The Nigerian Bulk Electricity Trading Plc, (NBET) underpays power generation companies (GenCos) by over 70 per cent (about N30billion) for their services, thereby compounding their financial woes, The Nation has learnt.

The Executive Secretary, Association of Power Generation Companies (APGC), Dr. Joy Ogaji, told The Nation that the best and urgent step the government should take to make the power sector efficient, is to substantially improve liquidity in the sector by paying the debts owed the sector, especially GenCos by government’s ministries, departments and agencies (MDAs).

She said the government should ensure that debts were paid, stressing that future payments should be made promptly to enable the power sector improve services substantially.

“The government should ensure that there is payment guarantee, no more shortfalls in payment. It is imperative to state here that the investment on generation is at the instance of the off-taker (Nigerian Bulk Electricity Trading Plc, NBET) a Federal Government’s owned public liability company.

“Due to high market liquidity squeeze, GenCos including the thermal and hydro plants lack the necessary funding for their operations, acquiring spare parts and equipment and meeting other obligations for the power generation stations.

“Market payment statistics shows that on a monthly basis, generation companies’ invoices amount to about N35 billion to N40billion, out of which only about N7billion is paid. The implication is that the debt profile of the GenCos is about N30billion per month with no plans in place to clear these and put a sustainable solution for the sector.

“We have been given unfulfilled promises of ‘government is working out a solution’ without a timeline and fulfillment. We are all on life support and could be dead any moment from now, she said.”

For her, what the GenCos are asking for are needed for transparency in market funds and remittance, and declaration of eligible customers to enable them have some form of relief, she said, saying government should give a special concession to the GenCos in sourcing for foreign exchange.

“There is need for full payment of CBN-Nigeria Electricity Market Stabilisation Facility (NEMSF), NBET, Market Operator (MO) and all owing market participants to pay immediately all money owed the GenCos,” adding that a forex stabilisation fund be created to avoid tariff hikes.

“Electricity market should be run as a contract based market with penalties fully enforced,” she said, adding that the cost of gas constitutes about 40 per cent of wholesale electricity tariffs in Nigeria.

The Executive Director, Research and Advocacy, Association of Nigerian Electricity Distributors (ANED), Sunday Oduntan, said the illiquidity in the power sector rose from N1 trillion last November to N1.1trillion by this January.

http://www.energywatchng.com/nbet-underpays-gencos-n30b-monthly/

Governor of Taraba State, Arc Darius Ishaku, is unhappy with the delay in the take-off of the Mambilla Hydro Electricity Power project and warned that this attitude could cripple the nation’s hope for stable electricity supply.

Ishaku who spoke recently in Jalingo, when the Minister of State for Power, Works and Housing, Mustapha Baba Shehuri called on him in Government House, Jalingo, said the apparent silence and non-action on the project by the Federal Government had become worrisome. He said it had become obvious that the current power generation facilities in the country will not meet the nation’s power needs which has continued to grow and expressed surprise that this reality has not jolted the government into action on the Mambilla project. “We have the Mambilla, the biggest facility for power generation in West Africa. Let’s start building the facility now so that in six years when it is completed we will be in a position to boast of 6,000 MWs of electricity power,” he said.

The governor reminded the Federal Government that there was no short cut to the realisation of this project. Those steps that need to be taken must be followed one after the other. He said there were at least seven of such steps which include sensitization, resettlement and compensation of the people to be affected by the project and these preliminary steps will take not less than one year to complete. “We must remove these encumbrances as part of a realistic beginning. There can be no short cut to all of these steps”, he noted.

He assured the Federal Government of the readiness of the Taraba State government and the people for the take-off of the project and advised that the right things must be done from the beginning. “Let the project start. Let’s give Nigerians stable electricity and it does not matter which political party provides it. We are all eager in Taraba State and we will support the project as a key partner because it is a great project and it is a Nigerian project”, he noted.

Governor Ishaku also spoke of the plan by his administration to build 5,000 houses through a partnership with foreign investors. It is part of his administration’s welfare package for civil servants. He said henceforth, every new entrant into the civil service of the state would be encouraged to own their own houses through deductions that will be made from their monthly salaries. Such people should be able to move into such apartments after five years of contributions through regular deductions.

Speaking earlier, the Minister who was in the state to unveil 200 housing units built in Jalingo by a private estate developer, said the Federal Government was determined to solve the lingering problem of housing deficit in the country. The Federal Government, he said, was planning 5,000 housing units per state as part of the efforts for end the problem.

Mr Shehuri also informed Governor Ishaku that all paper works concerning the Jalingo-Numan road had been completed and the formal approval of the project would soon be given by the Federal Executive Council.

http://www.energywatchng.com/hopes-stable-electricity-blinks-mambilla-power-project-remains-delayed/

Nigeria is second to India on the list of countries with the highest electricity access deficit with 75 million people compared to India’s 263 million persons.

According to a new World Bank report, other countries on the list of nations with highest electricity access deficit are Ethiopia with 67 million; Bangladesh 62 million; Congo Democratic Republic with 55 million; Tanzania with 40 million; Kenya with 33 million; Uganda with 30 million; Sudan with 25 million; and Myanmar with 25 million people.

According to the report, an energy scorecard released on Monday, Ethiopia, Nigeria and Sudan alone have 116 million people without adequate electricity.

The authors noted that energy access, efficiency and renewables are on the rise in many developing nations, but in places like sub-Saharan Africa, the energy situation is still grim and hundreds of millions remain unconnected.
The report found that 80 per cent of the 111 countries studied have policies for more sustainable energy — meaning energy efficiency, access to energy and use of renewables — with 45 countries at advanced stages of policy-making.According to the report, access is, in part, a financial issue in these countries. In many sub-Saharan Africa countries, people pay more than $500 to connect to the grid, while in another developing country, Bangladesh, the cost is as little as $22.

Senior Director and Head of Energy and Extractives at the World Bank, Riccardo Puliti, said: “Africa has long been the least electrified, and power there cannot keep up with population growth. Those disparities won’t disappear without policies encouraging both private and public investment.”

According to the report, for much of the world, however, renewables are growing fast: 93 per cent of countries have renewable energy targets, and more than three-quarters have supporting legislation.

This growth, however, needs more focus. Just 39 per cent of countries have studied how to integrate renewables such as solar and wind power into their current electrical grids, the authors found.

Chief Executive Officer (CEO) of Sustainable Energy for All, a sustainable energy initiative launched by the United Nations in 2011, Rachel Kyte, said: “The world is in a race to secure a clean energy transition. The underlying message is that we must go further and faster.”

Besides, Energy economics global lead for the World Bank Group, Vivien Foster, said: “African countries on the whole scored very poorly, with as many as 40 per cent barely beginning policy measures to accelerate access to energy. African countries on the whole scored very poorly.”

http://www.energywatchng.com/75-million-nigerians-lack-access-electricity-world-bank/

OWERRI —The people of Umuasonye in Orji area of Owerri North Local Government Area of Imo State have protested the lack of electricity in the area in the last 10 years.

Some leaders of the community spoke in an interview with South East Voice when they led a protest delegation to the Owerri Zonal Office of the Enugu Electricity Distribution Company, EEDC.

They complained that they had written several letters to the EEDC, demanding the restoration of power to them or for discussions on reasons for non-availability of electricity in their area over the years without any meaningful response.

The Chairman of Electricity Committee for Umuasonye, Orji Community, Chief Henry Akor, expressed surprise that the ,EEDC, had not given them any opportunity to interface with the management of the company on the issue, adding that the situation had led to unending protests by the people of the area.
Akor said that the community had completed a power sub-station in the area and had been waiting for the EEDC, to “energize it.”

