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Tag: Electricity

  • Supply of free electricity to Nigerians still a proposal, says Ikeja Electric

    Supply of free electricity to Nigerians still a proposal, says Ikeja Electric

    Ikeja Electric (IE) says supply of free electricity to Nigerians during the period of the Coronavirus pandemic is only a proposal which is still undergoing stakeholder reviews on its feasibility.

    Mr Felix Ofulue, Head, Corporate Communications, IE, made the clarification in a statement issued on Thursday in Lagos.

    Recall that Mr Sunday Oduntan, Executive Director, Research and Advocacy of the Association of Nigerian Electricity Distributors (ANED), on Wednesday, said the 11 electricity Distribution Companies had promised to supply two months of free electricity to Nigerians.

    Oduntan said the decision was in recognition of the challenging effects of the COVID-19 pandemic on the economic and daily lives of the customers.

    Ofulue, however, said the management of IE was fully in support of the ongoing efforts of the National Assembly, in collaboration with the Federal Government, to consider a proposal on the possibility of providing free electricity for Nigerians for two months.

    He said : “However, it is important to point out that at the moment, it is only a proposal and is still undergoing stakeholder reviews on its feasibility.

    ” It has not been approved by the Government as a stimulus package or palliative.

    “As such, the ability of the DisCos to implement this proposed palliative is subject to the stimulus package being passed by the National Assembly and signed into law by the President,” he said.

    He urged IE’s customers to continue to pay their utility bills as usual, adding that the DisCo would continue to serve and put its customers first during this difficult period.

  • COVID-19: Electricity workers threaten shut down over failure to protect staff

    COVID-19: Electricity workers threaten shut down over failure to protect staff

    The General Secretary, National Union of Electricity Employees (NUEE), Comrade Joe Ajaero, has threatened that the union would be forced to embark on strike to protect its members against COVID-19.

    Ajaero made this known on Wednesday in a letter to the Minister of Power, Mr Sule Mamman, after he reported to work on March 23 from a trip to Germany and Egpyt.

    He said the minister did not self isolate himself for the compulsory 14 days.

    According to him, the minister will be solely responsible for the transmission of COVID-19 to any staff in Transmission Company of Nigeria (TCN).

    Ajaero said that by this action the minister failed to provide adequate precautionary measures to protect staff and would be responsible for his failure to comply with the Federal Government directive.

    The letter read in part: “Our attention has been drawn to the return of the Minister of Power, Sule Mamman, from his trip to Germany and Egypt while on the entourage of the Chief of Staff to the President.

    “The minister despite the president’s directive to self-isolate, reported at the office in the midst of agitation and complains from the staff at TCN Headquarters in Abuja.

    “If not for the intervention of the union, there would have been pandemonium at the office, on March 23.

    “In view of recent developments, the union wishes to state unequivocally that the minister will be held responsible for the transmission of COVID-19 to any staff in TCN.”

    Ajaero said the minister did not comply with the federal government directive on people that travelled to countries with high cases of infection to self isolation.

    He said that the union was giving employers in the power sector whose staff constantly interface with customers and the public, 24-hours to put adequate precautionary measures in place to protect staff.

    Ajaero said that the union would be forced to pull out its members and would not be held responsible for any consequence arising there from.

    He therefore enjoined employers of labour in the sector to take necessary measures to ensure the safety of its members against the COVID-19.

  • Consumers reject new electricity tariff, accuse DisCos of corruption

    Electricity consumers have expressed anger on the proposed hike in tariff as the National Electricity Regulatory Commission (NERC) took its public hearing to Kaduna on Tuesday.

    One of the consumers decried what he called high-level corruption in the electricity Distribution Companies (DisCos).

    The public hearing tagged: “Investments towards improvement of power supply and quality service in the Nigerian electricity supply industry” was chaired over by NERC’s Vice Chairman Sanusi Garba.

    Garba said that commission organised to get input from KEDCO and the consumers on the review of the proposed tariff.

    A cross-section of the consumers, who specifically accused DisCos of indiscriminate billing and insensitivity, alleged that officials of the Kaduna Electric have being shortchanging consumers.

    Another consumer Saleh Mohammed urged the NERC not to approve the proposed tariff because the company had yet to show serious commitment to the management of the power sector.

