WHICH AREA ARE YOU?

stonemasonn:
The past 3days has been terrible, are you sure the peak generation is not 0 MW.

s.a.

Eleven electricity Distribution Companies (DisCos) rejected 10,200 megawatts (mw) allocation in one month, industry figures have shown.

This is coming at a time the country is experiencing low generation of electricity due to gas supply constraints.

The incident happened mid February and extended to the second week of March.

The DisCos were allocated a total of 75,021mw within the period but they accepted 65,729mw which they distributed to the end users.

However, the difference of 10,200mw was rejected by different DisCos per time.

Data obtained exclusively by the Daily Trust indicated that a few DisCos in February and March took excess power totalling 780mw.

Analysis by our reporter shows that Ikeja and Benin DisCos topped the list of the highest load rejecters as they did that for over three times in the period.

On February 15, being the first day of the period in focus, the industry statistics showed that the 11 DisCos were allocated 3868.38mw based on the Multi Year Tariff Order (MYTO) 2015 Allocation table.

They consumed 3151mw, leaving out 769mw. Benin and Ikeja DisCos rejected the highest load of 171mw and 159mw, while Yola DisCo rejected 9.62mw being the lowest.

On the last day of the period being March 14, 2017, the DisCos got 3,640mw allocation but consumed 3,038mw.

A balance of 607mw was turned down that day. Ibadan DisCo topped the list with 184mw while Yola DisCo, now a public-driven utility firm again rejected the least of 16mw electricity loads.

Reactions trailing the rejection

Complaints of load rejection have been heavy since the period in focus began. Spokesperson for the Transmission Company of Nigeria (TCN), Seun Olagunju in a recent statement said its System Operations – Osogbo arm directed Generation Companies (GenCos) to ramp down on production to stabilise the system due to many load rejection.

Confirming this, statistics obtained from the operators of Kainji Hydro GenCo show that due to the ramping down of load, it lost 1,420mw in just six days in March.

But in an exclusive interview and a later briefing, the 11 Distribution Companies (DisCos) speaking through the Association of Nigerian Electricity Distributors (ANED) revealed reasons for the claimed load rejection.

ANED’s Director of Research and Advocacy, Barrister Sunday Oduntan explained that TCN often defies the daily load schedules of the DisCos by transmitting electricity to where DisCos have low distribution needs, leaving out the high areas of electricity demand.

He said: “The issue is about wrong dumping of load where the DisCos cannot recover the cost at that point as the power supply is not always enough for all the customers under a particular DisCo.”

An Abuja based Power Efficiency advocate, Mr. Odey Haruna said the 10,200mw rejected load is enough to power many industries for weeks, thereby creating productivity and leaving huge economic impacts.

http://www.energywatchng.com/amist-epileptic-power-supply-discos-rejected-10200-megawatts-1-month/

Irked by what it called the outrageous billing and epileptic power supply, among other inhuman acts against electricity consumers in the state, the Enugu State House of Assembly on Friday asked the management of the Enugu Electricity Distribution Company (EEDC) to shut down its operations and vacate the state.

The lawmakers also asked electricity consumers in the state to stop further payment of over-bloated electricity bills, while asking that a state of emergency be declared in the activities of EEDC.

Other states in the south-east including Abia, Anambra, Enugu and Imo were also asked to take drastic action against the company by declaring state of emergency against them.

They also ordered the chairman of the company, Sir Emeka Ofor, and the managing director to appear before its six-man ad hoc committee to explain the company’s activities in the state.

This came as hundreds of electricity consumers in Enugu state early on Friday staged a protest to the House of Assembly over incessant power outage, outrageous billing, alarming tariff among other forms of alleged exploitative activities of the EEDC.

The protesters who displayed numerous placards with various inscriptions, had called on the lawmakers, to as a matter of urgency intervene on the issue while also demanding for the exit of the EEDC.

They claimed that the company since inception, had continued to make life unbearable for citizens of the state.

In adopting a five-point motion on matter of urgent important moved by Hon. Chinedu Nwamba representing Nsukka East State Constituency at a special sitting of the House, the lawmakers decried the activities of the Distribution Company, noting that rather than make lives meaningful for the people, it had continued to exploit the people.

The House urged the state government to liaise with the National Electricity Regulatory Commission (NERC) to validate the quality of the new metres they are currently supplying the public to know if the setting was commensurate with the unit consumption.

They also lamented the discriminatory billing system against Enugu and other states in the south east, adding that while Distribution Companies in Abuja and Lagos were charging less and distributing power, the EEDC had continued to exploit the people with high bills without providing the needed power supply.

Contributing to the motion, the Deputy Speaker, Hon. Donatus Uzogbado said the state was no longer ready to continue with EEDC adding “we have an endemic problem in our hands. The privatisation has become a bigger problem. We’ve entered a one-chance flying vehicle with an unknown destination. The billing system leaves a lot to be desired. I support the call for state of emergency, we don’t need EEDC any more here. I pass vote of no confidence on them”.

Speaking before setting up a six-man ad hoc committee to conduct public hearings in the three senatorial zones of the state, the Speaker, Edward Ubosi described the activities of EEDC as nothing short of “digital fraud”, adding that it had become so bad that electricity bill had become more than house rents.

The six-man ad hoc committee to conduct public hearing is headed by the Deputy Speaker, Uzogbado, with Honourables SKC Ude Okoye, Emeka Ogbuabor, Philip Nnamani, Chuka Eneh and Chinedu Nwamba.

Meanwhile, the spokesman for the protesters, Mr. Eze Ajuluchukwu, said we” are tired of this EDCC mess, and that is why we are calling on members of the Enugu state House of Assembly to rise up and do something about this ugly issue.

Eze, who described EDDC as an anti-human company, stressed that “we are giving them two options, it is either they give us electricity or they leave Enugu state.

The masses according to him, were being exploited on daily basis by EEDC, and by their actions, the company was sabotaging the economic growth of the state.

As at the time of filling this report, the protesters had occupied the Assembly complex, insisting that the State would no longer condone the activities of the EEDC.

The aggrieved electricity consumers equally asked the Federal Government to as a matter of urgency undertake a review of the privatization ‎of the power sector in Nigeria, as the EEDC lacked the capacity to manage electricity distribution in south- East Nigeria.

Some of the placards displayed by the protesters read thus: “EEDC stop defrauding us, pack your load and go” we are tired of irregular billing system”

“Our industries are folding on daily basis because of no power” we cannot take this anymore, Say no to EEDC”

“We can no longer stand and watch EEDC make us poor, they have forced many people out of their businesses” among other placards.

http://www.energywatchng.com/enugu-assembly-orders-eedc-leave-state-crazy-billing/

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After what seems like an improvement in power generation in recent weeks, supply dropped to an average of 3,800 megawatts yesterday, Energywatchng investigation has revealed.

Before yesterday’s drop, average daily supply had exceeded 4,000 megawatts, with daily peak generation hitting 4,452 megawatts on March 23.

The daily operational report of the power sector showed that peak generation was 4,199.50 megawatts on March 30 and 4,244.70 on March 31.

However, on April 1, the situation worsened as peak generation was 3,995.60 while 3,491.40 was the lowest generation, according to the operational report.

The situation showed no significant improvement yesterday as an average of 3,800 megawatts was allocated to the 11 distribution companies, while 3,897.40 megawatts was sent to the grid by 06 a.m. yesterday, according to data by the Nigeria Electricity System Operator, an arm of the Transmission Company of Nigeria (TCN).

