Seven new companies were yesterday created out
of NEPA generation unit as the authority prepares for its eventual
privatisation.
The generation unit which hitherto was
saddled with the responsibility of co-ordinating electricity generation in
the country would now be independently managed by chief operating officers.
The new companies referred to as GENCOS include
Niger Hydro Power Business Unit, Shiroro Hydro Business and Egbin Electric
Power Business Unit.
Others are Delta Electric Power Business unit,
Afam Electric Power Business unit and Sapele Electric Power Business Unit.
The News Agency of Nigeria (NAN) recalls that
the creation of the new companies was the major thrust of the federal
government electricity sector reform programme currently being implemented
by NEPA.
NEPA in January unbundled its distribution unit
into 11 companies and in April created a company out of its transmission
unit.
Speaking at the launching yesterday in Abuja,
Power and Steel Minister, Liyel Imoke said that the unbundling of NEPA into
different companies was geared toward achieving a reliable, stable and
efficient power supply system in the country.
Imoke, who said the services rendered by NEPA
was not commensurate with the expectation of Nigerians, stressed the need to
reorganise the authority to meet the yearning of the people as well as
justify government investment in the sector.
He said that the unbundling of NEPA would not
translate to higher tariff nor job cut as being speculated but would lead to
optimal efficiency.
�The unbundling of NEPA will provide the forum
for re-balancing of tariff, right sizing that will produce results,�� he
said.
Earlier, NEPA Managing Director Joseph Makoju
had challenged the new chief operating officers to brace up for the task
ahead.
He added that from 2005 the authority would
base its reward system on the Key Performance Indicators handed over to
them.
Makoju said that consistent performance would
be rewarded while non-performance would also be reprimanded.
In a presentation at the ceremony, the
Director-General, Bureau for Public Enterprises, Dr Julius Bala, said that
the launching was a major milestone in the nation�s power sector.
Bala said that the guiding principle of NEPA�s
unbundling remained electricity bulk trading between the various companies
ranging from transmission, distribution to generation.
He said that the development would to make the
sector attractive to investors as well as improve power supply in the
country.
�This trading arrangement is a major and
radical shift away from the way NEPA has carried out its business in the
past,�� he said.
The new companies are to plan and develop
business objectives based on corporate strategy set by NEPA headquarters.
