Power Operators Urge Govt to Develop Capacity to Buy Power From GenCos


Power sector operators have advised states governments to develop capacity of becoming “eligible customers’’ to procure premium power direct from Generating Companies (GenCos).

The operators also encouraged states governments to appoint energy advisers to ensure understanding of the sector before formulating power policies.

These were part of resolutions of a communiqué issued by the operators at the end of their 16th monthly meeting hosted by the Niger Delta Power Holding Company (NDPHC) at the Ugwuaji 330/132 KV Transmission Sub-Station in Enugu.

A copy of the communiqué was obtained by the News Agency of Nigeria (NAN) in Abuja on Tuesday.

The meeting, attended by the Minster of Power, Works and Housing, Mr Babatunde Fashola and other operators, also observed that Nigeria Electricity Regulatory Commission (NERC) was conducting consultations with stakeholders to operationalise the customer eligibility decision.

The communiqué said that certain steel companies and GenCos had shown clear interest to ensure undelivered power was purchased by industries that need it.

According to the communiqué, Distribution Companies (DisCos) have been encouraged to improve service, as customers benefitting from the efficiency of some DisCos will be unwilling to leave their coverage.

This, the communiqué said was in spite of the introduction of eligible customers’ power purchase option.

It urged the DisCos to bring up their observations and concerns about the eligible customer declaration so that they could be addressed.

The Federal Government had recently through the NERC announced that GenCos would be free to generate and sell electricity direct to end-users across the country.

The government’s decision tagged; the ‘Eligible Customers’ Regime, is in line with the Provisions of Section 27 of the Electric Power Sector Reform Act 2005 (EPSRA).

The communiqué also said that progress was being made in the incremental power drive of the sector.

The communiqué said Azura 450 MW power plant was on course and expected to be completed by the first quarter of 2018.

According to the communiqué, 160,000 households are expected to benefit from a more stable, effective and efficient power sector delivered by the commissioning of the rehabilitated power plant.

It revealed that NDPHC had made considerable progress on the Okija Distribution Sub-Station as a transformer was being installed in Okija town.

It also said that progress was being made on the Alaoji to Onitsha transmission sub-station.

“The line would bring power to the vital industrial clusters of Ihiala, Nnewi, and Orlu communities in Imo and Anambra States.

“The transmission line would also supply light to Onitsha metropolis when completed in first quarter of 2018,’’ it said.

According to the communiqué, NDPHC announced that projects to supply power to the Omotosho community are expected to be completed by third quarter of 2017.

The communiqué said operators noted that  transparency in the sector must be fostered by allowing information sharing between Transmission Company of Nigeria (TCN) and DisCos regarding energy delivered.

It also announced that TCN had made progress in grid improvement, as compensation payments for Makeri – Pankshin line had been completed, adding that the project would be completed in fourth quarter of 2017.

“TCN also revealed that Gombe injection sub-station was completed on May18, while work at Ikeja West injection sub-station was in progress.’’

It said that Benin DisCo had begun the process of reconnecting the Okitipupa community and Ikaram/Egedegede, Ibaramu, Ikakumo, Ise, and Ipese.

The communiqué also noted that Auga town had already been reconnected, adding that other reconnection process for other towns in Benin axis was on-going.

According to the communiqué, petitions from Agulu town in Anaocha Local Government Area of Anambra and Ajijedidun/Abiola Alao Landlord Association have been forwarded to Enugu and Eko DisCos for review and swift response.

Source: The Nation

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