Behind schedule but a good move, hopefully no new "cabals" will spring up.  As I understand it the "subsidy" on power is being removed as tariffs rise to international market rates. Although reports on my radar are that power generation may not increase by much this year.  The lower generation by the govt is expected to be bridged by Independent Power Producers - Good work GEJ if you can get the power sector even slightly better or slightly less bad.  

It is good to be critical of GEJ, but there is some progress being made in some areas.  Hopefully Power supply is one.

The successor companies are here for all to see: http://www.nercng.org/index.php?option=com_contact&catid=44&Itemid=68

From the below table:

1 Power Transmission Company

6 Power Generation companies

11 Power Distribution companies

18 Successor companies in total


Note: where it states capacity, that column includes region.

The Federal Government plans to plough a good amount of funds saved from removal of petrol subsidy to quickly add about 4000 megawatts (MW) of electricity to the national grid, Minister of Power, Prof. Barth Nnaji has disclosed.

SCRIPT

LeoMax:

36 States into 6 Regions with 6 States Each.

Each of the 6 Regions have 3 Companies.

1 for Electricity generation
1 for Electricity Distribution
1 for Marketing

So therefore, we have 6  Electricity generation companies; 6  Electricity distribution companies and 6  Electricity marketing companies. Total 18 companies ,

Wrong info,
http://www.nercng.org/index.php?option=com_contact&catid=44&Itemid=68
see the 18 companies there!!!!

Eltonluigi:

and as for the 3rd; you don't expect these companies to run themselves without an existing work-force while you are seated behind a computer.

The employees needed to run the new companies have already been absorbed. My comment was in reference to the redundancies.

ekt_bear:

Yeah it is pretty much useless.

Call me when the companies get privatized.

This doesn't matter

Ekt-Bear, you should leave this thread started by "spin and spell" masters and celebrated by other desperados eager for good news to air the "fresh air" spam that had been gathering dust in the cupboard for a while. I cannot even be bothered to address the deliberate spin/functional illiteracy that is responsible for the silly interpretation of what "government scraps PHCN" means - including the decietful arrogation of the achievements of others unto GEJ in one of those "amnesty was GEJ's idea" outlandish sort of spin. I will only supply the article below and hope some can read and comprehend detail to see that this "scrap" long planned for with the EPSR act 2005, begun under OBJ, is nothing to celebrate.


http://www.thisdaylive.com/articles/power-sector-reform-much-ado-about-biometric-data/102799/

Power Sector Reform: Much Ado about Biometric Data

15 Nov 2011

Latest controversy on the desirability or otherwise of collection of biometric data of the workers of the Power Holding Company of Nigeria (PHCN) before payment of their 50 per cent pay rise, may have brought to a climax, the needless power play among the various dramatis personae, which has no doubt, pushed the implementation of the power sector reform behind schedule, Ejiofor Alike writes

Worried over the inefficiency of the then Nigeria Electric Power Authority (NEPA), former President Olusegun Obasanjo’s administration had scrapped the ailing utility giant and enacted the Electric Power Sector Reform (EPSR) Act of 2005 to reform the sector.

Obasanjo’s 2005 EPSR Act created the Power Holding Company of Nigeria (PHCN) to assume the assets, liabilities and employees of defunct NEPA.

The administration also began the implementation of the reform Act until internal politics within the ruling Peoples’ Democratic Party (PDP), opposition by electricity workers and the old establishment forced late President Yar’Adua’s administration to abandon it, along with other projects and policies of  Obasanjo in the sector for over two years.

PHCN was meant to be a transitional entity but the suspension of the implementation of the reform resulted in many Nigerians, saying it was a mere change of name of NEPA without any improvement in service delivery.

EPSR Act also split PHCN into 18 different companies - 6 generation companies, 11 distribution companies and 1 transmission firm and the partial transfer thereto of the assets, liabilities and staff of PHCN to these companies.

This unbundling seeks to transform the entities into independent, more efficiently managed units and eventually, into companies that the private sector could invest in and manage.

Unfortunately, the suspension of the implementation of the reform slackened the momentum towards efficiency and created room for the galvanisation of opposition against the agenda.

The Reform Act also established the Nigerian Regulatory Commission (NERC), to license Independent Power Producers (IPPs), among other functions, but lack of progress on the issue of tariffs to give investors the confidence that they would be able to recover their costs greatly hampered private sector investment in IPPs.

Investor confidence was further dampened by the illegal imposition of “Administrator” on NERC for a long time, after an “illegal removal” of the Chairman, Dr. Ransom Owan and the six Commissioners, each representing the six geopolitical zones of the country.
Resuscitation of Power Reform

EPSR Act also split PHCN into 18 different companies - 6 generation companies, 11 distribution companies and 1 transmission firm and the partial transfer thereto of the assets, liabilities and staff of PHCN to these companies.

