- Approves 4 new generation firms
The Federal Government, through the Nigerian Electricity Regulatory Commission, NERC, has threatened to revoke the licenses of non-performing power generation companies.
The NERC Commissioner for Engineering Standards and Safety, Mr. Abba Ibrahim, disclosed this yesterday, when he responded to questions from journalists at the organisation’s issuing of licenses to four companies for power generation in the country.
He said that the commission would tighten up its operations as it continues to regulate the power sector and would revoke the licence of any company unable to deliver on its mandate.
The commission yesterday issued on-grid licences to four companies to generate 774Megawatts of electricity from solar and gas. The companies are Pan Africa Solar Ltd, based in Kankia, Katsina State, to generate 24MW from solar; Nigeria Solar Capital Partners Ltd, Ganjuwa, Bauchi State, to generate 100MW from solar; Proton Energy Ltd, Ogorode, Delta State to generate 150MW from gas and Turbine Drives Ltd, based in Ajaokuta, to generate 500MW from gas.
Chairman of NERC, Dr. Sam Amadi, who presented the licences to the companies in Abuja, urged the owners to abide by the rules of the market.
According to him, “the rules and procedures guiding the operations of the market are globally comparable. We will do our best to follow the rules which are globally comparable.”
Amadi, who claimed that the NERC is the most transparent agency in the country, assured that his management team would continue its practice of openness, transparency and consultation by following the rules. I want to reassure everybody that NERC over the years has built a reputation of consistent rules and honest application of rules.”
He said the commission was ready to support investors who were ready to invest in new energy sources to develop the power sector. The chairman pledged that operators in Nigeria would get a cost reflective tariff as provided in the Electricity Act.
Also, the NERC Commissioner for Legal, Licencing and Enforcement, Dr. Stephen Andzenger, urged the companies to live up to the expectations of consumers. “We have been lenient in the past but we will no longer continue that way,’’ he said.
The Vice-Chairman of Proton Energy Ltd, Mr. Oti Ikomi, promised that the company would generate 500 MW in the second phase of the project.
He described the licence presentation as a milestone in the change agenda of the present administration.