TheNewsGuru

Tag: Electricity

  • UPDATE: Why Reps asked NERC to stop electricity tariff hike

    UPDATE: Why Reps asked NERC to stop electricity tariff hike

    The House of Representatives has urged the Nigeria Electricity Regulatory Commission (NERC) to suspend the implementation of the new tariff.

    The call was sequel to the adoption of a motion by Rep. Nkemkanma Kama (LP-Ebonyi) at plenary on Tuesday.

    It would be recalled that NERC had on April 3, approved an increase in electricity tariff for customers who enjoyed 20 hours of electricity daily classified as Band A users.

    Moving the motion, Kama said that the aim was to restore public trust, protect consumer rights, and ensure regulatory accountability in the Nigerian Electricity Supply Industry (NESI).

    He said that facts presented showed that the approval granted by NERC resulted in a staggering 300 per cent rise for certain consumers.

    “What is more concerning are the reports indicating discrepancies in customer categorisation and widespread complaints regarding inadequate service despite increased charges.

    “This situation has not just sparked national anxiety, but it also threatens regulatory certainty and investor confidence in the sector, demanding immediate attention.

    “This motion argues for legislative intervention, underlining our constitutional and moral obligations to address the crisis and alleviate the burden on Nigerian citizens.

    “It places a strong emphasis on the legislative oversight role over NERC and the electricity utilities, stressing the need for fair and just pricing and consultation with stakeholders in tariff determination processes.

    “This is not just a responsibility, but a duty we owe to our constituents,” he said.

    The lawmaker alleged failure of due process in approving the tariff increase which raised concerns over discriminatory practices, and  disputed nature of government subsidies to Electricity Distribution Companies (DISCOs).

    Sequel to the adoption of the motion, the House ordered the Nigerian electricity regulatory commission (NERC) to suspend the operation of the recently announced tariff increases and other conditions in the newly issued review of the MYTO.

    The House resolved to set up a special committee made up of the Committees on Power, Commerce and National Planning to convene a public hearing on price regulation.

    The lawmaker resolved to appoint well-regarded former regulator as technical consultant to the house to develop templates for determination of the legality, reasonableness of the procedure adopted by NERC in approving the tariff increase and establishing the performance benchmarks for the Discos.

    In his ruling, the Speaker of the house, Rep. Tajudeen Abbas said that the relevant committees should ensure compliance.

  • BREAKING: Minister kicks as Reps stop NERC from implementing electricity tariff hike

    BREAKING: Minister kicks as Reps stop NERC from implementing electricity tariff hike

    The Nigerian House of Representatives has asked the Nigeria Electricity Regulatory Commission (NERC) to suspend the implementation of the new electricity tariff increase.

    TheNewsGuru.com (TNG) reports the lower legislative chamber passed the resolution during plenary session on Tuesday, following the adoption of a motion of urgent public importance.

    The motion was sponsored by Nkemkanma Kama, a Labour Party (LP) lawmaker from Ebonyi State.

    Recall that on April 3, NERC had approved an increase in electricity tariff for customers under the Band A classification.

    The new rates meant a hike from N67 per kilowatt-hour to N225 per kilowatt-hour, translating  to a 241KW increase for the users.

    Band A customers are those who enjoy electricity supply for at least 20 hours per day.

    NERC said the newly approved tariff is expected to reduce subsidies for the 2024 fiscal year by about N1.14 trillion.

    However, Adebayo Adelabu, Minister of Power, has said the country will be thrown into darkness if the federal government does not implement the new hike in electricity tariff.

    Appearing before the senate committee on power on Monday, Adelabu said although citizens are bearing the brunt of the increase, it would “catapult us to the next level”.

    Details shortly…

  • NERC announces deregulation of prices of electricity meters

    NERC announces deregulation of prices of electricity meters

    The Nigerian Electricity Regulatory Commission (NERC), has announced deregulation of meter prices under the Meter Asset Provider (MAP) Scheme for end-user customers.

    This is according to a statement by the commission in Abuja on Monday signed by Mr Garba Sanusi, the Chairman of NERC and Mr Dafe Akpeneye, the Commissioner Legal, Licensing and Compliance, NERC.

