Kainji/Jebba Hydroelectric calls for cost-reflective tariff’
Chairman of The Board of Directors of Mainstream Energy Solutions Limited (MESL) Col Sani Bello (Rtd) has sought a cost reflective tariff in the Nigerian Electricity Supply Industry (NESI).
The company took over and operates the Kainji and Jebba Hydro Power Plants 10 years ago.
In his goodwill message at the NESI Participant and Stakeholders Roundtable 2023, Bello noted that the bane of the industry is lack of cost reflective tariff that should have afforded the industry liquidity.
He also said there is need to criminalise energy theft to deter perpetrators.
The chairman also noted that non-payment of electricity bills was affecting the industry.
He urged government agencies to endeavour to pay their bills.
His words: “The major challenges we continue to tackle with today is the lack of cost reflective tariff that will provide sustainable liquidity for the entire value chain.
“Strengthened laws and enforcement of these laws that will criminalize and deter energy theft as well as non-payment of electricity bills.
” We also implore that all arms of government and government agencies also pay all their invoices to the NESI.”
Besides, the chairman said multiple taxation, levies on the value chain have hindered the — growth of the industry and prevented the inflow of investments to the sector.
Bello said the ever-present liquidity challenge exacerbated by inflation and a dearth of foreign currency continues to affect industry operations.
He said: “While we acknowledge the effort of the current administration in trying to resolve and improve the foreign exchange environment, we look forward to a way out that will midwife an enabling environment for existing and prospective investors to thrive within the NESI.”
Bello noted that it has been a decade of challenges and achievements for this sector since 2013, when Nigeria decided on a private sector partnership to participate in the development of the power sector and in an effort to bring in critical Capital to finance and rehabilitate the Power infrastructures.
He noted that after a decade of the privatisation of the NESI, the Industry has evolved and has made positive strides and impact on the Nigerian economic landscape through investments in capacity recovery and capacity expansion thereby increasing the installed Industry Generation capacity.
According to him, a classic example in the Hydro Power space was when Mainstream Energy Solutions Limited (MESL) took over the Kainji and Jebba Hydro Power Plants with Kainji not in production and Jebba at 460Mega Watts.
He added that “we have rehabilitated both plants and currently having an available combined capacity of 1002Megawatts at both plants.
“A fellow Hydro company North South Power (NSP) has also achieved great strides in the rehabilitation of its plant.
“Hydropower currently accounts for about 30% of the power to the national grid.”
The chairman said despite these achievements in the sector, energy transmission and distribution still poses a severe challenge to a functional NESI due to the state of the infrastructure and requires significant capital to finance its rehabilitation and expansion.
He noted that the total generation installed capacity of about 13,000 Mega Watts is more than the Transmission capacity of 8,000 Mega Watts with the distribution sub-sector taking up less than 5,000 Mega Watts.
This, according to him, indicates the need for increased/enhanced investments in these sub-sectors of NESI to further boost energy supply to end users.
He said it will serve as the leading example to the populace to sustain and support the sector.
“As we celebrate this milestone of ten (10) years all stake holders are invited to remain resilient in their commitment to Nigeria’s industrialization Agenda to aid economic growth through the development of a vibrant power sector,” he said.
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