New Investors To Take Over PHCN 1st November

The Federal Government has said it will hand over the operations of the defunct Power Holding Company of Nigeria (PHCN) to core investors while implementing its interim market rules by November 1.

Presenting the draft rule to the core investors at the commencement of a two-day power investors’ workshop yesterday, the Deputy General Manager, Market Competition and Rates, Nigerian Electricity Regulatory Commission (NERC), Abdulkadir Shettima said the interim rules would be in place from November 1.
He said this would be done after the physical handover to guide Distribution and Generation companies till February 28, 2014 when the Transition Electricity Market (TEM) would have been declared.
Chairman of the Commission, Dr. Sam Amadi who responded to accusations by the new owners of championing consumers’ interest alone said: “In making rules we need to listen to all stakeholders, operators, experts and those that will be impacted by the rules. We will write the rules, and not the operators.”
Under the draft rules, Genco energy charge is fixed at 100 percent, capacity charge 45 percent while Disco fixed charge and variable cost is 20 percent, administrative cost is 100 percent of Multi Year Tariff Order (MYTO) 2 provision, return on capital 50 percent while assets depreciation is pegged at 10 percent.