    The statement said: “Effective from May 1, the new order will introduce a competitive bidding process, allowing customers to choose from a variety of authorised vendors.

    “This will mark a significant shift from the previously regulated pricing structure”.

    According to the  order, all prices of meters within the MAP scheme will be determined through competitive bidding.

    The commission said that the move was expected to foster transparency and reduce prices as customers would have the freedom to select their preferred meter providers among those authorised under the scheme.

    ”The deregulation lifts previous restrictions allowing all MAP permit holders to provide services across all Electricity Distribution Companies (DisCos) in Nigeria, provided they meet specific requirements.

    “This broader operational scope is anticipated to increase competition among MAPs, potentially leading to better services and innovations in metering solutions,” it said.

    The order said that DisCos had been mandated to ensure that smart meters provided by MAPs were seamlessly integrated into their head-end systems and meter data management systems.

    ”Furthermore, they must provide a publicly accessible online portal displaying their technical specifications and commercial terms for MAP participation.

    ”This is to ensure a standardised approach to meter installation and function across board,” it said.

    According to the order, thorough testing and confirmation process for new meters have been outlined.

    “With DisCos required to complete these evaluations within 20 working days from when a MAP meets all specified requirements.

    “Meters that fail the confirmation test must be promptly reported to the MAP with details on the failure points,” it said.

    The commission said that the deregulation also introduced flexibility in the types of meters available under the MAP scheme.

    ”DisCos can now offer basic electronic meters, Internet of Things (IoT) meters, DIN rail meters, and current limiters, depending on the customer’s energy consumption profile.

    “While deregulating meter prices, NERC will oversee the submission of price offers from MAPs to ensure fair competition.

    “This includes a requirement for MAPs to hold a minimum stock of 2,000 units of meters as an eligibility criterion for participation in the bidding process.

    The commission said that end-use customers now have the sole right to choose their preferred MAP and meter types, which align with their specific energy needs.

    It said that additionally, stringent measures have been placed to ensure timely installation of meters with penalties for MAPs that fail to meet installation deadlines.

  • Adelabu reveals whopping sum needed to revive power sector

    Adelabu reveals whopping sum needed to revive power sector

    The Minister of Power, Mr Adebayo Adelabu says the Federal Government requires 10 billion dollars investment yearly, to revive the power sector for the next 10 years.

    Adelabu said this in Abuja on Monday, at a one day investigative hearing on halting the electricity tariff increase by the Nigerian Electricity Regulatory Commission (NERC) organised by the Senate Committee on Power.

    “For this sector to be revived, government need to spend nothing less than 10 billion dollars annually in the next 10 years.

    “This is because of the Infrastructure requirement for the stability of the sector, but government can not afford that.

    “And so we must make this sector attractive to investors and to lenders.

    “So for us to attract investors,and investment, we must make the sector attractive, and the only way it can be made attractive is that there must be commercial pricing,” he said.

    Adelabu added:“If the value is still at N66 and government is not paying subsidy ,the investors will not come.

    “But now that we have increased tariff for a Band, there are interest been shown by investors.”

    The minister said the major challenge in the sector was absence of liquidity, saying that the sector had been operating on a subsidised tariff regime,given the absence of a cost reflective tariff.

    He said that the subsidy had not be funded over the years as huge liabilities was being owed the Generating Companies ( GenCos) and the Gas Companies.

    Adelabu said the inability of the government to pay the outstanding N2.9 trillion subsidy was due to limited resources, hence the need to evolve measures to sustain the sector.

    He appealed to the lawmakers to support the process of paying the debt owed operators across the value chain of generation, transmission and distribution.

    “The increase is based on supply, saying that any customer that do not received 20 hours power supply will not be made to pay the new tariff,” he said.

    He said the government was committed to ensuring sustainable reform in the sector, saying that there was need to clear the outstanding debt owed GenCos and Gas companies.

    To improve power supply, he said government was investing in hydro electric power, adding that construction of 700 mega watt power in Zungeru had commenced, while Kashimbila Hydroelectric power plant of 40 mega watt was awaiting evacuation to improve generation.

