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The new direct power purchase scheme known as Eligible Consumer Policy (ECP), that allows mega customers to buy electricity directly from power Generation Companies (Gencos) may have started yielding results.
This is coming from the feelers that the management of Mainstream Energy Solutions Limited, operators of Kainji Hydro Power Plant and Jebba Hydro Power Plant, has reached deal with six companies to sell bulk electricity directly to them.
Government had introduced the idea based on rising complains from quantum power users due to constant power cuts and the challenge of power loss attributed the inability of the Nigerian Electricity Regulatory Commission (NERC).
Fielding questions from media executives, managing director/ chief executive officer (MD/CEO) of the company, Engr. Lamu Audu, observed that adoption of the eligible customers rule would not only help resolve the financial challenges currently facing Gencos but further enable them attract new investors.
He argued that the situation where Gencos generate power but was rejected by the transmission company of Nigeria (TCN) and distribution companies (DisCos) due to lack of infrastructure as is not only frustrating but imposes huge loss to them as they were not paid for such waste.
He spoke while conducting the team who visited the company’s site to see the level of progress made by the new owners since it was concessioned in 2013.
On the high financial losses his company has incurred due to the rejection of generated power, Audu said both Kainji and Jebba plants has equally lost about N6.4 billion in the last three years (January 2015 – January 2018).
He averred that “We have reached agreement with six companies to supply them power directly as a result of the eligible customers rule,: stressing that “This move will lead to the revival of moribund companies which were closed because of power supply”.
“Some of these companies have even laid their own lines to get supplies. We’re just waiting for approval from TCN, NERC and other relevant agencies as well as some finishing touches to commence the deal,” Audu added.