His words: “My brother, for more than 10 years now; we do not have electricity in our community and that is why we are at the EEDC office. This problem started when it was the Power Holding Company of Nigeria, PHCH, and now EEDC.

“We have been coming to the, EEDC, office and have not received any positive response. Let me tell you, we have a power sub- station in our community and what we just need from the EEDC now is to power it to so it starts functioning.

“We are also worried that since this problem started nobody has listened to us. We are pleading that the people should help us and ask the EEDC to give us electricity instead of this darkness because we are part of Imo state.”

Also speaking, Mr. Chukwuemeka Njoku, said that the members of Orji community have remained without electricity for not less than 10 years.

“We have been calming our youths from expressing their anger. Small businesses in our community are experiencing hard times. We are in darkness. We want the EEDC to listen to us because we are human beings. We need electricity to improve our live,” he said.

Other leaders from the community who lamented over the situation said that it has been difficult to iron their clothes just as they complained bitterly over their inability to start small businesses like barbing saloons as a result of high cost of petrol.

Reacting, an official of the Owerri, office of the EEDC, who identified herself as Adaora Nancy, said she was not competent to speak on the issue but promised the Orji community leaders that their message would be delivered to the appropriate department of the EEDC that would handle their matter expeditiously.

http://www.energywatchng.com/10-years-without-electricity-orji-community-seeks-eedc-power/

still on

The Federal Secretariat in Abuja is currently in total electricity blackout.

The complex houses most of the ministries, department and agencies, of the Federal Government.

Activities in the complex have been grounded over a week now due to lack of electricity to power basic equipment in the building.

Sources said the Phase 1 of the Federal Secretariat complex also known as the Secretary of the Government for the Federation building was in darkness due to over N120 millhered that civil servants and some other public officers abandoned the duties in the complex due to the blackout.

Sources said some of the ministers whose offices are located in the building now boycott their offices.

The affected phase of the complex provides accommodation for the Ministries of Women Affairs, Niger Delta Affairs; Labour and Productivity; part of Health and many other government offices.

Also, staff of the offices affected who only come to sign the attendance register either use rechargeable lamps or torchlight from their phone to maneuver around the darkness.

It was learnt that the staff of the affected MDAs only report for duty for the purposes of signing their attendance register, as no work can be done without electricity.

They were mostly at the foyers and verandas of their offices while using either reachable lamps and torchlight from their handsets, when they had to enter the offices.

A credible source at the Abuja Electricity Distribution Company (AEDC) said the decision to disconnect the federal secretariat was taken as part of the company’s debt recovery drive.


http://www.energywatchng.com/federal-secretariat-darkness-n120m-electricity-debt/

still on..

The new interim Managing Director/CEO, Transmission Company of Nigeria (TCN), Usman Gur Mohammed, has ordered a partial lift of the suspension of payments in the areas of the company’s operations.

In a circular dated February 10, he directed that the lift on the ban on the following areas: “2016 FGN appropriation, Imprest of outstations, payments of medical and staff salaries, payments of Eurobond, AFD (African Development Bank), ADB loans.”

He directed officers to continue to process and refer to the undersigned on other critical operational matters as they arise.

The circular with ref No: TCN/TCEO/0001/vol 001/2017, that was addressed to the Managing Director of Market Operator (MO) and Managing Director Transmission Service Provider (TSP), was copied all the General Managers of the MO and TSP.

Mohammed had in a letter dated February 3 directed the TCN to temporarily put on hold all payment accounts of the company with immediate effect.

An official circular distributed to heads of the various departments of the company indicated that he reportedly took this decision the day that the Permanent Secretary, Ministry of Power Mr. Louis Edozien confirmed him as the new head of the company. Mohammed gave the directive that all payment obligations of the TCN to contractors for capital projects through the Government Integrated Financial Management Information System (GIFMIS), Remita payment platform on the Treasury Single Account (TSA) of the Central Bank of Nigeria (CBN).

http://www.energywatchng.com/tcns-ceo-lifts-payment-suspension/

The role of the CCTV operator is to monitor the security cameras and ensure the safety and security of people and property within AEDC premises and other facilities.

Responsibilities/Duties:

To operate and monitor all systems within the Control Centre in an efficient manner ensuring that all work is undertaken in compliance with the operating procedures, legislation and the codes of practice.
Assist in obtaining and maintaining the BS 7958:2009.
To liaise with the Police, other agencies and members of staff to ensure the appropriate use of the system. To include all evidential records and witness statements to a standard acceptable to the rules of evidence.
To record all events and actions taken in a clear, legible and accurate written format. To provide an efficient and courteous radio and telephone answering service and deal efficiently with all enquiries.
To report equipment failure to the Head Office Area Security Team Lead to maximize operation of the system.
To maintain a secure system for providing data in accordance with the regulations set up by the Council and ensure the security of the control room and equipment is maintained at all times.
To maintain the provision of information required by the Head, Security Services and the Head Office Area Security Team Lead to assist the monitoring of the CCTV system and other security systems in accordance with the regulations set up by the Company and the continuity and admissibility of evidential material.

Qualification:

Bachelor’s degree or Higher National
A minimum of 5 years post qualification experience, in relevant field.
Membership of a recognized body like Nigerian Institute of Industrial Security an advantage.
Further training, knowledge and skills (Certified Security Specialist) and advantage.

Other Qualifications for all positions:

National Diploma is required.
Bachelor’s degree or Higher National diploma advantage.
Experience as a security operative an added advantage.

SUBMISSION OF APPLICATION: THE FOLLOWING RULES APPLY WHEN SUBMITTING YOUR APPLICATION.

CLOSING DATE
The closing date 2nd of March, 2017 at 5 pm GMT

APPLY HERE

About 16 power turbines generators have in the last one week become functional and pushed up electricity generation from a little above 3,000 megawatts recorded earlier this month to 4,652.70 MW, total energy sent out was 94, 010.10 MWH on February 19, 2017 with no incident of system collapse recorded.

Findings showed that since the 16 turbines of the various power plants across the country began to function, electricity generation had stabilised at over 4,000MW since February 13, 2017 rising to 4, 652.70 MW on February 19.

While officials of the Federal Ministry of Power, Works and Housing attributed the development to the recent improvement in gas supply to the power plants, data from the sector obtained by Energywatchng on Monday revealed that since the country crossed the 4,043.7 MW mark on February 13, electricity generation had continue to rise.

Industry data showed that on February 19, three power generation plants, Transcorp, Omotosho I and Olorunsogo I, gained additional turbine functionality, while the average power sent out by the generation companies on the day was 3,917MWhour/hour.

Two days earlier, Afam VI and Olorunsogo I recorded functionality in additional turbines and the average power sent out was put at 3,833MWh/hour.

On February 16, Trancorp Ughelli Power reported that it recorded functionality in 10 of its turbines, while the average power sent out by the Gencos was 3,929MWh/hour.

Similarly, the Alaoji NIPP, Ihovbor NIPP, Okpai and Ibom restored additional turbines to functionality on February 15, and the average power sent out by the generation companies on the day was 3,799MWh/hour.

It should be noted that the quantum of power generated is different from the amount sent out by the Gencos, as some fraction is either lost through line constraints or left as spinning reserves.

