States Begin Power Distribution Jan., Says Nerc


By John Ofikhenua, Abuja 2 hours 24 minutes ago

Sam Amadi
The 36 state governments of the Federation will next month get the statutory right to generate and distribute electricity from their domain.
Chairman, Nigeria Electricity Regulatory Commission (NERC), Dr. Sam Amadi, disclosed this yesterday in Abuja at a stakeholders’ workshop on the review of the Independent Electricity Distribution Network draft regulation.
He said this would be actualised when the commission’s new set of regulations guiding Independent Electricity Distribution Network Operators and Power Generators becomes operational.
According to the commission, an Embedded Generation is when a power plant is built in a particular locality and not connected to the national grid for transmission.It is a situation whereby the generated capacity is connected directly to the distribution network.
A t presently, the Federal Government has the exclusive right of power generation and distribution for commercial purposes,　 except for some companies that NERC licensed to produce limited power for their industrial applications.
Amadi disclosed that as the regulation is takes off to take effect from next month, 　it is also expected that states with the capacity to generate power in their domain will come forward to seek licenses for operation.
Explaining the method of operation of the new initiative, the chairman noted that it will ensure: "All the cost associated with transmission is bypassed. It is embedded with the distributor locally. It can cure acute shortages of power in the short and long run. A state that has the capacity can have partnership with private sector, set up a power plant to carter for the need of the state."
Amadi, however, said the regulation is predicated on the states’agitation for the removal of power from the exclusive list.
He cited Governor Rotimi Amaechi of Rivers State as one of the governors, who sought that states be allowed to generate their own power to help lift the country from power crisis.
The chairman said: "Instead of running parallel lines running through the cities, you can have power embedded in your state, if you have enough capacity. For instance, Rivers has sufficient capacity. Instead of taking it to the grid,　 you can have power embedded in the state and the surplus you can sell to the grid if you like. What is required is that you have sufficient capacity to distribute that power. That is why we are bringing these new regulations. The cost of evacuating power to the grid and later transmitted back for use locally will be removed."
The NERC commissioner, Legal and Licensing Services, Mr Steven Azinge, said the draft regulations are a product of painstaking effort with input from experts and relevant stakeholders.
Besides, he noted that another window of three weeks will further be opened to receive comments and suggestions from stakeholders for more input to improve the document.
He said the final regulation would be sent to the Ministry of Justice for gazzeting, while the regulation will come into force by January.

http://www.thenationonlineng.net/2011/index.php/business/28751-states-begin-power-distribution-jan-says-nerc.html

If this really happens. . . then kind of a big deal.

I hope my state governor is plotting how he will make power widely available.

Question though, are states mandated to sell the electricity they sell at prices set by the FG? Or can they charge what they like?

Imo even if they are forced due to FG regulation to sell electricity at a loss, they should see if it is feasible to just eat the loss and make up the money by increased taxes elsewhere.

NICE DEVELOPMENT,

Let's wait for the implementation, this will spur independent and corporate ownership of power generation, I see sound business ideas here.

Beautiful development. This will usher in a new era in state leadership. Na this period wey breeze go really expose fowl's smelly nyesh. We'll see how potent and true the respective governors have been with their bogus claims of 'bringing light' to their states.

Now I'm beginning to like GEJ's administration provided he does not forget my region.
He's taking difficult decisions head on: fuel subsidy removal and now States with ambition can provide electricity for themselves.

Good one!

ekt_bear:

If this really happens. . . then kind of a big deal.

I hope my state governor is plotting how he will make power widely available.

Question though, are states mandated to sell the electricity they sell at prices set by the FG? Or can they charge what they like?

Imo even if they are forced due to FG regulation to sell electricity at a loss, they should see if it is feasible to just eat the loss and make up the money by increased taxes elsewhere.

If prices are set by FG, then this is is DOA. Its the same reason we dont have refining capacity - no investor wants govt. set prices

birdman:

If prices are set by FG, then this is is DOA. Its the same reason we dont have refining capacity - no investor wants govt. set prices

that is an unintelligent assumption. The FG should regulate all social institution. You should be scared that foreign companies would buy up all the licences and control your countrie's power sector. If not for the stupidity and incompetency of nigerian leaders we all know that no sane country should ever attempt privatization of any state facility because you will ultimately end up with a privatised government.

birdman:

If prices are set by FG, then this is is DOA. Its the same reason we dont have refining capacity - no investor wants govt. set prices

This is my sense of things too. . . much harder to get things done if you aren't making a profit.

birdman:

If prices are set by FG, then this is is DOA. Its the same reason we dont have refining capacity - no investor wants govt. set prices

there has to be a form of control-( either by government intervention set prices, tax free incentives etc or competition between companies this would be harder and time dependent if u consider the number of companies that can afford the startup capital to generate electricity) else the people will get ripped aprt by the private companies case in point is the telecomms industry initial subscribers paid thru dia teeth to get sim, and we were informed that per second billing will be impossible to implement.