    Chairman, state chapter of the Association of Professional Printers of Nigeria, Koko Clement in his submission said, any new tariff coupled with the reviewed 7.5 Value Added Tax already out in place by the President Muhammadu Buhari regime, would be an added burden on Nigerians.

    He said the association vehemently opposed the proposed tariff, saying that, “the printers association of Kaduna State said the new tariff is unacceptable to them.”

    Abubakar Aliyu noted that the company was yet to show the capacity to remain in business, saying that residents could only accept any tariff review when their homes have been metered.

    Meanwhile, the Head of Corporate Communications of the Kaduna Electric, Abdullahi Abdulazeez, said it was unfair and unacceptable for the consumers to accuse the company of corruption.

    According to him, 70 per cent of consumers fail to pay their bills and that the company had to be aggressive on debt collection.

    Abdullahi said: “When you consider that we are in a business, where we have a product that we sell, and then 70 per cent of the products people are not willing to pay for it.

    “We are into business that we are perpetually at a lost. This money we have to get, we have to go put aggressively to get it. Even the little out of the bill of N3.5 billion every month, we are only able to get N1.5 billion n and this N1.5 billion, not that we are using it, we still putting it back into value chain – we are paying for transmission, general and NERC.

    “All the players in the system, all these we are paying it back to them. We are collecting on their behalf. It is only 18 percent of that N1.5bn that is our own. Everything we need to do to keep the business going, we do it from that money.”

  • GenCos Lose N1.9bn in One Day to Gas Shortage, Others

    Electricity Generation Companies (GenCos), which make use of both gas-fired and hydro-stations, have lamented that couldn’t generate an expected 3,347.5 megawatts of electricity on Wednesday due to unavailability of gas.

    This led to the estimated N1.9 billion lost by the power sector players on Wednesday due to insufficient gas supply, inadequate distribution and transmission infrastructure.

    An energy report by the Advisory Power Team attached to the Office of the Vice President, Mr Yemi Osinbajo, disclosed that 220 megawatts of electricity was not generated due to unavailability of transmission infrastructure during the period, adding that 400.4 megawatts was not generated due to high frequency resulting from unavailability of distribution infrastructure.

    The report also said that the GenCos released an average of 4,140 MegaWatts/Hour of electricity into the national grid on Wednesday.

    On sector reform and activities, it said that the dominant constraint for Wednesday was unavailability of gas, adding that the peak generation attained was 4,502.5 megawatts.

    Last week, the APT said that the Nigerian power sector lost about N19.15 billion in 10 days due to insufficient gas supply, distribution and transmission infrastructure.

    According to the report, the losses were recorded from February 5 to 14, 2020. An average of N1.55 billion was lost on February 5, N1.77 billion on February 6, N1.92 billion on February 7 and N1.89 billion was lost on February 8.

    The sector also lost an estimated N1.95 billion on February 9, N2.15 billion on February 10, N1.95 billion on February 11, N2 billion on February 12, N2.01 billion on February 13 and lastly N1.96 billion on February 14.

  • Electricity still a luxury in Nigeria – Kyari

    Electricity still a luxury in Nigeria – Kyari

    The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mele Kyari shared his disappointment with the state of power generation in Nigeria, urging for an alternative.

    Kyari attended the Nigeria International Petroleum Summit which provided an opportunity for the signing of a $1.1 million grant between Nigeria and the United States Trade and Development Agency (USTDA) as part-funding for the Abuja Independent Power Project (IPP) in Abuja.

    The NNPC chief lamented that Nigerians are still struggling to afford a day’s meal and that electricity is now “a luxury” exclusive for the elite. He added that the challenges of the power supply must be addressed before Nigeria can go into renewable energy.

    He said; “For this country and very many of us in sub-Saharan Africa, what we worry about today is actually the meals of today. There are many who can’t afford a meal a day. And of course, electricity is largely a luxury; it’s only for the elite, like all of us here.

    “It is the dream of very many to have I-pass-my-neighbour in their homes. When you say, ‘do not use fossil fuel,’ but you have not provided alternatives. The world has not looked at their situation. The world has not recognised that there is abject poverty in the communities.

    “We have to resolve the issue of electricity so that we can talk about renewable energy in the future and reduce the use of fossil fuel that has a high impact on the environment. We know that there is an energy transition in the world. With time, there will be less dependence on fossil fuel.

    “We have gas in abundance, we must create an infrastructure that will help create gas for power generation.