The National Control Centre for the power sector had on February 14, 2017 declared that “improvements in domestic gas supply has resulted in lower gas constraints.”

http://www.energywatchng.com/16-power-turbines-now-functional-generation-hits-4652-70-mw/

The role of the Financial Auditor shall include ensuring successful completion of assigned audit engagements, from start to finish, inclusive of preplanning and wrap up activities. He/she shall report to the Principal Manager- Financial Audit. His/her role shall include:

Responsibilities/Duties:

Assessing risks and internal controls by identifying areas of non-compliance; evaluating manual and automated financial processes; identifying process weaknesses and inefficiencies and operational issues.
Verifies assets and liabilities by comparing and analyzing items and collateral to documentation.
Complete audit work papers and memoranda by documenting audit tests and findings.
Provides financial control information by collecting, analyzing, and summarizing data and trends.
Conducts assigned audit engagements successfully from beginning to end.
Identifies and communicates issues raised, offering recommended solutions relevant to business and risk.
Ensure audit conclusions are based on a complete understanding of the process, circumstances, and risk.
Develops audit programs and testing procedures relevant to risk and test objectives.
Ensures adherence at all times to all applicable department and professional standards.
Qualification:

Bachelor’s degree in accounting and finance with minimum of second class upper division, or Higher National diploma in Accounting with minimum of Upper Credit.
A minimum of at least 3 years post qualification experience preferably in a reputable audit firm.
A recognized professional qualification (ACCA, ACA, and ANAN)
A good working knowledge of IFRS with certification.
Other Qualifications for all positions:

Integrity and profesionalism
Comunication skills
Proffesional skills for writting audit reports
Self motivation and self initiative
Skills to do analyses and statistics
Proffesional knowledge for interpretation of laws and regulations in force
Ability to work under pressure and meet deadlines
Ability to use effectively Microsoft Office is vital.
SUBMISSION OF APPLICATION: THE FOLLOWING RULES APPLY WHEN SUBMITTING YOUR APPLICATION.

Send your application to Financial.Auditor2@abujaelectricity.com for Financial Auditors.

CLOSING DATE

The closing date is 2nd of March, 2017 at 5 pm GMT.

APPLY HERE

Interesting...

The CEO of Eko Electricity Distribution Plc, Oladele Amoda presented more sides of the issues involved, and the way forward for the Sector.

YOU have performance milestones signed with BPE in November 2013, but things have gone negative to undermine the expectations. Where is Eko Electricity distribution now on this?

When we signed the performance agreement, it was signed by BPE on behalf of the Federal Government. The basic thing, although they are so many, during the first five years is to first reduce aggregate technical commercial and collection (ATC& C) lost trajectory, then to meter all customers, to improve services to customers, to ensure that all our networks are in good shape within the five years, that’s on our side.

On the government side, there are promises like level of power availability, which was 7,000 megawatts but was reduce to around 5,500mw close to 6,000mw at inception. Then cost reflective tariff, cost that will cover your cost among other things.

When we came in, the level of power generated went down. We were getting less than 3000mw, out of the 5,500mw promised. So you can see the volume of power that we are getting was not enough, business is based on volume, the volume of energy.

Volume of energy

It was calculated that when you have this level of power, you will be able to break-even, but when you are having something less, then it affects your revenue, and ability to break-even, and that led to our shortfalls.

Secondly, there was no cost reflective tariff. May be because of political reasons the federal government didn’t allow cost reflective tariff at inception. We struggled until 2016 that they allowed something that looks like a little bit of increase, but then we couldn’t cover the whole thing. They said we should sculpt it (Sculpting means to charge but not the full amount, you charge low amount and recover it over a long period of time).

We had a 10-year charging plan. Before then, they removed the collection factor (ATC&C) the collection part of it, the risk in the collection, they removed it from the tariff, and then put R2. They didn’t allow us to charge the normal rate of R2. In those days government promised subsidy for the R2 customers but those subsidies were never paid.

We see failed promises on both sides, or rather constraints, does it mean that the promises had collapsed?

No, it has not. On monthly basis, we usually hold this power sector stakeholders’ meeting, with the Minister and all the stakeholders, and we use to take it from one section of the country to another. We discussed some of these things there. Government is working out something to take care of the shortfalls, and the National Assembly is also interested in ensuring that the sector is running the way it ought to be because, everybody has realised that without power we cannot develop anything.

We need power for many things, such as small scale industries, even large scale Industries, for social use and all of that. So everybody is putting heads together to ensure that we find solution to what seems to be endemic.

It means some things are being worked out. What are they?

Yes, some things are being worked out. Well, we just had a workshop. Everybody is going back, that is the policy maker which is the Ministry, the regulator which is NERC and National Assembly. You know, from what came out of the workshop, they are putting things together and trying to find solutions to it. Maybe in the form of bond or maybe government is going to subsidise the gas price and intake.

So whatever they can do. Right now if we are to bill the customers the way it should be just for us to break-even, it could be close to N60 per unit and that is the lowest for the DISCOs.

But if government doesn’t want that kind of tariff, they should tell us what they want us to do. This is what it costs to produce and deliver electricity to the customer. If you do not want us to take the price to the customer, then what is the government going to do? We are not asking for bail out, but we are asking for some intervention that will enable us to reduce the tariff and recover the short fall that is there.

So it is about tariff increase and you have done that about five times?

NO, it is not true. It is just twice, but that twice did not still meet the level of cost reflective tariff. The one that we had last year did not even meet it so it was cost sculpted and so we just continue to charge what we are charging now, may be little adjustment, then wait for another 2 or 3 years to recover the short-fall, that is from February last year to now.

But we are talking of what has happened in the past between November 2013 and January 2016. So much gap and short-fall, even the MDA’s debt are there, though something is being done.

Recoveringthe short-fall

The ministry and the Vice President’s office are involved in getting the MDA’s debt to be paid but the fact is that we have not receive it yet. For us, If you look at the totality, it is close to N100 billion.

What is the total indebtedness of MDAs?

The total picture of MDAs indebtedness is over N28billion as at the last count of our debt.

On recovery, how will that come in?

Well the balance will be recovered from the customer. Some customers are not paying. Some are bypassing. We have so many customers under disconnection. Some companies, because they are owing so much, they have been disconnected and they are using generators but it doesn’t pay them to use generators, because electricity is cheaper than running diesel.

May we know your customer profile, the distributions in terms of domestic, commercial, industrial, government?

Totally we have 460,000 registered customers. You know we have consumers who may be in hundreds of thousand, but we are doing enumeration to capture this once like those that are bypassing and using electricity without payment.

The one in my register is 460,000 customers, out of which about 7,000 are maximum demand, MD, customers like your company. We have about seven of them that are high consuming customers.

We have more residential than commercial. For instance, the R2 customers are more than 70 percent of our customer population and those are the residential customers, while others are commercial.

There is a wide range of customers who does not want to pay but rather choose to connect illegally. They are called NEPA 2. The multitude always likes to circumvent things. It takes a lot of efforts to detect illegal connections, which is in addition to those bypassing.

What is the proportion of power paid for to power not paid for?

On monthly basis, when we bill about N6billion, we only collect N4.2billion to N4.5billion.

Detection of illegal connections

The shortfall we receive may not be non-payment but theft. For theft, may be about 50 to 60 percent.

Many electricity consumers complain that DISCOs have refused to give them meters and instead, they are being given outrageous estimated bills. What is your response to these complaints? What is the percentage of your customers currently running on pre-paid? How do you react to situations where some consumers are forced to pay for pre-paid meters? How ready are you on NERC’s up-coming sanctions on metering coverage of less than 75%

We have a performance agreement for us to meter all our customers within five years. We are at the third year now. We could have gone far with our metering scheme. We have 600, 000 customers, because we are looking at customers that will come in, and customers that will be discovered during the cause of enumerations, so we have made plan for 600, 000 customers. For our customer based, we have covered 60 percent. Right now, we are still installing meters, but not at the rate at which we planned before, because of the economic indices that have a little bit tied our hands, Forex, inflation and the rest of it.

Last year, we signed an agreement for supply of 200,000 meters, 100, 000 from indigenous meter manufacturing company, Mojec International Limited, and another 100,000 from Huawai which is also in Nigeria, so those are 200, 000 in addition to what we have been doing before. So far all our maximum demand customers, the high end customers, we have all the meters to install in their premises. We have almost covered those categories of customers, except for those we have some issues with, either they lock up their premises or for whatever reason.