    The minister said there was also an on going investment of 26 small hydro power dams to boost electricity production across the country.

    However, members of the committee in their separate remarks decried the experiences of Nigerians on electricity supply over the years, despite the unbundling of the sector.

    Sen. Lola Ashiru, the Vice-Chairman of the committee said Nigerians were paying for inefficiency of power sector operators.

    Ashiru said there was a lot of inefficiency across the value chain of generation, transmission and distribution..

    He said poor Nigerians must be protected, adding that there was a need to consider a reversal of the tariff increase.

    Sen.Solomon Larlong said there was no consultation, before the increase, adding that issues of palliative should have been discussed and provided before the tariff increase.

    Sen .Enyinnaya Abaribe, the Chairman of the Committee said what Nigerians wanted was a solution to the issues and ways to ensure liquidity in the sector.

    He also decried the non  appearance of a company “ZIGLAKS” over the failed agreement to provide prepaid meters for Nigerians.

    He alleged that the company had received N32 billion in 20 years to meter Nigerian electricity consumers.

    Sen.Adamu Alero said due consultation was not made before the tariff increase.

    He said the public was not at peace with the increase, saying that the increase was over 200 per cent, hence the need for a reversal of the tariff increase.

    Some stakeholders at the event included the Nigerian Electricity Regulatory Commission (NERC), Manufacturers Association of Nigeria (MAN), Association of Power Generation (Gencos) and Electricity Distribution Companies (DisCos).

  • NERC, AEDC sued over alleged unlawful hike in electricity tariff

    NERC, AEDC sued over alleged unlawful hike in electricity tariff

    Mr Joe Agi, SAN, has sued the National Electricity Regulatory Commission (NERC) and Abuja Electricity Distribution (AEDC) Plc at the Federal High Court, Abuja for allegedly increasing his electricity tariff by 230 per cent.

    Agi, in the suit marked: FHC/ABJ/CS/474/ 2024, currently before Justice Inyang Ekwo, sought the enforcement of his fundamental rights.

    The senior lawyer prayed the court to hold that the new tariffs and the hours of supply are contrary to the Electricity Act, 2023 and Section 42 of the 1999 Constitution.

    The applicant had listed NERC, Minister of Power, Attorney-General of the Federation (AGF) and AEDC as 1st to 4th respondents respectively.

    In the affidavit attached to the suit, the lawyer deposed that on March 23 and April 3, he bought 682kwh utility from the AEDC on both dates for N50,000.

    He averred that on April 6, he bought another N50,000 utility and this time, the value of the purchase was reduced to 206.7kwh.

    He said he was alarmed by the development but later discovered that the NERC and AEDC had created what they called bands in the country, wherein NERC issued what it called the April 2024 Supplementary Order to the Multi-Year Tariff Order 2024.

    “That from the tariffs shared, the 1st and 4th respondents (NERC and AEDC) increased my tariffs by 230%, whereas others had theirs increased by 236%,177% and some others 0% in Nigeria.

    “The tariffs are discriminatory and the hours of supply are discriminatory between consumers and consumer categories and should be cancelled,” he prayed.

    Agi faulted the announcement made by NERC’s chairman, Musiliu Oseni, on April 1, wherein he said “only 15% of the electricity consumers in the country who consume 40% of the nation’s electricity are the ones affected.”

    According to him, the directive is discriminatory between 15% and 85% of the other consumers in Nigeria.

    He argued that the alleged fixing of tariffs using the US Dollars in Nigeria is uncalled for and against public policy.

    The applicant, therefore, sought “a declaration that the NERC Supplementary Order to the MYTO 2024 is discriminatory, unconstitutional and a gross violation of the applicant’s right to freedom from discrimination as guaranteed under Section 116 (2) (e) of the Electricity Act, 2023 and Section 42 of the 1999 Constitution (As Amended).”

    He said it also contravened the African Charter on Human and Peoples Right (Ratification and Enforcement) Act Cap A9 Vol. 1LEN 2004.

    He equally asked the court to declare that “the predication of the costing of tariffs in Nigeria using United States of American dollar exchange rate is unlawful, unconstitutional and contrary to public policy.”