As power generation continues the cyclic rise and drop, the generation and distribution companies (DISCOS) have blamed poor supply on gas shortages and grid instability caused by weak transmission infrastructure; the TCN blamed the Discos for rejecting power allocated to them.

However, gas suppliers have argued that there is enough gas to generate power but that the generation companies (Gencos) cannot pay for gas.

But the Gencos have insisted that they are not able to pay for gas because they are being owed for the power they generated into the national grid.

The Managing Director of Egbin Power Plc, Mr. Dallas Peavey, had reportedly threatened to shut down operations this week as a result of non-settlement of N110 billion debt; inadequate gas supply and what the company called the inefficiency in operations of the TCN.

He told journalists recently that the country was heading towards another blackout as liquidity, transmission and gas supply issues had forced the 1,320MW capacity Egbin to be generating only 350MW at the moment.

Peavy insisted that Egbin had hit a generation of 1,100 megawatts but that the grid could not take the power because of the capability issues within the TCN system.

“We are constrained and limited to generate about 350MW daily due to both TCN system operations and inadequate gas supply issues. So, 70 per cent of our output is lost because available power can’t be evacuated. When you get good news from TCN that you can increase your generation, we will be faced with not ‘enough gas; and when there is gas, you have TCN issues,” Peavey reportedly said.

He said another challenge was the inadequate gas supply to generate at optimal capacity as well as the huge debts owed the company by the Nigerian Bulk Electricity Traders (NBET) and Market Operator.

http://www.energywatchng.com/electricity-generation-drops-3800mw-gencos-threatening-shutdown/

LAGOS – Nigerians maybe soon face more blackout as the management of Egbin Power Plc is considering shutting its operation due to inadequate gas supply, inefficiency in operations of the Transmission Company of Nigeria, (TCN) and the sum of N110billion owed the company by Federal Government through Nigeria Bulk Electricity Trading PLC (NBET) and market operator.

With 1,320 MW installed capacity,the station is the largest power generating asset in the country.

Managing Director of the company,Mr.Dallas Peavey,who made the threat at a press conference yesterday said Nigeria risked another blackout if the issues raised were not addressed in few weeks.

He lamented that the huge debt had unsettled his company in recent time,adding:“we owe the gas companies and have others like our technical partners (KEPCO) to pay, and importantly our lenders, the banks.

“We have made massive investments in making the plant readily available to generate electricity sustainably but unfortunately, we can’t break even due to the gross inefficiency in the value chain.

“The government guarantees to pay us for every megawatt we generate and sell to NBET but they have not done that.’’

Peavey, said the company had reached 1,100 MW while the installed capacity is 1, 320 MW, adding that the grid could not take the power due to hitch within the Transmission Company of Nigeria system.

“We just got paid for the month of December, 2016, three months later and we were only paid a paltry 28 per cent of the total 100 percent of the verified and accepted invoice for that month. That is how the outstanding debts kept accumulating for three and half years now.”

He explained that these unbearable business operating circumstances and conditions would force the company to shut down any moment.

“That is the simple but bitter truth. Let me be honest, if Egbin fails, it’s going to be dark as Egbin provides close to 30 percent of Nigeria’s power, so let the required intervention be completed and urgently too.

“Egbin power plant is one of the biggest single power generating stations in Africa, with an installed capacity of 1320 MW, consisting of 6 units of 220MW each.

“Following the conclusion of the government’s privatization exercise in November 2013, the consortium formed by the partnership between New Electricity Distribution Company and the Korean Electric Power Corporation (NEDC/KEPCO) acquired Egbin Power plc,‘’ Peavey said.

http://www.energywatchng.com/egbin-power-plant-threatens-shutdown-operations-n110bn-debt/

GOVERNOR Godwin Obaseki of Edo State, yesterday, assured residents of the state that a section of the state would, begin to enjoy 24 hours electricity supply in the next six months, following a Memorandum of Understanding, MoU, between the state government and an Independent Power Project, IPP, to generate five megawatts of electricity.

Governor Obaseki gave the assurance while flagging off the National Industrial Skills Development Programme, NISDP, a collaborative effort between the government and the Industrial Training Fund, ITF, to train 500 youths in the state on Information Communication Technology, fashion design, pastry, welding and fabrication.

Represented by the Secretary to the State Government, SSG, Osarodion Ogie, the governor said the IPP company had started construction, noting that in six months, some of the trainees would have become entrepreneurs and would utilise the 24 hours electricity supply to boost their businesses.

“In six months, Edo State Government intends to provide 24 hours electricity to some sections of the state and this will be made possible through the MoU signed with an IPP company which has already started construction,” he said.

Some of you will become employers of labour. You will begin to run shifts for 24 hours, having people working for you day and night”.

Meanwhile, he reiterated that the Obaseki-led administration’s dream for the state included having entrepreneurs and skilled people, who would be able to set up their own businesses and become employers of labour thereby contributing to the development of the state

http://www.energywatchng.com/edo-state-24hrs-electricity-six-months-obaseki/

The federal government wednesday unfolded what it described as power sector recovery programme with the aim of creating a more viable and vibrant power sector.

These approvals were made at the Federal Executive Council (FEC) meeting presided over by President Muhammadu Buhari in the Presidential Villa.

Briefing journalists at the end of the meeting, Minister of Power, Works and Housing, Mr. Babatunde Fashola, said approval was also made for power projects relating to the extension and management of Katsina Wind Energy Farm project. He said the new recovery power sector plan was meant to enhance the performance of the distribution companies (DISCOS).

According to him, the Katsina wind energy project was awarded to an expatriate in 2010 and was meant to be concluded in 2013 but the project was stalled by the kidnap of the expatriate whom he said left the country after his rescue and never returned. However, he said the project had newly been revived.

Fashola, said the power sector recovery agenda would among others, simplify and reduce cash deficit which has accumulated as a result of reduction in tariffs by the previous administration of President Goodluck Jonathan.

He also said the agenda would foster transparency, improve governance in the power sector, address access to renewable energy, guarantee predictable foreign exchange policy for the power sector, among others.

“The last contract on power approved is the power sector recovery programme which we presented to council. It’s a programme that comprises many policy actions, operational and financial interventions that need to be carried out by the government to improve transparency, service delivery, performance of DISCOS, transmission companies, the entire value change in order to create a more viable power sector that is private-sector driven.

“Some of the highlights of the programme are how to simplify and reduce the cash deficits that have accumulated as a result of previous unilateral reductions of tariff by the last administration during the running of the elections; how to make the DISCOS viable, accountable, responsive to customers; ensure stability of the grid and expansion of the grid and transparency and communication within the sector and also processes for ministries, departments and agencies (MDAs) debts and how to improve sector governance; our roles in the buzz, the quality of personnel on the board of the DISCOS.

According to him, the engineering design for access link roads to the Second River Niger bridge would be sequel to subsequent award of further works on the bridge. “The design is expected to be completed in six months and we will start procurement, and as the bridge advances, we can then connect the two states. The contract sum is N150,840 million,” Fashola added.

Also briefing the journalists, Federal Capital Territory (FCT) Minister, Muhammad Bello, said FEC also approved the take-off of Phase II of Abuja Mass Transit; construction of link roads in the FCT as well as the continuation of infrastructural development in Jahi District.

Bello said Jahi District infrastructure would cost N19.47 billion while another five-kilometre road to link the ring road lll to Wasa junction with Karshi-Ara-Apo Road would cost N2.454 billion.

