TheNewsGuru

Tag: Power Supply

  • Senate passes Electricity Bill to boost power distribution

    Senate passes Electricity Bill to boost power distribution

    The Senate, on Wednesday, passed the Electricity Bill, 2022. The bill’s passage was sequel to the consideration of a report by the Committee on Power.

    Chairman of the Committee, Senator Gabriel Suswam (PDP, Benue North East), in his presentation, said the bill seeks to, amongst others, provide an Ideal legal and institutional framework to leverage on the modest gains of the privatisation phase of the electric power sector in Nigeria.

    He added that when signed into law, the bill would improve the utilisation of generated power through increased investments in new technologies to enhance transmission and distribution of generated power to minimise aggregate value chain losses.

    According to the lawmaker, the piece of legislation would “reinvigorate the Institutional framework for the reform of the Nigerian Electricity Supply Industry (NESI) initiated and implemented by the Federal Government.”

    He disclosed that the provisions of the Bill seek to promote policies and regulatory measures that would ensure the expansion of power transmission networks in Nigeria in order to address any imbalance in the existing transmission infrastructure.

    Suswam noted that the bill would stimulate policy and regulatory measures to scale up efficient power generation, transmission and distribution capabilities of the sector; as well as address technological limitations and outdated infrastructure that are responsible for value chain losses.

    The Senate President, midway through consideration of the bill, sought to know the role and operational capacity of banks that had taken over distribution companies (discos) indebted to them.

    Responding, Senator Suswam explained that the take-over of entities (Discos) by banks was duly carried out in collaboration with the Nigerian Electricity Regulatory Commission (NER) and Bureau of Public Enterprise (BPE).

    According to him, there was a transitional process put in place during the take-over of the Abuja Electricity Distribution Company (AEDC) by the United Bank for Africa (UBA) to ensure efficiency in service delivery.

    He noted that such a transitional process usually involves the invitation of new investors to scale up generation and distribution capacities.

    He further disclosed that the Federal Government had disbursed $100 million (USD) to Siemens to kickstart transmission in the distribution end of the power sector.

    On his part, Senator Ahmad Babba-Kaita (PDP – Katsina North), said the faulty way in which Discos were created was largely responsible for their inability to live up to expectations.

    He, therefore, advised the federal government to ensure a transparent process in the selection of companies to take-over power generation and distribution across the country.

    The Deputy Chief Whip, Senator Aliyu Sabi Abdullahi (APC – Niger North), noted that the aspect of renewable energy in the bill was given prominence amidst the energy mix.

    The Electricity Bill, 2022, after a clause-by-clause consideration of the Committee’s report by the Committee of the Whole, was passed by the upper chamber.

    The Senate President, Ahmad Lawan, in his remarks after the passage of the bill, said, “because of its importance and sensitivity, we would like to see a quick concurrence by the House of Representatives, because time is of the essence as far as Nigeria is concerned when you talk about electricity and energy supplies in Nigeria.

    “So, we would like to see that this bill is fully processed in the National Assembly and sent to the Executive side of government for the consideration for assent by Mr. President.

    “We believe that this piece of legislation can change the fortunes of the electricity industry in Nigeria for the better.”

  • Power supply to drop again – TCN alerts Nigerians

    Power supply to drop again – TCN alerts Nigerians

    The Transmission Company of Nigeria (TCN) has announced that power supply will drop by 50 megawatts.

    TheNewsGuru.com (TNG) reports TCN made this known in a statement on Monday.

    TCN explained that the expected drop is a result of planned annual “preventive maintenance” on the line bay at Lekki Transmission Substation in Lagos.

    During the maintenance period, about 50MW will be interrupted, affecting the power supply to Lekki phase 1, Oniru, Elegushi, Waterfront, Igbo Efon and Twenty-first Century Estate in Lagos state.

    “TCN regrets all inconvenience this might cause electricity consumers in the affected area,” the statement said.

    Meanwhile, the Nigerian Electricity Regulatory Commission (NERC) had responded to a widespread public clamour following the consistent system collapsing of the power grid, over four incidents recorded so far this year.

    According to the commission, all hands are on deck to ensure boost in power generation and supply to electricity consumers, adding that all stakeholders, including gas firms had signed binding contracts to the effect.

