Discos to Supply Stranded Electricity to Consumers

Fri, Apr 15, 2016
By publisher
4 MIN READ

BREAKING NEWS, Power

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Electricity distributing companies in Nigeria get permission from the federal government to supply stranded electricity to consumers to reduce the ongoing power outage in the country

By Anayo Ezugwu  |  Apr 25, 2016 @ 01:00 GMT  |

NIGERIAN government has asked electricity distribution companies to supply the stranded electricity in their locations to consumers in order to reduce the effect of the blackout currently being experienced all over the federation. It stated that this process would reduce the impact of the slump in power generation.

A few of the firms have signed agreements to source electricity from other available channels for onward distribution to their customers. Specifically, the federal government has asked Port Harcourt Electricity Distribution Company, Calabar and Ibom Power plants to proceed with their bilaterally negotiated agreement to supply stranded power of 150 megawatts to 250MW.

Stranded power is electricity that is generated but wasted or unable to be used because of where its source is located. The power firms got the government’s approval during the fourth monthly meeting of Babatunde Fashola, minister of power, works and housing, with the operators in Cross River State.

The ministry, in a communiqué made on Tuesday, April 12, stated that the Nigerian Electricity Regulatory Commission, NERC, informed the meeting of the activation of the agreement between Paras Energy and Eko Disco to provide 40MW to the Lagos area. NERC also informed the operators of the agreement between Ikeja and Eko Discos with Egbin Power Plant for dedicated electricity supply totalling 220MW.

The meeting, according to the communiqué, resolved that the Port Harcourt Disco and Calabar and Ibom Power plants could proceed with their bilaterally negotiated agreement to supply currently stranded power, starting with 150MW to 250MW. “The Port Harcourt Disco will invest in infrastructure in Akwa Ibom and Cross River to receive the power and deliver it to customers at the approved tariff,” the communiqué stated.

It added that operators in the sector reiterated the need for more aggressive roll-out of meters for all customers. “In this regard, Eko, Kano, Kaduna and Jos Discos confirmed plans to aggressively deploy recently procured meters starting from May 2016. The Abuja Disco assured the meeting that it planned to meter 100,000 households by the end of the year, and Port Harcourt Disco intends to install 110,000 by the end of the year.”

The ministry stated that the Transmission Company of Nigeria announced that projects critical to improving electricity distribution in Aja, Kebbi, Kafanchan, Otukpo, Makurdi, Wudil, Afam, Daura and Kwanar Dangora were either completed or nearing completion.

It said the meeting acknowledged the shortage of gas as a factor limiting output from power stations connected to the Escravos Lagos Pipeline System, and supported ongoing discussions between Fashola and ministry of Petroleum Resources to facilitate more gas supply and the repair of the Forcados Oil Export Line in order to ameliorate the gas shortage.

The Abuja Electricity Distribution Company, AEDC, used the opportunity to apologise to its customers over the drop in power supply from the Disco. It explained that the recent drop in electricity supply to customers in its franchise area in the Federal Capital Territory, FCT, Kogi, Nasarawa and Niger states, is as a result of low load allocated to the company.

In a press release issued by Ahmed Shekarau, its spokesman, the company said the drop in the energy allocated to it by the System Operator, SO, in recent times, follows the recent huge drop in national power generation.

The Disco, however, assured that all concerned players in the Nigeria Electricity Supply Industry, NESI, including the generation and transmission companies and the Transmission Company of Nigeria, TCN, were already working on the system with a view to restoring normal supply as quickly as possible.

While assuring that it will always distribute the load allocated to it by the System Operator as it is impossible to store electricity, the AEDC management appealed for the understanding of its customers.

—  Apr 25, 2016 @ 01:00 GMT

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