This unbundling seeks to transform the entities into independent, more efficiently managed units and eventually, into companies that the private sector could invest in and manage.

Fair enough.

Dis policies was implemented by d obasanjo administration,GEJ is only benefitting.

Question

How about the licenses that have been issued to all these companies to generate (on-grid) electricity, how will they work together with transmission companies?

Does it mean that private generating companies can negotiate price with transmission companies to buy from them? I mean what's the deal when dealing with private firms?

Investors have been frustrated by the slow pace - the process has been ongoing since OBJ.  They have resorted to cajoling the administration and there is some fear that a new cabal could spring up. The issue of tariffs and pricing is a major obstacle as it could get political very quickly.

Also a bottleneck is there is still only one "transmission" company and no one knows the true quality of the assets nor the number of skilled and suitably qualified employees.  There are also unrealistic price expectations for the assets been sold.  A challenge, but some progress is being made.

details don dey come out small small

Repubocrat:

Fair enough.

The 18 succesor companies can now take desicions on their own. Before, the ceo's had to write(PHCN doesnt use email, they use letters)abuja before any repair or major desicion could be taken. By the time you get the approval, 1 problem has turned into 5 then you have to write again, the cycle contines

~Bluetooth:

What happened to all the promises that PHCN will deliver when it came on board ? Hmm,Naija i hail o.

PHCN was 'a tranxsition state' created solely to enable the privatisation of the power sector. Constitutionally, it was not possible to privatize NEPA hence the creation of PHCN. It has performed its duty and we say, farewell to PHCN.

manny4life:

Question

How about the licenses that have been issued to all these companies to generate (on-grid) electricity, how will they work together with transmission companies?

Does it mean that private generating companies can negotiate price with transmission companies to buy from them? I mean what's the deal when dealing with private firms?

The private generating companies sell to the transmission company.
The transmission company sells to the distribution companies who in turn sell to consumers

The problem here is the 1 transmission company and here is why
total generating capacity of Phcn as of now is about 6000mw and lagos alone can consume that. ikeja distribution company and eko distribution company are the largest distribution companies by revenue generated. This means in theory those two can buy the whole power being generated for Nigeria is regulatory authorities do not do their jobs

Allow GEJ to work, I beleive he is the one to bring the much awaited change to Nigerians

All dat one na story! Light no dey,una dey jubilate for something wey neva happen.these guyz really know how to catch una.

All dat one na story! Light no dey,una dey jubilate for something wey neva happen.these guyz really know how to catch una.

Its all this lip service and unnecessary praise singing that's placed us where we are as a nation.it amazes me that people who r seen to be enlightened and exposed would dance to any rhythm dey hear.why not we wait and c how all this pans out b4 we start praising anybody.politics is a disease o choi

A-ZeD:

The private generating companies sell to the transmission company.
The transmission company sells to the distribution companies who in turn sell to consumers

The problem here is the 1 transmission company and here is why
total generating capacity of Phcn as of now is about 6000mw and lagos alone can consume that. ikeja distribution company and eko distribution company are the largest distribution companies by revenue generated. This means in theory those two can buy the whole power being generated for Nigeria is regulatory authorities do not do their jobs

Thank you, so that means each generating company negotiates price with their nearest distribution company right? Besides, shouldn't there be a transmitting company per region? I mean, if there's one transmitting company, how are we so sure that other states outside Lagos (per your example), get electricity irregardless of the fact that some states decide to generate their own electricity? I see a lot of politics going on and competition as well.

Each distribution companies will competing to buy sufficient quota for its region, the competition will lead to healthy growth. In essence, competition will be demand and supply driven and consumers will pay more for electricity and demand service delivery. This is an era that someone will move business from Abeokuta to PH due to constant power supply hypothetically speaking.

at least, the light at the end of the tunnel as visible

manny4life:


Thank you, so that means each generating company negotiates price with their nearest distribution company right? Besides, shouldn't there be a transmitting company per region? I mean, if there's one transmitting company, how are we so sure that other states outside Lagos (per your example), get electricity irregardless of the fact that some states decide to generate their own electricity? I see a lot of politics going on and competition as well.

No. There is only one transmission company which is presently located in osun state. this transmission company will buy up all the power from the generation companies and then sell to distribution companies. its at this point politics can come in.

