Measures taken to protect investments against regulatory changes, the risk of losing invested funds and guaranteeing electricity trading through a state-owned bulk power purchaser were meant to reduce business risk and improve profit margins,
"We're looking at an industry where the decision to invest will not be determined by risk but rather by profitability," he said.
In September last year President
The regulator licenses power generating and distribution companies, and regulates prices and transactions among companies in the industry. Investments are covered by
"We'll move from scarcity to choice, where five or six years down the line we'll be thinking about unbundling the retail component, separating distribution from retailing," Amadi said.
The agency also has in place regulations that allow off-grid power producers, such as manufacturing companies that generate their own power and alternative energy producers, to supply the excess to the national grid, Amadi said, adding that distribution companies just entering the market "will be more willing to seek out" these producers.
Blackouts are a daily occurrence in
To boost electricity output to 10 000MW within five years, the unbundled power companies will need to spend an estimated
Some investors were holding back capital spending while seeking higher tariffs that would guarantee quicker returns, Amadi said.
"We're committed to ensure that the efficient investor or operator recovers all project cost."
Electricity output fell to 1 900MW last month after the rupture of a gas pipeline shut 50 percent of the total deliveries to power plants. Gas-fired plants account for at least 70 percent of electricity output in
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