The Federal Government has been charged to totally deregulate the power sector and incentivise investors to put their money into all aspects of the electricity value chain.
Managing Director/CEO, Century Power Generation, Dr. Chukwueloka Umeh said total deregulation of the sector would bring about effectiveness and efficiency in the sector in addition to ensuring that electricity consumers have value for their money.
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Umeh speaking on Friday at a virtual dialogue on “The Dilemma of Electricity Tariff Regulation in Nigeria” noted that it is not the job of the government to set tariffs.
According to him, what the government should be concerned about is setting the regulations that would encourage investors to pump in their resources into the sector.
Total deregulation of the sector as was done with the telecommunication sector is the way to go if Nigerians must enjoy stable electricity and the right pricing, he reiterated.
It would be recalled that the Federal Government had recently put on hold the implementation of a new tariff by the electricity distribution companies amidst outcries and grumbling from consumers nationwide.
But the expert who is also an Executive Director with Nestoil, said complete deregulation remains the best solution as it would enable many investors to participate not only in generation, distribution but the provision of infrastructure required to stabilize power generation.
He lamented that the power sector recovery programme (PCRP) of the government has failed, saying it is high time government explore other alternatives.
“We should start thinking differently. It is time to take a very different approach. We need to completely deregulate the sector. Allow the sector to grow, give room for investors to come in and then regulate it,” he said.
Umeh noted that allowing private firms to be involved in metering consumers was a smart move by the government but restated that total deregulation which would attract more firms as was done with the telecom sector remains the best option.