LeoMax:

Each distribution companies will competing to buy sufficient quota for its region, the competition will lead to healthy growth. In essence, competition will be demand and supply driven and consumers will pay more for electricity and demand service delivery. This is an era that someone will move business from Abeokuta to PH due to constant power supply hypothetically speaking.

You are right

Gbawe:

Ekt-Bear, you should leave this thread started by "spin and spell" masters and celebrated by other desperados eager for good news to air the "fresh air" spam that had been gathering dust in the cupboard for a while. I cannot even be bothered to address the deliberate spin/functional illiteracy that is responsible for the silly interpretation of what "government scraps PHCN" means - including the decietful arrogation of the achievements of others unto GEJ in one of those "amnesty was GEJ's idea" outlandish sort of spin. I will only supply the article below and hope some can read and comprehend detail to see that this "scrap" long planned for with the EPSR act 2005, begun under OBJ, is nothing to celebrate.


http://www.thisdaylive.com/articles/power-sector-reform-much-ado-about-biometric-data/102799/

This unbundling seeks to transform the entities into independent, more efficiently managed units and eventually, into companies that the private sector could invest in and manage.

No matter how you wish it is not true, it is true. There is a difference between making a plan and executing the plan. Fine and good, this plan was laid down under OBJ however it was not activated.  As a result, NERC was still making budgetary allocation for the maintenance of PHCN HQTRS and staff.

With this development, such budgetary allocation has been withdrawn with effect from this month according to Nnaji. He had earlier said that they intend to complete privatisation by April. GEJ appointed Nnaji so credit should got to him.
And the fact that he did not throw the 2005 plan it into the trashcan like Yar'Adua did should be commended because that's the kind of continuity we have been praying for.
Well done GEJ
I think some progress has been made and anyone who dismisses this is probably exhibiting deliberate treachery IMO.

GEJ i say well-done on this, and more strength to your elbow. WELL DONE once more. But for FUEL SUBSIDY you failed it woefully. Though a good plan, you should have done it gradually like you did for power. For fuel subsidy you totally FAILED it and therefore i reject it for now.

This is great news!!!

The time for change is now!!!

I am full support,  read Nigeria's weekly highlight----------> www.thinkafricapress.com/nigeria/blog/fuel-subsidy-strikes-begin

After that what next?

@Vitality, "gradually" is what Obj and IBB did but they never were able to hit the mark. We must do things differently to get different results. The argument I can support is that FG should have started rolling out its pallatives on time and ahead of the subsidy removal. They should have also done more public sensitization like they're are doing rather reactively now. The idea od building refineries before the removal would have taken us another 10 long years to achieve. I say, show your grievances, YES. But after all said and done, lets give FG this chance.

The fact that GEJ's apologists are jubilating and praising GEJ here shows that you people know that his administration is gradually sinking, hence the desperation to hold on to something to stay relevant and heard. I considered this announcement ambiguous and a political statement to score a cheap point. Who says protests and strike will not yield positive things? Privatisation without meters, be digital or analogue. Rip off will be the order of the day.

Its so disheartening when i read posts from some people and it amazes me how the mental faculty of some function.

No one is anti Jonathan or against subsidy removal in the real sense.
If this guy makes a good move then lets commend him and if he makes a wrong move we simply criticize him.

The way the presiden removed subsidy was too harsh with over 100% increase in pump price and any body with the lowest IQ should see that this move is totally wrong.

If he increased pump price by say N20/N30 after due consultation i believe there will not be any uproar and i must say that this move to sanitise the power industry would have come first before making any move to remove subsidy on pms.
So please lets be reasonable and stop making bias posts about some people that are pro or anti GEJ policies.

Good development

A-ZeD:

No. There is only one transmission company which is presently located in osun state. this transmission company will buy up all the power from the generation companies and then sell to distribution companies. its at this point politics can come in.You are right

I still feel there is a need to have more than one transmission company for a few reasons. Electricity's chief adversity is distance and terrain and if the closest injection station to my power plant is way off it could be a huge burden to transmit over long distances assuming it is the generating companies that are obliged to do the link up, minding the fact that the high transmission voltages make flyover urban areas particularly prohibitively expensive.

This is where I think the thing became political and potentially dangerous. With a monopoly in transmission government can direct power away from markets by fiat without recourse to investment and economics which is anti-investment.

What they can do is to create a two track model as you have in the telecos - GSM and CDMA's so that if I have a small plant of say 50 meg in one remote corner I can transmit and distribute locally while the big boys - 2,000, 3, 4, 10,000 with deeper pockets can afford to go national because you have to realise there is a huge private spare energy cap among industry we can tap into temporarily until the main investment comes but these guys will not do transmission but just make a few bucks and exit the game when scale comes. I think it is worth considering.