Wednesday, April 14African Business News
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Power

FG plans to commit $3 billion in power sector in 24 months

FG plans to commit $3 billion in power sector in 24 months

Power
The Federal Government disclosed a plan to commit $3 billion to the power sector in the next two years. The spending is expected to raise the current 4,900 megawatts (MWs) to at least 7,000MWs. This was disclosed by the Special Adviser to President Buhari on Infrastructure, Ahmad Zakari, during a virtual meeting organised by the Abuja Chamber of Commerce and Industry (ACCI). He noted that besides the $500 million loans the government secured from the World Bank earlier this year, it is expecting another facility from the African Development Bank (AfDB), saying that the gestures are a demonstration of confidence in the reforms of President Muhammadu Buhari administration. Zakari noted that with renewed financial discipline in the sector following the recent intervention by ...
NEMSA raises concern over rejection of smart meters

NEMSA raises concern over rejection of smart meters

Power
‘Only certified units should be deployed’The Nigerian Electricity Management Services Agency (NEMSA) has raised the alarm over some consumers’ refusal to accept smart meters due to perceived distrust that Distribution Companies (DisCos) may have calibrated the units to read faster. NEMSA Managing Director and Chief Electrical Inspector of the Federation, Peter Ewesor said this is a major challenge in the sector despite efforts by the federal government to bridge the metering gap. He also faulted non-compliance by meter manufacturers, suppliers and DisCos to ensure that only certified electricity meters with crimp seal and test label by NEMSA National Meter Test Stations (NMTS) are deployed. According to him, the failure of meter manufacturers, suppliers and DisCos to comply w...
Exclusive privilege to two firms incapacitates metering rollout

Exclusive privilege to two firms incapacitates metering rollout

Power
The engagement of only two firms for the country’s national metering rollout has created a capacity challenge, The Guardian has been informed. The exclusion of the remaining manufacturers, experts said, threatens the National Mass Metering Programme (NMMP) and the acutalisation of key targets. This comes as stakeholders in the power sector have urged the Federal Government to engage the services of the more local meter manufacturers to meet its target of metering all households in the next five years. Momas Electricity Meters Manufacturing Company Limited (MEMMCOL) and Mojec International are the firms that have been engaged in the distribution while the others are left out. Speaking with The Guardian, Chief Executive Officer, Unister Hi-tech System Limited, a m...
NERC reads riot act to generating companies

NERC reads riot act to generating companies

Power
The Nigeria Electricity Regulation Company (NERC), has warned the Association of Power Generation Companies (APGC), against what it described as consistent acts of disrespect. The Commission, therefore, cancelled the meeting that was to hold on Tuesday, and warned against future occurrence of similar conduct by the association. NERC was reacting to the call by generation companies (GenCos) to scrap the NERC, saying it is weak, incompetent, lacking in leadership, and unable to perform its duty. In the latest biannual bulletin, published by the GenCos, the Executive Director, APGC, umbrella body of the over 20 generators in Nigeria, Dr. Joy Ogaji, advocated an “independent and transparent regulator.” The GenCos argued that an industry without a regulator would be far better t...
Power ‘stressing out’ under unsustainable cash flow challenge

Power ‘stressing out’ under unsustainable cash flow challenge

Power
Despite the intervention of Central Bank of Nigeria (CBN) and Nigerian Electricity Regulatory Commission (NERC) to address the liquidity crisis rocking Nigeria’s electricity market, the sector continues to struggle under heavy debt. Being the revenue collectors in the market, NERC had, last year, set a minimum market remittance threshold payable by the 11 power distribution companies operating across the country. NERC mandated the DisCos to make 100 per cent remittances to the Transmission Company of Nigeria (TCN)’s Market Operator (MO), repay loans to CBN and remit some percentage to Nigerian Bulk Electricity Trading Company (NBET) monthly. CBN also directed money deposit banks to take charge of the collection of electricity bill payments. The move, which, reportedly would en...
Ondo Begins Moves To Break BEDC Monopoly

Ondo Begins Moves To Break BEDC Monopoly

Power
Ondo State Government has begun move to break monopoly of the Transmission Company of Nigeria and the Benin Electricity Distribution Company (BEDC) in power generation and distribution in the state. The move is to ensure electricity gets to many communities in the state that are yet to be connected to national grid system. It has proposed a new electricity bill to Ondo State House of Assembly to repeal the old Ondo State Electricity Board law. The new electricity bill was to provide enabling laws to guarantee private sector participation in power generation, transmission and distribution in the state as well as provide legal framework for investors to participate in electricity provisions in areas not covered by the national grid system in Ondo State. Speaking at the public hea...
FG can no longer bear electricity tariff shortfalls – Buhari

FG can no longer bear electricity tariff shortfalls – Buhari

Power
The President, Major General Muhammadu Buhari (retd.), has said the tariff shortfalls in the power sector being borne by the Federal Government are no longer sustainable. Buhari said this on Thursday at the inauguration of Eko Electricity Distribution Company’s Supervisory Control and Data Acquisition-Distribution Management System Centre in Lagos. He said the SCADA system would help EKEDC monitor and respond more quickly to faults and reduce outage durations, thereby improving the quality of service to customers. Represented by the Minister of Power, Mr Sale Mamman, the President said his regime remained committed to addressing the liquidity challenges that were adversely affecting the power sector’s viability. “We have noted with grave concern the increased fiscal burden on t...
Group seeks disbandment of proposed transmission charge

Group seeks disbandment of proposed transmission charge

Power
The Nigerian Electricity Regulatory Commission (NERC’s) plan to allow the electricity distribution and trading licensees to introduce competition transition charge by has elicited public criticisms. The Competition Transition Charge (CTC) is a new rule to make prospective Eligible Customers (EC) and other consumer class, compensate the 11 electricity Distribution Companies (DisCos) for leaving their networks to buy power directly from Generation Companies (GenCos). NERC had in pursuant to the provisions of Section 28 of the Electric Power Sector Reform Act (EPSRA) in May 2019, published on its website www.nerc.gov.ng a Consultation Paper on a framework for the collection of Competition Transition Charge (CTC) from Eligible Customers (ECs). “The CTC shall enable Distribution Licens...
Consumers lament outrageous electricity billing despite benchmark

Consumers lament outrageous electricity billing despite benchmark

Power
To address the issue of outrageous billing that has continued to plague the electricity distribution sub-sector, and the numerous complaints by consumers, Nigerian Electricity Regulatory Commission (NERC), had repealed estimated billing methodology regulation as the basis for computing the consumption of unmetered consumers. It also issued a deadline of April 30, 2020 for proper identification and metering of high-energy users. However, consumers are in doubt as to whether the latest proposed tariff increase had not yet taken place, alleging that the power supplied is not commensurate with the bills received every month. Speaking with The Guardian, consumers of the Ikeja Electricity Distribution Company (IKEDC), and Eko Distribution Company (EKEDC), have lamented outrageous bills,...
DisCo warns against commercial activities under power lines

DisCo warns against commercial activities under power lines

Power
The Ibadan Electricity Distribution Company (IBEDC), has warned against the practice of conducting commercial activities under power lines and cables, to avert possible fires, loss of properties and life that could be caused by heavy rainfall, windstorms and floods. It advised customers not to engage quack electricians to wire their houses or carry out repairs as errors and deviation from sound technical practice and poor workmanship may lead to bad situations.The Chief Operating Officer, IBEDC, John Ayodele, was quoted as saying in a statement that rainy seasons often witness the highest levels of incidents in the electricity distribution sector, and urged members of the public to be on their guard to avoid falling victims of an accident that could easily occur during the rains. ...