Forum for Commissioners of Power and Energy in Nigeria (FOCPEN), which are representatives of of State Governments has sought the signing of interim Power Purchase Agreements (PPAs) for SubCos to buy energy directly from electricity Generation Companies (GenCos).
It is an indication that the State Governments are seeking the application of the eligible customer regulation of 2017 that makes it possible for customers to purchase energy directly from the GenCos.
In this case, the States are requesting for agreements to bypass the DisCos in the value chain.
According to a statement the forum issued from Abuja, “Such regulation may include a mandate for NBET to enter into direct or interim Power Purchase Agreements (PPAs) with SubCos.”
The forum also called on the Minister of Power, Chief Adebayo Adelabu to intervene and ask the Nigerian Electricity Regulatory Commission (NERC) and Enugu Electricity Distribution Company (EEDC) to restore electricity to the people of the state.
The EEDC had reduced energy allocation to the state owing to the decision of the Main Power Electricity Distribution Ltd to reduce band A tariff from N209/kWh to N160/kWh.
According to Main Power, EEDC has said implementing the adjusted tariff would cause a monthly loss of N1 billion. The EEDC has therefore reduced energy supply to the people of the State.
Responding to the situation, the FOCPEN stressed that “FOCPEN calls upon the Minister of Power, Chief Bayo Adelabu, to immediately intervene and prevail upon NERC and EEDC to reverse the power cuts and restore electricity to the people of Enugu State.”
The forum insisted that as the chief policy maker for the sector, the Minister must take decisive action to stop the lawlessness by DisCos who can arbitrarily and without consequence deprive citizens of electricity.
The forum also said NERC must develop appropriate regulations that would allow SubCos enter into bilateral contracts with GenCos to procure wholesale power from the national grid.
The forum said the current arrangement, where SubCos receive power through their HoldCos is an anti-competitive practice that limits their operational autonomy within SEMs and creates a potential for abuse, as evidenced by the current crisis.