    Agi then sought an order setting aside the NERC Supplementary Order to the MYTO 2024 for being discriminatory and gross violation of his right to freedom from discrimination as guaranteed under the law.

    No date has been fixed for hearing as of the time of this report.

    NERC on April 3, raised electricity tariff for customers enjoying 20 hours power supply daily, classified as Band A category from N66/kWh to N225kWh.

  • Excess electricity: Tanzania shuts 5 hydroelectric stations

    Excess electricity: Tanzania shuts 5 hydroelectric stations

    The United Republic of Tanzania has temporarily shut down five of its hydroelectric stations in a bid to reduce excess electricity in the national grid.

    TheNewsGuru.com (TNG) reports Tanzania’s Prime Minister, Kassim Majaliwa made this known on Wednesday.

    Majaliwa said the main plant, Mwalimu Nyerere Hydroelectric Station has alone generated enough electricity to power major cities, including Dar es Salaam, the country’s commercial hub.

    The surplus electricity production comes at a time the East African country is grappling with extreme weather conditions, which have led to significant loss of life and damage in neighbouring countries like Kenya.

    In Tanzania, the heavy rains have also been linked to at least 58 fatalities.

    “We have turned off all these stations because the demand is low and the electricity production is too much, we have no allocation now,“ an official from state-run power company, Tanesco, said.

    The 2,115 MW Julius Nyerere hydropower dam is said to be almost full with water, following heavy rains that started early this year.

    It is the first time Tanzania, which suffers chronic power shortages, has closed hydroelectric stations due to excess production.

  • Abbas laments as Power Minister blames cartels for erratic electricity supply

    Abbas laments as Power Minister blames cartels for erratic electricity supply

    The Minister of Power, Mr Adebayo Adelabu, has decried the activities of saboteurs and cartels in the electricity sector, blaming them for the incessant power outages in the country.

    Adelabu  expressed this during a  programme tagged “Confronting Nigeria’s Power Challenge as the Nation Migrates to a Multi-Tier Electricity Market” on Tuesday in Abuja.

    The programme was organised by the  House of Representatives Committee on Power.

    The minister  said  saboteurs and cartels perpetrated evil for their selfish interests in order to frustrate efforts at ensuring stable electricity supply in the country.

    “We have saboteurs, cartels, and those who prefer to perpetrate evil for their selfish interests to frustrate our efforts,” Adelabu said.

    He said all efforts must be geared towards propelling the country to  the league of  productive nations, adding that Nigeria was looking at reserves that would  eliminate incessant power collapse.

    He said the Federal Government was considering the liberalisation of the power sector.

    “We also encourage the state government to invest in power generation in their states, ” the minister said.

    Adelabu listed Abia as one of the states that had invested in power, adding that the Federal Executive Council (FEC) had also granted Ekiti and Enugu State the right to generate tariffs.

    The minister said it was worrisome that a lot of investors did not come with their private equity, but had to borrow money from the bank to operate in the sector.

    He, however, said that with time,  investors would be made to operate the right way for the benefit of the sector.

    The minister  also said that FG was looking at deepening  rural electrification, adding that it would be done in collaboration with the state governments.

    Adelabu said there were over 100 uncompleted power projects across the country, adding that those projects would not be energy-efficient without being completed.

    Speaking, Mr Kola Adeshina, Group Managing Director, Sahara Power Group, expressed the regret that Nigeria  could not supply electricity efficiently in spite of its abundant gas resources.

    He said if electricity was not a  priority in budget provision, it  would  be difficult for the country to work.

    Adeshina said  Nigeria had the resources to double its power generation.

    “If the executive brings an appropriation bill before you(lawmakers) and the power sector is not number two after defence, then don’t allow it.” he said.

    He urged government to prioritise industrial areas in power distribution.

    “After the industrial areas have had light during the day, we can shift power at night to residential areas because production takes place during the day.

    “Let’s sequence our investment along the line of value-added. Nigerians are resilient, we are strong, and we have tenacity. Nigerians are tired of power collapse,” he said.

