The Managing Director, Niger Delta Power Holding Plc, Mr Chiedu Ugbo, has reiterated that the Nigerian Electricity Regulatory Commission (NERC) must consider retail customers and the poor masses in the implementation of the Eligible Customers Regulation (ECR).
Ugbo stated this during the stakeholders’ engagement meeting at the weekend in Lagos.
In a statement, Ugbo said: “Hydropower is the cheapest form of generation and so must be excluded from the ECR. Electricity is sold through the grid from a central pool which is administered by the Nigerian Bulk Electricity Trading Plc. (NBET). The national electricity pool is obtained from two major sources of hydropower plant and thermal power plants, then the electricity is pooled together and an aggregate price determined and referred to as the weighted average cost of power.
“Hydro power plants are the cheapest, while thermal plants are more expensive due to the pass through cost of gas. As of today, hydro power costs about N12 per kilowatt whilst thermal power costs about N27 per kilowatt.’’
Ugbo maintained that ‘’if NERC must sell stranded capacity through its ECR policy, then the more expensive power should be dispatched and sold to large demand users while protecting the poor in the society. If the focus of the Federal Government is to provide reliable and affordable power to Nigerians, then its policies and actions must be properly aligned to ensure cost-effective price to consumers.’’
This is also coming at a time there is high speculation of a potential hike in electricity tariff by the distribution company this month or by January, next year.