    “Although there have been contracts in the past, they were not binding and the parties could decide not to honour them. But with the new agreement, we would make sure no party defaults once the contracts are signed.

    “Whoever defaults will be held responsible and will be sanctioned”, NERC Chairman, Garba Sanusi had said during a media parley in Lagos.

  • FEC approves projects to shore up power supply

    FEC approves projects to shore up power supply

    The Federal Executive Council (FEC) has approved projects to shore up power supply across the country.

    Minister of Power, Abubakar Aliyu, announced this after the Federal Executive Council (FEC) meeting, presided over by Vice President Yemi Osinbajo on Wednesday at the Presidential Villa, Abuja.

    Aliyu said that the projects were aimed at strengthening the capacity of the Transmission Company of Nigeria (TCN) and shore up power supply in the country.

    “I presented two memos to council today which council has approved; the first memo council approved the award of contract for design, supply and installation of 1x60MBA, 132×33 KV transmission substation with associated 4×132 KV line bay extension at Hong Local Government in Adamawa in the sum of N6.5 billion,  consisting of two components. One is offshore and onshore.

    “ The offshore is 6.9 million dollars and the onshore is N3.3 billion at the CBN prevailing exchange rate and 7.5 per cent VAT; the delivery period is 24 months.

    “This seeks to raise the capacity of the supply around that area and it’s going to affect so many towns and villages, there’s a very important local government headquarters around that area.

    “It is going to affect Song which is a Local Government headquarters in Adamawa state;  Gombi is also another Local Government headquarters;  Garkida town and then Hong.

    “Then Mubi, Woba, Michika, Madagali. There is an existing 132 that passes through this area; so, what we’re doing now is to drop a substation there.

    “The hope is by the time all these interventions we are making on the grid, reaches up to 11,000 or there about, it will be able to withstand and take it off;  so, this is the intervention.’’

    The minister said that the second memo also was to procure power transformers and associated spare parts for TCN to be deployed to six locations.

    “One is to Aiyede in Oyo; Offshore component 1.8 billion dollars, the onshore is N98 million.

    `The second one is Gusau in Zamfara; the third one is Kankia in Katsina State; the next one is Minna, Niger; then the fifth one is to Okearo in Ogun.

    “The sixth one is in Damaturu, Yobe; this one is very peculiar because as you may be aware, for over one year, Maiduguri has not been enjoying full electricity.

    “We were able to take electricity supply through an old line of 33 KV which we repaired and restored and were able to take 10 megawatts to Maiduguri over 130 kilometers on a 33 single circuit.

    “We restored that around three to four months or thereabout; so they are enjoying but very little;  by the time the electricity reaches Maiduguri, it will drop to six or seven megawatts because of losses along the way.’’

    Aliyu said that the 330 taking power to Maiduguri was vandalised by insurgents.

    He said the ministry tried a number of times to restore it but the insurgents would go back and pull down the towers.

    “So, we now decided, in the main time to take electricity through the 33 KVA which they are enjoying but not as they may like it to be. It’s being rationed around the time.

    “So, we are currently procuring another 33 double circuit new one to Maiduguri along the same route.

    “So the idea is if someone tampers with it, it is easy to restore it within a day or two, unlike the bigger one which is the 330 which takes weeks or months to restore because it’s in the bush.

    “So, as it is now even the one that we have installed, we have been doing hide and seek, sometimes they will pull one two poles, we will repair and this is why we are doing this endeavour by the roadside; it is this to keep on restoring back.’’

    He said that at present, the contractor had returned to restore the main line, 330 that was vandalised some time back.

    The minister said that, in order to have enough electricity for Damaturu and environs from that substation in Damaturu, and take some to Maiduguri, the project would boost the capacity of Damaturu substation.

    “So, the sixth one which  is at the cost of  6.7 million dollars while the local component is N1.3 billion for  the Damaturu upgrade injection transformer.

    “So, the total approved for these is the dollar component as 22. 6 million dollars and the naira component is N5.1 billion and the council graciously approved the two memos,’’ he said.

  • What we are doing to improve power supply in Abuja – AEDC

    What we are doing to improve power supply in Abuja – AEDC

    The management of Abuja Electricity Distribution Company (AEDC), says it is embarking on 40 quick-win projects geared towards rehabilitating its network to improve power supply, especially in Abuja, the Federal Capital Territory (FCT).

