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 Licensees (DisCos) to recover permitted revenue and return on invested assets arising from the exit of ECs from their network,” NERC had stated.
But Transparency Awareness Group (TANGO), Wednesday, insisted that the decision was taken hastily without due consultation with relevant stakeholders in the society, stressing that the process lacked proper legislative backing with the sole aim of aiding and abetting illegality in the system.
Indeed, National Coordinator of TANGO, Ibrahim Isah, argued that the plan is not transparent and could increase the plight of electricity consumers in Nigeria.
He said: “Following the release of Regulation No NERC-R-111 issued by the Nigerian Electricity Regulatory Commission, NERC, on the 1st November, 2017, for the Nigerian Electricity Service Industry, NESI, the Eligibility Customer Status came into existence to facilitate the off-take of the stranded 2,000 megawatts of electricity that the Distribution Companies, Discos, were not able to distribute and give Life to the Generating companies, GENCos as a source of other income without depending on the DISCOs.
“A few of our members went through harrowing obstacles such as providing, amongst other things, the needed infrastructure like the 132/33kVa Transmission Dedicated Lines to their plants, the intake and the outlet substations to access power under the scheme without any contribution(s) from DISCOs.
“This gave a new lease of life to their production and has simultaneously evacuated part of the 2,000 stranded power with bulk-income accruing to the Gencos and the TCN,” TANGO stated.
With huge losses from stranded electricity and government bailout in the sector as well as epileptic power challenge being faced by industrial sector, Isah stressed that CTC would only favour DisCos, especially the chief proponent and supporter of the dispatch of stranded electricity.
According to him, the removal of the former Managing Director of TCN, Usman Gur Mohammed also created an opportunity for the cartel of Discos to hike the rate of electricity to a level that being an Eligible Customer would become unattractive and meaningless.
“They managed to convince the Federal Ministry of Finance, CBN and NERC to allow the introduction of what they call Competition Transmission Charge CTC. The CTC is to be paid to DisCos without Justification for the Service rendered.
“The CTC is to be paid in addition to the Transmission charges being paid to TCN who is a Custodian of the 132/33kVa dedicated Transmission Lines. As usual, they excluded the major stakeholders; neither do they seek their input or opinion on the matter without representing their interests,” he said.
The group therefore asked President Muhammadu Buhari, and the Senate President, Dr. Ahmad Lawan, to urgently recall the guidelines and adopt a transparent legislative process that will afford all relevant stakeholders the right to make input and contributions to the process in the collective interest of the nation.
This, it said, is to salvage the lives of hundreds of thousands of Nigerian investors.
In paragraphs 4.1(i), 4.2(g) 4.3(f) 4.4(f) and 4.5(d) of the NERC’s guidelines, the agency failed to demonstrate transparency and genuine nationalistic approach in its operations by creating avenues aimed at affording DISCOs the right to charge seamlessly at Eligible Customers, the group noted.
Source: The Guardian
Electricity distribution companies have dragged the Federal Government to court to restrain it from further interfering in the corporate business activities of the power firms.
According to the firms, the government, through the Nigerian Electricity Regulatory Commission and other agencies, had been interfering in the corporate activities of the Discos, a development, they claimed, had hampered their smooth operations.
Senior officials of some of the power firms told newsmen in Abuja on Thursday that the Discos resolved to take the matter to the court.
Nigeria’s power distribution firms include Abuja, Benin, Eko, Enugu, Ibadan, Ikeja, Jos, Kaduna, Kano and Port Harcourt Discos.
“We cannot continue to fold our arms and watch how the government through its agencies sustain their undue interference in our corporate business activities,” an impeccable source with one of the Discos stated.
The official added, “The NERC, TCN (Transmission Company of Nigeria) and even NEC (National Economic CouncilS) are often interfering in Discos’ activities, and we need to ask the court to call them to order.”
It was gathered that the Discos were asking the court to restrain the affected agencies from interfering in their businesses unless the boards of the power firms were duly consulted.
Officials of the Discos told our correspondent that the court order had been served on the affected agencies, adding that the power firms were also asking the court to NERC from sending forensic auditors to their firms.
Source: Today Ng
Usman Gur Mohammed has been relieved of his appointment as the managing director of the Transmission Company of Nigeria (TCN).
Mohammed Sale, minister of power, approved of his sack on Tuesday, appointing Sule Abdulaziz to replace him in acting capacity.
“As part of continuing measures to reposition and improve the performance of the power Sector in the country, the Honorable Minister of Power Engr. Sale Mamman hereby announces major changes at the Transmission Company of Nigeria,” Aaron Artimas, spokesman of the minister, said in a statement.
“Accordingly, the Managing Director of the TCN, Usman Gur Mohammed has been removed from office with immediate effect. He is being replaced with Engr. Sule Ahmed Abdulaziz, as Managing Director, in acting capacity.
“The Honorable Minister has also confirmed the appointment of four directors who have been on acting position in the Company for some time.”
They are Victor Adewumi, executive director, transmission services provider; M. J. Lawal, executive director, independent systems operator; Ahmed lsa-Dutse, executive director, finance and accounts; and Justin Dodo, executive director, human resources and corporate services.
The statement said President Muhammadu Buhari approved of all the changes and appointments.
While the distribution and generation sub-sectors were sold to private investors during privatisation of the sector in 2013, the TCN is fully owned by the federal government.
It transmits the energy produced by the generation companies to the distribution companies (DisCos).
In December, the minister of power asked Marilyn Amobi, managing director of the Nigerian Bulk Electricity Trading Company Limited (NBET), to step down with immediate effect in order to “restore sanity” in the management of the agency.
The minister also ordered the indefinite suspension of Damilola Ogunbiyi, former managing director of Rural Electrification Agency (REA). But Buhari later reversed the minister’s order.
Source: The Cable
Ikeja Electricity Consumers, under the umbrella of Joint Action Congress (JAC) have issued a stern warning to the Ikeja Electric Distribution Company (IE), to stop its planned 50 per cent tariff increase or face the wrath of consumers.
According to its Chairman, Apostle Ayodele Olawoye, tariff increase shouldn’t be the priority of the Disco, as they have failed to deliver, especially on even distribution of prepaid meters, among other things.
The consumers, who stormed the Public Consultation on Extraordinary Tariff Review of the IE, held in Lagos, with placards of different inscriptions, accused the electricity company of extorting consumers.
Olawoye said: “Only a few people are metered. They still have more than 50 per cent of customers to meter. Today, what we want from them is that they should meter their customers first before tariff increase and the meter at the transformer should be removed.”
Another protester, Ajayi Olurombi, who described IE inconsistency, recounted how the Disco has been unfaithful in the distribution of the prepaid meters.
“Even if it was supposed to be free, people that paid for it have yet to receive the meters. Meanwhile, exorbitant bills with irregular increases are what they heap on electricity consumers, who are yet to get the meters. It is simply disheartening,” he said.
However, the IE said since the official takeover of the company, more than 250,000 customers have been metered and the power supply gap has been said to experience more than 50 per cent increase over the years.
During the questions and answer sessions, the Chief Financial Officer, Olubunmi Olukoju, shed more light on the tariff increase and how relevant it is to aid the delivery of utmost value to their customers and the nation as a whole.
Source: The Guardian