Following renewed efforts by industry stakeholders, Mr.
Sanusi Garba, Chairman of the Nigerian Electricity Regulatory Commission (NERC), believes Nigerians will see improved power supply starting July 1.
Garba provided the guarantee during a press conference following the Second Nigerian Electricity Supply Industry (NESI) meeting in Lagos on Wednesday.
The conference was attended by top officials from NERC, the Transmission Company of Nigeria (TCN), generation companies, and electrical distribution companies, according to the Nigerian News Agency (NAN).
He said that NERC had brokered a contract between the Gencos, TCN, and the 11 DisCos that would guarantee the generation, transmission, and distribution of an average of 5,000 MW of power to customers on a daily basis beginning July 1.
According to him, the contract binds all stakeholders in the sector's value chain and includes consequences for any party that fails to comply with the new regime's terms.
"Yes, we have had negotiations with gas suppliers inside our regulatory domain," Garba added. We brought them on board to assure you that once the commercial conditions were met, gas would flow. For transmission, we've heard amounts much in excess of 5,000MW, which TCN will undoubtedly be able to provide.
"I recall that we had 5,400MW in March of the previous year." As a result, based on contractual pledges, it is very likely.
He said all the stakeholders across the value chain had obligations and there would be consequences if they failed to deliver.
So, in a situation where gencos are able to deliver 5,000MW but TCN is unable to do so, they’ll pay the penalty to the generation company and so on.
“And whenever the power is available and DisCos do not take the power, then they will pay liquidated damages that will compensate other market participants."
“We might not have 24/7 power supply from July 1 but Nigerians will see the trajectory because the target is to have an average of 5,000MW daily for transmission and distribution,” said Garba.