For other customers, if you go to Lekki, Festac, we have meters we are installing. The target of five years is still sacrosanct if the fallout of the meeting we had earlier, have positive outcome and implementation, we will still meet our target, because it pays us to have our customers metered. We lost a lot from our customers that are not metered.

No matter what we do to those customers without meters, as well as methodology, they will still not be satisfied. Sometimes, if we should give them zero bill, they will still query you. For instance, if the supply for last month wasn’t good, definitely through our record we will see that they will be billed less, the following month, if the supply improve, they still expect to be paying what they paid when the supply wasn’t okay. That’s why we are pushing to have everybody metered so that there will be no controversy again.

It takes a lot of efforts to meter customers. From the first day of the month, we take record of availability of supply. In such location, from the feeders of the transformers, at the end of the month, the staff in charge of billing, they come together, they look at the availability of supply from feeders, transformers and compare them with those that are metered. Before they bill again, they deal with those that are not having meters. Its takes several days to do that, and we are not comfortable with that and in most cases we under bill the customer contrary to what they are saying.

http://www.energywatchng.com/major-challenges-facing-nigeria-electricity-sector-eko-boss/

MTN Nigeria has linked up with solar experts, Lumos, to provide mobile electricity solutions to millions of households and businesses across the country.

The national roll-out of the service in Abuja, the country’s capital, scheduled to take place on February 20, is expected to make life easier for many Nigerians by bringing the revolutionary product closer to their doorpost.

According to the two firms, the innovative product will allow Nigerians enjoy accessible, noise-free and fume-free electricity for everyday use, which they can conveniently pay with airtime from a MTN mobile phone.

The new electricity device, which comes with a five-year warranty, can light up bulbs and power appliances like fans, televisions, mobile phones and computers, according to its makers.

Commenting on the partnership with LUMOS and the revolutionary product, Chief Executive Officer of MTN Nigeria, Mr. Ferdi Moolman, said, “Our partnership with LUMOS was borne out of the need to provide safe, affordable electricity alternatives for Nigerians to uninterruptedly conduct their daily businesses. We at MTN value lives and the overall wellbeing of Nigerians and we’ll continue to put out initiatives that focus on providing life solutions.”


http://www.energywatchng.com/mtn-partners-lumos-launch-mobile-electricity-solution/

Transcorp Power, a subsidiary of the Transcorp Group business conglomerate, has expressed its desire to partner with Covenant University with a view to exploring solar energy generation and utilization in Nigeria.

The Group General Counsel, Transcorp Power, Mr. Christopher Ezeafulukwe, made this disclosure on Friday, February 10, 2017, when he led representatives of his organisation including that of its partner, ENGIE, on a courtesy visit to the Management of Covenant University.

Mr. Ezeafulukwe, who bemoaned what he described as the “critical situation” with power supply in Nigeria, said that changes in government policies have had a drastic effect on Transcorp Power’s investment and, in its efforts at finding a solution to the challenge, the company had partnered with power producer, ENGIE, on solar energy.

“We did preliminary work to identify stakeholders whose power we would need to address. One is the tertiary education sector, then Covenant University came up,” he said.

While acknowledging the giant strides being made by Covenant University in the areas of teaching, research and provision of infrastructure, Mr. Ezeafulukwe said that Transcorp Power was at Covenant University to understand the University’s energy needs, and areas where his company and the University can work together within the purview of what Transcorp Power was doing with ENGIE.

Shedding light on the operation of his organization, the Chief Executive Officer of ENGIE, Mr. Philipe Miguele, said that energy system was going through significant evolution and ENGIE was set to launch a significant investment in Sub-Saharan Africa, with the goal of helping customers in growing their energy generation capacity.

ENGIE, he pointed out, wants to partner with Covenant University on power generation and help to reduce the University’s cost as solar energy generation is cost effective.

In his comments, the Director, Physical Planning and Development, Covenant University, Arc. Gbenga Alalade, who expressed appreciation of what Transcorp Power and ENGIE were doing, narrated the evolution of power generation and utilization in CU since inception up to 2015 when the University migrated fully to its own power project, which currently stands at 5.67 megawatts. Power production, he added, would be increased to 10.8 megawatts by the end of 2017.

Arc. Alade revealed that the ultimate goal of Covenant University is renewable energy with focus on solar, wind and waste. It would be ideal, he enthused, for the University and Transcorp Power to work together.

Dr. Hope Orovwode, who represented the Head, Renewable Energy Cluster, CU, Professor Samuel Wara, at the meeting, said that the renewable energy cluster has been doing a lot on solar and the next step was to make it cost effective. The coming of Transcorp Power, he stressed, was timely, and Covenant University would be willing to learn from the company towards making energy accessible to Nigerians.

In his remarks, the Vice-Chancellor, Covenant University, Professor AAA. Atayero, said he was not surprised that Transcorp Power had chosen to work with Covenant University, attributing the decision to divine providence.

He said that the University had gone through many phases in its desire to find a permanent solution to its power needs and currently uses the turbine but looking at shifting to sustainable energy.

The proposal by Transcorp Power, the Vice-Chancellor noted, means the University was in the right direction. However, he pointed out that the University would not be going into partnership as consumers as the institution desires solution that can give its Engineering students experience.

Professor Atayero described the initiative by Transcorp Power as a good beginning, adding that there would be further discussions between representatives of the University and the company.

Also in the Transcorp Power entourage were its Group Chief Finance Officer, Mr. Ibikunle Oriola and Projects Head, Mr. Funto Amire.

And other representatives of Covenant University at the meeting were the Registrar, Mrs. Mary Aboyade; Dean, College of Engineering, Professor Christian Bolu; Director, Vice-Chancellor’s Office, Dr. David Omole; and Deputy Director, Media and Corporate Affairs, Mr. Emmanuel Igban.

http://www.energywatchng.com/transcorp-power-seeks-partnership-cu-solar-energy/

The presidency is yet to offset N552m electricity bill.

This was made known on Thursday by Permanent Secretary, State House, Jalal A. Arabi.

He spoke while giving breakdown of the State House 2017 budget to the Senate Committee on Federal Character and Inter-Governmental Affairs.

On electricity charges, Arabi explained that N45.3 million was approved in the 2016 budget.

He said that the electricity bill for 2016 alone as forwarded by Abuja Electricity Distribution Company (AEDC) for State House Abuja was N252 million with another outstanding liability of over N300 million for State House, Lagos facilities.

Arabi noted that the provision in the 2016 budget could not accommodate the outstanding liability.

He said that the management of the State House was forced to install meters in 2016 to ensure proper billing “and that was what reduced the bill to a reasonable figure.”

“We have made a modest provision of the sum of N319.6 million for 2017 to settle current and part of outstanding bills as noted above.”

The official disclosed that N94.5 million was budgeted to purchase bullet-proof tyres for the use of President Muhammadu Buhari and others in the 2017 fiscal year.

On canteen and kitchen equipment, Arabi said that the sum of N100.8 million was provided for in the 2017 proposal.

“This amount is principally the un-released appropriation for 2016 which was the unpaid balance in 2015 for contracts awarded and executed.

“The sum of N80.2million appropriated in 2016 has up to this moment not been released hence its roll over and inclusion in 2017.”

He noted that the amount covered kitchen equipment in the main residence, VP residence, banquet hall, State House medical centre, State House auditorium and 22 other guest houses.

http://www.energywatchng.com/presidency-owing-n552m-electricity-bill/

Acting-President, Yemi Osinbajo has said that the federal government will develop Gas power plant in Egbema local government area of Imo State as it seeks to beef up electricity supply in the country.

He said this in Owerri at a stakeholders’ forum on sustainable development in the Niger-Delta region.

