NERC ap­proves in­terim rules for power firms

Daily Trust - - NEWS - By Si­mon Echewo­fun Sun­day

The Nige­rian Elec­tric­ity Reg­u­la­tory Com­mis­sion (NERC) has ap­proved the in­terim rules to be in oper­a­tion be­fore declar­ing the Tran­si­tional Elec­tric­ity Mar­ket (TEM), just as it ap­proved the En­force­ment Reg­u­la­tions that bounds all elec­tric­ity li­censees to the sec­tor rules.

The or­der which was signed by the chair­man and chief ex­ec­u­tive of the com­mis­sion, Dr. Sam Amadi pro­vides for reg­u­la­tion which shall ap­ply to en­ergy pro­duced and de­liv­ered as well as as­so­ci­ated ser­vices dur­ing the in­terim pe­riod.

A state­ment is­sued by the com­mis­sion’s head of pub­lic af­fairs Dr. Abba Us­man said the in­terim rules are in­tended to cover all elec­tric­ity taken from the trans­mis­sion sys­tem by the dis­tri­bu­tion com­pa­nies with ad­just­ment made to ac­count for any bi­lat­eral ar­range­ments be­tween Gen­er­a­tion com­pa­nies (Gen­cos) and Dis­tri­bu­tion com­pa­nies (Dis­cos).

The ob­jec­tives of the rules are to es­tab­lish a frame­work to gov­ern trad­ing ar­range­ments dur­ing the in­terim pe­riod when Power Pur­chase Agree­ments (PPAs) be­tween the pri­va­tised Power Hold­ing Com­pany of Nigeria (PHCN) suc­ces­sor gen­er­a­tion com­pa­nies and Nige­rian Bulk Elec­tric­ity Trad­ing Plc (NBET) and Vest­ing Con­tracts be­tween NBET and the pri­va­tised PHCN suc­ces­sor dis­tri­bu­tion com­pa­nies will not be ef­fec­tive.

It is also to man­age the prob­a­ble rev­enue short­fall in the in­dus­try by de­ter­min­ing the rev­enue al­low­able to par­tic­i­pants and ser­vice providers dur­ing the in­terim pe­riod.

In the event of dis­putes aris­ing dur­ing the pe­riod be­tween par­tic­i­pants and ser­vice providers, it shall be re­solved in ac­cor­dance with the dis­putes res­o­lu­tion pro­vi­sion of the mar­ket rules.

Non -com­pli­ance with the de­ci­sion and or­ders of NERC shall at­tract an ad­min­is­tra­tive sanc­tion and in­sti­tu­tion of civil pro­ceed­ings in court against any per­son for the pur­pose of en­forc­ing com­pli­ance.

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