- ‘Power Sector Challenges Require Long-term Solutions’
The problems facing the power sector require a long-term solution from the Federal Government, and not a short-term solution, Green Elec President, Marcel Hochet, has said.
In an interview, he said the sector is facing critical problems, such as paucity of funds, poor infrastructure, dearth of skilled manpower and other problems. He added that the problems need long-term solution if the government is desirous of taking the sector out of the woods.
He said the decision by the Federal Government to provide the power distribution companies (DisCos) a short-term loan of N700billion is a laudable one that is capable of solving some of the problems facing the operators.
He, however, said the loan paled into insignificance, when compared to the diverse and critical problems confronting the sector.
He urged the 11 DisCos not to depend on the N700billion to solve their problems, arguing that the money cannot solve all their problems.
He said it would be foolhardy of the operators in the power sector, to depend heavily on the N700billion to offset their debts and further improving their operation, adding that they need to devise other methods of improving their operation.
Hochet: ‘’I believe that the power firms, to the best of my knowledge, need long and pragmatic strategies to solve their problems. The strategies may be in form of providing a long-term loan to the firms among others. The loan would enable them to invest in long-term projects such as production of meters, sub-stations, transformers and others. They are long-termed facility, because the firms need to wait for some time for the projects to mature, in order to recoup their investments.’’
He said the power firms should be looking forward to investments in projects that would in the long run benefit the sector.
Hochet said failure of the DisCos to create new investments would be suscidal as they would not recover easily from the problems they are facing.
The Power Minister, Babatunde Fashola, at a forum in Lagos, said the 11 power distribution companies need N220billion to meter their customers nationwide.
He said each firm would need to N20billion to adequately meter customers in its network.
Also, the Executive Secretary, Electricity Meters Manufacturing Association of Nigeria (EMMAN), Mr Muhideen Ibrahim, said a metering conference is inevitable,if the DisCos want to address the issue of shortage of meters.
He said the sector needs huge funding to solve its problems, adding that it is through the conference, powe firms would get the support of local and international investors that want to invest in metering.
