Following the recent permission for eligible customers to buy electricity directly from the electricity generation companies ( Gencos), the Transmission Company of Nigeria (TCN) has assured the power producers of the capacity to transmit 6,000Mega Watts ((MW).
The Executive Secretary, Association of Power Generation Companies (APGC), Barrister Joy Ogaji, made this disclosure to journalists in Abuja Wednesday.
According to her, the TCN has always recorded stranded 2,000MW that is readily available for eligible customers.
She explained that power for eligible customers will not in any way affect residential customers that are willing to pay for power since the sector will simply resort to sending out the stranded 2,000MW.
Ogaji revealed that by this week, the Nigerian Electricity Regulatory Commission will come up with a framework on the provision of electricity for eligible customers.
She noted that the Gencos are owed nearly N600billion, while they are in turn owing gas producers N200billion. This, she said, has degenerated to a situation of cash and carry gas that has further culminated in the shutdown of some of the power plants.
Commending the Federal Government on the permission for eligible customers to get power directly from Gencos, she recalled that “over three years after privatization, the 11 distribution companies have enjoyed the monopoly of bulk power purchase and are still unable to distribute and account properly for power purchased and distributed, while we have Gencos stakeholders, who are potentially competitive entities, waiting desperately to sell more power as well as end users willing to buy more power for residential, commercial and industrial use.”
She also noted that the declaration does not in any way spell doom and gloom, stressing that Gencos can now sell power to suppressed load centres there by making up dwindling revenue and pay their gas suppliers.
Customers, according to her, now have the permission to cooperate amongst themselves providing the enabling environment and infrastructure to be classified as “eligible customers.”
She said that the idea means investing in the right infrastructure such as meters, power lines transformers and electrical switch gears.
Ogaji submits that the declaration “portends several benefits for the sector as it will also address some of the liquidity and revenue shortfall in the sector as guaranteed cash flow will definitely boost the morale for potential investors in the area of gas field development, power generation capacity and also in the manufacturing industry with assurance of constant power supply to meet production demand.”