₦airaland Forum

http://www.vanguardngr.com/2017/05/consumers-now-free-buy-electricity-directly-gencos-fashola/


By Chris Ochayi
ABUJA – The Minister of Power, Works and Housing, Mr.
Babatunde Fashola, has declared that eligible power
consumers are now free to purchase electricity directly from
power generation companies, GENCOs.

Fashola
Fashola, by this major policy directive, has empowered the
consumers to buy electricity directly from a licensee other
than power distribution companies, DISCOs.


Explaining the development, which might not sound
favourable the to DISCOs, in Abuja, Head, Public Affairs
Department at the Nigerian Electricity Regulatory
Commission, NERC, Dr. Usman Abba Arabi, said, the
declaration was in line with provisions of Section 27 of the
Electric Power Sector Reform Act 2005.


He added, the provisions permitted eligible customers to buy
power from a licensee other than electricity distribution
companies.


Dr. Arabi stressed further that, “In exercising the power
conferred on him by the said Act, the Honourable Minister of
Power Works and Housing, directed the Nigerian Electricity
Regulatory Commission (the Commission) to permit four
categories of customers to buy power directly from a licensee
other than electricity distribution companies.


“The first category of eligible customers comprises of a group
of end-users registered with the Commission whose
consumption is no less than 2MWhr/h and connected to a
metered 11kV or 33kV delivery point on the distribution
network and subject to a distribution use of system
agreement for the delivery of electrical energy.

“The next category of eligible customers are those connected
to a metered 132kV or 330kV delivery point on the
transmission network under a transmission use of system
agreement for connection and delivery of energy.


“Other category of customers under the declaration consists
of those with consumption in excess of 2MWhr/h on monthly
basis and connected directly to a metered 33kV delivery point
on the transmission network under a transmission use of
system agreement.


“Eligible customers in this category must have entered into a
bilateral agreement with the distribution licensee licensed to
operate in the location, for the construction, installation and
operation of a distribution system for connection to the 33kV
delivery point.


“The last category are eligible customers whose minimum
consumption is more than 2MWhr/h over a period of one
month and directly connected to the metering facility of a
generation company, and has entered into a bilateral
agreement for the construction and operation of a distribution
line with the distribution licensee licensed to operate in the
location.


“The new policy directive is expected to bring into play new
and stranded generation capacities which may be contracted
between generation companies and eligible customers.


The declaration further provides that at least 20% of the
generation capacity added by the existing or prospective
generation licensee to supply eligible customer must be
above the requirement of the eligible customer and is
supplied under a contract with a distribution or trading
licensee at a price not exceeding the average wholesale price
being charged electricity distribution companies by the
Nigerian Bulk Electricity Trader Ltd.


“The conditions for the declaration of eligible customer is
subject to review by the Nigerian Electricity Regulatory
Commission from time to time.”

How do I buy directly from my house? Through Bluetooth?

DISCO,GENCO all we want is let there be light. Because I no understand this buying and selling for light.

seunpas:
How do I buy directly from my house? Through Bluetooth?

Don't mind the illiterate government.. The past government was just to satanic.. I hate GEJ for privatising power

seunpas:
How do I buy directly from my house? Through Bluetooth?

www.quickpower.ng

That is if you are in Abuja,Kogi,Nass or Niger and use pre-paid.

Click on the buy power option and just buy..It is as easy as ABCD

This is a fantastic news. People can now invest in GENCOs

xdos:
This is a fantastic news. People can now invest in GENCOs

Any investment to GENCO would be a 50 50 chance because of the unstable government policies. Good. Idea though

You think another successive govt would come in and reverse that policy? I dont think so.
I do also think that the govt would be working towards abolishing this 'higher than 1MW to National grid' policy.

ydass:
Any investment to GENCO would be a 50 50 chance because of the unstable government policies. Good. Idea though

This is a welcomed development, as it will give room for competition in the electricity sector, while aiding rapid improvement in electricity supply for the Nigerian populace. Incessant blackout will soon become a thing of the past in this country. Fashola is a conquerer.

xdos:
You think another successive govt would come in and reverse that policy? I dont think so.
I do also think that the govt would be working towards abolishing this 'higher than 1MW to National grid' policy.

That policy ehn is just terrible. I think it's 10 mw not 1 mw.

A very clear policy that would discourage any investment in the sector. I mean if not this insane policy, micro generation would have become popular in Nigeria where investors would build plants for affluent districts like say Lekki, Ikoyi, VI and take them off the national grid, allowing more power to be available to other less affluent districts

I think it is the best act comes to played out the monopoly distribution in which the disco had form gang against common end user. With this a town can undertake her course of electricity directly big and cooperate bodies can coming in to takeover a lot of untapped areas and the disco stiff competition.. I love this act.. break bone line..

Oh 10MW.. I'll confirm that. The funny thing is our transmission system is not strong enough to evacuate all energy generated by the GENCOs. For instance, take a trip to the power plant at Odukpani in Calabar. There are 5 gas turbines there each with a baseload capacity of 115MW but you'll only find 2 Gas turbines running at max 3.
There is this power purchase agreement being practised in the states. The govt has an agreed amount bin paid to the power plants for a sizeable MW generated but anytime the power plant fails to generate that MW, they pay back to the govt. So this keeps the MW on their toes.
I hope they implement same here.

Our states should be allowed to generate their own power too. I think this would go a long way too.

PapaBrowne:
That policy ehn is just terrible. I think it's 10 mw not 1 mw.

