By Sebastine Obasi

If the assurances of the Minister of Power, Professor Chinedu Nebo are anything to go by, the much awaited transitional electricity market, TEM, would come into effect before the end of 2015.

The Minister had earlier this year given indications that the federal government has suspended the planned implementation of TEM, indefinitely when he said that the government is not concerned about the declaration of TEM, but is instead bothered about putting the right market conditions in place for the sector to thrive.

According to him, the new owners of the distribution companies (Discos) of the defunct Power Holding Company of Nigeria, PHCN, were responsible for the delay in the declaration of the Transitional Electricity Market, TEM.   He also explained that there  were no plans to remove the N700 fixed electricity charge per customer, in the next couple of years, saying that Nigerians will continue to pay the charges irrespective of whether there is power supply or not.

The Minister further said that the DISCOs needed to be sure of their ability to recoup their investment, especially through revenue collection. The TEM was initially slated to commence, March 1, 2014, after the initial postponement last year. The postponement was due to the fact that certain conditions were not met.

Nebo also blamed the delay in the implementation of the TEM on challenges in gas supply, inadequate transmission network and security challenges, especially in the protection of power installations and facilities.

However, speaking at the just concluded Power Nigeria exhibition and conference, held in Lagos, the Minister said that TEM would take off in a few weeks time.

“That would be in a few weeks time. The transition electricity market is going to kick off the contractual agreement and ensure that everybody plays his or her own role in a way that is governed by contracts which are legally binding.

“We know that it is going to help shore up investment. We don’t want the baby to be born prematurely, that is why we are hoping. We believe that by the end of the year we would declare the transition electricity market,” he said.

When TEM comes into effect, DISCOs are required to activate extant vesting contracts with the Nigerian Bulk Electricity Trading Plc (NBET), while generation companies (GENCOs), would  activate their power purchase agreements (PPAs). The gas supply agreements (GSAs) with gas suppliers would also be activated.