Power sector’s future bleak – Dagogo-Jack

The Power sector is currently being threatened by challenges bordering on transparency at the retail end of the market, poor returns on investment, dwindling investment drives, perception concerns, among many others.

The Chairman, Presidential Task Force on Power, Mr. Beks Dagogo-Jack, said this while delivering a paper titled, ‘The power sector in focus’ at the Policy Dialogue on Power Sector forum organised by the Lagos Chamber of Commerce and Industry in Lagos on Tuesday.

He said some of the challenges were capable of impacting negatively on the commercial sustainability of the electricity market.

He said currently, the Interim Rules Order governing the market prescribed the minimum payments that each distribution company must produce and each generation company must receive.

These amounts, Dagogo-Jack noted, were meant to represent targets that were achievable and which when performed should be able to keep the market in shape on its progress to the Transitional Electricity Market stage.

The TEM is expected to kick-start a fully contracted and rules-governed electricity market wherein the sanctity of contracts shall be full to protect market liquidity and incentivise increased investments.

[Punch]

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