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| Lagos State Governor, Mr. Akinwunmi Ambode (middle); Commissioner, Legal, Licensing, Compliance Division, Nigerian Electricity Regulatory Commission(NERC), Mr. Dafe Akpeneye (left) and Commissioner for Energy & Mineral Resources, Mr. Olawale Oluwo (right) during a meeting with NERC on the Lagos Embedded Power Programme in Abuja, on Friday, August 4, 2017. |
Lagos
State Governor, Mr. Akinwunmi Ambode, Friday, sought a no objection
letter from the Nigerian Electricity Regulatory Commission (NERC) for
the State Government's Embedded Power Programme.
Governor
Ambode, who led some members of the State Executive Council, lawmakers
and other critical stakeholders to a meeting at the NERC’s headquarters
in Abuja, said the embedded power project was designed as his
administration’s flagship programme for direct intervention in the power
value chain towards achieving a 24-hour power for Lagos.
He
said the proposed power programme would generate up to 3,000MW of power
through accelerated deployment of various power plants in strategic
locations across the State by private sector power providers within
three to six years.
He
noted that Nigerians' aspiration to create a secured and prosperous
nation that is globally competitive will be difficult to achieve without
stable power supply.
Governor
Ambode posited that while efforts are ongoing to resolve the power
crisis, it had become increasingly clear that the problems in the energy
sector could no longer be left to the Federal Government alone to
solve.
"Embedded
power was designed as our flagship programme for direct intervention in
the power value chain towards achieving a 24-hour power for Lagos.
Lagos State has always demonstrated its capacity and willingness to play
a leading role in resolving the power sector challenges in the state,
subject to the limit of the federal authority allowed regulations.
"Having
succeeded in powering government facilities, the next level of
intervention for our government is to collaborate with other
stakeholders in the power sector to design and implement a roadmap for
uninterrupted power supply to homes and businesses in Lagos State.
"The
draft of the Lagos State Embedded Power Bill was finalised in May 2017
and submitted to the National Electricity Regulatory Commission for
clearance before same can be forwarded to the State House of Assembly.
"The
stakeholders meeting holding today is a continuation of the ongoing
engagement between NERC and the Lagos State Government on the Lagos
State Embedded Power Programme.
"We
are convinced that the offer by our government to deploy the state's
balance sheet in support of power generation, transmission,
distribution, gas supply, metering, collection and enforcement in Lagos
State will significantly relieve the national grid and free more energy
for distribution to other parts of Nigeria.
"The
proposed power programme will generate up to 3,000MW of power through
accelerated deployment of various power plants in strategic locations
across the state by private sector power providers within three to six
years."
He
said the State Government would issue guarantees in support of the
Power Purchase Agreements that will be signed between the distribution
companies and the private sector embedded power providers to enhance
bankability of the projects.
In
a statement by the chief press secretary to the governor, Habib Aruna,
the governor added that the power generated under the programme will be
distributed through the networks of Eko and Ikeja Distribution Companies
while the state would support the distribution companies in upgrading
their distribution infrastructure for embedded power areas in line with
NERC guidelines.
"The
State Government will support the distribution companies in
installation of smart prepaid meters in the areas where embedded power
is deployed. We will institute a cost-reflective tariff regime that is
fair to all stakeholders, sustainable and capable of attracting private
capital to the sector on a continuous basis.
"Other
areas of collaboration include support for revenue collection,
legislation and establishment of an agency for enforcement of power
theft laws in Lagos.
"Our
prayer today is to seek the commission's no objection letter for the
Lagos State Embedded Power Programme, based on cost reflective tariff
regime that is fair to all parties and capable of unlocking private
sector investments into the power sector on a sustainable basis,” the
governor said.
Responding,
the NERC's commissioner in charge of Legal License and Compliance, Dafe
Akpeneye, who stood in for the commission's vice chairman, promised
that the NERC would work with the Lagos State government to ensure the
success of the programme.
"Within the ambit of the law and existing regulations, you have our unflinching support in this project.
"So
in response to what you said in your prayers to us, Your Excellency, I
reaffirm the support of NERC towards this project. Our commitment is to
create a viable electricity industry that works for Nigeria and
Nigerians.
"As
the laws and regulations permit us, we will work with you on this
project to ensure that it does see the light of the day," Akpaneye
promised.
Akpeneye however called the governor's attention to some safety issues that concern the state.
He spoke about the right of way, standards and designs, electricity theft as well as customers' enumeration.
He
noted that a situation where the commission's record indicates that
there are only 1.2million registered electricity customers in Lagos
State is not tidy enough when almost all the houses in the state are
connected to national grid.
Representatives
of both Eko and Ikeja Distribution Companies at the meeting declared
their support for the project, saying that it would be detrimental to
the progress of Nigeria if they opposed it.
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