States move to bypass DisCos and buy power directly from GenCos

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This move reflects state-level interest in activating the 2017 Eligible Customer Regulation, which permits direct energy purchases from GenCos.

The Forum for Commissioners of Power and Energy in Nigeria (FOCPEN), representing state governments, is advocating for interim Power Purchase Agreements (PPAs) to allow Sub-national Utilities (SubCos) buy electricity directly from Generation Companies (GenCos), bypassing Distribution Companies (DisCos).

This move reflects state-level interest in activating the 2017 Eligible Customer Regulation, which permits direct energy purchases from GenCos.

In a statement from Abuja, the forum said, “Such regulation may include a mandate for NBET to enter into direct or interim Power Purchase Agreements (PPAs) with SubCos.”

FOCPEN also urged the Minister of Power, Chief Adebayo Adelabu, to compel the Nigerian Electricity Regulatory Commission (NERC) and Enugu Electricity Distribution Company (EEDC) to restore supply to Enugu State.

“The Minister must take decisive action to stop the lawlessness by DisCos,” the forum said.

FOCPEN accused EEDC of cutting supply after Main Power Ltd. reduced Band A tariff, claiming losses of N1 billion monthly.

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