Eight
months after the privatisation of the now defunct state-owned Power Holding
Company of Nigeria (PHCN), the Nigerian electricity market remains largely in a
state of limbo as it continues to operate under a set of government interim
rules, four months after the planned launch of the transitional electricity
market (TEM) was put on hold.
The
declaration of the TEM is expected to kick-start a fully contracted and
rules-governed electricity market wherein the sanctity of contracts shall be
full to protect market liquidity and incentivise increased investment.
The
TEM, which was originally scheduled to be declared on March 1, 2014, was put
off to ensure that all the conditions precedent before it comes on stream are
satisfied.
The
interim rules were developed and issued by the
