FG to pay N701bn to generating coys

The federal government has reiterated its commitment to improve electricity service delivery through development of policy initiatives, which includes the payment of N701 billion as Assurance Guarantee to generating companies (GenCos).
Other policies of government designed to improve services in the sector includes the eligible customer regulations, metering regulations and distribution expansion plan to distribute the approximately 2000MW of generation capacity currently unutilised.
This was contained in a communiqué issued in Abuja on Monday at the end of the 24th monthly meeting of the Minister of Power, Works and Housing, Mr Babatunde Fashola with operators of the Power Sector.
According to the communique, the Transmission Company of Nigeria (TCN) also announced plans to expand its transmission lines through its Transmission Rehabilitation and Expansion Programme in line with its 20 Year Transmission Expansion plan.
It said Nigerian Bulk Electricity Trader (NBET) noted that Federal Executive Council (FEC) had approved valuation of approximately N27 billion Ministries, Departments; Agencies (MDAs) debts owed Distribution Companies (DISCOS) by MDAs.
The communique also said the debts would be deducted from the current debts owed by the DISCOS to NBET.
It added that NBET had applied to the appropriate agencies of federal government to pay an equivalent sum to the Generating Companies (GenCos).
It disclosed that Niger Delta Power Holding Company of Nigeria (NDPHC) announced that it has connected Egbema and Okija communities to the national grid.
The communique also revealed that the connection equipment had been handed over to the Enugu Electricity Distribution Company (EEDC).
It noted that significant progress was reported on Nnewi – Ihiala line, Ikot Ekpene -Afam and Daura- Kazaure lines.
According to the communiqué, NDPHC also noted that the committee to review abandoned distribution projects across the country has been constituted and should complete work by the end of the first quarter of 2018.
It said the Nigerian Electricity Regulatory Commission (NERC) reported on the performance of the sector in 2017.
“NERC noted an improvement by DisCos in complaint resolution, metering and energy delivered in 2017, as compared to 2016.
“Eko DisCo was listed as the overall best performing DisCo,” it reported.
According to the communiqué, TCN further reported an improved performance in 2017 compared to 2016, with a higher peak transmission of 5,222MW in 2017 against 5,075MW in 2016.
It revealed that fewer system collapses and shorter interruption disruptions were recorded in 2017 compared to 2016.