Managing Director of KEDC, Dr. Jamil Gwamna, alleged recently that interim market rules developed by NERC, especially with regards to the Multi Year Tariff Order (MYTO-2), was fraught with unwholesome practices by key electricity market participants.
Gwamna said: “In terms of complying with rules especially those in MYTO, the reality on the ground in Kano Disco is that all the assumptions in the MYTO model have been turned upside down. Load allocation to Kano is so bad that for the last three days we are getting as low as 40megawatts (MW) to cover Kano, Jigawa and Katsina states. Not only will that, about 20MW go to Niger Republic.
How on earth will I make money? We are not even near the assumption of MYTO because MYTO says I should be allocated eight per cent of the total generation capacity, which means if the generation is 2000MW, Kano should be allocated at least 160MW. Yesterday our allocation was 80MW and out of that 25MW is going to Niger Republic. So these are serious issues, which we have found on ground and they should be addressed urgently.”
Chairman of NERC, Dr. Sam Amadi, confirmed that the commission has empanelled a committee comprising its officials, the System Operator (SO) at the Transmission Company of Nigeria (TCN) and representatives of Kano Distribution Company to look into the complaint by the KEDC.
“The SO should show good faith in meeting up with obvious technical challenges. A committee comprising Yola, Jos and Kano distribution companies has been set up to work out long term solutions to these challenges. The SO will have to explain reasons for such action,” Amadi said.
He also disclosed that about 2,900MW of installed electricity generation were not utilised owing to lack of adequate gas to bring it into the national grid. The NERC chair therefore urged the National Assembly to expedite passage of the Petroleum Industry Bill (PIB), in order to incentivise investments in gas exploration and production.