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Fresh concerns greet planned privatization of TCN

Fresh concerns greet planned privatization of TCN

Economy, Power
Plans by the Federal Government to unbundle the Transmission Company of Nigeria (TCN) and eventually sell the power firm may soon become reality as the Bureau of Public Enterprises (BPE) is expected to recommend the sale of the assets. Government had earlier in the year proposed a sale or concession of about 36 of its properties to raise funds, largely to finance the 2021 budget. TCN was listed as part of these properties, expected to be sold or concessioned between January 2021 and November 2022. BPE, according to Bloomberg, is currently considering various strategies to reform TCN, Director-General Alex Okoh was quoted in the report as saying the agency would share its proposal “very shortly” with the National Council on Privatisation that the TCN be unbundled and then privatiz...
DisCos burden consumers with responsibilities years after privatisation

DisCos burden consumers with responsibilities years after privatisation

Power
• Stakeholders fault NERC, allege negligence• Call for review of privatisation contract Almost 10 years after privatising the power sector, electricity consumers still bear the burden of purchasing and maintaining transformers, cables, meters and other line materials. This situation has prompted a call on the Nigerian Electricity Regulatory Commission (NERC) to live up to its responsibilities just as stakeholders have urged the government to review the privatisation contract with the electricity distribution companies (DisCos) A consumer rights and obligations regulation document from NERC highlights the rights enshrined in the Electric Power Sector Reform Act (EPSRA), 2005. The content of the regulation places the responsibility of buying, replacing or repairing electricity...
EKEDC, IBEDC promise stable power during Eid-El-Fitri

EKEDC, IBEDC promise stable power during Eid-El-Fitri

Power
Ibadan Electricity Distribution Company (IBEDC) and EKO Electricity Distribution Company (EKEDC), yesterday, felicitated with Muslim faithful across the country on this year’s Eid-El-Fitri. In their goodwill messages, they assured customers across the network of their commitment to hitch-free and stable services during the holiday. IBEDC Chief Operating Officer, John Ayodele, stated that measures have been put in place to ensure network stability and smooth operation during the holidays. He said: “IBEDC is aware that our customers are looking forward to enjoying uninterrupted services during the holidays. We are committed to ensuring this as much as is within our remit and control.”   EKEDC, in a statement signed by the company’s General Manager, Corporate Communications, Godwin Id...
Renewables supplied only a third of Africa’s electricity demand growth

Renewables supplied only a third of Africa’s electricity demand growth

Power
An analysis of global electricity revealed that wind and solar showed resilient growth in 2020 despite the pandemic, forcing a record fall in global coal power. The Global Electricity Review (bit.ly/3nMqxBv) published by energy think tank Ember (Ember-climate.org) analysed electricity data from every country in the world to give the first accurate view of the global electricity transition in 2020. It revealed that almost a tenth of global electricity was generated by wind and solar in 2020. Morocco and Kenya are the clear leaders in Africa, already ahead of the world average. However, data from 2014 to 2019 shows that only a third of the rise in Africa’s electricity demand was met with renewables, and two-thirds of the rise was met with fossil gas. 2020 global power trends: Pan...
NERC approves N215 billion for Ikeja and Eko DisCo upgrade

NERC approves N215 billion for Ikeja and Eko DisCo upgrade

Power
The NERC said the approved upgrades would improve the distribution of power supply by the DisCos. The Nigerian Electricity Regulatory Commission (NERC) announced it has approved the sum of N121.92 billion for Ikeja Electric Plc infrastructure upgrade for the next 5 years and also N93.76 billion for Eko Electricity Distribution Company (EKEDC) infrastructure upgrades within the same period. The NERC disclosed this in its Performance Improvement Plan (PIP) and Extraordinary Tariff Review Application which was released on Monday and signed by  NERC’s Chairman, Mr Sanusi Garba and Mr Dafe Akpeneye, Commissioner, Legal, Licensing and Compliance. PIP and Capital Expenditure (CAPEX) programme is expected to take effect from July 1, 2021 to June 30, 2026. The NERC said the approve...
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...