    The Managing Director of AEDC, Mr Adeoye Fadeyibi, in a statement on Saturday, said that the projects range from deloading the overloaded feeders.

    Other projects embarked upon by the company, he said, include the purchase of 81 new distribution transformers and repair of 78 existing ones.

    Fadeyibi said that AEDC was also carrying out major maintenance on its 34 power transformers.

    He said that the company is in various stages of discussions with some power developers capable of giving them within a few months, good level of embedded power generation.

    According to him, the generation is to boost and complement whatever we get from the National Grid.

    He said the project is being undertaken with the sole objective of quickly improving supply of power to franchise area, especially to Metropolitan FCT.

    ”We assure you again that our sincere and much desired goal is to provide you with acceptable levels of power always.

    “Our collective effort as a management team in the pursuit of this goal is not limited only to these interventions.

    “We seek everyday new ways to achieve this objective very quickly and efficiently,” he said.

    Fadeyibi said that AEDC is committed to seeing that in a matter of weeks to a few months, depending on the duration of these different projects, the power supply situation overall will be significantly improved.

    He said that AEDC acknowledges the terrible and persistent poor state of electricity supply to consumers’ various homes and offices.

    ”We honestly feel your pains and trauma, and we plead for your continued understanding, while not absolving ourselves from responsibilities.

    ”We are in concert with other industry partners and stakeholders to address the broader problems of low generation and systems instability.

    ”We appreciate your patience and understanding as we continue to strive towards meeting your expectations in having world class power supply in the Abuja franchise area,” he said.

  • Nigerians to enjoy improved power supply from July 1 – NERC

    Nigerians to enjoy improved power supply from July 1 – NERC

    Mr Sanusi Garba, Chairman, Nigerian Electricity Regulatory Commission (NERC), says Nigerians will witness improved power supply from July 1 following renewed efforts by industry stakeholders.

    Garba gave the assurance at an interactive session with newsmen after the Second Nigerian Electricity Supply Industry (NESI) meeting on Wednesday in Lagos.

    TheNewsGuru.com recalls that the national grid has collapsed five times this year and was on Sunday only able to supply 9MW of electricity.

    The meeting was attended by top officials of NERC, Transmission Company of Nigeria (TCN), Generation Companies as well electricity Distribution Companies.

    He said NERC had facilitated a contractual agreement between the Gencos, TCN and the 11 DisCos that would guarantee the generation, transmission and distribution of an average of 5,000MW of electricity daily to customers effective July 1.

    According to him, the contract is binding on all the players across the sector’s value chain and stipulates penalties for any party that defaults on the arrangement under the new regime.

    Garba said: “Yes, we have had discussions with the gas suppliers within our regulatory space. We have them on board to ensure that once we made the commercial requirements, gas was going to flow.

    “Now, for transmission we have heard of figures well in excess of 5,000MW and clearly TCN will be able to deliver that.

    “I recall clearly in March last year we had 5,400MW. So, it means it is quite possible based on signed commitments.”

    He said all the stakeholders across the value chain had obligations and there would be consequences if they failed to deliver.

    “So, in a situation where Gencos are able to deliver 5,000MW but TCN is unable to do so, they’ll pay the penalty to the generation company and so on.

    “And whenever the power is available and DisCos do not take the power;

    then they will pay liquidated damages that will compensate other market participants.

    “We might not have 24/7 power supply from July 1 but Nigerians will see the trajectory because the target is to have an average of 5,000MW daily for transmission and distribution,” said Garba.

    He also blamed the recent collapse of the national grid on inadequate gas supply, maintenance of some thermal stations as well as vandalism of power infrastructure and gas pipelines.

    “The challenges of today are very clear. In the past, it used to be weak infrastructure and so on and so forth. Now we have certain external factors contributing to these events.

    “Obviously, it’s not common around the world to see people coming down, pulling down transmission towers for no reason; or blowing up crude oil lines.

    “In a number of instances, most of the gas we have today is associated gas and because of that when crude lines are disrupted it also affects the supply of gas to the thermal stations,” he said.

    Garba commended the Federal Government and the Central Bank of Nigeria (CBN) for the interventions in the power sector, adding that country would soon start feeling the impact of the investments positively.