He also said the phrase II of Abuja Mass Transit Lot 1B (26.77km) which will begin from Ring Road I would pass through Area 10 to Wuse Market, Berger Junction, Jabi Motor Park Life Camp and terminate at Gwagwa.

However, a strange development was witnessed before and after yesterday’s FEC meeting. Before the meeting took off at 11a.m; the ministers had gathered in the office of Vice-President Yemi Osinbajo for a meeting that lasted for about an hour.


http://www.energywatchng.com/fg-unfolds-power-sector-recovery-plan/

A Paris-based independent power producer, Greenwish Partners, is set to invest $280 million to build solar power plants in Nigeria.

Bloomberg news agency reports that the investment is expected to start producing electricity in the first quarter of 2018.



Charlotte Aubin-Kalaidjian, Chief Executive Officer of the company, said a plant in Enugu State will produce 100 megawatts, while the company will build two others of 50MW each in Kaduna and Jigawa states.

Ms. Aubin-Kalaidjian said the project would be funded 70 per cent through debt and 30 per cent through equity, and provide power to 2.5 million people on completion.

“We only take risks where solar makes sense, where it is competitive and where there is political support. This government is very committed to developing power and renewables, especially in regions where there is no gas available,” she said.

Africa’s most populous country faces an 8,000MW energy shortfall, as it currently generates about 4000MW of electricity. Previous plans for new capacity focused on natural gas usage.

In 2016, the Minister of Power, Works and Housing, Babatunde Fashola, introduced a framework to harness the potentials of solar power, thereby giving room for investment from solar (power) producers.

GreenWish moves to sell to the national grid, therefore, was consequent upon a power purchase agreement with the Nigerian Bulk Electricity Trading Plc.


Ms. Aubin-Kalaidjian noted that the transactions are in naira but denominated in dollars, to hedge against the uncertainty in the value of the naira.

Founded in 2014 with a focus on Africa, the GreenWish boss disclosed that the firm currently has a pipeline of more than 1,000 megawatt of solar projects with industrial partners across West Africa.

Commenting on the disparity in the value of the naira as compared to the dollar, the GreenWish boss noted that business transactions in naira create challenges for investors.

“It creates a challenge when the industry has their business linked to the naira,” Ms. Aubin-Kalaidjian said.

“So it’s important to take that into account and structure properly,” she added.


http://www.energywatchng.com/firm-invest-280-million-solar-power-plants%e2%80%8e-nigeria/

The Nigerian National Petroleum Corporation (NNPC) and its incorporated joint venture companies have set between three and 10 years to generate 4,000 megawatts of electricity to boost power supply in the country.

The Group General Manager, Group Public Affairs Division of the NNPC, Ndu Nghamadu, who quoted the corporation’s Chief Operating Officer (COO), Gas and Power, Saidu Mohammed, at the 2017 retreat of his Autonomous Business Unit (Gas and Power), as saying this in Kaduna, added that the feat would be achieved through building of independent power plants.

Mohammed said the power plants would be built by a joint venture that will include NNPC, international power companies and other Nigerian investors to be structured after the Nigerian Liquefied Natural Gas (NLNG) business model.
“Power generation is a big business. As at today, NNPC has interest in two power plants, one in Okpai, Delta State and the other in Afam, Rivers State, which were respectively built by our joint ventures with Nigerian Agip Oil Company (NAOC), and Shell Petroleum Development Company (SPDC). These two power plants collectively generate up to 1,000 megawatts and they are the most reliable and cheapest source of power to the national grid in Nigeria today,” Mohammed said.

He said plans were underway to commence Okpai Phase 2 Power Plant and other JV power plants like Obite and Agura to boost power generation in the country. Meanwhile, a number of power Distribution Companies (DisCos) have resorted to staff retrenchment and rejection of power quota, among others as cost cutting measures.

The measures however, are against pre-privatisation agreement aimed at creating employment opportunities and achieving improved and steady power supplies across the country.

Energywatchng learnt that the DisCos are instigating the Power Generation Companies (GenCos) to reduce power generation against what is required to boost socioeconomic and industrial development of the country.

Also, the Transmission Company of Nigeria (TCN) has raised the alarm over rejection of power loads by the DISCOs thereby forcing GenCos to cut down on power generation.

TCN had further complained that the rejection of power for distribution is subjecting its transmission facilities to excess frequency due to storage and none distribution of power generated by the GenCos.

TCN in a statement by its General Manager, Public Affairs, Seun Olagunju, stressed that the directive was issued with a high sense of duty and responsibility to the nation and the entire electricity industry.

She also explained that the system operators’ decision is based on the fact that at normal operating frequency of 50Hz, the active power generated is equal to the active load consumed and losses.

She said if the generated power is more than the load connected, the frequency rises higher than 50Hz, which can result in system disturbance.

http://www.energywatchng.com/nnpc-generate-4000mw-electricity-within-10-years/

The Minister of Works, Power and Housing, Mr Babatunde Fashola, on Sunday said that work would begin this year on the 40 megawatts Kashimbila Hydro Power Plant in Taraba.

Fashola said this while speaking with newsmen in Maiduguri after a tour of projects in the North East.


He said government was equally making efforts to complete the Mambilla Power Station, also in Taraba.

“As for the Mambilla plant, the contractor is back to site after he was mobilised.

“But he has lots of challenges; he has to open letter of credit and import equipment, among other things.

“For Kashimbilla project, we have made progress in terms of project planning.

“We are in the final stage of pricing and we expect that we will start work this year,’’ Fashola said.

According to him, preparatory work is going on and the ministry is considering the best route to move the equipment to site.

“This is part of project planning that makes for efficient project execution,’’ the minister said.

Fashola said that estate valuers had been engaged to prepare ground for easy compensation of the natives.

“We already have estate valuers who are valuing the whole site where the plant will be constructed so that when compensation is paid, there will be no problem when work construction begins.

“Zungeru project had problems relating to compensation as no prior work was done like this one,’’ Fashola said.

He lauded the National Assembly for its planned amendment of the Procurement Act to provide for more mobilisation fee to contractors, especially those handling road projects.

“I want to acknowledge the tremendous support that our ministry is receiving from the National Assembly.

“Amending the Act will be useful now; if you get more money to contractors in an economy that is getting out of recession, it will help in reflating the economy,’’ the minister said.

Fashola added that injecting more money to the economy, through lawful means, would help in quick recovery from the current recession.

He assured that government would pay more attention to federal roads in all states of the North East within the shortest possible time.

“The most important thing is that we are back to site and very soon those nasty experience on our roads will be over.

“We have gathered momentum and our contractors are working while the journey is getting progressively better and ultimately it will return to what it used to be,’’ the minister said.


http://www.energywatchng.com/work-begin-40mw-kashimbilla-hydro-power-plant-year-fashola-2/

ABUJA—While most individuals and corporate organizations are suffering from lack of adequate electricity supply, the electricity Generation Companies, GenCos, have cried out that the Transmission Company of Nigeria, TCN, has been directing them to reduce generation, causing them huge revenue losses and damaging their plants.

Managing Director of Mainstream Energy Solutions, Operators of Jebba and Kainji Hydro Electricty Plants, Mr Lamu Audu, told journalists, in Abuja, yesterday, that the GenCos could no longer bear the constant energy production reduction orders of the TCN.





He revealed that between February and Monday, March 13, 2017, Jebba and Kainji alone lost 8,574 MW unutilized electricity.

He said the total unutilized energy from all the GenCos in the period under review was monumental and most painful at a time most homes and businesses hardly had enough power to meet their consumption needs.