Finally, I can say I have contributed something to Nigeria's development. I am part of those who researched and came up with this recommendation. I hope the govt implements this and others. We are set to turn darkness to light!

This is the single most sensible thing that the FG has done since i was born (that is if it comes to past. i wonder if GEJ actually read my post on his facebook page.
River state can easily go into agreement with some of the major oil companies that already generate their own power with excess reserve to feed the neighbourhood and get paid for it, and if there is still left, rivers can sell to the grid and evrybody benefits.
With regards to Cost, it may be high initially if new facilities for transmissions are needed (cabling and transformers etc) but if the NERC then does it job well, the charges will eventually drop. With respect to maintenance, it will only get easier since the compaies generating wont get paid if there is no power unlike what we have now that everybody blames it on the National grid and invisible plants.

if this is true then many nigerians will be moving back to nigeria. There are so many business opportunities in nigeria but nothing can be done with electricity. I pray it happen asap

When news broke about FG banning okada, FG refuted it after some days.

Now, if this is truly what the FG is bent on implementing, one would expect a top senior govt official at least the minister of power or even FEC if not GEJ himself to break this news.

Are we sure FG wont deny this news in the days to come?

While this might sound like a great development, it is a single act that could contribute to division and major gaps in the lives of individuals living in different states and over population of major cities and states.

It should be the federal governments job to make sure all citizens in all parts of the country have access to basic amenities with appropriate distribution centres at regional and state level and down the channel etc. With this new development an allocation would have to be made in the budget and this is in contrasts to the policy of synergy which all countries are pursuing . Some states are more developed than others and have access to the resources that allow for efficient power generation and thus would develope faster robbing the poorer states off the industry causing overpopulation , super states would be created pilling a larger budden on the state, more people have to be managed , more roads need be built, we don't even have a sewage system (disease outbreaks would be potentially major) .

A central power generation and distribution authority should  be managed with respect for other aspects of society, but oga Jonah is so weak he can't hold the centre , his election to office is the single act that would cause the distraction of Nigeria with all the political calamities and social disturbance that have and will the place in the country *without adequate prompt and correct action* the man is daft, slow, easily corruptible, weak, indecisive, easily influenced.

What we are adopting is a mix of modular and central power gen and distribution. Let's have about 5 or 6 states with 100% power availability and we can spread the love from there.

efisher:

What we are adopting is a mix of modular and central power gen and distribution. Let's have about 5 or 6 states with 100% power availability and we can spread the love from there.

very reasonable input @efisher, well done
pls make contact on hi.savis@gmail.com
thanx!

This is great news makes coming back home sound interesting to me, but the price should be regulated by the government, here in the uk the government has a body who does that, the companies can't just increase prices they have to give good reason why they intend to increase the price and if the government feels it's ok they allow if not they don't, if we leave the thiefs in Nigeria to have control it would be way too expensive for the common man, seems the likes of
Lagos and rivers will benefit the most

interesting , this wd be very good,

If it's true,nice improvement.

Story Story Story, i need light period

sweet_gala:

While this might sound like a great development, it is a single act that could contribute to division and major gaps in the lives of individuals living in different states and over population of major cities and states.

It should be the federal governments job to make sure all citizens in all parts of the country have access to basic amenities with appropriate distribution centres at regional and state level and down the channel etc. With this new development an allocation would have to be made in the budget and this is in contrasts to the policy of synergy which all countries are pursuing . Some states are more developed than others and have access to the resources that allow for efficient power generation and thus would develope faster robbing the poorer states off the industry causing overpopulation , super states would be created pilling a larger budden on the state, more people have to be managed , more roads need be built, we don't even have a sewage system (disease outbreaks would be potentially major) .

A central power generation and distribution authority should  be managed with respect for other aspects of society, but oga Jonah is so weak he can't hold the centre , his election to office is the single act that would cause the distraction of Nigeria with all the political calamities and social disturbance that have and will the place in the country *without adequate prompt and correct action* the man is daft, slow, easily corruptible, weak, indecisive, easily influenced.

What is wrong with Nigerians sometimes. They must be the most cynical people on earth. Reading dooms day into everything.  Dont you learn from history? Does America or EU countries run central power agencies? You guys just talk utter bull crap and display terrible stu.pidity. A president does one of the best things any president has ever done for this country and something that even the opposition parties fully support and you come here and insult him for it and say complete trash. I guess you must be living in Ukraine or Tibet. This is something Nigerians have been canvassing for a long time and the military refused to do it because they benefited from the status quo!