    Speaker Abbas laments challenges in power sector

    Meanwhile, the Speaker of the House of Representatives, Rep. Tajudeen Abbas say the power sector is grappled with challenges that have stifled its growth and efficiency.

    He said this at a two-day interactive dialogue/workshop by the House of Representatives Committee on Power in Abuja on Tuesday.

    Abbas listed the challenges to include inadequate generation capacity, dilapidated infrastructure, frequent disruptions in power supply, and financial inefficiencies that had eroded the sector’s viability.

    He also said that the inadequate metering and the consequent revenue lost had perpetuated a cycle of debt and underinvestment that had undermined the sector’s potential.

    He said that there was need to foster collaborative efforts that would leverage both public and private sector expertise and resources.

    “This dialogue embodies such collaboration and is crucial in charting a forward path. The shift towards a multi-tier electricity market represents a strategic pivot in our approach to power sector reform,” he said.

    He said that the model envisaged a structured market segmentation that allowed for differential pricing and service levels tailored to diverse consumer needs and capacities.

    “It promises enhanced efficiency through competitive practices, encourages investment by delineating clear market segments, and improves reliability and service delivery across the board.

    “There is the likelihood of improved reliability and quality of service, especially for high-demand users willing to pay more, thus indirectly benefiting the standard service tiers through reduced load.”

    He said that in spite of the much-touted benefits, the transition to a multi-tier market was challenging, adding that it included regulatory complexities, the need for substantial capital investment

    Others included the risk of market segmentation leading to disparities in service quality, and resistance from different stakeholder groups due to changes in tariff structures.

    “Our commitment to transforming the Nigerian power sector into a model of efficiency and sustainability is unwavering,” he said.

    Rep. Victor Nwokolo, the Chairman, House Committee on Power, said it was aimed at providing a dynamic platform for stakeholders to evaluate the progress made thus far in the Nigerian Electricity Supply Industry (NESI)’s development.

    “We will delve into the successes, challenges, and opportunities encountered along this journey, seeking to identify key areas for improvement and innovation.”

    He said that continuous engagement with all stakeholders was critical to ensuring that the reforms met the diverse needs of the population and maintain public trust.

    He said that the workshop would serve as a platform for stakeholders to explore innovative solutions to the persistent challenges plaguing the power sector.

  • Private sector messed power supply up in Nigeria – Adelabu

    Private sector messed power supply up in Nigeria – Adelabu

    Minister of Power, Mr Adebayo Adelabu, says the Federal Government plans to increase power generation from 4000 Megawatts to  6000 by the end of 2024.

    Adelabu said this in Abuja on Monday when the members of the Senate Committee on Power visited the ministry.

    The minister said the Federal Government plans to achieve the 6000 megawatts of power using the hydro and solar plants to increase supply of electricity to households and businesses.

    He described as unfortunate and sad, a situation where the highest electricity currently being generated stood at only 5800 megawatts.

    “The infrastructure are lying there, without adequate maintenance, the turbines are rusting away.

    ”With proper investment put in place, we can generate 6000 megawatts before the end of 2024,” he said.

    The minister also said that the Federal Government was going to transform the Electricity Distribution Companies, (DisCos) adding that they were the last mile in the power supply industry.

    According to him, if they don’t perform, it means the entire power sector is not performing.

    “We are putting pressure on the Nigerian Electricity Regulatory Commission (NERC) to ensure that the DisCos sit up and if they have to withdraw their licenses for not performing, why not?

    “We are unbundling the DisCos along state lines as some of them are too big for efficiency and effectiveness.

    “Some of them are serving so many states, so we are rearranging and restricting the DisCos along state lines, so that each state government will know the distribution company responsible for their states,” he said.

    The minister said it was time the federal and state governments started exercising their rights in the management and operations of the power sector.

    “We have left it for the private sector for too long and they have messed it up.

    “We also plan to franchise the DisCos so that we can have smaller DisCos that are ready to invest,” he said.

    Earlier, Sen. Eyinnaya Abaribe, Chairman of the Committee, had said that they were in the ministry for an oversight function.

    Abaribe said that the oversight visit became necessary to find out the challenges that had led to poor supply of electricity to Nigerians and also the reasons for the consistent collapses of the national grid.