His words: “Generation has improved significantly. On the average, it has been above 4,000 MW in the last one month.

“Unfortunately, we (GenCos) have been at the receiving end in the sense that we are not allowed to deliver what we are generating. I have records here, there is no secret about it and we want Nigerians to know that the effect is so much.

* As Generation drops to 4, 400.60 MW check more generation statistics

“Apart from the loss of revenue after declaring what we are capable of generating, because we have what we call, ‘Day-Ahead-Declaration’ by the regulation, we are expected to declare within the next 24 hours what we are going to generate, the capacity which we have and are sure to put into the grid, which we declare to the National Control Centre.

“It is a rule that you must declare in 24 hours that capacity. The idea of the declaration is to enable the system operator to prepare for what it has to give out.

“Unfortunately, most of the time, we are not allowed to put the whole energy we have declared 24 hours earlier into the grid.

“There are two things that happen: One, our machines will see that the power being generated and put on the grid is not utilized fully, so they will on their own de-load, they will come down on their own.

“Secondly, we receive direct instructions from the National Control Centre to reduce load or even shut down. We have records here.

“What that means is that we have stranded energy. That is energy that is not being utilized. Now, one, we lose revenue that should have come to us as a result of that energy that is not utilized.

“In addition, it has technical effects on our machines, leading to increase in the cost of maintenance.

“The third is that our shareholders are beginning to ask questions as to why should they put more money to realize more capacity, if what we are generating now is not being utilized.

“So you can see that it has weakened the appetite of investors to invest more in the generation of electricity.”

http://www.energywatchng.com/tcn-asked-us-reduce-electricity-generation-gencos/

There was mass jubilation by residents of Ogwashi-Uku community Headquarters of Aniocha-South Local Government area of Delta State over the weekend as Benin Electricity Distribution Plc (BEDC) restored power to the area that have being without supply for over seven years.

The restoration according to BEDC’s plan is expected to be extended to other residents of Ogwashi-Uku in due course as more transformers will be metered and energized in the coming days as enumeration revalidation, network rehabilitation and safety checks continue in earnest.



The restoration process started with a town hall meeting organized by the members of Ogwashi-Ukwu D-Forum in collaboration with the management of BEDC led by the Chief State Head (Delta), Mr. Ernest Edgar, the Business Manager, Asaba Business Unit, Engr, Adekola Abiodun and his technical team among others.

The town- hall meeting had in attendance delegates from the various quarters and sub-clans that make up Ogwashi- Uku and environs was meant to brief the residents on the extent of job done so far which included, the completion of re- enumeration in some areas, the installation of transformer statistical meters as initiated by the company at no cost to the Community among other on- going process.

The Chief State Head, Delta, Mr Ernest Edgar in his speech, expressed shock at the level of vandalism of the network in spite of rehabilitation work carried out by BEDC in June 2016), and pleaded with the community leaders to work with the company to educate the public on the need to protect the equipment.

He further emphasized the need to re-orientate and sensitize the residents through safety lectures as delivered by BEDC Safety Manager, Mr. Gilbert. Nweke who enlightened the delegates on basic safety tips to be disseminated to their people in readiness for the gradual restoration of power in phases to the various areas.

This approach he explained, will create the needed awareness to gradually introduce the residents to the reality of the restoration of power after so many years to avoid accidents.

The Director General of D- Forum Pastor Joseph T. U. Nwadiashi who was visibly elated while acknowledging the meters, in reaction commended BEDC for keeping fate with the community in line with NERC’s directive after many years of waiting. He pleaded that the company should keep to its promise of ensuring that within a short period all parts of Ogwashi-uku were be supplied with electricity.

Mr. Edgar also seized the opportunity to educate the people of Ogwashi-Uku on the NERC directive on the use of methodology for Estimated Billing; and confirmed that individual estimated bills would be delivered to each customer based on the global readings from the statistical meters installed on each Transformer feeding the respective customers connected to the same Transformer.

He explained the “Weighted Average Cluster load” approach and urged for cooperation with the enumerators currently carrying out revalidation and load audit as customers were under stating their load capacity and in some cases out- rightly refusing access to the enumerators to assess their homes.

http://www.energywatchng.com/bedc-restores-electricity-ogwashi-uku-7-years-outage/

• Fashola, Okowa task DISCOs, GENCOs on regular electricity
• Operators need funds, says Elumelu, Transcorp Power boss
The Chairman of Transcorp Power, Mr. Tony Elumelu told the minister and governor: “We have two issues: one is liquidity. We want the minister to fast-track access to the Liquidation Assurance Programme funds. The second is gas. We want to do, but there is no gas. We can generate 620WM but due to poor access to gas supply we are handicapped.”

The power sector operators present included the NERC, managing directors and CEOs of GENCos, DISCos, the Transmission Company of Nigeria (TCN), as well as various government agencies such as the Niger Delta Power Holding Company (NDPHC), the Nigerian Bulk Electricity Trader (NBET), Nigerian Electricity Liability Management Company (NELMCO) and Nigerian Electricity Management Services Agency (NEMSA) and other operators in the electricity industry.

An audit report of debt by Federal Government ministries, departments and agencies (MDAs) to power distribution companies (DISCos) has revealed an indebtedness of N59.3 billion by top 100 customers, like defence, military and security agencies owing N51 billion.

This was the communiqué at the 13th meeting of power sector stakeholders yesterday with the Minister of Power, Babatunde Fashola, hosted by the Transcorp Power Limited, Ughelli, Delta State.

The report stated that all verified bills would be recommended for payment on a first-come first-serve basis as a demonstration of government’s determination to lead by example with regards to payment for electricity delivered.
Although the Nigerian Electricity Regulatory Commission (NERC) reported an improved compliance with submission of audited accounts by DISCos, the stakeholders said that NERC should more rigorously to perform regulatory duties.

In their comments, Fashola and Delta State Governor Ifeanyi Okowa charged power generating companies (GENCos) and the DISCos to do more to ensure regular power supply to Nigerians.

They maintained that regular electricity is critical to the nation’s industrial, technological and infrastructural development.

Fashola also chided the DISCos for failing to strengthen their transformers, thereby leading to epileptic power supplies as a result of frequent breakdowns.

Okowa slammed the Benin Electricity Distribution Company (BEDC) for the poor power supply in his state. He declared: “No matter what you generate, if it does not get to the common man, then it becomes a problem.”

Okowa charged all stakeholders to ensure peace in their communities to ensure peaceful operation of the power companies.

http://www.energywatchng.com/liquidity-poor-gas-supply-major-challenges-gencos-elumelu/

The 11 electricity distribution companies (discos) in the country under the aegis of the Association of Nigerian Electricity Distributors (ANED) have stated that the N701 billion intervention funds approved by the federal government for the power sector have the potential to worsen the revenue shortfall bedeviling the power sector.

ANED’s Executive Director in charge of Research and Advocacy, Mr. Sunday Oduntan, said in a statement yesterday that the fund is just a partial solution to the liquidity challenges of the sector.

According to him, the fund would only solve N300 billion energy supply liabilities, rehabilitate and replace faulty or old turbines and pay for the supply of gas – for the thermal generating plants.

Oduntan argued that the fund “holds the potential for exacerbating the revenue shortfalls that the market is currently suffering from.”

“However, as commendable as this intervention is, we believe that it is a partial solution to the liquidity challenges of the sector. More so, as it holds the potential for exacerbating the revenue shortfalls that the market is currently suffering from. While an increase in electricity supply is the desired objective of everyone, such an increase without the requisite full recovery of cost via the appropriate pricing of power, means a resultant worsening of the market revenue gap,” Oduntan explained.

