Discos May Bear Power Transmission Repair Costs – NERC

The Nigerian Electricity Regulatory Commission (NERC) has announced that power distribution companies (Discos) may soon be responsible for covering the costs of repairing faulty transformers and replacing other transmission infrastructure. This move aims to encourage Discos to be more prudent in managing electricity infrastructure.

This was revealed as the Chief Executive Officer of the Association of Power Generation Companies (APGC), Joy Ogaji, disclosed that Nigeria has recorded 162 grid collapses since 2013. Ogaji and NERC Chairman, Sanusi Garba, shared these insights during a public hearing organized by NERC to investigate the frequent national grid failures.

Garba noted that the recurrent grid collapses not only affect the quality of electricity supply to consumers but also hurt the financial viability of power generation and distribution companies. He emphasized the urgent need to stabilize the grid and improve its reliability.

“The reality is that the frequent grid failures are impacting the viability of not only Gencos (generation companies) but also Discos. More importantly, they are affecting the quality of supply to customers. Just one faulty piece of equipment can plunge the entire country into a blackout. We can’t continue like this,” Garba said.

He added that there have been recent instances of expensive transformers catching fire, and called for measures to prevent such incidents from recurring. He also criticized Discos for failing to address vulnerable feeders prone to weather issues, despite previous directives from NERC.

Ogaji, on her part, stressed the need for proactive measures to address the root causes of grid collapses. She revealed that from 2013 to the present, the grid has collapsed 162 times, with the APGC’s data often differing from official reports. She called for greater transparency and better data capture within the sector.

Meanwhile, the Transmission Company of Nigeria (TCN) announced it had received a security advisory from the Office of the National Security Adviser, advising the company to limit operations in areas affected by the vandalism of the Shiroro-Mando transmission line. As a result, the company warned that power restoration in those regions may be delayed due to ongoing security challenges.