Osinbajo said the development of the facilities in the area was necessary due to the huge deposit of gas in the area, stressing that situating the thermal power facilities in the area will solve the problem of gas supply to the stations, leaving government with only the problem of electricity transmission.

The Acting-President also said that the project will be executed in consultation with the state government, adding that President Muhammadu Buhari had ‎promised to make sure Imo people got their just dues.

He said: “I also believe that thermal power stations such as Egbema power station must be stationed here to beef up electricity supply across the country.

“They must be stationed in the oil-producing communities, especially here in Imo state where there is a huge deposit of gas.

“We must have thermal power stations here, because it’s easier and makes more sense to situate thermal power stations next to the gas facilities so that our only concern will be how to transmit the power. That is one of the issue we intend to deal with in consultation with the state governor, Rochas Okorocha.

“Let me assure you that as far as President Buhari is concerned, Imo state is important, Oil-producing communities are important, and he will make sure and the federal government will make sure that you get your just dues.”

http://www.energywatchng.com/fg-build-gas-power-plant-imo-state-osinbajo/

ABUJA: Notwithstanding the leadership crisis currently rocking the soul of the Transmission Company of Nigeria, TCN, the company has earmarked 11 outstanding critical projects for completion in the 2017 fiscal year.

The embattled Managing Director and Chief Executive officer of TCN, Engr. Abubakar Atiku said the management was working hard to ensure the completion of the outstanding critical projects, which were funded in 2016 budget and hopefully to be funded in 2017.

Those targeted for completion, according to him, include the rehabilitation of Afam1 x 150MVA, 330/132/33kV transformer and construction of Afam IV to Afam I, 132kV transmission line currently at 95 percent completion.

He said the Katsina – Daura 132kV line and 2x60MVA Subtation at Daura which has attained 90 percent completion would also be completed as well as the Kafanchan 2x60MVA Substation project, presently at 92 percent completion.

Mobile substation

Others include, 1 x ‘ 150MVA, 330/132kV a 2x60MVA, 132/33kV Substation m Maiduguri – 85 percent completed, Osogbo – Ede 132kV DC Transmission line at 95 percent completed and Kaduna – Jos 330kV DC transmission line at 75 percent completed.

Others include, the Benin North – Osogbo 330kV DC transmission line which has reached 48 percent completion, Erukan – Omotosho 330kV DC transmission line at 24% and 1 x150MVA, 330/132kV and 60MVA, 132/33kV Substation at Damaturu at 92 percent.

Atiku said the 40MVA Mobile Substation at Damboa in Borno State is now at 45 percent completion and the 40MVA Mobile Substation at Mayo Belwa in Adamawa State is 90 percent.

He stated: ‘‘That the completion of the above reinforcement and new projects is expected to increase our wheeling capacity from 6,500MW to 7,200MW by the end of 201 7.’’ On achievements recorded by TCN, Engr. Atiku said, “As part of our strategy to improve the wheeling of reliable power to all parts of our great country, we have upgraded several transmission substations in the country.

“These include the Ikorodu Substation, where we had 30MYA transformer capacity this has been improved to 280MW.

“We have increased transformer capacity in Sokoto and Birinin Kebbi from 30MYA to 60MVA and 180 to 330MYA respectively. Meanwhile, we are also working to restore power supply to some parts of the North East that have remained without electricity supply due to insurgency.

“In Damboa for instance, we have moved in a 40MVA mobile substation to ensure dectricity supply gets to the area.

“A major loop in the center of the grid was formed by the completion of the new 330kY transmission line from Enugu – Markudi -Jos. This loop is a merger of system of grid stability

“We have also completed a major reinforcement work in Akangba Substation, Lagos State, resulting in transformer capacity improvement in the station, from 480MW to 1,260MW.

“The completion Ikot Ekpene Switching Station which is a major hub that links power stations in the South South and South East axis of the country is a major achievement and quite strategic making the grid to be more robust and enhancing grid reliability.

“We have introduced dispatching tools which have resulted in a more efficient interface with Gencos on one hand and Discos on the other hand and have also succeeded in reducing Transmission Loss Factor (TLF) from 8.05% last year to 7.82% as at January 2017.

“This improvement in transmission loss translates to more power to the Discos for the people and about 5billion naira additional revenue to TCN, however due to poor market performance; the impact of these is yet to be felt in terms of financial returns to TCN.”

“Several capacity building programmes have been executed for our system operators to upgrade their skills. This has culminated in the improvement of grid stability despite external challenges.

On the prudent management of the company’s resources, the MD explained, “Also under our watch, TCN in compliance with World Best Practice and Financial Reporting Council of Nigeria, is for the 1st time being audited by a reputable external audit firm (Pricewater & Cooper).

“The audit report on TCNs performance from 2005 to 2014 would be ready before the end of February.”

http://www.energywatchng.com/transmission-capacity-hit-7200mw-december-2017-tcn/

The Minister of Power, Works and Housing, Mr. Babatunde Fashola, has said he will, like other consumers, be more resistant to payment of electricity bill if there is no supply.

Fashola said this on Monday at the 12th Monthly Power Sector and Stakeholders’ Meeting in Ibadan hosted by Ibadan Electricity Distribution Company.

Power generation in the country has worsened in recent weeks after hitting the 4,000 megawatts mark in December last year, with many consumers without prepaid meters complaining about over-estimated bills despite the dip in supply.

Commenting on the problems in the power sector, the minister said sabotage of gas assets and pipelines had “decommissioned power plants and their ability to provide up to 3,000 megawatts of power”.

He said, “The 3,500MW to 3,800MW that we have been able to keep on the grid over the last few months will be assisted greatly if we can have the gas pipelines back and add 3,000MW to it. That means we will be able to deliver well over 6,000MW if the gas pipelines are safe.”

Fashola said the sabotage had also created debt and liquidity problems, shortfall in power expectation, and in revenue recovery by power distribution firms.

“Consumers are more resistant to payment when they don’t have electricity, and I will be, too, and you will be too,” he told the power investors and other stakeholders at the meeting.

“We see that they (consumers) pay more when the power is more stable. Of course, there are issues also at the retail end – metering, estimated bills.”

Noting that all stakeholders have different roles to play in solving the problems, the minister said, “You will see that government has begun to act. The Vice President, representing the President, is going round those Niger Delta communities, engaging them more openly, more robustly.

“The idea is to bring them to the table to stop the vandalism while the issues that agitate them can be treated and resolved. I believe that if we are successful as we expect to be, we should be able to, sometimes, this year recover all the 3,000MW that has been lost to gas pipeline outages.”

http://www.energywatchng.com/will-avoid-bill-payment-theres-no-electricity-fashola/

More details into the financial state of the power sector has been revealed by the National Bureau of Statistics (NBS) / Nigerian Bulk Electricity Trading Plc (NBET).

The information obtained by energywatchng shows that the Nigerian Bulk Electricity Invoices and payments from generating companies (GENCOs) to distribution companies (DISCOs) and offtakers for 2016 has reflected that an invoice of N27.14bn was issued by the generating companies (GENCOs) to the offtakers while a payment of N2bn was made with a balance N24.96bn recorded at the end of 2016.

The generating companies (GENCOs) issued a total invoice of N331bn to the distribution companies (DISCOs) with the DISCOs share of the total invoice put at N331bn while payment N88.03bn was received with a balance of N242.97bn recorded at the end of the period under review.

Similarly, the generating companies (GENCOs) issued a total invoice of N361.52bn to the offtakers with the offtakers share of the total invoice put at N30.2bn while payment N2bn was received with a balance of N27.39bn recorded at the end of 2016.

The sum of N1.13bn was recorded as the debit note for Net GENCOs imports in 2016.

