POWER GENERATION & DISTRIBUTION DEGERULATED IN NIGERIA

If we are to go by the new development  pronounced by NERC, then there is better hope for the future, rather there is more light in the future than the usual darkness prominent at every corner of the country. Likewise, I believe my people will be free from the dependency on ‘I pass my neighbors’ (generator).

I've passed my major headache to them, they should resolve it by themselves

Following the much debate and deliberation on power (electricity) in Nigeria, NERC (Nigerian Electricity Regulation Commision) has finally agreed to deregulate the power sector with the issue regulations that enable investors, state and local governments to generate and distribute electricity within specific areas.

This deregulation is a product of two new regulations as issued by NERC

(1)  “NERC Regulation on Embedded Generation 2012” permits investors, communities, states and local governments to generate and distribute electricity for their exclusive consumption using facilities of existing electricity distribution companies or independent electricity distribution network operators.

(2) “NERC Regulation for Independent Electricity Distribution” permits communities, local and state governments to invest in electricity distribution networks in areas without access to the grid or distribution network or areas poorly serviced.

According to NERC Chairman Sam Amadi:

 “From now on, the much expected expansion in the electricity supply to the end- users would be easily realisable. With these regulations, we have further unlocked the opportunities in the sector to community, private and government participations. The laws are expected to revolutionize the sector,” he added.

Nigeria, with a population of about 160 million people, generates only about 4,000 mega watts (MW) of electricity, which have proved chronically inadequate for the country and caused daily blackouts, forcing businesses and homes to generate their own electricity through power generators.

Questions of the day:

Would electricity supply in Nigeria be better under this new deregulation?

How competitive would the pricing of electricity be in the future?

Are State and local governments capable of investing in this sector?

Please, your comments are highly appreciated.

signatue:d'prince