Expect competitive pricing for power as BPE signs agreements with GENCOs, DISCOs investors

 

 

Preferred investors for the Power Holding Company of Nigeria (PHCN) successor companies on Thursday signed a series of Transaction and Industry agreements with the Bureau for Public Enterprises (BPE) which will bring them closer to taking control of the companies.

The agreement signing event held at the Presidential Villa Abuja, and marked a ‘near-end’ to the PHCN privatisation process which began in 2005 with the enactment of the Electric Power Sector Reform (EPSR) Act.

This was as the Bureau for Public Enterprises (BPE) urged Nigerians to brace up for an initial but temporary electricity tariff hike which would come when these preferred investors finally take over the running of the successor companies.

The agreement consists of 13 legal and industry documents to be executed as a condition for the closure of the privatisation transaction.

But to qualify for the signing, all preferred bidders had to post Bank Guarantees for 15 percent of the transaction value within 15 business days of notification from the BPE.

Atedo Peterside, Chairman, Technical Committee of the National Council on Privatisation (NCP) confirmed that all participating firms have posted duly verified and confirmed bank guarantees.

 

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