By Olamilekan FAWAS
Stakeholders of the power sector have urged the Federal Government to create an intervention module to address electricity debts to enable manufacturers benefit from the 2,000 megawatts (MW) under the eligible customer regulations.
Chairman Board of Directors, Manufacturers Power Development Company (MPDC) Limited, Engr Ibrahim Usman, made the call on Thursday in Lagos at a ‘Special Interactive Forum on the NERC Eligible Customer Regulations.’
Usman, represented the President Manufacturers Association of Nigeria, Dr Frank Jacobs, at the event.
He said the call became necessary because the regulations of the Nigerian Electricity Regulation Comission (NERC), disqualified manufacturers with outstanding debts from benefiting from the 2,000MW under the eligible customer regulations of 2017.
“The government needs to create a module by which this outstanding debt is put aside so that our members can enjoy these 2,000 megawatts of electricity.
TBI Africa reports that in line with the provisions of section 27 of the Electric Power Sector Reforms Act 2005, eligible customers are permitted to buy power from a licensee other than electricity distribution companies.
According to the NERC, a consumer whose consumption is more than 2MWh/h over the course of one month is eligible.
Usman said manufacturers in Nigeria, compared to other climes, were disadvantaged to compete internationally because they spent about 40 per cent of production cost on power generation.
Usman revealed that manufacturers had spent over 129 billion generating over 13,000MW alternative energy to stay afloat.
“We have great export potential from which foreign exchange and profit can be maximised if this issue of power generation is addressed,” he said.
He urged the government to find a balance between satisfying the electricity distribution companies (DisCos) and the manufacturers to ensure that nobody is shortchanged. He also suggested that full ownership of dedicated power lines built by manufacturers should be given to them.
Chief Technical and Commercial Officer, North South Power (NSP), Engr Roland Lwiindi, a generation company, said the customer eligibility allowed generation companies to sell power to unserved or underserved customers directly.
Lwiindi said the NSP was a vehicle which provided more reliable supply and efficient pricing terms depending on the point of connection for proper and adequate evacuation of the 2,000MW.
He added that they were also a hedge against future skyrocketing tariffs when the NERC issues a new tariff order.
General Manager, Corporate Finance and Corporate Development, NSP, Mr Joseph Kolapo, assured that 24 hours access to power supply as long as it was available in the grid.
“We assure up to 90 per cent of power availability as long as it is supplied to the grid.
Kinglsey Odu who represented the Minister of works, Power and Housing, Mr Babatunde Fashola, allayed the fears of the DISCOs who thought that the customer eligibility rule would kicked them out of business.
“The market is indeed a very large one. With the right initiatives, the monies lost will be recovered, confidence will be restored and more investors will buy into the scheme,” he said.
