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Monday, July 15, 2024

NERC Sets July 1 for GenCos to attain 5GW Generation Capacity

The Nigeria Electricity Regulatory Commission (NERC) has approved July 1 for electricity generating companies (GenCos) to reach 5000 MW of electricity generation.

Speaking during an interaction with Journalists in Lagos on Wednesday, the Chairman, Nigerian Electricity Regulatory Commission (NERC), Engr. Sanusi Garba noted that the entire value chain of the power sector – Generation, Transmission and Distribution Companies of Nigeria has committed to signing a contract to deliver 5000MW of energy to electricity consumers from July 1, 2022.

He said: “This is the first time this kind of contract will occur among all parties. In the past, there have been complaints of lack of gas from generation companies, Discos complain of unpaid tariffs, and then the TCN would say also they transmit whatever they get. But now, the entire value chain has committed to signing contracts to meet the power needs of electricity consumers. GenCos will sign contracts with gas producers to buy gas to produce. We have also involved gas suppliers who are committed to making gas available. Under the contract, DisCOs are not allowed to buy less than 5000MW, and TCN has also said they can transmit at least 5000 megawatts. So this time around, there will not be a flop by any party.”

Garba said the DisCos would this time commit to making funds available for GenCos to pay for gas. On plans put in place to ensure compliance, Garba noted that there would be stringent penalties for non-compliance. “ Whoever does not meet up with their part of the contracts will be fined”, he said.

The NERC chairman added that the proposed contracts already have the support of the Federal Government and the Central Bank of Nigeria.

He listed major reasons for the recent grid collapses as vandalism of gas pipelines and attacks on transmission towers by vandals. On what the commission is further doing to stabilise the power grid, he said the Federal government was planning to invest in the national grid through capital expenditure to ensure stability. pat

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