    He said the committee, in pursuant to the rules and regulations of the National Assembly, had already invited the ministry of power and its parastatals for an investigative hearing on the increase in tariff by April 29.

    Abaribe said, “This is with regards to payment for power by Nigerians, so, we won’t want to discuss that before the date.”

    ”’The committee has already invited the minister and his agencies to discuss the issue of increase in tariff extensively with the committee,” he said.

  • EEDC cautioned against overcharging electricity consumers

    EEDC cautioned against overcharging electricity consumers

    The Enugu State Government says it will not condone any act of overcharge or extortion of electricity consumers in the state by the Enugu Electricity Distribution Company (EEDC).

    Gov. Peter Mbah gave the warning on Thursday while declaring open a three-day Customer Complaints Resolution Meeting organised by the Nigerian Electricity Regulation Commission (NERC) in Enugu.

    Mbah, represented by the Secretary to the State Government, Prof Chidiebere Onyia, identified electricity as a product, adding that it should have cost implications which should be fair and reflective of economic realities to all stakeholders.

    “I urge NERC not to derail on the steady and quality power supply according to the band classifications,”

    According to him, the state government is committed to ensuring that people have access to electricity services in the state.

    The governor said that the government was currently studying underserved and unserved communities and would soon constitute the management of the newly established Enugu State Electrification Agency.

    “Enugu State is poised to catalyze the economic growth of the South-East through a cost effective and efficient power supply to grow our Small and Medium Enterprises (SMEs) and industries among others,”.

    While commending NERC for organising this event, the governor charged the regulatory body to endeavour to resolve most of the challenges faced by customers as complained by them.

    He said that the government had started engaging with developers and investors interested in setting up power generation plants under the willing-buyer and willing-seller commercial agreement.

    Mbah said that when completed, it would catalyze economic and industrial growth of the state and South-East.

  • FG reveals implication of reversing Band A electricity tariff hike

    FG reveals implication of reversing Band A electricity tariff hike

    The Federal Government says it will require about N3.2 trillion to subsidise electricity in 2024, if the current tarriff increase has to be reversed.

    Mr Sanusi Garba, the Chairman, Nigeria Electricity Regulatory Commission (NERC), said this at a stakeholders’ meeting organised by the House of Representatives committee on Power in Abuja on Thursday.

    He said that the investments in the sector was not enough to guarantee steady power supply nationwide.

    He added that if nothing was done to address foreign exchange fluctuation and non payment for gas, the sector would collapse.

    He said that prior to the tarrif review, Electricity Distribution Companies (DisCos) were only obligated to pay 10 per cent of their energy invoices, adding that lack of cash backing for subsidy had created liquidity challenge for the sector.

    He added that as a result of the non payment of subsidy, gas supply and power generation had continued to dip.

    He said that the continued decline in the generation and system collapse were largely linked to liquidity challenge.

    He said from January 2020 to 2023, the tariff was increased from 55 per cent to 94 per cent of cost recovery.

    He added that “the unification of FX and current inflatinary pressurws were pushing cost reflective tarrif to N184/kwh”

    “If seating back and doing nothing is the way to go, it will mean that the National Assembly and the Executive would have to provide about N3.2 trillion to pay for subsidy in 2024,” he said.

    Garba said that only N185 billion out of the N645 billion subsidy in 2023 was cash backed, leaving a funding gap of N459. 5 billion.

    The Vice-Chairman of NERC, Mr Musiliu Oseni also justified the recent tarrif increase, saying the increment was needed to save the sector from total collapse.

    Rep. Victor Nwokolo, the Chairman of the Committee said the essence of the meeting was to address the increase in tarrif and the issue of band A and others.

    Nwokolo said the officials of NERC and DISCOS had provided useful Information to the committee.

    “We have not concluded with them because the Transmission Company of Nigeria is not here and the Generation Companies too.

    “From what they have said which is true, is that without the change in tarrif, which was due since 2022, the industry lacks the capital to bring the needed change.

    “Of course, the population explosion in Nigeria, is beyond what they have estimated in the past and because they need to expand their own network, they also needed more money, ” he said.