GENCOs, TCN, DISCOs deny households 5,000MW

…as sector records N2.2bn loss in one day

By Anthony Okafor

Despite recent upgrade of transmission and distribution infrastructure in the power sector, it witnessed yesterday, a significant drop of 153 Megawatts, MW, bringing the present capacity to 3,216MW due to constraints from insufficient gas supply, distribution and transmission infrastructure.
GENCOs, TCN, DISCOs deny households 5,000MW
GENCOs, TCN, DISCOs deny households 5,000MW

The development, which was attributed to the Generating Companies, GENCOs, Transmission Company of Nigeria, TCN, and Distribution Companies, DISCOs’ short coming in mitigating deficiencies in power supply to households, further led to loss of 5,000Mw of electricity in one day.

According to a report obtained from the office of the Vice President, Yemi Osinbajo, Power Advisory Team, the sector also recorded a total of N2.2 billion losses in the same day.

The report stated that a total of 4,992 MW was not generated due to inadequate gas as well as transmission and distribution infrastructure.

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A breakdown of the report shows that 2,031 MW was not generated due to unavailability of gas. It also indicated that 112.5 MW was not generated due to unavailability of transmission infrastructure, while 2,424.2 MW was not generated due to high frequency resulting from unavailability of distribution infrastructure.

Also, 0 MW was recorded as loss due to water management

Meanwhile, the Nigerian Electricity Regulatory Commission, NERC, has issued a notice on its intent to start a fresh extraordinary tariff review for TCN and 11 DISCOs.

In the notice, the commission asked for comments from members of the public within 21 days to be considered during the review process.

The notice read: “Section 76 of the Electric Power Sector Reform Act (EPSRA) 2005 empowers NERC to have adopted the Multi-Year Tariff Order (MYTO) methodology for electricity pricing.

GENCOs, TCN, DISCOs deny households 5,000MW
GENCOs, TCN, DISCOs deny households 5,000MW

“MYTO allows NERC to do minor review every six months and a major review every five years. It can however execute an extraordinary tariff review if any power firm seeks for it.

“Since February 2016 when the MYTO 2015 was implemented, no extraordinary tariff review has been done by NERC.

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“It only tried in September 2019 to reflect the minor review it did from 2016 to 2018 as that for 2019 pends. The Commission is in the process of a major review of tariff which could be implemented by January 2020.

“In instances where the utilities can demonstrate that industry parameters have changed from those used in the operating tariffs to such an extent that a review is required urgently in order to maintain industry viability.”


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