The federal government is working on a blue print that will radically transform its energy policy. The Business Day reports the plan is to give the private sector total control of the power industry by June 2011.

11 distribution companies, one transmission company and six generation companies will therefore be fully privatised by next year.

The paper reports the recently appointed power task force is working on the policy overhaul.

BPE, the company that sells state-owned, non performing companies, will dispose off all the viable assets to private investors. Business Day reports only assets of the power companies will be up for sale, in order to attract buyers.

The federal government is underscoring its commitment to the process by removing all labour related liabilities from the balance sheet of the companies, and has set aside N200-billion for this purpose.  

Problems in Nigeria's power suppy are a big hurdle for businesses. The installed power generation capacity in Nigeria is 6,000mw while the current available energy output is around 4,000mw.

It is estimated that the country will need about 12,000mw. Transmission and distribution networks are in poor state and will require complete overhaul.

Source: Business Day