    “We need the power to create jobs and we must create prosperity so that we can have peace in our country. We are grateful for this grant.”

  • BREAKING: Reps panel orders NERC to suspend increment in electricity tariff

    The House of Representatives Committee on Power has asked the National Electricity Regulatory
    Commission (NERC) to suspend the recently announced increase in electricity tariff.

    NERC had directed the electricity distribution companies (DisCos) to enforce an upward review of the tariff starting from April 1.

    But Committee chairman, Aliyu Magaji, at its meeting, asked NERC to direct DisCos to suspend the review until further consultations.

    DETAILS Soon…

  • Electricity Tariff: minor review order has no immediate impact on consumers -NERC

    Electricity Tariff: minor review order has no immediate impact on consumers -NERC

    The Nigerian Electricity Regulatory Commission (NERC), says the minor review order released by the Commission on January 3 has no immediate impact on end-user tariffs.

    Mr Usman Arabi, NERC’s General Manager Public Affairs Department, made this known in a statement in Abuja.

    Arabi said the order was to establish impact of the exogenous macroeconomic parameters and costs outside the control of the utilities in 2019 and projections for 2020.

    He said the macroeconomic indices taken into consideration to conclude the exercise included rate of inflation, foreign exchange, gas price and volume of available electricity

    “The order has further prescribed minimum market remittance threshold payable by the 11 Electricity Distribution Companies (DisCos) and the projected tariff path until 2021.

    “However, where actual end-user tariffs are likely to be impacted by the review, the required public and stakeholders consultations shall be implemented.

    “This is in line with requirements of the Electric Power Sector Reform Act and Business Rules of the Commission,” he said.

    Arabi said the attention of the commission had been drawn to reports in the media that an immediate increase in end-user electricity tariffs had been approved by NERC.

    He said the Electric Power Sector Reform Act provided that the commission should determine and periodically review electricity tariffs charged by the DisCos.

    Arabi said the act was to provide an opportunity for utilities to recover efficient costs of operation and a reasonable return on investment.

    According to him, the current tariff methodology adopted by the commission provides for a determination of a tariff trajectory over a five-year planning horizon and biannual minor tariff reviews.

    “The Commission took into account the impact of inflation, rate of foreign exchange, gas prices and energy available to consumers,’’ he said.

    NAN reports that NERC had on Jan. 4 published new tariffs for the different DisCos and categories of customers on its website which was signed by its chairman and Secretary Prof. James Momoh and Dafe Akpeneye respectively.

    The commission said that the order super-ceded the earlier one issued on the subject matter, and “the new tariff regime takes effect from Jan. 1, 2020.’’

    NERC noted that the order had taken into consideration other actual changes in relevant macroeconomic variables and available generation capacity as at Oct. 31, 2019.

    The commission said the order was in line with updating of the MYTO operating -2015 Tariff Order for 2019.

    According to NERC, this is in line with provisions of the amended MYTO Methodology.

  • Court halts implementation of new electricity tariffs

    A Federal High Court sitting in Lagos has stalled the implementation of new electricity tariffs from April, pending the determination of a motion challenging it.

    The new tariffs, which go into force from April, were announced by the Nigeria Electricity Regulatory Commission (NERC) last week. NERC handed 11 Electricity Distribution Companies (Discos) the template for the new tariffs applicable in their regions..

    At the hearing of a suit by the Incorporated Trustees of Human Rights Foundation against 15 respondents in the electricity industry, Justice Muslim Hassan ordered the parties to maintain the status quo.

    The respondents are: NERC, the Bureau of Public Enterprises (BPE); the Nigeria Bulk Electricity Trading Company Plc; and the Minister of Power.

    Also joined as respondents are Abuja, Benin, Enugu, Ikeja, Kaduna, Kano, Port Harcourt, Yola, Eko, Ibadan and Jos DisCo.

    In its suit, the NGO filed an ex parte motion praying the court to stop the new tariff from coming into effect.

    The applicant contended that “the implementation of the purported minor review of the Multi-Year Tariff Order would create “unquantifiable hardship and damages” on electricity consumers.

    “Consumers will be made to pay very high tariff, which has been increased by over 40 per cent across the board of which is currently being billed.”

    In an affidavit deposed to by Theodora Ubabunike, the human rights group said: “It will amount to a great injustice to impose arbitrary electricity tariff on Nigerian electricity consumers.