He noted that since the approved intervention is not expected to be a subsidy to the market, the assumption is that the proposed funding would eventually be recovered from the customers of Electricity Distribution Companies (DisCos).

For such recovery to be effected, he argued that the Transmission Company of Nigeria (TCN) needs to have the required capacity to wheel the additional power being generated.

“Funding the transmission network is therefore imperative, for the proposed FGN intervention to work. Increased generation without commensurate wheeling capacity arising from a stable and robust transmission grid will result in stranded capacity and significant lost revenues,” he added.

Oduntan said the intervention fund as announced by the Minister of Power, Works and Housing, Mr. Babatunde Fashola, is a welcome development, hut added that “from the little details made available to us, the historical shortfall doesn’t seem to have been addressed within this initiative”.

“This is imperative as DisCos need to be able to make the necessary investments in network upgrades, improved customer service, billing and collections, metering, etc., all of which have been major issues in the industry. Such investments will not happen unless the DisCos make the projected annual revenue requirements, which enables access to finance for the required capital expenditure (Capex). Access to such financing is predicated on appropriate pricing of the retail tariff. The growing working capital debt on the DisCos’ books, less any amounts to be paid under the intervention, will also continue to impede DisCos’ ability to fund retail distribution Capex requirements,” Oduntan said.

Oduntan said it was essential to use this period to appropriately allocate all the risks in the electricity value chain.

This he said includes the need to address the issues of access to foreign exchange (as well as the mitigation of the challenges associated with its volatility through regular reviews as contemplated in the MYTO act), security of gas pipelines, and others.

“Regulatory certainty and consistency continues to be the foundation for enabling and promoting the commercial conditions that will ensure a viable and sustainable Nigerian Electricity Supply Industry (NESI) and, ultimately, the evolution of NESI into the Transitional Electricity Market (TEM) phase.

“While we applaud the GenCo/Gas Supplier centered intervention by the federal government, we believe that there is an urgent need for a holistic solution that comprehensively addresses the revenue requirements of the entire electricity value chain. We further believe that achievement of the stated objective of providing confidence to investors for increased supply of electricity, with the provision of this intervention, will happen at the expense of limited electricity distribution and significantly more liquidity challenges at the retail distribution end,” he added.

http://www.energywatchng.com/n701bn-power-intervention-funds-may-worsen-revenue-shortfalls-discos/

Eko Electricity Distribution Company Plc. (Eko Disco) has offered to pay anyone who reports energy theft by some unscrupulous elements 20 per cent of the money recovered from such thief.

Addressing stakeholders yesterday at a forum with Festac Town residents in Lagos, the Chief Executive Officer of the company, Mr. Oladele Amoda, said the mouth-watering incentive became necessary against the backdrop of over N1 billion lost to the various forms of energy theft and vandalism in the zone.

The CEO, who was represented by the Chief Operating Officer, Mr. Sam Nwaire, said the company incurred expenditure of about N1 billion in the last three years for the replacement of vandalised equipment and meters that were damaged by customers in a bid to bypass the meters.

According to him, a task force had been set up to inspect houses of consumers and impose a penalty of N1 million on anyone caught in energy theft.

* As Generation rises to 4, 579.00 MW check more generation statistics

Amoda said the company would henceforth commence effective prosecution of suspected energy theft and also publish their names in the national dailies.

“We appeal to our customers to avoid engaging in bye-passing the meters because it’s criminal and punishable under Electricity Regulation Code of Conduct Act. l will advise customers to exercise patience with EKEDCP as we promise to address all the issues as regards estimated billing and other challenges,’’ he said.

Reacting to concerns raised by the customers on prepaid meters, Amoda said the company had started installation of over 4,000 prepaid meters to residents of Festac and its environs, adding that the first batch of 1,000 meters had been installed.

He said that the company would ensure that 4,000 prepaid meters were installed before the end of the year, and appealed to the residents to ensure prompt payment of their bills.

“We have deployed the first phase of 1,000 meters to residents of Festac, we promised to install over 4,000 meters before the year ends. We will ensure effective roll-out of pre-paid meters to residents of Festac, Satellite Town, Amuwo and its environs because we are committed to serving our customers very well. We appeal to residents to place order for the meters and it will be installed. Most residents prefer to pay little bills because they are cheating the company through bye-passing of meters,” Amoda added.

* AFAM IV POWER PLANT HITS 517 MW

He revealed that the company was owed N4.2 billion by residents of Festac Town and urged consumers to settle their debts.

“We have designed a model that allows customers to pay their huge debts by installment to encourage them settle their debts at ease.

“We all know what Nigeria is going through today; the challenge is everywhere. I know how you people feel and I want to tell you also that we are not also happy with power situation. I want to assure you that we are doing all we can under the law to improve power supply to our customers,” Amoda said.

http://www.energywatchng.com/energy-theft-eko-disco-offers-pay-whistle-blowers-20/

Ikeja Electric to cut power for one month
Lagos State is expected to witness more shortfalls in power supply due to the inability of Egbin Power Plant to generate enough electricity in the state.

According to the Transmission Company of Nigeria (TCN), due to insufficient gas at Egbin, only two units are fired and these could not generate enough Volt-Ampere Reactive (VARs) to meet up with the voltage requirements in the area hence the manifestation of the low voltage.

It noted that as it stands, Egbin daily average generation is just 350 Megawatts (MW), while the Lagos daily average consumption from the grid in recent times is 1,100 MW.
Besides, Ikeja Electric said that there will be disruption of power supply to certain areas under its network, due to†planned outage resulting from the maintenance work being carried out by the Transmission Company of Nigeria (TCN) on its transformers at the Ikeja West Transmission Station.

The areas to be affected by the exercise, which commenced on March 6th and end on Tuesday, April 4, 2017, include Ojodu, Magodo, Alausa, Oke-Afa, Bolorunpelu, Egbe, Igando, Shasha, Ipaja, Alimosho, Agege, Egbeda and Abesan.

Others are Ayetoro, Abule-Taylor, Ogba, Ifako, Shomolu, Gbagada, Oworonshoki, Ogudu, Isheri-Olowora, Berger, Anthony, Otta and environs. Spokesperson for Ikeja Electricity, Head, Felix Ofulue, appealed to residents of the affected areas to bear with the company while emphasising on the importance of the maintenance as a necessity for improved power supply and better service delivery.

He further explained that a load-shedding programme to ensure equitable distribution of power supply to the affected areas have been put in place by the company.

Explaining reasons behind the drop in voltage in Lagos area, TCN said in a statement that at least, 800MW has to be imported from other parts of the grid to meet its power demand.

It explained: ìIn all Power Systems, voltage is a localized issue, while voltage may be low at heavily loaded points of the system, it can simultaneously be high at another point where the same system is lightly loaded. (

Under the Nigeria grid, the Operational Procedure stipulates that the acceptable limits of the nominal value of our highest voltage in the grid, which is 330kV ranges between +5 per cent and -15 per cent of the nominal i.e 346.5kV and 280.5kV .

The voltage problem in Lagos is as a result of inadequate generation from Egbin Power Station sequel to gas inadequacy. Egbin, with a capacity of 1,320 MW came into existence to cater for Lagos load, which is a commercial Centre (heavy loaded area) and to simultaneously improve the voltage in that axis of the grid.

Group Leader, Generation at Sahara Power Group, Michael Uzoigwe, said gas, which is abundant in Nigeria and produced in-country is being sold to generation companies in dollars, which he described as unsustainable due to the current exchange rate policy.

