As part of efforts to proffer solution to the lingering crisis in the power sector, the Nigerian Institute of Power Engineers (NIPE), yesterday, called for the reduction of the Distribution Companies (DisCos) franchise areas to state by state basis.
Speaking to newsmen in Abuja, the President of the institute, Israel Abraham, said that state by state basis would increase efficiency in power supply as each company would have enough funds to adequately invest to meet the needs of the consumers while the host state will find it economically convenient to partner as an investor with a dedicated DisCo.
Also, there is a need to review, amend and harmonise the subsisting electricity legislations in Nigeria, drawing from lessons learnt since the enactment of the legislations and the privatisation of the power sector for more effective power sector reforms.
“Gas Supply and Aggregation Agreements (GSAA) should be entered into between gas suppliers and generation companies (GenCos) to guarantee gas supply and payments. “By involving Nigerian Electricity Regulatory Commission (NERC), gas-to-power costs should be moderated to ensure affordability and sustainability. “Power Purchase Agreements (PPA) should be entered into directly between DisCos, Transmission Company of Nigeria (TCN) and GenCos to guarantee power supply and payments.
