26 industrial customers optimistic on eligible customer policy – Fashola

Babatunde Fashola, minister of Power, Works and Housing has said that twenty six industrial customers are seeking to benefit from the eligible customer declaration, a provision that allows users who require 2MW of power buy directly from electricity generation companies (GenCos) indicating the policy may be gaining traction.

The minister in remarks made at the 29th monthly power sector meeting hosted by Mainstream Energy (Concessionaires of Kainji and Jebba Hydro-Power Stations) in Niger State on Monday, said:

“From reports reaching me, five industrial customers are now benefitting from the policy and taking their power directly from a GenCo, who incidentally is our host today, Messrs Mainstream Energy Ltd.

“We also have a list of 26 (Twenty-six) industrial customers who are seeking to benefit from the policy,” the minister said.

Last month, the Nigerian Electricity Regulatory Commission (NERC) also said it has received eleven applications from interested investors but none of the licenses has been issued. Fashola’s utterance would suggest that the commission has started the process.

Usman Abba Arabi, NERC’s spokesperson when contacted referred this reporter to the organisation’s website where the supposed list of licensee is published but none was found.

Mainstream Energy Solutions Limited (MESL) was incorporated and licensed as a power generating company in 2011. MESL acquired Kainji and Jebba Hydro Power Plants (HPP) with a total installed capacity of 1338.4MW through a concession agreement in November 2013.

The two hydro power plants are cascaded 100km apart with Kainji dam situated on the upstream of Jebba. The two hydro power plants have installed capacities of 760MW and 578.4MW, respectively.

Lamu Audu, managing director of the company in March said that it was sad that while Nigerians are desperate for more electricity supply his company which has the capacity to produce an average of 922mw from both of its plants, only have 650mw taken on a monthly average, because the distribution segment lacked adequate infrastructure network to get the power to homes, offices and industries where it is needed.

“Apart from losses of shut-in capacity, we also incur a lot of losses in terms of what we spend maintaining our equipment. The frequent shut down and restart has a negative effect on the equipment and affect our operational cost,” Audu had said, estimating the lack of 100 percent utilisation of their plants to result in a N6.4 billion loss to the company between January 2015 and January 2018.

Fashola in his remarks further said, “The DISCOs must be interested to know that I have also issued directives to NERC to work out and implement Competition Transition Charges as provided by Law, to safeguard them from any losses.

“We will continue to monitor the impact of the policy and remain flexible to keep what works and change what does not; and I urge everybody to remain open-minded, adaptive and responsive.

The eligible customer policy was introduced on March 15, 2017, and the Regulations to govern it were issued by NERC on November 1, 2017.