Further breakdown by energywatchng shows that Egbin generated the most energy in 2016 with a total invoice of N62.5bn which is the total cost of energy generated for 2016, followed by Transcorp Power with a total invoice of N40.4bn, third on the list was Jebba with a total invoice of N26.1 bn.

From the various invoices to the Discos, Egbin received N16.4bn which is 26.24% of total cost of energy generated, while Transcorp Power received N9.6bn (23.64%) and Jebba received N6.1bn (23.37%). Further analysis by energywatchng showed that the Gencos were paid less than 30% of the actual cost of energy generated which is a major cause of the poor generation level currently experience across the country because the Gencos are limited with funds and can’t invest heavily on their plants.

Moreover, amongst the discos’ invoice, Abuja Disco took the highest energy with a total invoice of N44.9bn for the year 2016, seconded by Ikeja Disco with a total invoice of N42.4bn, followed by Ibadan Disco with a total invoice of N41.2bn, Enugu came forth with a total invoice of N36.97bn, Benin Disco had a total invoice of N30.3bn, followed by Port Harcourt Disco and Eko disco, with a total invoice of N29.8bn and N28.5bn respectively.

In the terms of payment performance with respect to their various invoices from the Gencos, Eko Disco came first with total payment of N13.5bn for the year 2016 which is 47.3% of the total cost of the energy used by the disco.

Ikeja Disco took second, with total payment of N29bn (31.6%), followed by Ibadan disco taking third, Abuja disco taking forth, Enugu Disco taking fifth and Benin Disco taking sixth their total respective payment was N12.9bn (31.3%), N13.1bn (29.17%), N9.9bn (26.83%) and N7.5 bn (24.67%).

Further analysis by energywatchng shows that most discos remitted less than 30% of the cost of energy they distributed to their customers which is very poor and not encouraging for the sector. We believe more effort and investment should be channeled towards revenue collection amongst the Discos.

http://www.energywatchng.com/discos-paid-gencos-n88-03bn-n331bn-2016-nbs/

For the power privatization in the country to work, the industry’s regulator- Nigerian Electricity Regulatory Commission (NERC) must be allowed to perform its mandate without interference, the Acting Director-General of the Bureau of Public Enterprises (BPE), Dr. Vincent Onome Akpotaire, has said.

Speaking at a 2-day stakeholders interactive dialogue/workshop organized by the joint committees of the National Assembly on Power in Abuja on Wednesday, February 8, 2017, Akpotaire said that NERC must be allowed to fix tariffs in line with the Electric Power Sector Reform Act (EPSRA) without interference from any quarters and that if the tariffs are considered high, the government could decide to mitigate the effects by taking up a percentage of the tariffs instead of outright cancellation.

The Acting Director-General cautioned against the blame-game in the power sector and appealed to the executive and the legislative arms of the government as well as other stakeholders to come together to find solutions to the sector’s challenges.

Explaining why the Federal Government is being asked to subsidize the Nigeria Electric Supply Industry (NESI), the BPE helmsman said that the loss levels at the point of privatistion of the power sector, that is the Aggregate Technical, Commercial and Collection (ATC &C) loss of Nigeria was about 50% on the average which could not be fully passed to consumers immediately to avoid rate shock and consumer rebellion.

On why the Central Bank of Nigeria (CBN) gave a loan of N213 billion to the privatized power companies, he said that the “Multi-Year Tariff Order 2 (2012) that was put in place when investors took over on November 1, 2013, had assumed AT & C loss level of 25 %.The agreements signed with the investors gave NERC and the Distribution Companies (DISCOs) one year to determine the true AT & C loss levels which was subsequently found to be about 50% on the average. Based on the new ATC & C loss levels, a new tariff was issued by NERC with effect from February 2015 but the shortfall that accumulated because of the wrongly assumed ATC & C of 25% from November 1, 2013 to December 31, 2014 amounted to N213 billion. Consumers were liable to pay the N213 billion immediately but the CBN intervention by way of a loan to the DISCOs, enabled NERC to spread the recovery of the money from the consumers over a ten year period.”

Expatiating on why the core investors in the DISCOs were not investing heavily in line with the covenants they signed with the government, he said the transaction structure compelled investors to raise money and pay for their 60% equity in DISCOs using their own balance sheet and that upon take over, the investors were expected to leverage on the acquired companies’ clean balance sheets to raise additional funds for investments. However, he pointed out that financial institutions have refused to lend money to the DISCOs until a cost reflective tariff is approved in line with the agreements; and the CBN loan to the industry removed from the books of the DISCOs.

Akpotaire said, though, the Federal Government owns 40% of the DISCOs, it was not part of the management because it was not funding its shares on the boards.” The Performance Agreement executed with investors has assigned operational risks to investors. The PA provides that a core investor who fails to achieve agreed targets stands the risk of losing his/her equity at the payment of US$1 by the Federal Government.”

On why the BPE is on the boards of the power companies, the Acting Director-General explained that “since 1988 when TCPC, the agency that BPE replaced, was established, BPE has always represented the Federal Government on the board of any company undergoing reform and privatization” on the grounds that it makes it possible for the BPE to have access to all the information it requires to carry out its statutory duties of reform and privatization and “since all key strategic decisions are made by the board, it would not make sense for BPE to give guarantees on behalf of a company it does not know the critical decisions that its boards had taken. The initial five-year period is usually a time to help nurture the companies on the path of growth and success.”

http://www.energywatchng.com/fg-shouldnt-interfere-power-sector-regulation-bpe/

The Commission’s attention has been drawn to an editorial in one of the dailies today and wish to state that the Commission as the sector regulator on power pursuant to the Electric Power Sector Reform EPSR Act 2005 is tasked with the responsibility of providing fair regulation to all stakeholders, including electricity consumers and operators as contained in Section 32&36 of the EPSR ACT 2005.

Specifically, the Commission is by the law under the EPSR ACT to provide a cost reflective tariff for the operators based on prudent costs and create an enabling environment, while at the same time protect the interest of electricity customers to ensure they get value for money. The Commission has never at any time stated that only an increase in electricity tariff would guarantee steady power supply in the Country. NERC’s position remain that in view of the economic recession in Nigeria and poor remittance level by electricity distribution companies (DISCO’s) multiple restraining orders from the courts as a result of litigations by some DISCOS that constrains the Commission, and the Nigerian Bulk Electricity Trading Company from enforcing the Market Rules on Discos and other market operators amongst others, increase in tariff is not imminent at this time.

The Commission is working with the Ministry of Power, Works and Housing and other stakeholders to implement innovative ways to address the liquidity gap and other issues militating against improved electricity supply through both regulatory and policy interventions not excluding the appropriate intervention of the Federal Government as was executed in other jurisdictions that have implemented similar power reform programme.

The Commission in recognition of the importance of protecting the interest of electricity customers has rapidly set up 19 Customer Complaints Forum Offices nationwide with over 10 more in the pipeline to be opened this year. The monitoring and enforcement actions have been intensified by the Commission to ensure that the electricity industry operators, especially the DISCO’s comply with the rulings of the NERC Forum Offices and other regulations. A lot of the defaulting DISCOs, including the TCN, some GENCOs have been sanctioned by the Commission. Most of these defaulters have either fully paid the fines or applied for reconsideration. These regulatory oversights of the Commission have tremendously increased the rate of voluntary compliance by the electricity industry operators, especially on issues bordering on customer complaints.

There is no doubt that the electricity sector has not achieved the projected level of improvement due to various reasons that are attributable to the operators deficiencies and beyond. These challenges are not peculiar to only Nigeria, but also did occurred within 3 to 5 years in similar forms in all other countries that undertook similar power sector reform.

The Nigerian Electricity Regulatory Commission is saddled with the responsibility of protecting the interest of both consumers and well as investors when it comes to the issue of electricity pricing as well as electricity supply in Nigeria. The allegation that the Commission is siding with the operators is simply untrue.

