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    Discos May Bear Repair Costs Amid Power Crisis, NERC Warns

    NERC Proposes Accountability Measures for Power Distribution Companies Amid Ongoing National Grid Failures
    Sponsored By: TheoOctober 25, 2024No Comments3 Mins Read
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    In a significant move to address Nigeria’s ongoing power transmission challenges, the Nigerian Electricity Regulatory Commission (NERC) is considering a policy that would hold power distribution companies (Discos) financially responsible for repairing faulty transformers and other essential infrastructure. This initiative aims to foster greater accountability and encourage more prudent management of electricity resources.

    The discussion emerged during a public hearing focused on the frequent collapses of the national grid, where NERC Chairman Sanusi Garba and Joy Ogaji, CEO of the Association of Power Generation Companies, highlighted the critical state of the country’s power supply.

    Since 2013, Nigeria has recorded 162 documented instances of grid failure, emphasizing the urgent need for reform in the sector. Garba pointed out the adverse effects of these collapses on both customer service and the financial stability of generation and distribution companies.

    “The reality is that the national grid’s issues affect the viability of not only the generation companies but also the distribution companies. Most importantly, it impacts the quality of supply to customers,” Garba stated.

    He also raised concerns about the frequency of equipment failures that can lead to nationwide blackouts. “Just one piece of equipment can malfunction, plunging the entire country into darkness. We invest millions in equipment, yet we lack adequate protection to prevent such failures,” he added, referencing recent incidents of major transformer fires.

    Garba expressed frustration over the lack of progress, particularly regarding Discos’ failure to identify vulnerable feeders that are prone to weather-related issues. “What happened last year, two years ago, three years ago, continues to happen this year. It seems we are intentionally not moving forward,” he remarked.

    Ogaji supported the call for immediate action and transparency in the sector. “The topic we are discussing is not new. According to our data, the grid has collapsed 162 times since 2013,” she noted, pointing out the discrepancies between private sector data and official reports.

    READ ALSO: Naira Gains N52 Against Dollar, Trading at N1,601 at Official Window

    She further stressed that the situation has been exacerbated by challenges faced by the Transmission Company of Nigeria, including the recent vandalism of critical transmission lines. “The vandalization of the Ugwuaji-Apir 330-kilovolt double circuit transmission line has resulted in over four days of blackout in some northern states,” the company confirmed.

    As NERC deliberates on its proposals, the future of Nigeria’s power supply hangs in the balance, with hopes that increased accountability and better management practices can lead to much-needed stability in the sector.

    Electricity Regulatory Commission National Grid Collapse NERC Nigeria Power Crisis
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