Electricity concession agreement: More horizons opened to investors

The second electricity concession agreement signed between the government of Cameroon and the Energy of Cameroon, ENEO has redefined the roles of players in the production and distribution of electricity in the country.

This second amendment brings changes relating to the rehabilitation of the Song Lou-lou dam, the quality of services and connection plan.

It provides that the Song Lou-lou hydroelectric dam will be handed-over to the Electricity Development Corporation, EDC after rehabilitation.

The deal also provides that a new public corporation charged with the transmission of electricity in Cameroon will be setup to rehabilitate and manage the dilapidating electricity transmission lines.

Prior to the agreement, ENEO enjoyed monopoly in electricity production and distribution.

The documents were signed in Yaounde during a ceremony that saw the Minister of Finance and his counterpart of Water and Energy on the one hand and the Director General of ENEO on the other hand, give ENEO the mandate to adjust electricity prices.

One of the major reforms enunciated in the agreement is the introduction of private electricity producers thereby putting an end of monopoly in electricity production and distribution in Cameroon.

The redistribution of roles will however not affect the electricity production capacity of electricity from the different dams in the country. Song Lou-lou and Lom Panger will boast the national network with some 170 megawatts of electricity down from the projected 400 megawatts.

The insufficiency notwithstanding, the construction of the Kribi gas plant that was to inject some 160 megawatts into the network was suspended.

Energy generated from Memve’ele and Mekin will increase the country’s electricity potential to 1200 megawatts far less than the envisaged 3000 megawatts needed to meet up with Cameroon’s energy needs.

The revision of the contract with ENEO comes at a time consumers have been decrying the quality of services they get from the company.

Constant and unannounced power cuts, over billing and the lack of maintenance of meters are some of the problems of consumers.

The amendments, according to expectations should influence the quality of services rendered by ENEO and pave the way for competition in the electricity sector.