A Review of the Nigerian Energy Industry

NERC, new power investors review amended electricity market rules

Sam Amadi, NERC09 November 2013, Abuja – The Nigerian Electricity Regulatory Commission (NERC) Friday held a consultative workshop with the new power firm owners on the amendments of the market rules for the transitional and medium term stages of the Nigerian Electricity Supply Industry (NESI).

This is even as the National Power Training Institute of Nigeria (NAPTIN) presented a total of 243 engineers, among which were 92 generation company trainees, 79 transmission company trainees and 72 distribution company trainees, who just graduated from its Graduate Skills Development Programme (NGSDP) with their certificates .

The Commission had previously presented the draft interim rules to the new owners of the privatised power firms for their inputs, which necessitated another consultative forum to deliberate on amendments and observations made.

The rules are a set of interim binding regulations which will guide all aspects of the electricity market before the Transitional Electricity Market (TEM) is declared on 28 February, 2014. They are necessary because Power Purchase Agreements (PPAs) and vesting contracts cannot be enforced before the transitional market fully takes off.

The rules will be applicable during the period also known as shadow market with a view to knowing where there are hiccups which needs to be sorted out before TEM is declared so as to avoid future challenges.

The draft rules specifies the allowable percentages of Genco energy charge, capacity charge as well as Disco fixed charge and variable cost, admin cost and return on capital.

Speaking during the opening of the workshop in Abuja, Chairman of NERC, Dr. Sam Amadi, said the rules is to ensure efficiency, security and competitive trading in the transitional electricity market.

“The rules are obligatory on all market participants, if a final draft is presented to the Commission at the end of this workshop it becomes binding rules. The focus is to put the market in readiness before the TEM is declared,” Amadi said.

– Leadership

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