- Engineering experts suggest solutions to Nigeria’s power supply predicament.
- They opine that reducing DisCos franchise areas to a state by state basis will improve supply.
In light of the persistent crisis in the power sector, the Nigerian Institute of Power Engineers (NIPE), yesterday, suggested a reduction of the distribution companies (DisCos) franchise areas to state by state basis.
Addressing journalists in Abuja, the President of the Institute, Isreal Abraham, emphasised that state by state basis would increase power supply efficiency as each company would have adequate funds to meet the needs of the consumers. In addition, the host state would find it economically convenient to partner as an investor with a dedicated DisCo. He equally said that there is a need to review, amend and harmonise the subsisting electricity legislations in Nigeria, drawing from lessons learnt since the enactment of the legislation and the privatisation of the power sector for effective power sector reforms.
“Gas Supply and Aggregation Agreements (GSAA) should be entered into between gas suppliers and generation companies (GenCos) to guarantee gas supply and payments. By involving the Nigerian Electricity Regulatory Commission (NERC), gas-to-power costs should be moderated to ensure affordability and sustainability.
“Power Purchase Agreements (PPA) should be entered into directly between DisCos, Transmission Company of Nigeria (TCN) and GenCos to guarantee power supply and payments,” Isreal said.