The Minister of Power, Works and Housing, Babatunde Fashola (SAN), on Friday in Abuja explained that the new Multi Year Tariff Order due to commence on February 1 was aimed at correcting the whole system in the entire value chain of the power sector and remained the most viable means to achieve steady power supply in the country.
Fashola, who spoke in an interview with newsmen at the site of the 2 X 60 MVA 132/33 KV Sub-Station Kukwaba Power Project during a continuation of the nationwide inspection, verification and fact finding tour of projects under his ministry, said the ready acceptance of the new tariff order would also galvanize the sector and boost power sector investments, which would in turn usher in more development in the country.
This was in response to a question from one of the journalists who wanted to know if investors with interest in smaller power plants still had a role and a market in the power sector given the bigger generating plants inspected in the course of the tour.
The Minister, who took time to differentiate between the two power plants and a number of transmission sub stations inspected, said investors would only come into the sector if the pricing was right.
Fashola, who noted that he and his team have so far visited two power generating plants – Geregu I and II and transmission stations in Benue, Nasarawa, Plateau in Pankshin and in Abuja, said there was the need to distinguish between a transmission and a power station, adding that while power stations generate the power, transmission stations transport power to various parts of the country.
Pointing out that generation is now a commercial, private business, Fashola added: “Let’s understand that Geregu 1 is one of the plants that has been sold and Geregu 2 is one of the NIPP projects we are completing.”
He said government was no longer generating power “except with the NIPP plants that it is completing and handing over”.
He said: “There are two plants. One was grey, that’s Geregu 1, and has been sold, while the other was red and white, that’s Geregu 2.
“Geregu 1 has been sold just like the other power generating plants. The size of those power plants are quite impressive.