He warned that GENCOs and DISCOs cannot break even based on the current price of gas, adding that these companies were also battling with the price of spare parts which are being imported into the country.
ìGas is being sold to generation companies in dollar and these companies cannot break even with the current dollar price couple with the scarcity of foreign exchangeî.

Speaking on the need to observe all safety codes and regulations especially during the rainy season, Ofulue stressed the need for heightened awareness on safety measures during the rainy season is due to the hazard that the mix of electricity and water poses.

He advised members of the public to avoid conditions that can compromise their safety around electricity, such as using wet electrical appliances; stepping in puddles of potentially charged water, coming in contact with exposed electrical wires, among others, as such actions may have fatal results.

He also warned customers to be mindful of streetlights within the Lagos metropolis as fatal cases have been reported in the past where road users unfortunately come in contact with exposed energized wires connected to the streetlight.

Ofulue called on residents within the company’s network coverage area to also be mindful of snapped power cables and fallen poles, incidents which can occur during heavy rainfall. He said that wherever such incidents occured, residents should call the company’s Customer Care help lines or through the company’s social media handles immediately, while maintaining a safe distance from the point of the accident.

http://www.energywatchng.com/lagos-suffer-shortfall-electricity-supply/

Lamenting over Nigeria’s economic woes, the Chairman of Kaduna Electric Company (KADEC), Alhaji Yusuf Hamisu Abubakar has said that failure by the nation to industrialize is as a result of, among other factors, unreliable and costly access to energy.
Abubakar explained that the failure was more visible in the industrialisation programmes of past governments in the 1970s and early 1980s, particularly as it affected the northern region.

The Chairman of the Board of Directors of Kaduna Electric, made the assertion in a paper titled: “Electricity as an Essential Component for Economic Growth in Nigeria: Challenges and Prospects” was delivered on last Saturday night in Kaduna during the farewell dinner organized by Kaduna Chamber of Commerce, industry, mines and agriculture in honour of exhibitors in the just concluded 38th Kaduna International Trade Fair.
Alhaji Abubakar who called for a holistic review of the challenges confronting the participants of the Nigerian Electricity Supply Industry,
stressed the need for a balance between cost reflective tariff and affordability of electricity in Nigeria.According to him, unless the contending issues of provision of qualitative and reliable supply through the adoption of cost reflective tariff and affordability of electricity by the citizenry, while small and medium enterprises as well as big industrial organisation is urgently addressed, the country’s desire for industrialisation will continue to suffer serious setback.

The KADEC boss maintained that the Nigerian Electricity Regulatory Commission, (NERC) which is the umpire in the Nigerian Electricity Supply
Industry, (NESI) “tries to strike a balance, albeit unsuccessfully, by adopting the sculpting measure, where distribution licensees were directed to charge less than their cost reflective tariff in the interim hoping that they can be able to charge appropriate tariff later”.

Said Abubakar: “Nigeria Electricity Regulatory Commission (NERC), being the regulator for the industry has the mandate to approve tariffs. In an effort to make electricity tariffs more affordable, NERC adopted sculpting of the tariff such that Discos are required to under-recover now (by charging less than the cost reflective tariff) and are allowed to recover in the future. This model, while bringing temporary ease on the retail tariff, comes with attendant challenge of how to manage the huge shortfall resulting from the sculpted tariff.”

http://www.energywatchng.com/high-cost-electricity-slowing-industralization-kaduna-disco/

Ikeja Electric on Tuesday assured its consumers that they would not experience a total blackout during maintenance exercise to be carried out by Transmission Company of Nigeria.

IE had on March 4 announced that there would be an interruption in power supply to some areas within its network from March 6 to April 4.

The Head, Corporate Communications Unit of the company, Mr Felix Ofulue, explained that during the maintenance there would be increased rate of interruption in electricity supply to the affected areas, and no total blackout.

He said that the company had made arrangement for a load-shedding to ensure equitable distribution of power supply to the affected areas.

He said, “We want to assure our consumers within the areas that will be affected by TCN maintenance work that it is not going to be blackout throughout the whole month.

* As Generation drops to 4, 243.50 MW check more generation statistics

“Arrangements have been made to ensure that you are given power supply within the period.

“However, it will not be as regular as you used to have before.

“We assure our consumers that the maintenance work is for better efficiency of power facilities to enhance improved service delivery.”

According to IE, the planned outage is as a result of maintenance work being carried out by TCN on its transformers at the Ikeja West Transmission Station and not a fault of the IE.

It said that the areas to be affected include Ojodu, Magodo, Alausa, Oke-Afa, Bolorunpelu, Egbe, Igando, Shasha, Ipaja, Alimosho, Agege, Egbeda and Abesan.

Others are Ayetoro, Abule-Taylor, Ogba, Ifako, Shomolu, Gbagada, Oworonshoki, Ogudu, Isheri-Olowora, Berger, Anthony, Ota and environs.

http://www.energywatchng.com/no-total-blackout-maintenance-period-ikeja-electric/

Despite losing $15.2 million or N4.724 billion monthly, the management of the Ibadan Electricity Distribution Company (IBEDC), covering Oyo, Ogun, Osun, Kwara and parts of Niger, Ekiti and Kogi states, has promised to meter all its customers within five years, as directed by industry regulator, Nigerian Electricity Regulatory Commission (NERC).

The promise comes as the Disco groans under monthly losses arising from a number of factors, including high technical losses, unpaid debts by Manufacturers Association of Nigeria (MAN), and Ministries, Departments and Agencies (MDAs), energy theft, vandalism, foreign exchange and a host of others.

Electricity consumers believe that the issue with estimated or crazy billing would end once the Discos obeyed NERC’s directive to meter all customers, to enable all parties monitor power usage in homes and offices. Many consumers have refused to pay such crazy bills preferring to either rely on alternative power through generators or remain in darkness, a development that is a huge economic burden to all stakeholders.
Speaking with a select group of journalists in Ibadan, the Disco headquarters, IBEDC Managing Director and Chief Executive, John Donnachie, disclosed that the company required between N50 and N60 billion to meter all its customers.

He however warned that metering consumers may not be the Midas touch as being presumed, noting that effective and accurate billing cannot be achieved through metering alone, as eight in every 10 meters installed are tampered with, thus resulting in inaccurate billing and attendant huge losses to the distribution companies.

According to Donnachie, “Metering is not the only solution to effective billing, as for every meter installed, 80 per cent of them are by-passed. What we need is to execute severe sanctions on power thieves and those who vandalise electricity equipment. People are not paying because there are no sanctions.”

Nonetheless, he maintained that IBEDC is making efforts to meter all its customers, by investing huge sums in sub-station upgrades, new billing systems and upgrade of customer care centres and more.

Also contributing, IBEDC Deputy Managing Director, John Ayodele, said parts of the Discos plans include “Correctly capture and effectively manage 100 per cent of our active customer base, which integrates our asset register and customer service for tighter control and enhanced service delivery, and meter all customers within five years.”

Others are: implement a verified and robust billing system to enhance transparency and fair billing in order to achieve our aggressive Aggregate Technical, Commercial, and Collections (ATC&C) loss targets; Drive engineering upgrades that focus on enhanced delivery of ‘Quality’ electrification to our Top 100 customers, with tools, systems, equipment upgrade.

Also, efforts are being made to improve our customer service offering by implementing a customer service index and staffing a centralised call centre for focused support and management; and employ, train & develop and reward continuous improvement through performance management tools.

