Electricity “reforms” continue with the planned sale of 11 distribution companies. The FG had previously said that they would announce an electricity reform blueprint by the end of august. I am hoping that this is not all they plan to announce.
That being said, what difference will selling of the distribution companies make? For starters it should improve the efficiency of these companies. Get ready to pay your bills on time. It should also reduce distribution losses in the system. Less distribution losses means more profits for the companies and private companies LOVE profit.
I’m not entirely sure who will determine the rates that the final consumers pay. I hope its not the distribution companies because if it is then we will have a few expensive suprises in store. The only thing worse than a state monopoly is a private monopoly.
At the end of the day the sale is progress although it is not a fix to the problem. Addressing the pricing issues and the monopolistic tendencies is what I am really waiting to hear about. Think about it like taking panadol when you have malaria, it helps but it is not going to cure you.