the Federal Government is committed to ensuring an efficient electric power supply industry that will guarantee Nigerians adequate, reliable and affordable electricity.
He said:The Federal Government initiated the PSRP with the support of the World Bank to achieve the goal of Nigerians having access to adequate, reliable and affordable electricity in Nigeria.Notwithstanding the electric power supply industry is now private sector driven, its relevance to economic growth and industrial development will require strategic government interventions. At this developmental stage, the industry’s challenges require that hands be on the deck to achieve an efficient and effective electric power supply industry that we desire for our economic development”
He added that the objectives of PSRP to include the power sector’s financial viability, improve electricity supply reliability to meet the growing demand, strengthen the sector’s institutional framework, implement policies that promote and encourage investors’ confidence, and institutionalise a contract-based electricity industry.
One of the policy interventions of the Federal Government,he said, is the National Mass Metering Programme (NMMP).
The event witnessed a presentation on the PSRP, which outlined the programme objectives, plans, and the milestones achieved so far in its implementation. A significant part of the event is the launch of the PSRP websitewww.psrp.org.ng where the public, including the media, can get the latest update on the PSRP implementation.
The PSRP is a comprehensive reform programme to improve power supply, restore financial viability and enhance accountability and transparency in the power sector.