On specific achievements in this regard, Ayodeji said: “IBEDC has completed the metering of all identified maximum demand (MD) customers thereby delivering on NERC deadline of February 28th 2017, while 189,339 meters have been installed for MD & Non-MD Customers from November 2013 – January 2017.”

He added that the Disco also embarked on energy audit, replacement of faulty/obsolete meters and metering of premium customers for higher revenue drive.

However, Donnachie said efforts by IBEDC to improve serve delivery in its areas of jurisdiction are being hampered by the huge monthly losses and associated challenges, noting that Discos are being blamed for all the power issues faced by consumers.

On the losses, the IBEDC boss disclosed that the MDAs have not paid for their electricity consumption for the past three years following the privatisation of the power sector.
He said: “The MDAs debts till date are in excess of N8.2 billion, while MAN is still paying the old rate of N26 instead of the new cost reflective tariff of N104.35/KwH. Also, we have not been able to pass on the forex losses to consumers, so we have a grand revenue shortfall of over N100.14 billion, and we cannot borrow from any bank.”

Minister of Power, Works and Housing, Babatunde Raji Fashola, had promised that the MDAs pay all their outstanding debts, threatening to deduct the accruable from their budgetary allocations upon the reconciliation of the figures with the respective parties.

With regard to MAN, members had instituted a court action against the Discos, but recently agreed to an out-of-court settlement. MAN told The Guardian that despite this plethora of challenges, Donnachie is convinced that Nigeria’s electricity sector remains viable, if only all stakeholders will follow the privatisation modules

http://www.energywatchng.com/ibadan-disco-meter-customer-nercs-deadline/

SAPELE— THE Benin Electricity Distribution Company, BEDC, yesterday, said despite the poor generation nationwide, power delivery had picked up in Sapele, Delta State, with the residents enjoying more than six hours of electricity daily.

Corporate Affairs Officer, BEDC, Mrs. Esther Okolie, in a statement, said: “In keeping with the resolutions reached at the various stakeholders’ meetings on Sapele power problems, residents of the community and environs now enjoy more than six hours electricity daily with some area having 22 hours notwithstanding the poor generation nationwide, which is hovering between 3000 and 4000MW.

“This achievement also demands that the residents live up to their part of the agreement by payments of both old and new bills by ensuring that what the Resolution Committee agreed on is in place to ensure compliance.

* As Generation rises to 4, 317.60 MW check more generation statistics

“The Resolution Committee is expected to be formed by two persons from each transformer zone, including representation from stakeholders,” it said.

Noting that BEDC was expected to serve all Deltans and not just host communities, BEDC said: “Given the level of power generation, if all power host communities should agitate for 24 hours power, the rest of Nigerians will be in total blackout. National grid supply is for all Nigerians, not just for power generation host community.”

On the protests by Sapele residents, the company said that the Orodje of Okpe Kingdom, Delta State Government through the office of the Commissioner of Power and Energy, the Speaker of Delta state House of Assembly had intervened and the issue was being resolved.

http://www.energywatchng.com/power-supply-improves-sapele-environs-bedc/

A private firm, Eta-Zuma Group West Africa Limited, has announced an investment outlay of $6bn to boost Nigeria’s electricity generation by 1,200 Megawatts.

The Chairman of the company, Dr. Innocent Ezuma, made the announcement during a press briefing in Abuja on Friday.

Ezuma, who was represented by Executive Director, Corporate Services, Ambassador Joseph Ayalogu, said the 1,200MW would be generated from coal, which the company is already mining in Kogi State.

He also stated that the company had acquired another licence from the Nigerian Electricity Regulatory Agency to generate additional 400MW from gas.

Ezuma said 90 per cent of the work on the development stages had been completed and expressed confidence that the remaining agreements would be completed before the year runs out to enable the actual construction of the coal power plant to begin.

According to him, the first phase of the construction for the 400MW plant will take 30 months, adding that the subsequent phases would take lesser time to complete.

The Eta-Zuma boss also announced a N500m Community Development Fund spread across five years for the benefit of the communities that host the company’s coal mine in Kogi State.

Ezuma, whose firm acquired the Jos Steel Complex from the Federal Government in 2006, said the steel complex had not been able to go into production because of lack of guaranteed electricity supply.

To resolve the situation, he added that the company resolved to build a captive power plant that would ensure that the steel complex would get the guaranteed 100MW of electricity it required to be in production.

He said, “We have opened an active mine in Okobo, Ankpa Local Government Area of Kogi State and currently mine 50,000 metric tonnes of coal per month. We have the capacity to double that as demand increases.

“We are the leading suppliers of premium quality coal to Nigeria’s industrial end users, including Dangote and Zuma Energy coal-to-power project under development, which will supply 1,200MW of electricity to the grid.”

He added, “The Eta-Zuma Group and its sister-client companies have invested over $300m so far in various projects even though they are still at their development stages. The 1,200MW coal-to-power will require about $6bn to actualise.”

http://www.energywatchng.com/firm-invest-6bn-electricity-generation/

The Federal Ministry of Power has stated that the 11 electricity distribution companies in the country pay for only 24.9 per cent of the electricity allocated to them.

The Nigerian Bulk Electricity Trading Plc (NBET), better known as the Bulk Trader, collects the payment on behalf of the generation stakeholders, leaving a payment shortfall of 75.1 per cent.

In a communiqué issued by the ministry at the weekend, it said the N702 billion payment guarantee support to NBET by the federal government effective January 2017 would enable NBET to pay the generation companies, gas suppliers, banks and other partners, pending the improvement of remittances by the Discos to the 100 per cent target.

The communiqué noted that the money NBET collects monthly from the Discos was not enough to pay NBET’s contractual obligation to the Gencos.

According to the communiqué, in recent months the payment by the Discos to NBET was as low as 17 per cent of NBET’s invoice.

“In January 2017, it was 24.9 per cent The Gencos in turn do not pay their gas suppliers, equipment suppliers, banks and other partners what they are contractually bound to pay. The

Discos also do not pay TCN what is contractually due to it for transmitting the energy the Discos sell to consumers. These resulting payment shortfalls and the accumulated debts are increasingly threatening the electricity supply system. They are also undermining the growth of the economy and the electricity sector by discouraging new investors from building new power stations and transmission facilities,” said the communique.

It added that the stakeholders would work with the Discos, to improve the Discos’ payment performance from its current 24.9 per cent level with 100 per cent payment as the target.


* As Generation drops to 4, 149.40 MW check more generation statistics

The communiqué argued that NBET was established to buy electricity in bulk from electricity generating companies licensed to produce electricity.

“The intention was that while the Discos take the time necessary to improve and expand their networks of substations and lines, enumerate and meter their customers, buy additional power directly from Gencos and provide better customer services, the existing and new Gencos could confidently make investments to expand generation with assurance that the bulk buyer would pay them for the electricity they deliver. Government retained owner- ship for the time being of the transmission system used to transmit the electricity from the Gencos to the Discos,” the communiqué added.

The communiqué noted that the Discos have not improved customer services at the pace government and the country expect.

“Some of the reasons for this failure are not the fault of the Discos alone – regulatory and tariff inconsistencies of the past Administration, un- expected changes in the foreign exchange market, and lower than expected generation due largely to pipeline vandalism for example, have challenged the Discos’ ability to perform. But much of the failure relates to their inadequate financial and technical capacity and some sharp practices of the Discos in their administration of collections from customers,” said the communique.

