FG to Liase with labour Unions over Power Sector.

As the the federal government gears up to involve the private sector in the power sector, it has promised to engage labour unions in its power reforms agenda.

Bolanle Onagoruwa, managing director, Bureau of Public Enterprises, said this at a power reform workshop in Lagos on Wednesday.
"The Federal Government is committed to ensuring that the labour unions are carried along in our process and that adequate provision is made for the entitlements of workers. Due consideration has been given to the demands of the unions, and we are optimistic that negotiations will commence in the not too distant future," Ms. Onagoruwa said.


She had earlier stated that the list of companies who won the bid for the power companies would be released next month.
"It is important to state that the reform of the power sector presents enormous opportunities to transform the lives of Nigerians. We are humbled by the fact that we have been entrusted with this responsibility.
"We do not take it lightly, and we are committed to working hand in hand with all the stakeholders in the electric power sector to achieve the goals which the progenitors of electric power sector reform program and the current administration have set through the Power Sector Roadmap," she added.
Memorandum and proposal

She said pre-qualified bidders will receive an Information Memorandum and Request for Proposal and will be given access to physical and e-data room so as to be able to carry out physical due diligence.
They will also be issued with draft copies of the Multi-Year Tariff Order (MYTO) and encouraged to submit comments on MYTO. The bidders comments on MYTO will be subject of a conference to be organised by sector regulator, the Nigerian Electricity Regulatory Commission (NERC.)


Labour unions have expressed worry about the way the whole reform sector has been going on and have complained about the no dialogue, no negotiation attitude displayed by the government.
Joe Ajaero, the secretary general, National Union of Electricity Employees, said the workers are adamant that the electricity companies cannot be sold without first addressing the issues on ground.
He insisted that nothing can take place there, as one cannot transfer ownership without addressing the pending issues of the existing workers.

The power sector in Nigeria is characterised by gross inefficiencies in all segments of the value chain and failure to deliver its mandate.
The BPE says this could be attributed to poor operational performance, transmission and distribution infrastructure, low tariff, poor revenue collection, inadequate metering, poor billing and electricity theft.
Others are poor maintenance culture, ineffective regulation, inappropriate industry and market structure, unclear delineation of roles and responsibilities.

An estimated 100 million Nigerians are without access to electricity whilst the remainder receive low or irregular supply.
The Electric Power Sector Reform (EPSR) Act 2005, which was drafted to provide a legislative framework for the reform of the Nigerian power sector, removes operational and regulatory responsibilities of the electricity industry from the Federal Government.

It provides the legal backing for the unbundling of PHCN and the formation of successor companies to take over the various functions, assets, liabilities, and staff of NEPA.

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