The federal government is to sign the Power Purchase Agreements (PPAs) with Prospective Power Generators through Nigeria Bulk Electricity Trading (NBET) and Transmission Company of Nigeria (TCN), in efforts towards improving the power sector.
Babatunde Raji Fashola, Minister of Power, Works and Housing disclosed this at the monthly power sector operators meeting in held in Abia state, stressing that the Federal Government through the NBET and TCN is working to improve the power sector by signing Power Purchase Agreements (PPAs) with Prospective Power Generators.
According to the statement issued by the ministry, Fashola said that the government is investing in the expansion of the Transmission Capacity through TCN by building more Substations and expanding existing ones to improve service capacity where the Consumer demand has increased, and reinforcing the capacity of existing transmission
lines.
He said “the Government is investing in the expansion of the Transmission Capacity through TCN by building more Substations and expanding existing ones to improve service capacity where the Consumer demand has increased, and reinforcing the capacity of existing transmission lines”.
“At the moment, there are over 90 (ninety) TCN projects for transmission expansion, which TCN will be commissioning nationwide in the next few weeks and months. Some are completed and some are nearing
completion”.
He further urged NBET to improve on the timelines it takes to process payment to the Distribution Companies (DisCos) adding that there is need to adopt a business orientation of ensuring that it collects as much as it can from the DisCos in retailing Bulk Power.
“NBET, on its part, must also improve on the timelines it takes to process payment to the DisCos and, in addition, adopt a business orientation of ensuring that it collects as much as it can from the DisCos, who help her to retail the Bulk Power”.
“The truth is that if NBET cannot pay her bills to the GenCos, the DisCos will have no business because the bulk of their power comes from NBET. Therefore, the DisCos must, in their own very best interest see NBET as the goose that lays their golden egg, who must not die”.
