Minister of Power, Prof. Chinedu Nebo
| credits: File copy
| credits: File copy
The
privatisation of the Nigerian power industry took a step closer to
completion on Monday with the handing over of share certificates to 13
investors who had earlier paid for the 14 electricity generation and
distribution companies.
President Goodluck Jonathan, who
distributed the share certificates to the core investors, said the
Federal Government had capitalised the Nigerian Bulk Electricity
Trading Company to the tune of over $750m so as to ensure the
successful operation of the companies by the private sector operators.
However, the handover of the
certificates to the investors was protested nationwide by the workers
of the Power Holding Company of Nigeria, who insisted that the
government had not fully addressed all labour issues.
The government, however, explained that
the new owners of the companies would have to wait till November before
they would be able to fully take over the firms so as to give it time
to settle all outstanding liabilities.
The NBET or Bulk Trader was
incorporated on July 29, 2010 to engage in the purchase and resale of
electrical power and ancillary services from independent power
producers and from the PHCN successor generation companies.
Thus, the company will purchase power
produced by the Gencos and resell to the Discos, which have the
responsibility to interface with the final consumers.
The responsibility of the NBET is to
assure the power producers that the power they produce will be
purchased and paid for without any delay; thus, the decision of the
government to capitalise the organisation ahead of the takeoff of the
private sector operation.
Jonathan said with the scheduled
handover of the electricity companies to the private sector operators,
things could only get better, adding that the nation had embarked on a
new journey that would usher the citizens into a destination of
enduring gain and fulfilment.
He said, “Going forward, this
administration is committed to providing all elements that are
necessary for our private sector partners to succeed in providing
Nigerians with uninterrupted power supply.
“To start with, the NBET, the
off-taker, has been provided with a capitalisation of over $750m,
positioning it to carry out its mandate without financial constraints.
Various options are being explored to fund the Transmission Company of
Nigeria so that it is able to implement the projects that are key to
stabilising and expanding the transmission grid.
“Arrangements are also ongoing to
ensure that the Nigerian Electricity Liability Company is adequately
funded to assume all of the liabilities associated with the
privatisation of the PHCN successor companies as well as other related
liabilities.”
The President said the new owners of
the Gencos were inheriting signed gas supply and transportation
agreements, a new phenomenon in the gas-to-power industry, thereby
moving the industry away from the prior status of best endeavour supply
and transportation basis.
He warned Nigerians not to expect a
power sector revitalised overnight, but added that they should look
forward to better times as they had with the liberalisation of the
telecommunications and banking sectors.
As the handover ceremony was taking
place, workers of the PHCN in different parts of the country staged
demonstrations over unsettled labour issues.
In Abuja, the workers gathered as early
as 7am at the former headquarters of the PHCN, which now houses the
TCN, with placards bearing various inscriptions condemning the handover
of the successor companies to the core investors.
The workers contended that it was wrong
for the government to hand over the Gencos and the Discos to private
operators without paying all workers their severance packages.
At the Oke Afa Business Unit in Isolo,
Lagos, the workers gathered early in the morning and sang solidarity
songs and prevented customers and other members of the public who had
business to transact in the office from gaining access.
In Ibadan, the workers locked all the
PHCN offices and accused the government of insensitivity to their
plight, vowing to resist the takeover of the company’s facilities by
the new investors.
At the head office of the Ibadan
Electricity Distribution Company on Ring Road, the workers blocked the
entrance, refused to go into their offices and carried placards to
protest against the government’s move.
The Vice-President, National Union of
Electricity Employees, Mr. Alamu Oloyede, said the union was unhappy
with the government, adding that despite the cooperation of the workers
toward the privatisation of the sector, their entitlements had remained
unpaid.
“We have nothing against the Federal
Government’s move but until all labour issues are settled, investors
are warned not to go near PHCN facilities all over Nigeria,” he said.
In Ilorin, the Kwara State capital,
members of NUEE staged a peaceful protest over the non-payment of their
entitlements and the inability of the government to regularise the
appointments of the casual and contract employees.
The workers locked up the PHCN offices
at Challenge and Baboko business units as early as 8am and prevented
people from entering the premises.
The Vice-Chairman, NUEE in the state,
Mr. Aderinto Adekunle, said in an interview with journalists that the
protesting workers were not against the privatisation of the PHCN
successor companies, but had vowed not to allow any investor to start
business until their entitlements were fully paid.
A similar scenario played out in Akure,
the Ondo State capital, where the workers marched through the streets
and locked up the gates of the PHCN District Headquarters.
The Chairman, NUEE, Ondo State chapter,
Mr. Clement Daudu, faulted the claim by the government that it had paid
the workers’ entitlements, saying it was “a propaganda employed by the
government to deceive members of the public.”
However, the Minister of Power, Prof.
Chinedu Nebo, explained in Abuja after the share certificates had been
handed over to the new investors that the physical handover of the
plants would take place later when the labour issues must have been
sorted out.
He said, “This entire reform has been
carried out ensuring that the welfare of the PHCN workers was fully
taken into consideration. It is in this respect and after months of
negotiation that we reached an agreement with the labour unions on all
pertinent issues.
“Out of the 47,614 workers who were
identified, we have completed the biometrics capture and related
validation of 45,156 workers. As of today, the severance benefits of
majority of that number have been paid, while others are being
processed.
“The payment of severance package and
pensions will continue throughout the month of October. The slight
delay in completing all the payments is due to the large number of
workers, the large sums involved and the need to take all needed
caution to ensure proper implementation before the eventual physical
handover of the companies.”
Nebo also said 55 Independent Power
Producers had applied to the NBET for Power Purchase Agreements. The
number is made up of three renewable energy IPPs, one coal generating
IPP and 51 gas powered IPPs.
source:punch.ng
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