Search

 

Cablegate: Nigeria Approves Multi-Year Electricity Tariff

VZCZCXYZ0028
PP RUEHWEB

DE RUEHUJA #0840 1291556
ZNR UUUUU ZZH
P 081556Z MAY 08
FM AMEMBASSY ABUJA
TO RUEHC/SECSTATE WASHDC PRIORITY 2797
INFO RUEHZK/ECOWAS COLLECTIVE PRIORITY
RUEHOS/AMCONSUL LAGOS PRIORITY 9191
RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY
RHEBAAA/DEPT OF ENERGY WASHDC PRIORITY
RUEATRS/DEPT OF TREASURY WASHDC PRIORITY

UNCLAS ABUJA 000840

SIPDIS

DOE FOR GPERSON
TREASURY FOR RHALL AND DPETERS

E.O. 12958: N/A
TAGS: ECON ENRG EPET PGOV NI
SUBJECT: NIGERIA APPROVES MULTI-YEAR ELECTRICITY TARIFF

REF: ABUJA 402

1. (U) The Government of Nigeria (GON) approved a multi-year
tariff order (MYTO) allowing a rate structure that captures
the full cost of delivering electricity. Dr. Ransome Owan,
CEO of the Nigeria Electricity Regulatory Commission, told us
that the MYTO will provide the regulatory framework for
public private partnerships and encourage investment from the
private sector in Nigeria,s power sector. The MYTO
facilitates an orderly transition to a much more efficient
and reliable market-oriented power supply system. The
fifteen year tariff will begin implementation on July 1, 2008.

2. (U) The $1 billion subsidy will ease rate shock by
providing a phased subsidy that allows the full annual
revenue to be calculated; thereby providing the internal cash
flow for salaries, maintenance, repair, and investment in the
power grid. The first year subsidy is $364.1M, second year
$434.7M, and the final year $201.2M.

3. (U) Comment: Nigeria's electricity grid is on the brink of
collapse and the MYTO is a positive step forward. The tariff
is key for private sector participation since it reduces
regulatory risks significantly. One potential hurdle
remaining is that the supplemental budget appropriation may
not be passed before the rate is implemented. End Comment.
SANDERS

© Scoop Media

 
 
 
 
 
World Headlines

 

Werewolf: Gordon Campbell On North Korea, Neo-Nazism, And Milo

With a bit of luck the planet won’t be devastated by nuclear war in the next few days. US President Donald Trump will have begun to fixate on some other way to gratify his self-esteem – maybe by invading Venezuela or starting a war with Iran. More>>

Victory Declared: New Stabilisation Funding From NZ As Mosul Is Retaken

New Zealand has congratulated the Iraqi government on the successful liberation of Mosul from ISIS after a long and hard-fought campaign. More>>

Gordon Campbell: On The Current US Moves Against North Korea

If Martians visited early last week, they’d probably be scratching their heads as to why North Korea was being treated as a potential trigger for global conflict... More>>

ALSO:

Gordon Campbell: On The Lessons From Corbyn’s Campaign

Leaving partisan politics aside – and ignoring Jeremy Corbyn’s sensational election campaign for a moment – it has to be said that Britain is now really up shit creek... More>>

ALSO:

Another US Court: Fourth Circuit Rules Muslim Ban Discriminatory

ACLU: Step by step, point by point, the court laid out what has been clear from the start: The president promised to ban Muslims from the United States, and his executive orders are an attempt to do just that. More>>

ALSO:

 
 
 
 
 
 
  • Pacific.Scoop
  • Cafe Pacific
  • PMC