Power: NERC prepares guidelines for private investors
By Okechukwu Nnodim
Chairman, Nigerian Electricity Regulatory Commission, NERC, Dr. Sam Amadi
The
Nigeria Electricity Regulatory Commission has said it is in the process
of completing guidelines that will regulate the operations of private
investors when the power sector is fully privatised.
The regulator said the undeniably weak state of the industry that would be inherited by the new players necessitated the move.
“In anticipation of the entry of private
sector participants into the electric power sector, NERC is in the
process of perfecting guidelines that will ensure that operators do not
breach their licence obligations, and at the same time, are able to
temporarily operate out of compliance, where the urgent need arises,” it
said.
The commission said in a statement made
available to our correspondent that there were many flaws and
sub-standard equipment, among others, in the system, which would make it
difficult for the new operators to comply with all the set standards to
govern power generation, transmission, distribution and overall
customer care.
It said, “Operators will be able to
apply to NERC seeking for time to comply with codes and standards, and
then submit detailed plans and timelines for eventual compliance.
“The commission will consider these
applications, and if found not to impinge on health and safety issues,
and are justifiable, derogation may be granted.”
The commission said it had issued
guidelines for derogation from electricity codes and standards, adding
that derogation was a directive that relieved a licensee from its
obligation to comply with a technical standard or code in its licence in
specified circumstances and to a specified extent.
The derogation will normally have an
expiry date so that the need for it can be systematically reviewed and
performance towards compliance can be monitored, according to the
regulator.
According to NERC, continued compliance
with technical codes and standards is a licence obligation and is the
responsibility of each licensee.
“Failure to comply, unless permitted by
derogation, is a contravention, for which NERC may take enforcement
action and consequently sue, order and/or impose a financial penalty,”
it added.
The commission also called for public
comments on a draft health and safety code to ensure the safety of
persons during installation, operation or maintenance of electricity
equipment.
“Members of the general public
interested in accessing these documents and making their comments may do
so by visiting the commission’s website,” it stated.
Punch
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