  • Nigeria’s electricity agency set to train power officials in Africa

    In a bid to expand its activities on the shores of Africa the National Power Training Institute of Nigeria, (NAPTIN) an agency of the Federal Government, has gotten the contract to train staffers of the Egyptian Electricity Corporation

    NAPTIN further explains that power officials in Ghana and other west Africa countries have also been trained to boost the delivery of electricity in the West Africa suburb and beyond.

    The institute’s Director-General, Ahmed Bolaji, disclosed this to journalists in Abuja at the official presentation of QMS ISO 9001:2015 Certificate to NAPTIN by the Standards Organisation of Nigeria.

    He said, “NAPTIN is centre of excellence in West Africa, for we have trained staff of the Liberia Electricity Corporation in Liberia and we’ve trained power employees of Ghana, i.e. GridCo and VRA, in the power sector in Ghana

    “We have gone as far as training power employees in Malawi in East Africa and we’ve been contracted to train staff of the Egyptian Electricity Corporation and my instructors will be embarking on the trip.

    “So, we are now globally recognised and we are really a centre of excellence not only in Nigeria but in Africa.”

    On the certificate by SON, Bolaji explained that the ISO 9001:2015 quality management system was a process development that would strengthen business performance, create efficiency in work and guarantee world-class corporate governance.

    He said the ISO certificate would enable the institute to build enduring customer satisfaction, which was the ultimate goal of any product development organization.

    “This development will enhance the NAPTIN brand and product offerings and will guarantee quality assurance and meet standards of regulatory requirements,” he stated.

    Bolaji said NAPTIN had continued to function as the power training centre in the West African sub-region under West African Power Pool and also the Association of Power Utilities of Africa under the African Network Centres of Excellence in Electricity project.

    The Director-General, SON, Farouk Salim, advised NAPTIN to keep the system healthy and up to date to reap the benefits of the ISO approach to management.

    He said, “This system, having been certified, has been placed on annual surveillance audits to ensure continuing suitability and effectiveness.

    “In the course of the audit exercises, where non-conformance is observed and is effectively corrected within the specified time frame, the system will retain the certificate.

    “However, the certificate will be withdrawn if the structures in place for certification break down and necessary corrective actions are not taken on observed non-conformance.”

  • FG accuses States Govts of hampering projects for better supply of electricity

    FG accuses States Govts of hampering projects for better supply of electricity

    The federal government gas accused some States Governments of hampering projects that are meant to strengthen and expand the national power grid for a better supply of electricity in the country.

    The federal government wants affected States to remove the right of way barriers in order to fast-track the expansion and strengthening of the national power grid.

    This way, some of the recent disruptions to electric power supply in the country could be avoided.

    This was one of the deliberations of the National Economic Council (NEC) meeting which held yesterday, where the Council was briefed on the current state of power generation in the country by the Minister of Power, Engr. Abubakar Aliyu.

    The Council’s 124th meeting was chaired by Vice President Yemi Osinbajo with State Governors, Federal Ministers and other senior government officials in attendance.

    According to a statement released by Laolu Akande Senior Special Assistant to the President on Media & Publicity, Office of the Vice President on Friday, following the meeting, the Minister of Power stressed the need for urgent attention on the issue of State Government’s approval on the Right of Way (ROW) which he disclosed has hampered billions of Naira worth transmission projects that are meant to strengthen and expand the grid for better supply of electricity in the country.

    He stated that most of these projects were delayed because of gaps in the implementation of the Right of Way resolutions that State Governments are responsible for and there are currently 32 projects across multiple States stalled or that have been unable to begin post-approval.

    Aliyu said the projects account for an investment of $137 million that the Nigerian public is unable to realise value from due to these intractable issues.

  • CBN disburses N1.3 trn to support power supply in 5 years

    CBN disburses N1.3 trn to support power supply in 5 years

    The Central Bank of Nigeria (CBN) says it has disbursed over N1.3 trillion to support the provision of power supply to Nigerians in the last five years.

    The CBN Governor, Mr Godwin Emefiele, made the remark at a news conference following a meeting of the Bankers Committee in Abuja on Monday.

    “So, what we are trying to say here is that the CBN has always been there to support the power sector.

    ‘’Like you all know, we have disbursed over 1.3 trillion naira in the last five years to support through the Generators or Discos or to acquire equipment or to buy meters or to improve what is being paid to electricity generating companies;

    ‘’So that they can continue to pay for their gas and then the system can continue to operate.’’

