Following the new law decentralising electricity, the Federal Government has expressed willingness to partner with states on power generation.
The Nigerian Electricity Regulatory Commission (NERC) said it would provide the regulatory framework for states to operate in the power sector.
The Fifth Alteration Bill No. 33 (Devolution of Powers) allows states to generate, transmit and distribute electricity in areas covered by the national grid.
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.”
He spoke during a two-day stakeholder workshop on the Constitutional Amendment and Electricity Act 2023, which began yesterday in Lagos.
The commission provided highlights of the event via its Twitter handle @NERCNG, monitored by our correspondent.
NERC Vice-Chairman/Commissioner, Market, Competition & Rates, Musiliu Oseni, believes the new Electricity Act has the potential of transforming the entire electricity supply industry.
He added,
“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 (NESI) was 4,078.3MW.
NERC Fourth Quarter 2022 Report said the average available capacity of 4,497.32MW was available generation capacity.
According to the report, 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.