States can own distribution companies •Tariff to go down for rural dwellers, urban poor


By Yemi Ajayi



Nigerians will soon witness some improvement in electricity supply nationwide as the Minister of Power, Prof. Bart Nnaji, has unfolded plans to commence the commissioning of some National Integrated Power Projects (NIPPs), which will be coming on stream between the third and fourth quarters of this year.

Nnaji, fielding questions from the THISDAY Board of Editors in Abuja last week, said based on the work that has been done so far, there would be significant improvement in electricity supply starting from next month to the end of the end of the year as 1,000MW from the NIPPs is added to the national grid to bring total available capacity to 5,400MW.

Although Nnaji admitted that for a country of 167 million people adding an extra 1,000MW to the grid to take it up to 5,400MW was still insignificant, he said with the aggressive completion of the NIPPs, expansion and upgrade of the transmission and distribution infrastructure, Nigeria should be able to generate 9,000MW by next year.

“Based on what is currently on the ground, starting from next month, you will begin to see an improvement similar to the December/January (last year) scenario when the improvement was felt by all.

“This will be repeated more prominently, we will exceed that quotient this year and we will stay like that on an incremental basis.
“But realistically, Nigeria should be leapfrogging, as I don’t want to be talking about 3,000-4,000MW. I want us to think about leapfrogging so that we can catch up with other emerging or developing nations,” said the minister.

Nnaji, however, admitted that the biggest challenge to the availability of constant electricity in the country today was inadequate gas supply, but expressed optimism that under the 12-month emergency gas plan embarked upon by the Ministry of Petroleum, things will begin to improve.

He said as a way out of the gas supply constraints the power sector has committed to paying for gas at cost reflective tariffs so that the international oil companies (IOCs) and other gas producers will be incentivised to invest in new gas-to-power projects.

“At this juncture, let me state that the IOCs have no choice but to come to terms with the current arrangement. Right now, we have an inter-ministerial committee that is supposed to work on the emergency provision of gas for power; there is a quantum identified where we can quickly get gas for the next 12 months.

“But we believe that gas producers will be encouraged to begin to invest in gas production and transport to the power companies with the cost reflective tariff put in place.

“Those of us on the power side have made every commitment that we’ve been asked to make. We have increased the tariff for gas from 10 cents that NEPA used to pay to $1 and next year it will be $1.50, then it will reach $2 the year after.
“We have also agreed that if the infrastructure for the transport of gas is built, that we are prepared to increase the tariff for gas transport to 80 cents, so we have made every commitment on the power side,” Nnaji explained.
He also spoke on the plans to involve states in the distribution of electricity that will pave the way for them to ensure that the electricity generated in their states reached consumers there.

He said under the privatisation of the power sector, state governments, besides investing in power plants, could also invest in the distribution network.

“We believe that the states should be accommodated as part of the whole reform programme. As such, Rivers, Akwa Ibom, Cross River and Bayelsa, for instance, will become part owners automatically of the Port Harcourt Distribution Company that covers them.
“In addition, we have given the states opportunities to be part of the bid process, so they can choose a company/consortium that has already been approved today as a bidder and bid alongside it,” the minister stated.

The minister also allayed fears that the revision in electricity tariffs, which began this month, would add to the financial burden of rural dwellers and urban poor, stating that under the new tariff regime, they will pay less for electricity.

He stressed that the new tariff structure should be deemed an adjustment, not an increase, adding, “That the tariff has gone down for rural dwellers and the urban poor, from N7.00 per kilowatt hour to N4.00 per kilowatt hour. Then other category of consumers will pay more but it will be graduated.”

Nnaji explained that no consumer will be made to pay more that they consume as the pre-paid metering being put in place will end the era of estimated billing.



http://www.thisdaylive.com/articles/nnaji-we-should-expect-better-power-supply-by-third-quarter/117694/

I pray this comes to reality

Among the current ministers in GEJ's cabinet, na only this man know wetin he wan achieve.

BlackPikiN: Among the current ministers in GEJ's cabinet, na only this man know wetin he wan achieve.

What is the point of knowing and still not achieving ?

He is achieving it.
If you dnt agree then fish live and swim on land.

I guess you don't live in Nigeria....I guess you have 12 hours power supply for the past quarter unlike vast majority of us

much appreciated

I think his proclamation sound timetable enough, until then i reserve my comment.

deor03:

What is the point of knowing and still not achieving ?

Excellent question.

Anywho, here's hoping this time around, we make it.

GEJ and his cabinet members need to stop announcing plans and start announcing results.

Until the electricity system of operation is "PRIVATE" not govt run and regulation is supervised by govt, issues will continue to plague the entire system. No matter how far they try, electricity cabals, will continue to sabotage their efforts.

we would, I would, by this time, etc

Nigerian are tired of hearing promises, Why not achieve first before announcing ?

alj harem: we would, I would, by this time, etc

Nigerian are tired of hearing promises, Why not achieve first before announcing ?

If the Guy dey on e own, and Journalist approach am ask am...when are we going to have power? what should his reaction be?

On more serious issues, how is the gas being paid for? the concept that govt owns all the gas is what will kill this power generation drive.

DaLover:

If the Guy dey on e own, and Journalist approach am ask am...when are we going to have power? what should his reaction be?

On more serious issues, how is the gas being paid for? the concept that govt owns all the gas is what will kill this power generation drive.

So do you want it to be privately owned ? (remember I know your political views)

danjohn: [size=13pt]GEJ and his cabinet members need to stop announcing plans and start announcing results.[/size]

Agreed

alj harem:

So do you want it to be privately owned ? (remember I know your political views)

And why can't people sitting on top of the land sell the gas for profit?

DaLover:

And why can't people sitting on top of the land sell the gas for profit?

what land ? Are the people sitting on top going to extract the gas for us ?

As usual, they're always unfolding plans.

alj harem:

what land ? Are the people sitting on top going to extract the gas for us ?

If given the chance to, what will prevent them from doing so?

Thought he said by end of June? Why he dey shift post nah?

Noticed lotta Power infrastructure upgrade around the Ikorodu axis . .Street are been given new transformers,obsolete ones replaced, and new power line transmission poles are been installed . . . .Hoping they all turn out great and not just one of those exercise in futility . . . .

Though as we speak . . .Power availability in Ikorodu is so terrible . .guess the on going upgrade is the root cause . . .

DaLover:
If given the chance to, what will prevent them from doing so?

what chance ? So because you own the land, you want to be a muilti billionaire over night ? Where in the world does that happen ?

At best you would be compensated generously but it becomes FG property.

alj harem:

what chance ? So because you own the land, you want to be a muilti billionaire over night ? Where in the world does that happen ?

At best you would be compensated generously but it becomes FG property.

So if you are blessed with arable land that can produce valuable crops you shouldn't become rich...something is wrong with ur reasoning...don't you think so?

spits on thread