A very clear policy that would discourage any investment in the sector. I mean if not this insane policy, micro generation would have become popular in Nigeria where investors would build plants for affluent districts like say Lekki, Ikoyi, VI and take them off the national grid, allowing more power to be available to other less affluent districts

Fashola shuld please give us PRE PAID METER
All we want is pre paid meter..He will be remembered for that.

This is a very wonderful policy if implemented. A Situation where DISCOS like BEDC would have the opportunity to buy enough power to satisfy states they service for 24hours but refuse to do so because of capitalism (they want to make excess profit), this is the kind of policy that will break that wickedness. TCN on several occasions have cried out that they have enough power for less industrialized states like Edo, Delta, Ondo etc that BEDC covers, but this company refused to buy why? Because they buy little power, give companies (e.g Guinness, hotels and some Chinese firms in Benin) on the 33kva line almost 24hours of power and share the insignificant reminder to households using massive load shedding arrangements which in turn kills small scale businesses which are the driving force of the economy today.

When asked why they carryout such ungodly arrangement, they start singing the hit single "energy theft". They complain that consumers are stealing energy hence this "punishment". The same BEDC rolled out prepaid meters that are mounted on power poles to prevent energy theft. Initially, the pace of the installation of these prepaid meters was fast, when they realized that due to lack of power, the sales of token was not commiserate with what they normally get during the fixed charge era and from estimate bills they give to households without the prepaid meter (those with analogue meters), they deliberately slowed down, the installation of the pole mounted prepaid meter.

Government need to break the monopoly further by giving license to small scale power vendors like what is obtainable in India to bring Nigeria out of this power crises that has being plaguing us for years. This is the 21st century for God sake. We need to think outside the box and stop this centralization of power, not all power generated must go through a centralized power grid. Individuals with the capacity can obtain license to generate and distribute power in selected areas, villages, towns etc.

When power was to be privatized, the selling message the government gave to use was the telecommunication sector with the introduction of GSM in Nigeria. They said power would be like that with many players coming into the sector hence driving competition, when it was finally privatized, the story changed, they said we cannot remove total monopoly in the distribution of power, because different companies cannot start mounting their poles on the same streets, so that consumers cannot have their choice of companies to buy power from. For me, that is not thinking outside the box, we could have different companies as DISCOS in a state, they will all run conduit cables and have points where consumers that want to buy from them can be connected to. If a consumer is not satisfied with the services of a particular disco, he changes to another one. That is the only way this Discos can sit up. If a disco refuses to buy more energy from transmission and the other buys more, a consumer has the choice to change his Disco. They don't have to mount electric poles all over the places to achieve this.

This rocket scientist with his lies again. Who believes this guy?

naijaboy756:
www.quickpower.ng

That is if you are in Abuja,Kogi,Nass or Niger and use pre-paid.

Click on the buy power option and just buy..It is as easy as ABCD

The most convenient way to recharge

obamartins:
This is a very wonderful policy if implemented. A Situation where DISCOS like BEDC would have the opportunity to buy enough power to satisfy states they service for 24hours but refuse to do so because of capitalism (they want to make excess profit), this is the kind of policy that will break that wickedness. TCN on several occasions have cried out that they have enough power for less industrialized states like Edo, Delta, Ondo etc that BEDC covers, but this company refused to buy why? Because they buy little power, give companies (e.g Guinness, hotels and some Chinese firms in Benin) on the 33kva line almost 24hours of power and share the insignificant reminder to households using massive load shedding arrangements which in turn kills small scale businesses which are the driving force of the economy today.

When asked why they carryout such ungodly arrangement, they start singing the hit single "energy theft". They complain that consumers are stealing energy hence this "punishment". The same BEDC rolled out prepaid meters that are mounted on power poles to prevent energy theft. Initially, the pace of the installation of these prepaid meters was fast, when they realized that due to lack of power, the sales of token was not commiserate with what they normally get during the fixed charge era and from estimate bills they give to households without the prepaid meter (those with analogue meters), they deliberately slowed down, the installation of the pole mounted prepaid meter.

Government need to break the monopoly further by giving license to small scale power vendors like what is obtainable in India to bring Nigeria out of this power crises that has being plaguing us for years. This is the 21st century for God sake. We need to think outside the box and stop this centralization of power, not all power generated must go through a centralized power grid. Individuals with the capacity can obtain license to generate and distribute power in selected areas, villages, towns etc.

When power was to be privatized, the selling message the government gave to use was the telecommunication sector with the introduction of GSM in Nigeria. They said power would be like that with many players coming into the sector hence driving competition, when it was finally privatized, the story changed, they said we cannot remove total monopoly in the distribution of power, because different companies cannot start mounting their poles on the same streets, so that consumers cannot have their choice of companies to buy power from. For me, that is not thinking outside the box, we could have different companies as DISCOS in a state, they will all run conduit cables and have points where consumers that want to buy from them can be connected to. If a consumer is not satisfied with the services of a particular disco, he changes to another one. That is the only way this Discos can sit up. If a disco refuses to buy more energy from transmission and the other buys more, a consumer has the choice to change his Disco. They don't have to mount electric poles all over the places to achieve this.

I agree with you, but I don't think this policy is sustainable. It will simply cost the discos a lot of revenue. Because any industry close to a genco will simply connect power lines and buy directly at even a cheaper and more available rate. Especially with the way the discos keep rejecting the generated power.