Despite efforts to expand electricity transmission lines, and improve supply to end-users, power distribution companies (DisCos) have said the plans may fail if the sector is not properly aligned.
The DisCos claimed the sector needs effective coordination and the alignment of all segments being executed by the Transmission Company of Nigeria (TCN), and the Generation Companies (GenCos).
Recall that the Minister of Power, Sale Mamman, had earlier noted that lack of synergy in the sector was affecting results in the industry, stressing that if properly aligned the sector should achieve 7,000MW national grid distribution capacity through the first phase of the Siemens deal.
Similarly, the Chairman of the Senate Committee on Power, Senator Gabriel Suswam, reiterated the call for the coordination of the TCN, GenCos and the DisCos, who are the value chains of the Nigerian Electricity Supply Industry (NESI).
Executive Director, Research and Advocacy, Association of Nigerian Electricity Distributors (ANED), Sunday Oduntan, said such a move would help the country attain electricity supply goals.
Oduntan said currently, the lack of coordination in the power sector has hampered efforts of the sector towards improving power supply to Nigerians.
Coming on the backdrop of the just-concluded Public Hearing by the Senate Committee on Power, the DisCos noted cases where they are not carried along in the transmission expansion project of TCN even when they are the ones relating directly with electricity consumers, and know where they require power supply the most.
“TCN is building a series of transmission facilities, but they are not in good proximity to the load distribution centres of the DisCos. The farther the transmission facility is to the load distribution centre, the higher the losses, the more the bill for the consumer.
“This is a concern for us and we want the federal Government to intervene and ensure that there is coordination of the expansion project. This will be of more impact to the Nigerian electricity consumer,” Oduntan said.
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
For the period of the coronavirus pandemic, electricity distribution companies (DisCos) have promised to supply electricity to their consumers free of charge for two months
The promise was contained in a statement issued by the Executive Director, Research and Advocacy of the Association of Nigerian Electricity Distributors (ANED), Sunday Oduntan.
Rebate to consumers
He said the gesture by the companies, which comes in the form of a “two-month rebate of free electricity to their customers nationwide” was in alignment with the federal government’s effort to assuage the pain on the people as a result of the coronavirus pandemic.
Oduntan said the decision was in recognition of the challenging effects of the coronavirus pandemic on the economic and daily lives of the customers.
Oduntan, who is also the spokesperson for the DisCos, said details of the implementation will be made public later.
“We are also completely aligned with the plans to ensure palliative measures, including free electricity supply to all Nigerians for two months, to make life easier, during the lockdown period,” the official said.
“Details of implementation to come soon.”
Last week, the House of Representatives called for the supply of free electricity to Nigerians for two months as part of measures to cushion the effects of the COVID-19 pandemic.
The House said it was considering a second stimulus bill that will provide Nigerians with free electricity supply for two months.
The Speaker of the House of Representatives, Femi Gbajabiamila, made the call at a meeting between the National Assembly leadership and the Minister of Finance, Zainab Ahmad, and the Director-General of the Budget Office of the Federation, Ben Akabueze, among others.
The Nigerian government had imposed a lockdown on Lagos, Abuja and Ogun while many other state governments have also imposed movement ban on residents, to check the spread of the disease.
NERC suspends new tariff regime
The Nigerian Electricity Regulatory Commission (NERC), the regulatory authority in the electricity sector, had earlier shelved the take off of the new electricity tariff regime earlier scheduled for April 1, 2020.
In December 31, 2019, the commission announced a new multi-year tariff order (MYTO) that it said would supersede the previous one issued since 2015.
The order involved the review of the electricity tariffs chargeable by the 11 DISCos for all categories of consumers in the country, except the residential category (R1).
However, NERC later clarified that the effective date for the new tariff had been shifted to April 1, although the government promised to continue subsidising electricity consumption cost.
On February 29, the commission again announced the suspension of the take off of the new tariff regime.
In its given Order No: NERC/198/2020 on the transition to cost reflective tariffs in the Nigerian Electricity Supply Industry (NESI), NERC announced the decision to delay action for three months till June 30, 2020.
The commission said the decision was in compliance with President Muhammadu Buhari’s decision to grant moratorium for certain federal government funded facilities throughout the period of the global economic crisis as a result of the current coronavirus pandemic.
Source: Today Ng
The power supply has dropped from 3,993.65 megawatts, MW, to 3,608 MW, indicating a drop of 385.65 MW, because of many challenges, including inadequate gas, poor transmission infrastructure and limited distribution facilities.
In its latest report obtained by newsmen from the office of Vice President Yemi Osinbajo, stated: “On January 2, 2020, average energy sent out was 3,608 MW/Hour (down by 385.65 MW from the previous day). 2,026.5 MW was not generated due to unavailability of gas.”
It added: “60 MW was not generated due to unavailability of transmission infrastructure, while 2,417.1 MW was not generated due to high frequency resulting from unavailability of distribution infrastructure. The power sector lost an estimated N2, 162,000,000 (Two Billion One Hundred and Sixty-Two Million Naira) on January 2, 2020, due to constraints from insufficient gas supply, distribution infrastructure and transmission infrastructure.”
An investigation by newsmen showed that the development has compelled the Electricity Distribution Companies, DISCOs, to embark on loading nationwide.
Source: Today Ng