Private Investors In Nigerian Power Sector To Get New Rules

The Nigeria Electricity Regulatory Commission has said it is in the process of completing guidelines that will regulate the operations of private investors when the power sector is fully privatised.

The commission said the guidelines would ensure that operators do not breach their licence obligations, and “are able to temporarily operate out of compliance where the urgent need arises.”

A statement from NERC noted that “the undeniably weak state of the industry that will be inherited by the new players has necessitated this move. There are many flaws and sub-standard equipment, among others, in the system which will make it difficult for the new operators to comply with all the standards set by NERC to govern generation, transmission, distribution and overall customers’ care.”

“Operators will be able to apply to NERC seeking for time to comply with codes and standards, and then submit detailed plans and timelines for eventual compliance. The commission will consider these applications, and if found not to impinge on health and safety issues, and are justifiable, derogation may be granted.”

The NERC said it is also fine-tuning work on a draft health and safety code to ensure the safety of persons during installation, operation or maintenance of electricity equipment.

According to NERC, continued compliance with technical codes and standards is a licence obligation and is the responsibility of each licensee.

“Failure to comply, unless permitted by derogation, is a contravention, for which NERC may take enforcement action and consequently sue,order and/or impose a financial penalty.”