The bolded is so stuuuuuuuuuu.pid! This in contrast shows the man is very intelligent, fast (inplementing this in less that a year of been officially sworn in, considering all the bottlenecks and policies involved in this and the constitutional implications), not easily corruptible (because this decision will deprive many politicians of chop), strong and bold (breaking the northern hold and liberating the SS to go developmentally crazy), very decisive and not easily influenced (Inmagine what this will do to Atiku's Mikano). And a 100 times more smart and intelligent than the most educated member of your generation will ever get. You are a completely irredeemable buffon!

4real:

This is great news makes coming back home sound interesting to me, but the price should be regulated by the government, here in the uk the government has a body who does that, the companies can't just increase prices they have to give good reason why they intend to increase the price and if the government feels it's ok they allow if not they don't, if we leave the thiefs in Nigeria to have control it would be way too expensive for the common man, seems the likes of
Lagos and rivers will benefit the most

Prices are always determined by the forces of demand and supply. Have you forgotten the phone industry so soon? Are prices going up or down? Just relax bro.

@themainboss I don't live in Nigeria so can't really say how the charges for the phone calls are but I am guessing it's getting cheaper because my cuz are spending more time making calls to ask me for money unlike when they use to flash lol am hoping my brother the next is Internet and Nigeria will be on the way up

Good News.

Great development and all in line with Fresh Air!

4real:

@themainboss I don't live in Nigeria so can't really say how the charges for the phone calls are but I am guessing it's getting cheaper because my cuz are spending more time making calls to ask me for money unlike when they use to flash lol am hoping my brother the next is Internet and Nigeria will be on the way up

Gbam! There is this impression some give on NL which is not actually true that politicians control everything. The truth is that the divide and rule fight between the North and South since independence has been the bane of everything bad in Naija. With policies like these in place, it doesnt matter what politicians think or do. They could not stop the phone revolution and they cant stop the energy revolution too. I bought my first phone, an Econet wireless line for 17k back then. When Glo arrived, they started giving out sim cards for nothing. Now call tarrifs are dropping like flies. It might take a little while, but competition will always drive prices down, not up. Thats why some of us support the fuel subsidy removal. Some have tried to paint the scenario that removal of fuel subsidy will make fuel sell at 150 a litre. Those are not true statements. Deregulation of the market will drive prices down, not up. It might start high just like the gsm thing, but it will eventually come crashing down. It's natural.

The govt should allow ND states to have direct ownership rights over the gas that would be sold to other states. The same should go for coal.
By the time GEJ is done with the country, we would have acheived true federalism by stealth.

Nice.

[size=14pt]Weldone efisher!
An NLer with real oomph![/size]

sweet_gala:

While this might sound like a great development, it is a single act that could contribute to division and major gaps in the lives of individuals living in different states and over population of major cities and states.

It should be the federal governments job to make sure all citizens in all parts of the country have access to basic amenities with appropriate distribution centres at regional and state level and down the channel etc. With this new development an allocation would have to be made in the budget and this is in contrasts to the policy of synergy which all countries are pursuing . Some states are more developed than others and have access to the resources that allow for efficient power generation and thus would develope faster robbing the poorer states off the industry causing overpopulation , super states would be created pilling a larger budden on the state, more people have to be managed , more roads need be built, we don't even have a sewage system (disease outbreaks would be potentially major) .

A central power generation and distribution authority should  be managed with respect for other aspects of society, but oga Jonah is so weak he can't hold the centre , his election to office is the single act that would cause the distraction of Nigeria with all the political calamities and social disturbance that have and will the place in the country *without adequate prompt and correct action* the man is daft, slow, easily corruptible, weak, indecisive, easily influenced.

My Oga , it is the likes of you that have left Nigeria underdeveloped where you want the backsliders to pull back the pace setters becoz the Fed gov must keep fed. character, provision of facilities etc  bla bla,
Please do make research and you find out that in countries where things work. It is the local government that really caters for those sort of needs. If a local govt or state cannot fend for the needs of its people, then the poeple should suffer it and be smiling or fight.
If  an LGA or state can provide all for its people then they should. Please do not drag us back

This is the kind of things we want to hear.

The cost of evacuating power to the grid and later transmitted back for use locally will be removed."

so will electricty be cheaper?

The NERC commissioner, Legal and Licensing Services, Mr Steven Azinge, said the draft regulations are a product of painstaking effort with input from experts and relevant stakeholders.
Besides, he noted that another window of three weeks will further be opened to receive comments and suggestions from[b] stakeholders for more input to improve the document.[/b]He said the final regulation would be sent to the Ministry of Justice for gazzeting, while the regulation will come into force by January.

so the regulation is not even ready, but we have an operational date?


where will ekiti get gas from?

Funny how things that can make the lives of everyday Nigerians better never actually get implemented. Just promises, promises,

But cassava bread, fuel subsidy removal, gay lynching laws etc are passed and approved with immediate effect!