Oil & Energy
Operator Set To Penalise Electricity Market Rules’ Defaulters
The Market Operator (MO), an arm of the Transmission Company of Nigeria (TCN), will henceforth penalise operators who fail to comply with the market rules in the Nigerian Electricity Market (NEM).
The Market Operator, Mr Moshood Saleema, announced this at a stakeholders’ workshop in Abuja last Thursday.
The Market Operator is the commercial administrator of the NEM.
It has the mandate of ensuring fair-play and non-discriminatory market administration to all electricity market participants.
Its major mandate is the administration on wholesale electricity market, including the activity of administration of settlement, in accordance with market rules.
Stakeholders operating in the market included Electricity Generating Companies (GENCOS,) Transmission Service Provider (TSP) Electricity Distribution Companies (DISCOS) and Nigerian Bulk Electricity Trading Company (NBET).
The workshop, with the theme “Eliminating Blame Games in Nigerian Electricity Market”, is designed to evolve measures of recovering revenue for the electricity value-chain in the country.
Saleema said that the meeting became necessary due to the infrastructure and liquidity challenges preventing the market from developing its potential.
He said lots of blame games were being traded in the market by the operators, adding that games had not solved the challenges in the power sector.
According to him, what will solve the problem is the collective ability to take appropriate actions within the various areas of the operators’ responsibilities.
He said that the operators had the responsibility of building an efficient and sustainable electricity market.
The MO also said that critical to the success of the market and the entire industry were issues of transparency and compliance with relevant rules and codes in the market.
He said that it was important that stakeholders played to the rules governing the market.
This, Saleeman said, would result in the ability of the sector to harness the huge non-utilised generation capacity.
He said abiding by the laws would help accelerate completion of critical transmission infrastructure projects, reinforcement and expansion of distribution networks.
On remittance by DISCOs, Saleeman said there was now a significant improvement on the transfer of revenue collected by the DISCOs on behalf of the chain.
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Delta Targets 120MW Power Boost, Moves To Cut Reliance On National Grid
The State Commissioner for Works (Rural Roads) and Public Information, Charles Aniagwu, disclosed this at a press conference in Asaba, weekend, noting that the initiative was part of wider reforms aimed at opening up the power sector to private investors.
Aniagwu, who was accompanied by the Executive Assistant to the Governor on New Media, Felix Ofou, said the state was exploring alternative sources of electricity to support businesses, households and communities while reducing pressure on the national grid.
He said the government was particularly interested in exploiting Delta’s abundant natural gas resources for power generation, pointing to the Kwale Free Trade Zone, which is part of the state’s special economic zone, as a major opportunity for investors.
According to him, prospective investors were taken to the zone during the state’s recent economic summit to enable them to assess the availability of gas as a key raw material for electricity generation. ComparePower Rates
The commissioner explained that generating more electricity locally would not only increase supply in Delta but also free up power on the national grid for use by other consumers.
Aniagwu cited the 8.5MW Independent Power Plant located behind the state secretariat in Asaba as an example of what could be achieved through alternative power sources.
He said the facility had enabled the secretariat complex to operate independently of the national grid, thereby making the electricity that would otherwise have been consumed there available to other users.
He added that the planned 120MW partnership with Supply Power would further strengthen the state’s electricity supply capacity and provide a more reliable power base for small and medium-sized enterprises.
Aniagwu said the state government was also intervening in areas traditionally regarded as the responsibility of electricity distribution companies because inadequate power supply could no longer be allowed to constrain economic development. LearnQuantum Physics
He identified the extension of the electricity grid from Abraka towards the Ndokwa axis as one of the interventions being undertaken to connect more communities to electricity.
The commissioner, however, raised concerns over the burden placed on communities that are often required to provide transformers and other electricity infrastructure, only for distribution companies to take over the facilities and subsequently collect electricity bills without adequately accounting for the investments made by the communities.
He said the state would continue to support efforts aimed at energising communities, noting that improved electricity supply would stimulate businesses, create jobs and help tackle social problems associated with unemployment and idleness.
On regulation, Aniagwu said the government was working with the Ministry of Energy and a committee set up to develop an appropriate regulatory framework for the state’s emerging power sector. SwitchEnergy Plans
He said the proposed energy commission would be responsible for regulating new electricity producers, determining appropriate tariffs and overseeing distribution networks.
The commissioner stressed that liberalising the sector required effective regulation to protect consumers and investors, adding that decisions on power distribution infrastructure, including the use of overhead or underground lines, must take into account the peculiarities and safety requirements of each location.
He warned that power expansion without adequate regulation could expose residents to electrocution and other hazards, stressing the need to protect electricity infrastructure while ensuring consumers were not subjected to unfair pricing.
Aniagwu said the state government’s broader objective was to build an efficient and sustainable electricity market driven by private investment and capable of powering businesses, households and communities across Delta State.
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