    Emefiele further said that the bank had disbursed N11.11 billion to power sector players under the Nigeria bulk electronic trading payments assurance facility, bringing the cumulative disbursement under this facility to 1.28 trillion naira.

    ‘’The sum of N12.64 billion was also released to Discos under Nigeria electricity market stabilisation facility phase two line two.

    “Community disbursement under names two, first stand at 232.93 billion naira.

    “Both interventions were designed to improve access to capital and ease development of enabling infrastructure in the Nigeria electricity supply chain sector,’’ he added.

    Emefiele, however, pledged the apex bank’s commitment to continue to support Distribution Companies (DISCOs) to provide stable power supply to Nigerians.

    He said that the apex bank would be engaging with the Power Minister and NERC to see what could be done to support them.

    Emefiele also said that the bank would be providing interventions for the NNPC to ensure they import petroleum products that would end the shortage in the country.

    He noted that the Minister of Finance was holding engagements with Monetary Policy Committee (MPC) to see to what could be done to ensure that adequate funding was provided to make petroleum products adequately available in the country.

    “We are also saying we will be engaging NNPC ourselves, if there’s any kind of intervention that we can provide to help make it easy for them to bring in these products, so that this shortage can stop.

    “Then we will see that when supply increases, people are relatively confident that when they sell whatever they’re holding, be it petrol or diesel that they can easily go and replace them, then the arbitrary price increases will reduce.

    “When arbitrary price reduces, of course, we can begin to see that there will be gradual moderation in the price of this product.

    ’’This would ultimately result in the moderation in the prices of other products that its price would have gone up as a result of the arbitrary increase in the price of these items.

    “This is simply how we think CBN can work with them,’’ he said.

    Emefiele, therefore, urged NNPC to take urgent steps to ensure adequate supply of petroleum products in Nigeria, so as to reduce the rate of arbitrary increase in price of this petroleum products by oil marketers.

    He also noted the unprecedented rate of oil theft recorded in recent times and its debilitating impact on government revenue and the nation’s reserve.

    “In the medium term, MPC is hopeful that a proposed take-off of the Dangote Refinery in the course of the year would help to improve the supply of petroleum products in Nigeria.

    “MPC also noted that the rising price of diesel is compounded by the problem of inadequate electricity supply in Nigeria, which has adversely impacted domestic prices.

    “MPC advises the CBN management and fiscal authorities to take specific and urgent action to avoid many power generating stations shut down for turnaround maintenance, resulting in the current unwarranted shutdown of our generated assets,’’ Emefiele said.

  • Power supply: Delta hotel laments N40 million charge by BEDC

    Power supply: Delta hotel laments N40 million charge by BEDC

    A hotel in Delta State known as Lascurt International Hotel has accused the Benin Electricity Distribution Company (BEDC) of demanding a whopping sum of N40 million to connect to public power supply.

    Managing Director (MD) of Lascurt International Hotel, Mr. Austin Wareyai made this known in a statement on Wednesday while lamenting the exorbitant amount, revealing that the hotel had already spent over N11 million in efforts to get the facility connected to power supply.

    Mr. Wareyai narrated that prior to the opening of the hotel, the management had applied to BEDC to connect the facility to 33KVA, which he said was approved, and necessary payments running into over N8 million made.

    “But to my surprise we were given 11KVA transformer. We applied for 33KVA because that is the line that produced stable electricity and which other business outlets in this area are using.

    “They told us that since our facility is a mega one, we should go for a 500KVA transformer, telling us that is the only way it can work.

    “We applied for 500KVA, bought the transformer and also provided all the logistics. Instead of the 33/500KVA, they brought 11/500KVA. We told them that what we bargained for was 33/500KVA, and that we paid for it. They said this is what they approved for us.

    “In our own wisdom, we asked for the way forward and they said we have to increase the transformer and reapply for NEMSA approval. They brought another cost of about N18 million to buy One MVA transformer including construction and every other thing.

    “We applied for it since that is what will make us have stable electricity to do our business. Having secured NEMSA’s approval for them to install the One MVA transformer, they said we should pay a sum of about N8.9 million as an additional security deposit.

