•NERC anticipates year-end increment in power generation, supply to 7,000MWThe persistent inadequate gas supply to the various power generating plants nationwide is threatening the plan by the federal government to declare Transitional Electricity Market (TEM) on March 1, THISDAY has learnt.
When declared, TEM will make it mandatory for the Nigerian Gas Company (NGC), a subsidiary of the Nigerian National Petroleum Corporation (NNPC), to be sanctioned in the event of failure to deliver on its gas supply commitments to the power producers, in line with the Gas Supply Agreement (GSA) signed in 2013.
With TEM also, any power generating station that fails to deliver on its electricity supply commitment to the national grid in accordance with the Power Purchase Agreements (PPAs) signed with the Nigerian Bulk Electricity Trading (NBET) Plc, otherwise called the Bulk Trader, will also be sanctioned.
Irrespective of the inadequate gas supply to the power generating plants, which is threatening efforts of the federal government to stabilise power supply to homes and industries, the Nigerian Electricity Regulatory Commission (NERC) has expressed optimism that increased generation and distribution of electricity would rise to about 7,000 megawatts (MW) within the year.
THISDAY gathered at the weekend that actionable agreements, which have since been signed but awaiting implementation, pending the declaration of TEM, include Transmission Use of Service Agreements (TUOS); Grid Connection Agreements; Ancillary Services Agreement; Power Purchase Agreements (PPAs); Gas Supply Aggregation Agreements (GSAAs) and Gas Transportation Agreement (GTAs)..
ThisDay
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