FG Issues Licenses to New Power Firms after Reviewing Performances of Ikeja Electric, Other DisCos

FG Issues Licenses to New Power Firms after Reviewing Performances of Ikeja Electric, Other DisCos

  • The Nigerian Electricity Regulatory Commission (NERC) said it issued 15 new power licenses in the second quarter of 2023
  • It said that two trading licenses, six captive power permits, and 10 mini-grid licenses in the period under review
  • The Commission recently embarked on an assessment of electricity distribution companies whose licenses were due for renewal

During the second quarter of 2023, the Nigerian Electricity Regulatory Commission (NERC) issued new licenses and permits to many entities.

The Commission said in its Q3/2023 Electricity on Demand report that it issued two trading licenses to Electric Utility Nigeria Limited and Onction Services Limited.

NERC, Electricity
15 new power companies get licenses by NERC Credit: Nurphoto
Source: Getty Images

The new permits issued by NERC

The agency also granted licenses to six companies to operate captive power plants.

PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ find the “Recommended for you” block on the home page and enjoy!

Read also

Ikeja Electric, Eko DisCo, GenCos, others edgy as FG reviews license renewal

Captive power plants are owned and operated by an entity for exclusive use rather than commercial purposes.

The Commission stated in the Q2 report of 2023 that it granted permits for three power-generating plants, which boast a combined capacity of 20.06 megawatts.

The companies are Tower Alloys Industries Limited, Junaid Synergy Limited, and Okomu Oil Palm Limited

10 mini-grid licenses issued by NERC

NERC gives a permit to a mini-grid developer when they want to build, operate, maintain, and, in some cases, own mini-grids with a distribution capacity surpassing 100 kilowatts and a generation capacity of up to one megawatt.

Also, the Commission issues a certificate to a mini-grid developer for more systems with a distribution capacity below 100kW.

The Commission granted 10 companies with new mini-grid licenses.

They are:

  • Powergen Nigeria Assets Limited
  • Darway Coast Nigeria Limited
  • Bagaja Renewable Limited Kumbosto
  • Solmenz Engineering Venture Nigeria Limited
  • A4&T Projects Limited in Fagbo
  • GVE Projects Limited in Bakin Ciyawa
  • GVE Projects Limited in Kwande
  • Everlink Telesat Network Limited
  • Everlink Telesat Network Limited

Read also

Ex-power minister Barth Nnaji speaks on cabal benefitting from poor electricity supply in Nigeria

The licensing rules under the Electricity Act are anticipated to provide a basis for promoting power generation, hybrid generation, co-generation, and generation of electricity from renewable sources such as solar energy., wind, small hydropower, biomass, and other sources, a Nairametrics report said.

FG begins assessment of distribution companies for license renewal

Recall that the Commission recently assessed distribution companies' performance in Nigeria, Legit.ng reported.

According to industry sources, there is a palpable feeling of unease, especially amongst operators who do not perform well, as they fear the federal government may not renew their licenses.

Despite the epileptic power supply in Nigeria, the Central Bank of Nigeria (CBN) revealed during the 2022 Monetary Policy Meeting (MPC) in Abuja that it had allocated N1.3 trillion to the Nigerian power sector over the past five years.

This review may involve assessing Key Performance Indicators (KPIs), the Service Level Agreement (SLA), and the Vesting Contracts.

Read also

Dangote, 70 others get N390 Billion in tax waivers in two years, FG moves reduce incentives

Amid the prevailing apprehension, stakeholders have urged for a measured approach, asserting that the privatization initiative may have needed to be adequately designed to encourage private sector investment.

They also assessed the extent to which the privatization of the electricity sector value chain has substantially impacted the overall health of the nation's electricity sector value chain.

FG Pays N135bn electricity subsidy to Ikeja Electric, Ibadan Disco, others to stop tariff increase

Legit.ng reported that the Nigerian Electricity Regulatory Commission (NERC) has revealed that the federal government paid N135 billion as electricity subsidy in the second quarter of 2023.

The Nigerian government spent the amount to close the revenue generation shortfall in the power sector in the year's second quarter.

The N135.2 billion spent by the government represents an increase of N99.21 billion, a 275% rise compared to the N36 billion it paid in Q1 of 2023, the NERC report indicates.

Source: Legit.ng

Online view pixel