    “They said that we have to pay the money so that whenever we default on our monthly payment, they will use part of the money to offset the bill. Aside from that, they are also asking for about N4 million for an industrial meter. Where can we get all this money after all they have collected from us.

    “In summary, we have spent over N11 million so far on a transformer. Now they are asking us to pay an additional N18 million for another transformer including construction. This is aside from the N8.9 million for two months security deposit they are asking for,” Wareyai narrated.

    The MD revealed that, after spending so much, the hotel with an underground lounge bar and club house has been running on electricity generating plants since October 31, 2021 when it officially opened for business to the public.

    Wareyai appealed to Governor Ifeanyi Okowa and the National Assembly (NASS) to intervene in the matter for the BEDC to install power in the hotel with over 100 staff in its employment list with more to be employed

    He lamented that the multi-billion Naira facility might be forced out of business by BEDC due to the electricity issue if nothing is done to sway the electricity distribution firm, stressing that the development is not good for investors.

    “Imagine in the last three months we have been running our facilities with an electricity generating plant. Imagine the cost implications of buying diesel. We are appealing to the state government to help us to sustain this business because we cannot run it without electricity,” the hotelier stated.

    When contacted, BEDC Public Relations Officer (PRO) in Effurun, Helen Ogagare, said she had informed management of the allegations.

  • NNPC Records 19 Per Cent Gas to Power Supply Increase in April

    NNPC Records 19 Per Cent Gas to Power Supply Increase in April

    The Nigerian National Petroleum Corporation (NNPC) Thursday in Abuja announced an increase of 19.14 per cent in the average daily natural gas supply to power plants which translates to 788millon standard cubic feet of gas per day (mmscfd), equivalent to power generation of 2,873MW.

    The NNPC, in a release by its Group General Manager, Group Public Affairs Division, Dr. Kennie Obateru, explained that the figure was contained in the NNPC Monthly Financial and Operations Report (MFOR) for April, 2020.
    According to the report, a total of 226.51billion Cubic Feet (BCF) of natural gas was produced in April 2020, translating to an average daily production of 7,786.17million Standard Cubic Feet per Day (mmscfd).
    The figure indicated an increase of 3.73 per cent at 226.51BCF, compared to output in March 2020. Out of this figure, a total of 136.44BCF of gas was commercialized, consisting of 36.99BCF and 99.45BCF for the domestic and export market, respectively.

    Out of the 1,233.01mmscfd of gas supplied to the domestic market in April 2020, about 787.70mmscfd, representing 63.88 per cent was supplied to gas-fired power plants, while the balance of 445.31mmscfd or 36.12 per cent was supplied to other industries.

    Similarly, for the period of April 2019 to April 2020, an average of 1,184.29mmscfd of gas was supplied to the domestic market, comprising an average of 677.87mmscfd or (57.24 per cent) as gas supply to the power plants and 506.42 mmscfd or (42.76 per cent) as gas supply to industries.

    For the period of April 2019 to April 2020, a total of 3,082.91BCF of gas was produced, representing an average daily production of 7,857.18mmscfd during the period. Period-to-date production from Joint Ventures (JVs), Production Sharing Contracts (PSCs) and NPDC contributed about 69.57 per cent, 21.46 per cent and 8.97 per cent respectively to the total national gas production.

    The report also indicated that in the Downstream Sector, a total of 0.94billion litres of PMS, translating to 31.37mn liters/day, was supplied for the month, adding that the corporation has continued to diligently monitor the daily stock of petrol to achieve smooth distribution of petroleum products and zero fuel queue across the Nation.

    In the period under review, 65 vandalized pipeline points were reported, a marked increase from the 19 points recorded in March 2020. The Atlas Cove-Mosimi stretch accounted for 55 per cent, while Mosimi-Ore recorded 22 per cent and other locations make up for the remaining 23 per cent.

    The 57th edition of the MFOR indicated that in April 2020, NNPC remitted the sum of N219.16billion to the Federation Account, reflecting the Naira proceeds from the sale of domestic crude oil and gas.
    In terms of dollar receipts, an export receipt of $193.05million was recorded in April 2020.

    The release stated that it remained committed to sustaining effective communication with stakeholders through publication of its Monthly Financial and Operations reports on its website and in national dailies in line with the concept of Transparency, Accountability and Performance Excellence (TAPE) agenda of NNPC Management.