As Nigerians are fully aware, the macroeconomic indices such as the rate of inflation and exchange rate have steadily gone up over the last one year. This increase has affected the prices of all other commodities in the country. The purchasing power of Naira has crashed to all time low within the last couple of months. The MYTO methodology (pricing methodology) mandates the Commission to carry out a minor review of the Tariff bi-annually and adjust these exogenous factors that are beyond the control of the investors and the regulators. The official exchange rate in the country has risen from N198.97 to over N305.05 to a dollar. Kindly note that the unofficial (black market) exchange rate is about N500 to a USD. This alone is bound to trigger an increase in electricity tariff given the fact that all equipment, spare parts, meters used for the generation, transmission and distribution of electricity in Nigeria are imported. Electricity is therefore a product like any other product that is affected by changes in micro economic indices.

Secondly, the rate of inflation has risen to 18.55% as at 1st February 2017 as against the 8.3% used in the tariff computation. Similarly the available electricity generation has dropped from the projected 7,199MW in 2017 to under 4,000MW. The drop in power generation is due to vandalism of key facilities as rightly pointed out by the Honourable Minister of Power and this has created volumetric risk in the Nigerian Electricity Supply Industry (NESI). The Commission is not oblivious of the economic hardship faced by Nigerians as we are also suffering the same fate with our fellow countrymen. We pay the same electricity tariff like every other Nigerian but we also have a duty of ensuring that the operators recover their prudently incurred cost thus the need for the tariff review at an appropriate time and manner with the aim of ensuring that the electricity market remains operational.

It is also a known fact that over 80% of the electricity generated in Nigeria is from gas fired power plant. The gas price is indexed to the US$ as the generators pay the gas suppliers in Dollars ($). The Commission has proposed to the government the option of pricing gas in local currency to mitigate the foreign exchange risk which is the major cause for the gap in tariff.

The Commission remains committed to provide an enabling environment for the operators in the sectors and also protect the interest of the electricity customers.

The Commission wishes to assure the general public and investors that these problems in the power sector are transitory and there is a comprehensive and robust proposal developed by a joint committee piloted by the Hon. Minister of power with the participation of NERC and other stakeholders to effectively resolve these teething problems in the NESI.

http://www.energywatchng.com/addressing-power-sector-challenges-beyond-tariff-nerc/

Ethiopia is slowly but surely establishing itself as a major power hub in Africa through its electricity exports. The Ethiopian Electric Service has said that the country made about $123 million (2.6 billion birr) between 2015 and 2016 budget year from the sale of electricity both locally and abroad. During a parliamentary session recently, the water, irrigation and electricity minister, Motuma Mekassa said “the Ethiopian Electric Service in general has collected a total of 2.6 billion birr in eight months, achieving 82 per cent of its target.”

Ethiopia which is a gold and coffee rich country, is reliant on emergency aid as a result of severe drought (just like Malawi and Zimbabwe) which has led to the malnutrition of about 430,000 children, not to mention women. However, since 2014, the country has turned its focus towards the sale of excess electricity to countries like Djibouti, Kenya and Sudan, while establishing grid links to South Sudan, Uganda, Rwanda, Tanzania and Yemen.

Even though Ethiopia has been rife with political and social challenges, the country seems to have a grip on the power sector. Electricity exports account for over 7 percent of economic growth even as the Grand Ethiopian Renaissance Dam is scheduled to be completed in 2017. With its 6,000 megawatts capacity, it will be Africa’s largest hydroelectric project.

According to Today.ng, Ethiopia earned close to $33 million from electric power sales to Djibouti in nine months of the 2013/2014 budget year, that is from July 8, 2013 to March 7, 2014. Last year, Ethiopia reportedly planned that by 2018, as a part of a cross-border effort to meet regional energy demand and limit increases in climate-changing emissions, it would export renewable energy to more neighboring countries, a major step in protecting the environment from bio-hazards.

Ethiopia’s prime minister, Hailemariam Desalegn has indicated however, that even though the country’s contributions to climate change may be small, it goes a long way to show that they are committed and will even motivate other countries to follow suit.

The government is aiming to develop a middle-income country by 2025. “Electricity is a major player and the driver of socio-economic development,”said the CEO, Ethiopian Electric Utility (EEU), Gosaye Mengistie Abayneh at the time.

http://www.energywatchng.com/ethiopia-earns-123-million-electricity-exports-2015-2016/

Relief has come the way of unmetered electricity consumers in Delta, Edo, ekiti and Ondo states as Benin Electricity Distribution company (BEDC) is set to distribute prepaid meters free of charge to consumers in its coverage areas.

The company said the decision was in response to the directive of the Nigerian Electricity Regulatory Commission (NERC) to DISCOs to make meters available to consumer at no cost.

Head, BEDC, Delta State, Ernest Elgah disclosed this at a Customer Public Forum held at the Mom Civic Centre, Warri.

He said that the NERC had issued a directive to all distribution companies in the country to stop collecting money from customers who want to buy meter adding that henceforth, meters will be given to customers free of charge.

Elgar said the distribution of the meters have already started and that BEDC will distribute meters to all its customers within three to four years as the company cannot provide meters to all its customers within one year.

He said BEDC will make sure that the meters gets to all its customers but asked for patience on their part, stressing that they do not have the funds to provide meters for everybody at the same time.

The BEDC Boss said the metering will be done in batches and that by the end of five years, every house would have been metered.

He also disclosed that the Minister of Power has set machineries in motion to ensure that Government Ministries and agencies who are owing BEDC pay up their debt to ensure a smooth running of the BEDC.

“BEDC receives nine percent of what is available at the national grid. BEDC covers four states namely, Edo Delta, Ondo and Ekiti states. Once the national grid has challenges the available power to BEDC reduces.

“Standard practice all over the world is that for every one million population, they should consume 10,000mw. Now that the country is boasting of about 160 million people, then we should be talking about a hundred and something mega watts.

“The Hon. Minister also said that there is a major liquidity problem which they are working on. He said they are in various degree of discussion with the World Bank on how to resolve this liquidity problem. So we need to address the issue where the challenge really is.

“The Minister has set up a working committee with all the distribution companies on how to settle the bills of government Ministries and Agencies. The committee is working assiduously to ensure that the debt are reconciled and the government has given us commitment to pay”, he added.

The Company however attributed the incessant power outages in its area of coverage to vandalisation and theft of its equipment.

Despite these challenges, BEDC Boss assured the company’s customers in Edo, Ondo, Delta and Ekiti States that it is poised to provide them with quality service delivery and urged the customers to pay their bills and avoid all forms of illegal deals with some BEDC staff who are corrupt.

Elgar lamented the high rate of theft of BEDC equipments by vandals who have made it very difficult for them to perform maximally.

“I also want to emphasize on this issue of vandalisation and violence. The level of violence and vandalisation in Delta State is on the increase. This year alone I know that three people have been jailed and I must commend the judiciary for that,” he said.

http://www.energywatchng.com/bedc-install-free-prepaid-meters-electricity-customers/

Electricity Generation on 07/02/2017

Highest Frequency 51.53 Hz

Lowest Frequency 48.76 Hz

Peak Generation 3,730.50 MW

Lowest Generation 3,276.40 MW

Total Energy Sent Out 82,315.36 MWH


For Previous records check:

http://www.energywatchng.com/daily-generation/

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The 252 megawatt-capacity GbarainUbie power plant being built by the Niger Delta Power Holding Company (NDPHC) under the National Integrated Power Project (NIPP) would be ready for commissioning by the end of first quarter 2017, the Managing Director of NDPHC, Mr. Chiedu Ugbo has said.

