FG, states to partner on power generation
The Federal Government has stated its intention to partner with states on power generation following the new decentralizing electricity law.
The Nigerian Electricity Regulatory Commission said it would provide the regulatory framework for states to operate in the power sector.
The Fifth Alteration Bill No. 33,Devolution of Powers, permits states to generate, transmit and distribute electricity in areas covered by the national grid.
The Commissioner, Legal, Licensing and Compliance, Dafe Akpeneye, said, “NERC’s principle has always been that we will partner with any state or anybody that achieves the common goal of ensuring that the lights stay on.”
Akpeneye spoke during a two-day stakeholder workshop on the Constitutional Amendment and Electricity Act 2023, which began Wednesday in Lagos.
The commission provided highlights of the event via its Twitter handle @NERCNG,
The NERC Vice-Chairman/Commissioner, Market, Competition & Rates, Musiliu Oseni, while expressing optimism that the new Electricity Act has the potential of transforming the entire electricity supply industry, he said, “When it comes to nurturing the sector, states face important choices that come with implications.
“It is important for them to adopt a collaborative mindset, focus on load growth, prioritise quality improvements, prioritise customer satisfaction, and work towards improving liquidity.
“These considerations are key to supporting the sector’s growth and success.”
NERC also said that available electricity capacity is underutilised.
Oseni said, “Only 53 per cent of available (electricity) capacity is utilised due to challenges with gas supply, transmission and distribution constraints and commercial challenges.”
As of July 11, the total energy generated in the Nigerian Electricity Supply Industry was 4,078.3MW.
NERC Fourth Quarter 2022 Report said the average available capacity of 4,497.32MW was available generation capacity.
The report indicates that 75 per cent of the available capacity is gas-based, while the rest is from hydro as solar and biomass account for a very negligible percentage.
However, as of June 6, the installed generation capacity was 12,522MW.
The House of Representatives on Wednesday mandated its Committee on Power, when constituted, to invite the General Manager/Chief Executive Officer (CEO) of the Benin Electricity Distribution Company.
He will explain why the electricity blackout in Irele, Okitipupa, Ese-Odo and Ilaje Local Government Areas has persisted for 14 years.
The House also resolved to invite the Transmission Company of Nigeria to explain why the councils were disconnected from the national grid.
The House said it would liaise with NERC on the reconnection of the LGAs while resolving any disputes.
The committee is to report back within eight weeks.
These followed the adoption of a motion titled, ‘Need to Investigate the Electricity Blackout in Irele, Okitipupa, Ese Odo and Ilaje LGAs of Ondo State’ sponsored by Odimayo Okunjimi John.
The House observed that the primary responsibility of every government is to create enable environment for citizens to carry out their social and economic activities with little or no hindrance.
The House said it was aware that since 2014, most communities in Irele LGA, such as Ode-lrele, OdeAjaja, Akotogbo, lyesa, Ujusun, Ormi, Aturase, and Udogun have been in darkness.
Others in Okitipupa LGA are lgbotako, llutitun, lkoya, Ayeka, lgbodigu, lrinje, lgundan, ldobilayo and Big road area of Okitipupa, as well as Ese-Edo and Ilaje LGA.
The House was concerned that the action by the BEDC has brought untold hardship and misery to the citizens, as all Small and Medium Enterprises (SMEs) in these areas have folded up or collapsed due to a lack of electricity supply.
It explained the high cost of providing alternative power supply has disrupted the businesses of those who tried to brave the odds by using generators to power their activities.
The House was also concerned that children born 15 years ago to date in these communities do not know what public power supply is all about as they have never witnessed any form of electricity supply.
The House said the only means of power supply they know is either lamps, touches, candles or generators.
It said the situation has led to a massive loss of jobs for the locals, while the situation has adversely affected foreign exchange earnings by companies in the area.
