The Eko Electricity Distribution Company (EKEDC) has approved ten independent power generating firms under the Embedded Power Scheme, to provide it with 450 additional megawatts to supplement what it gets from the national grid.
An embedded generating unit is a generating unit which is connected within a distribution network, rather than to the high-voltage transmission network.
The power purchase agreement (PPA) between the parties is expected to be signed soon, informed sources told BusinessDay.
The 450 megawatts will however come in instalments and not at once, our sources said.
The scheme is part of efforts by the Federal Government to boost electricity supply through private initiatives.
Confirming this to BusinessDay, Oladele Amoda, the managing director and chief executive officer of EKEDC, said the PPA is expected to be signed soon, but with a condition precedent, that is, the ten successful companies are expected to bring performance bonds, after which the signing of the Power Purchase Agreement (PPA) would take place.
Amoda said when PPA is settled between Eko Electricity Distribution Company and the embedded power operators, the documents would then be taken to the Nigerian Electricity Regulation Commission (NERC) for final approval.
He however did not say how soon the process would take, but declared that everything would depend on the embedded power operators who are expected to bring in their performance bonds in good time.
He said the company is investing about N5.8 billion on electricity meters which are being rolled out. About 400,000 meters are expected to be rolled out by the company within the next three years.
Amoda said to tackle the metering challenges, a total of 7,500 maximum demand (MD) meters have been procured at a cost N2.8 billion, as well as 50,000 meters for the non-maximum demand customers.
“ These meters, both the MD and non MD, constitute only the first phase of our metering plan that will see all our close to 400,000 customers metered free of charge,” he said.
He said the installation of the first phase meters has already begun, adding that it would be impossible to cover everyone at the same time, but that all subscribers would eventually be metered.
He further stated that it is equally important to stress that because of the belief of the company in contributing meaningfully to the local economy, “ we have procured a larger portion of these meters from local manufacturers. However those customers that cannot wait, can get their meters immediately through CAPMI”.
Commenting on the recent incident at the University of Lagos, in which a female undergraduate allegedly stepped on a negligently exposed live wire and died, Amoda said: “ As an organisation which places a very high premium on human lives, we are pained by the incident and have taken measures to prevent a recurrence”.
He said the company would work with the Nigerian Electricity Management Services Agency (NESMA) and Nigerian Electricity Regulation Commission (NERC) to ensure safety and conformity to set standards.
Olusola Bello
