State Commences Plan to Buy Energy Directly From GenCos, Bypass DisCos
- The Forum for Commissioners of Power and Energy in Nigeria (FOCPEN) has requested temporary Power Purchase Agreements (PPAs) for SubCos to purchase energy directly from GenCos, bypassing DisCos
- They also urged the Minister of Power, Chief Adebayo Adelabu, to intervene and restore energy supply to Enugu State, where power distribution has been reduced due to tariff changes
- FOCPEN called for legislative changes to allow SubCos to enter bilateral contracts with GenCos, criticising the current arrangement through HoldCos as anti-competitive and prone to abuse
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The signing of temporary Power Purchase Agreements (PPAs) for SubCos to purchase energy directly from electricity Generation Companies (GenCos) has been requested by the Forum for Commissioners of Power and Energy in Nigeria (FOCPEN), which is made up of representatives of State Governments.
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This is a sign that the State Governments are looking to implement the eligible customer regulation of 2017, which permits customers to buy energy directly from the GenCos.
In this instance, the States are asking for agreements to avoid the value chain's DisCos.
"Such regulation may include a mandate for NBET to enter into direct or interim Power Purchase Agreements (PPAs) with SubCos," the forum said in a statement released from Abuja.
Additionally, the forum urged Chief Adebayo Adelabu, the Minister of Power, to step in and request that the Nigerian Energy Regulatory Commission (NERC) and Enugu Electricity Distribution Company (EEDC) provide energy back to the state's citizens.
Main Power Electricity Distribution Ltd.'s decision to lower the band A tariff from N209/kWh to N160/kWh resulted in the EEDC reducing energy distribution to the state.
Main Power claims that EEDC has said that a monthly loss of N1 billion would result from the implementation of the modified rate. As a result, the State's citizens now receive less electricity from the EEDC.
Responding to the situation, the FOCPEN stressed that “FOCPEN calls upon the Minister of Power, Chief Bayo Adelabu, to immediately intervene and prevail upon NERC and EEDC to reverse the power cuts and restore electricity to the people of Enugu State.”
As the sector's primary policymaker, the forum emphasized that the Minister must act swiftly to curb the lawlessness of DisCos that have the power to arbitrarily and without repercussions deny citizens electricity.
The conference also said that NERC must develop appropriate legislation to allow SubCos to enter into bilateral contracts with GenCos to buy wholesale power from the national grid, the Nation reported.
The forum said the current arrangement, where SubCos receive power through their HoldCos is an anti-competitive practice that limits their operational autonomy within SEMs and creates a potential for abuse, as evidenced by the current crisis.
Source: Getty Images
DisCos deploy 187,000 metres in 3 months
Legit.ng reported that according to the latest update on the federal government’s metering initiative, another 187,194 Nigerian households have gotten prepaid meters installed for them in the first quarter of 2025.
The Nigerian Electricity Regulatory Commission report shows that this is a slight increase from the 186,431 meters installed in Q4 2024.
However, the overall metering progress remains behind, as more than half of the Nigerian electricity consumers are yet to get prepaid meters and still have to rely on estimated billing.
Source: Legit.ng