The power ministry added that subsequent interventions by the government would seek to strengthen financial transparency and discipline to ensure that all industry revenues are fairly distributed to all market participants and their suppliers according to contractual commitments.

The ministry said the government would also intervene to achieve and exceed the contracted and committed ATC&C loss targets and sustain aggregate collection efficiency above 60 per cent.

http://www.energywatchng.com/discos-pay-paltry-24-electricity-allocation/

Abuja— The Nigerian National Petroleum Corporation, NNPC, yesterday, accused Distribution Companies, DISCOs, and the Transmission Company of Nigeria, TCN, of frustrating stable power supply in the country.

It also stated that the country currently had enough gas to generate up to 4,800 megawatts (MW) of electricity and 6,000 megawatts by the second quarter of 2017.
Group Managing Director of the NNPC, Mr. Maikanti Baru, stated this at the Oloibiri Lecture Series and Energy Forum, organized by the Society of Petroleum Engineers, SPE, in Abuja.

Baru noted that Nigeria was currently producing an average of 8.0 billion standard cubic feet, scfd, per day of gas, of which 1.3 billion scfd was utilised for domestic consumption; 3.5 billion scfd for export; 2.5 billion scfd for re-injection/fuel gas use, while about 700 million scfd was flared.

He said: “As we speak today, there is enough gas to generate about 4800MW and 6000MW by second quarter 2017 based on our gas supply plan, but the power sector is presently struggling to evacuate 4500MW power due to DISCOs’ incessant rejection of allocated load and transmission line constraints.”

* As Generation drops to 4, 368.00 MW check more generation statistics

Baru disclosed that despite the difficult environment in which it operates, the NNPC was committed to ensuring adequate gas supply to meet Nigeria’s industrial growth.

Also speaking, Mr. Dada Thomas, President, Nigerian Gas Association and Managing Director, Frontier Oil Limited, lamented that the country had not been able to harness its God-given gas resources optimally for domestic use.

According to him, the country is using a little amount of the gas it has, with the bulk of it being used by the power plants within the country’s poorly regulated power value chain that is threatening to bankrupt entity in the chain.

He said: “If we must unlock gas development, we are going to connect the dot of the production location, producers to the consumers and it is going to take a lot of money.
“If we are trying to actualize the gas master plan, we are going to need at least $10 billion.”

He further identified the five top issues bedeviling the gas industry to include insecurity, lack of sanctity of contracts, low pricing, power sector illiquidity and lack of infrastructure. For 40 years, we have been bedeviled by the same problem day in day out. We cannot go on like this.’’

http://www.energywatchng.com/nnpc-accuses-discos-tcn-frustrating-stable-power-supply/

interesting

Investors in the generation companies (GenCos) have warned of an imminent blackout nationwide if the N601 billion debts owed them by consumers through the off-taker, the Nigerian Bulk Electricity Trading Plc (NBET) – a Federal Government’s owned public liability company.

The investors spoke yesterday at the Nigeria Power Summit, part of the ongoing Nigeria Oil and Gas Conference (NOG) holding in Abuja.

The Managing Director and Chief Executive Officer of Mainstream Energy Solutions Limited, Mr. LamuAudu, stated that only 20 percent of the cost of power produced across the supply value chain is being paid for.He noted that foreign exchange (forex) challenge also remains a major bottleneck for power investors as a result fluctuating exchange rates, which was less than N200 to a dollar when the power assets were bought, and currently above N350.

He said: “Virtually all the spare parts used in the power sector are imported and we need foreign exchange to procure them. But, unfortunately, the fluctuating exchange rate has made planning difficult for investors.”

Another worrisome trend in the sector, according to Audu, is the issue of ageing transmission infrastructure, which most time leads to rejection of generated power by the Transmission Company of Nigeria (TCN). “This is a major loss on the part of power generation companies. When the generated power is rejected, who bears the loss? I think government should be in a position to pay for this. And going forward, I think TCN should be privatised,” he advised.

Also the Managing Director of Sahara Power, Mr. Kola Adesina, lamented about the paucity of funds for power investors. H e noted that lack of fund remains a stumbling block to the growth of the sector, adding that power sector being a cycle feeds from four sources; gas, generation, transmission and distribution. He said when one leg of the cycle is stifled of fund, all other segments are affected from functioning at optimal level.

According to him, the inability of consumers to pay for power consumed ultimately affects payment to gas producers, GenCos and the transmission company. He also noted that lack of adequate gas supply to the generating companies is also a major issue hindering the smooth operation of the sector, adding that constant attacks on gas infrastructure by agitators remains an issue that government must address for the sector to move forward.

http://www.energywatchng.com/generation-companies-warn-imminent-blackout-n601b-debt/

Efforts by the Federal Government to fast track the development of the Niger Delta appear to be in full swing, as it plans to site a $20 billion gas industrial park in the region through a public-private partnership.

This was made known on Monday by Nigeria’s Acting President, Professor Yemi Osinbajo, during a meeting with a group of international investors and developers on the project at the Presidential Villa.

The consortium is made up of fortune 500 companies which include the GSE&C of South Korea, the China Development Bank, Power China and several other global operators from Asia and the United Arab Emirates in the Middle-East.

A statement from the Vice President’s office explained that the project, tagged the Gas Revolution Industrial Park (GRIP), would be located in Ogidigben, Delta State, and is envisaged to be a regional hub for all gas-based industries.

According to the Acting President, the project would cover 2700 hectares with fertiliser, methanol, petrochemicals, and aluminium plants located in the park which has already been designated as a Tax Free Zone by the Federal Government.

He said the government “is committed to the development of the Niger Delta, and the importance of this project is underlined by the presidential attention it is attracting. The presidency is very interested”.

We Are Unwavering

Professor Osinbajo added that the Federal Government takes the project very seriously, just as it is ready to make several other commitments to change the fortune of the oil-producing states.

“We already have a steering committee in place, chaired by the Honourable Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, and that shows the level of our commitment. We are unwavering.

“We take the project very seriously and glad to see you are committed and ready to make several other commitments. This is a process that we intend to see happen,” he said.

On his part, Dr. Kachikwu expressed confidence that the GRIP would bring the much needed succour to the people of the Niger Delta and the oil-producing states.

Speaking earlier, the leader of the group of investors and developers, Sheik Mohammed Bayo, stated the commitment of the consortium, stressing the importance of the project to solving the Niger Delta crisis.

The development comes against the backdrop of the recent visit by the Acting President to the oil-producing communities, to demonstrate the resolve of the President Muhammadu Buhari led administration to pursue a new vision for the Niger Delta.

http://www.energywatchng.com/fg-activates-20bn-gas-industrial-park-niger-delta/

Ikeja Electric has over 600,000 customers who the company is committed to serve with a New Spirit, New Drive and New Energy. This resolve continues to elicit a passion for service excellence and new thinking on how to empower lives and businesses across the IE network.

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Successful candidates will be expected to work within the power distribution sector with experienced engineers, developing skills and experience in order to become a competent and effective professional Engineer within the Power Sector and provided with challenging job opportunities.
Minimum qualifications

Preferably fresh from the university but certainly with not more than 2 years’ experience, who are highly intelligent, hardworking, having the ability to apply common sense in analyzing and resolving problems and who value integrity more than wealth.

Minimum B.Sc. or, preferably, M.Sc. Degree in Engineering, in one of the following disciplines –Electrical Engineering and Electronics Engineering from reputable Universities with a minimum of 2nd class upper
Must have completed NYSC
Maximum age of 26 years as of December 2016

Closing Date 2nd March, 2017

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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/