Lagos/Abuja — The Federal Government has blamed the erratic power supply, being experienced across the country, on a major system failure in Power Holding Company of Nigeria (PHCN) installations.

This revelation came just as the Nigerian Electricity Regulatory Commission will today issue fresh licenses to five companies to carry out businesses in the power sector.

Special Adviser to the President on Power and former Managing Director of PHCN, Engr. Joseph Makoju told THISDAY yesterday that explosions in PHCN installations in Benin and Egbin resulted in a huge plunge in the country's power generation capacity.

According to him, as a result of the explosions, the nation's generation capacity dropped from 3500 megawatts to less than 2000 megawatts.

On the average, power supply to both domestic and industrial users across the country, in the past few weeks, has been between four to six hours daily.

In fact, most areas of Lagos, which has been the most hit by the crisis have been recording a daily power supply as low as two hours supply from PHCN.

This has also hampered routine repair works being carried out by PHCN on some equipment. For instance, a PHCN official in Lagos told THISDAY yesterday that, "we have not been able to return some transformers we carried away for repairs in some Lagos neighbourhoods because we have not had power for days in our workshop at Ijora" (a suburb of Lagos).

But giving reasons for the explosion at the installations, Makoju attributed them to a sharp increase in ambient temperature in the country, a characteristic of the harmattan season that has just began.

"We have had some explosions at our installations in Egbin and Benin power stations and this resulted in partial failure of our system and a significant reduction in our generation", he said.

He, however, stated that the affected equipment in Egbin and Benin have been fixed "but consumers will have to hold their breathe a little longer, as it will take about four days to build the power generation capacity back to about 3500mw where it was before the incident.

Makoju, who also lamented the disruption of gas supply to PHCN power station due to damaged pipelines by Niger Delta militants, said the militants have also denied government contractors access to the damaged pipelines to carryout repairs.

"The damaged pipeline and attendant gas cut to power plants for power generation is also one of the major set backs to power generation capacity in the country," he said

But he disclosed that consultations were going on to ensure that the vandalised pipelines are fixed and gas supply restored to the affected power plants.

"We are working towards restoring all damaged gas supply lines in the Niger Delta before 2007. We are already engaging the people in dialogue and we are confident that we will reach an agreement soon", he added.

Makoju also stressed that the violence in the Niger Delta has set back by six months, the completion of power projects being undertaken by major oil companies including Shell and Total, which are intended to improve electricity supply and end energy crisis in the country.

"The independent power projects are still on course but the rains and activities of militants in the Niger Delta have slowed down work. All together, we may have lost up to 6 months of work," said Makoju.

The projects make up a substantial part of 10,000MW of electricity Nigeria plans to achieve next year.

Obasanjo had earlier said electricity generation in the country would rise to 10,000MW by the end of 2007, from the present level of a little above 2000MW, which will represent over 500 per cent increase from the 1,500MW of electricity generated when he first assumed power in May 1999 as a democratically elected president.

Meanwhile, the Nigerian Electricity Regulatory Commission (NERC) will today issue fresh licenses to five companies to carry out businesses in the power sector.

Four of the licenses are in the generation category while one license was to be issued to a company to engage in distribution of electricity in the country.

THISDAY gathered that the four firms that would receive licenses to generate electricity are Ewekoro Power Limited - 12.5MW (Ogun state), Ikorodu Industrial Power Limited - 39MW (Lagos), Mabon Limited - 39MW (Dadin Kowa, Bauchi State), Geometric Power Aba Limited - 140MW while Aba Power Limited is to get operating license empowering it to distribute electricity in Aba in Abia states.

This brings the total licenses so far granted by NERC to private companies to 9, having earlier issued licences to 4 firms, Famr Electric Supply Limited (150MW, Ethiope Energy Limited (2,800MW), ICS Power Limited (624MW) and Supertek Nigeria Limited (1000MW).

While commenting on the performance of the first four licensed private firms, NERC chairman, Dr. Ransome Owan told THISDAY that report of the monitoring crew indicates that companies are making steady progress.

"The 4 newly licensed power companies are progressing very well according to the plan set out for them", he said.

The chairman said the commission is reviewing other applications for power license which are at various stages of due diligence.

On what the commission was doing to improve the country's energy mix and to encourage other forms of energy generation abound in the country, Owan said one of the requests the commission is presently processing is a renewable power project.

"NERC would like to encourage improvement in our energy mix to include thermal, hydro power, solar energy, coal and wind energy. We are not averse to any technology, whoever brings in any new technology in the sector is welcomed. We want entrepreneurs to consider the prospect in these areas as that would help to improve our energy mix and our energy security in terms of electricity supply", he said.