    “Nigerians will suffer monumental loss as many people will not be able to access power or access same at very high tariff. I know that Nigerians are entitled to access public amenities like electrical power.”

    In arguing the application on Monday, the applicant’s counsel, Anaje Chinedu, prayed for “an order of interim injunction restraining NERC from taking any step towards the implementation of the purported Minor Review of the Multi-Year Tariff Order 2015 and the Remittance Order 2019,” pending the hearing and determination of the motion on notice .

    Justice Hassan declined to grant the ex parte application, but said “the status quo ante bellum shall be maintained by the parties in this suit pending the determination of the motion on notice.”

    He adjourned till January 20, 2020 for the hearing of the motion on notice.

  • Expect 24-hour power supply this Yuletide — FG

    The Minister of State for Power, Mr. Goddy Jedy-Agba, yesterday, assured of the Federal Government’s decision to give 24 hours’ power supply to Nigerians during the Yuletide season.

    He gave the assurance when he paid an on-the-spot-assessment visit to the Azura Power Plant, in Edo State, even as the Managing Director of Azura Power Plant, Mr. Edu Okeke, lamented that inadequate remittance of funds by Discos was one of the major challenges confronting the power sector.

    The Minister while observing that the power sector has improved tremendously than they met it, said he would personally be on duty during the Yuletide to ensure that those saddled with the responsibility of generating and distributing power are up to their responsibility.

    “The sector is improving and it is better than before. You can see the Union shutdown in less than 24 hours last week and it took us less than 18 hours to get them back to work after negotiation.

    “Power for me is stabilising. I am sure we will do better. Government, Discos and all the stakeholders in the power sector are putting heads together to ensure that.

    “Christmas, Nigerians will have light all through. I will be on duty on Christmas day and you can see me going round all the power plants. Even on Christmas day I will go out to visit the power plants. I assure you there will be power,” he said.

    Jedy-Agba commended the Managing Director of Azura, Edu Okeke, for living up to his billing, adding that the Azura is a pride of the nation and that he is proud to be a part of the project.

    “I am very impressed and I want to be part of this team. I just told the MD that this is the most magnificent plant I have seen apart from the one I saw in USA ten or fifteen years ago but this is very good for Africa and it is very good for Nigeria,” he said.

    He called for more private investment in the power sector for optimum power supply in the country.

  • ‘Electricity is not charity’, FG threatens to cut off Togo, Niger, Benin

    ‘Electricity is not charity’, FG threatens to cut off Togo, Niger, Benin

    The Federal Government of Nigeria has told the international electricity customers – Niger, Togo, and Republic of Benin-to pay up their outstanding $7million debt because “electricity is not charity”.

    The chairman, West African Power Pool (WAAP), Mr. Usman Gur Mohammed, whom reporters in Abuja accused of playing the big brother with Nigeria’s electricity to the countries, disclosed that Nigeria was also strict with the international customers just as the Nigerians in debt recovery.

    Mohammed, who is also the Managing Director of the Transmission Company of Nigeria (TCN), recalled that on his assumption of office, the outstanding bills of the international customers were over $100million.

    Stressing that Nigeria does not supply any customers electricity for free, he noted that the Federal Government disconnects the international customers just as it does to Nigerians when they owe electricity debts.

    The WAAP chairman said that the Federal Government has now restricted its electricity supply to only contracted international customers.

    According to him, Nigeria has insisted that the indebted international customers that were disconnected from the grid pay up their debts before they are reconnected.

    His words: “It is not because I am the chairman of the West African Power Pool (WAAP) that I will be allowing international customers to cheat Nigeria.

    “When I took over as MD TCN, both Benin and Togo were owing Nigeria more than $100 million. The debt now remains $7million.

    “Niger is owing less than $2million. In short, we are not leaving them. We disconnect them as we disconnect customers here in Nigeria. Electricity is not charity. We cannot just allow people to consume electricity and leave us like that.

    “As at now, we have restricted their supply to only their contracted ones. We are insisting they pay all their outstanding before we reconnect them and we increase the off- take.”

    He corrected the impression that electricity across the border is charity, noting that it is a business from which Nigeria makes millions of dollars like any other exported commodity.

    Mohammed said that Nigeria has a comparative advantage of electricity generation in Africa.