Ugbo said recently during the inauguration of the presidential initiative on solar homes systems in Wuna Village Gwagwalad Abuja, that the completion and commissioning of the plant would add additional 252MW to Nigeria’s generation capacity.

Work on the plant which has Rockson Engineering as its engineering, procurement and construction (EPC) contractor has stalled for a long time now.

But speaking to the Vice President, YemiOsinbajo at the event, Ugbo said: “Your Excellency, strategies are also in place to complete the second unit of the Gbarain power station in Bayelsa State before the end of this quarter. This will add 225MW to the grid.”

“In November last year, the Honorable Minister of Power, Works and Housing, commissioned the 12-circuit Ikot-Ekpene 330KVA Switching Station and the associated transmissions lines with a total of about 285KM completed by our new management. These projects are now assisting in evacuating into the national grid, electricity hitherto stranded in the Eastern Delta,” he added.
Also, arrangements for gas supply to the plant may have been taken care of with a pledge by Shell Petroleum Development Company (SPDC) that it would solely supply gas to the 252MW gas turbine power station.

In a 2015 paper titled: ‘Shell in Nigeria: Unlocking Nigeria Energy Potential,’ SPDC stated that it would single-handedly supply gas to the 225MW Gbarain power plant.
It said in the paper: “Shell will be the sole supplier of a new 225 megawatts power plant being built in Gbarain by the Federal Government under the Nigerian Independent Power Project.
“In 2010, SPDC began producing from the Gbarain-Ubie integrated oil and gas plant in Bayelsa State. Gbarain is designed to process one billion standard cubic feet of gas per day. In addition to supplying gas to the Nigerian Liquefied Gas (NLNG), Shell also supplies gas to the Bayelsa State power plant at Imiring.”

The paper further indicated that the GbarainUbie plant was helping SPDC reduce flaring of associated gas from nearby gas fields, thus contributing to its wider flares reduction programme.
“The GbairanUbie project has created a legacy of skills and capacity in complex gas projects, which will be vital in meeting Nigeria’s electricity supply challenges in the years ahead,” it added in the paper.

http://www.energywatchng.com/gbarainubie-power-plant-ready-end-q1-2017/

The disagreement between the Federal Government and workers of the Transmission Company of Nigeria (TCN) over the appointment of a new managing director/chief executive officer for the power firm deepened on Monday as the newly appointed CEO, Mr. Usman Mohammed, ordered the immediate suspension of all payments, award of contracts and issuance of local purchase orders by the TCN.

Mohammed’s order was followed by another round of protest by workers of the firm under the aegis of the National Union of Electricity Employees and the Senior Staff Association of Electricity and Allied Companies, who insisted that the new CEO would not gain entry into the office of the managing director.

On Friday, the Permanent Secretary of the power arm of the Ministry of Power, Works and Housing, Mr. Louis Edozien, announced that the Federal Government had approved the secondment of Mohammed as the interim managing director/chief executive officer of the TCN despite protests by the workers against the move a day earlier.

Mohammed, according to the permanent secretary, had already resumed duty as of the time the announcement was made.

But it was observed that Dr. Abubakar Atiku, the former boss of the transmission company, occupied the office of the MD/CEO on Monday despite the supposed resumption of work by the interim boss.

However, in a memorandum to all executive directors and general managers of the Transmission Service Provider and Independent System Operators of the TCN, which was obtained by our correspondent in Abuja on Monday, with reference number TCN/TCEO/01/C.001/Vol.001/2017 and signed by Mohammed on February 3, 2017, he ordered the temporary suspension of payments, award of contracts and issuance of the LPOs.

He said, “Sequel to my assumption of duty on appointment as the Transitional Chief Executive Officer of the TCN, and in view of effecting controls on our payment systems, repositioning the organisation for greater transparency and improved efficiency, you are hereby directed to suspend all payments in all the TCN related accounts with immediate effect.

“This comprises all payments in respect of capital projects through the GIFMIS (Government Integrated Financial Management Information System) accounts, Remita payment platform via the Treasury Single Account with the Central Bank of Nigeria and payment via the CBN foreign transaction accounts in headquarters, except operational activities, which must have the approval of the TCEO.

“In addition, there shall be no issuance of contract awards, local purchase orders, work orders and letters of intent. The suspension exercise is expected to be lifted within one week from the date of this memo. This is for immediate compliance, please.”

Reacting to the development in a joint statement issued by the Abuja Chapters of NUEE and SSAEAC on behalf of the TCN employees, the unions argued that the National Assembly had advised that Atiku be allowed to continue as the MD/CEO until all the contending issues were resolved.

The unions stated, “But the permanent secretary still stands his ground by pushing for Mohammed as the CEO of the TCN. What does he stand to gain by disrupting the good flow in the power sector?

“The man that the permanent secretary is pushing forward is of the African Development Bank. The AfDB is about granting a loan to the TCN. That is the only credential on the basis for which the TCN is being conceded to the AfDB. Mohammed has since allegedly issued circular stopping all forms of transactions, including payment of any form by the TCN management.

“This is not an approach of a man who came to work and move things forward in the interest of the nation and Nigerian workers. We are, therefore, calling on well-meaning Nigerians to impress it on the government and its cohorts to please stop this ugly push that will slow down the progress already made in the power sector.”

The Special Assistant to the Minister of Power on Media, Hakeem Bello, however, stated that Nigerians should disregard the allegations by the unions as Fashola was aware of the approval of an interim CEO for the TCN.

He also stated that his boss was aware of the invitation by the National Assembly concerning the appointment of Mohammed, who before now, was an employee of the AfDB.

http://www.energywatchng.com/tcn-new-md-suspends-payments-contracts-purchase-orders/

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The Minister of Power, Works and Housing, Mr. Babatunde Fashola, has said the 2017 sector-specific census will help the federal government to address the shortage of electricity supply in the country.

Fashola who spoke with journalists in Awka, Anambra State, yesterday said his ministry had mapped out a three-pronged strategy to deal with power problems in the country, saying the strategy has been divided into short, medium and long term strategies.

The minister said the census which would help to properly enumerate power usage and allocation in the country would be part of the medium term plan, while increasing power in the grid in the short term plan.

He said: “We are here to get the job done and get life better for the people of Anambra State and the South-east region. Our work on power is three pronged-short term, medium term and long term. In the short term, we want to achieve incremental power, the power we have now is not enough.

“Unfortunately as we are gaining power in some places, expanding power in some transmission and the transmission grid can now take 7,000 megawatts, but we are losing power generation to gas shortages and vandalism.

“Today, we can evacuate 7,000, but we don’t have the gas to fire those turbines, that is why the vice president visited Niger Delta to speak with them. Now the price of oil has gone up to $56, so we should take the opportunity to produce more, more fuel means more gas, and more gas means more power.

“We have lost about 3,000 megawatts, and we are currently working towards getting another 4,000 and you can imagine what would have happened if our brothers (militants) from the Niger Delta who are angry with us could sheath their sword, we would have had about 7,000 now, and you know what that means.”

The medium term plan, he said, is when the census will be done. He urged Nigerians to ensure that they stay in their towns or states of residence when the census would be conducted as it would help to ensure proper evacuation of power.

“Stay where you live, don’t move to the village. We have to know where you need power; people must stay where they live and not go to their villages, because that is where they need power. These are the strategies going further,” he added.

He also assured Nigerians that his ministry was working hard to tackle the problem of estimated billing system with the distribution companies (discos). He said it may take some time for everyone to own a meter, but soon, the problem would be overcome.

The minister said a proper billing system is also being worked out that would help the discos know what category each consumer belonged, as failure to do so would always result in consumers paying the wrong bill which could either cheat the discos or be cheating the consumer.

http://www.energywatchng.com/fg-address-power-problems-2017-census/

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