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NERC Warns DISCOs May Bear Costs of Infrastructure Repairs

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NERC Warns DISCOs May Bear Costs of Infrastructure Repairs

The Nigerian Electricity Regulatory Commission (NERC) has announced that power distribution companies (DISCOs) could soon be required to cover the costs of repairing faulty transformers and replacing other damaged infrastructure, News About Nigeria reports.

This move, according to NERC, is to ensure that DISCOs manage electricity infrastructure more carefully.

NERC Chairman Sanusi Garba made this statement during a public hearing in Abuja, organised to investigate the ongoing issues with frequent grid collapses.

Nigeria has experienced eight grid collapses in the past 10 months, with three occurring within a single week. 

At the hearing, Garba stressed that these collapses have severely affected power supply to customers and are also impacting the financial stability of both power generation and distribution companies.

He called for immediate action to stabilise the grid and improve its reliability.

“The frequent grid collapses are affecting the viability of both power generation and distribution companies, as well as the quality of power supply to customers,” Garba said.

He said equipment needs to be protected better to prevent incidents like transformer fires, which have caused major outages.

Joy Ogaji, the Managing Director of the Association of Power Generation Companies (APGC), added that Nigeria has recorded 162 grid collapses since 2013.

She called for more transparency and better data management to address the underlying issues.

Meanwhile, the Transmission Company of Nigeria (TCN) has faced additional challenges due to vandalism of key transmission lines.

The recent vandalism of the Shiroro-Mando transmission line has caused prolonged blackouts in parts of northern Nigeria.

TCN officials explained that security concerns in the affected areas have delayed efforts to restore power. 

The Ugwuaji-Apir 330-kilovolt transmission line, which serves as an alternative, has also encountered issues, further worsening electricity supply in the region. TCN noted that repairs to the damaged lines may not be completed soon due to ongoing security risks.