FG Considering Sanctioning Electricity operators not delivering set targets

01 Jul FG Considering Sanctioning Electricity operators not delivering set targets

The Minister of Power, Abubakar Aliyu said electricity companies that fail to

deliver assigned volumes will face penalties under newly agreed contracts.

The step will be taken as part of measures to boost power supply in the

country, and explains the government’s recent assurance that supply will

improve from July, Aliyu said.

Aliyu told journalists in Abuja that power operators, including generating

firms or GENCOs, the Transmission Company of Nigeria and those

distributing or DISCOs, signed contracts with the government on Tuesday,

outlining specific amounts of electricity they will be offering customers.

“We signed reactivated contracts with the operators, GENCOs, TCN and the

distributors. This means if you have a firm commitment from whoever

generates what he says he is going to give, he must give otherwise there

will be a penalty and he must not give otherwise, there will be a penalty,” he

said.

The operations will be overseen by the Nigerian Electricity Regulatory

Commission (NERC) to ensure all parties keep to the agreement.

“That was why the chairman of NERC, mentioned something about July 1,

2022, Nigeria will start to enjoy electricity. This is a process towards that,”

the minister said.

Nigeria’s broken power system has faced even more problems in recent

months, generating below capacity and with the grid repeatedly collasping.

The government has given several reasons for the poor electricity supply

that leaves most citizens with power for hours and sometimes days.

The power minister said insecurity was also a problem affecting the sector’s

progress.

“Like vandalism around oil pipelines which affects gas and once you don’t

get gas to power, you don’t get the megawatts, once there is no power

coming from the generators, you know what that means,” he said.

He said efforts are being made to ensure that issues are addressed.

“We are working round the clock to ensure that we nip everything in the

bud. For instance, this Maiduguri issue that you have particularly

mentioned,” he said.

Speaking on the government’s pact with Siemens, he said officials have

been invited for the factory-testing of the 10 Mobitra transformers in Italy

ahead of commencement of delivery in September 2022.