Manufacturers say Vested Interests hinders migration to 133KVA from 132/130KV lines

Manufacturing

 

By Industrial Digest

 

NIGERIAN manufacturers say “vested interest ” hinders them to connect their factories to 133KVA from 132/130KV lines.

This is despite the directive by the Transmission Company of Nigeria, TCN, to Nigeria Electricity Regulation Commission, NERC, to migrate manufacturers on 132/130KV wires to 133KV lines so that they can enjoy Eligible Customers (EC) status.

A source who has knowledge of the issue told Industrial Digest that vested interests hinder manufacturers from benefiting from the scheme.

The Ministry of Power (MOP) initiated the Eligible Customers(EC) which manufacturers are supposed to take advantage of to directly access power supply at reasonable tariffs from Power Generation Companies, GENCOs.

“This good policy intention was however truncated by NERC through the introduction of a clause inimical to successfully implementing the EC policy.
Thereby, creating a status quo scenario of load rejection, which largely favors the DISCOs to the detriment of manufacturing concerns currently groaning under the burden of inadequate electricity supply and arbitrary increase in tariff, ” he said.

He said that In addition, the efforts of TCN to support manufacturers on 132/130KV lines by technical migration to enjoy EC status were rejected by NERC and it was extremely difficult to process the EC applications for manufacturers.

It was learned that from 2018 up to 2019, electricity supply to the manufacturing sector has consistently improved to 10 hours per day on average while power outage occurs 3 times daily.

These improvements notwithstanding, the amount of money that they spend on alternative energy totaled N67.38 billion in 2019 compared to N93.10 billion recorded in 2018.

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