The Nation Newspaper

Category: Energy

  • Meter asset providers to begin operation soon, says NERC

    The Nigerian Electricity Regulatory Commission (NERC) is working to ensure that firms, which applied to serve as meter asset providers under the new metering arrangements, begin operation soon, its officer in charge of Meter Asset Providers (MAPs), Mr Shittu Shuaibu, has said.

    In an interview with The Nation on phone, he said the Commission is not leaving any stone unturned to ensure the success of the new metering scheme, which culminated in the introduction of the meter asset providers, as a third-party in the distribution and supply of electricity meters to the customers.

    Shuaibu said: “Meter asset providers are likely to start operation very soon as the regulator is working hard to ensure they are licensed to carry out the responsibilities of metering the unmetered customers in the country.”

    Meanwhile, stakeholders are upbeat on the future of the scheme, adding that the flagging off of the new metering scheme and subsequently meter asset providers, marked a new dawn in the sector, which has for long been grappling with problems such as acute shortage of meters, estimated billings and huge arrears of unpaid bills, ostensibly owed by electricity consumers.

    Momas Electricity Meter Manufacturing Company Limited (MEMMCOL) Chief Executive officer, Mr Kola Balogun, said meter asset providers may be licensed by NERC to start operation before the end of the first quarter of 2019.

    According to him, firms that wish to play as meter asset providers in the sector have applied to NERC, granted ‘No Objection’ status by the Commission, had their performance reviewed in the market, made to seek the power distribution companies (DisCos) they would partner, while also awaiting final approval from NERC.

    “Between this February and March ending, something concrete as regards the commencement of the activities of meter asset providers would happen.  I’m sure that the firms that are seeking to start operation as MAPs would start work, either by end of February or March 2019,” he added.

    According to him, the new metering plans would provide opportunities for operators to play better by acquiring and building bigger markets for themselves, stressing that direct and indirect jobs will be created, more meters would be made, which would culminate in appreciable reduction in metering gap in the country.

    On funding, Balogun said the Central Bank of Nigeria (CBN) is planning to provide interventions for operators in the nation’s metering sub-sector by assisting them to get facility at more beneficial rates.

    The CBN, he said, is looking for a platform through which it would intervene in the activities of the meter asset providers as NERC gives them operating licences soon.

    Electricity Meter Manufacturers Association of Nigeria (EMMAN) Executive Secretary, Mr. Muhideen Ibrahim, said his members are keying into the new metering programme introduced by the Federal Government in the wake of the rising scarcity of meters in the sector. EMMAN is an umbrella body for meter producers in Nigeria.

    He said meter manufacturers are working to complement the efforts of the Federal Government,by participating fully in the new metering initiatives. This, Muhideen said, is evident by the new technologies acquired by producers of meters in order to be able to mass-produce meter and further help in reducing the 4.7million metering gap in the country.

    He said, beyond this, manufacturers are providing logistics as well as building capacity in order to strengthen the operation of the sub-sector. He said operators are preparing highly skilled technicians and engineers to work when the meter asset providers commence operation soon.

    He said the building of a training school by MEMMCOL and the subsequent inuaguration by Vice President Yemi Osinbajo in 2018, was an indication that operators, especially metering companies, are ready to make the government programme work.

    He said Unistar High-Tech Limited is another indigenous metering firm, which has keyed into the government’s policy of providing meters to customers through meter asset providers.

  • Chevron bags NIPS awards

    Chevron Nigeria Limited (CNL), operator of the NNPC/CNL Joint Venture, has won two awards at the   industry dinner and awards night, organised by the Nigerian Nigerian International Petroleum Summit (NIPS) in Abuja. The awards were in recognition of the company’s outstanding performance.

    The awards won by CNL are: “for contributions to the hydrocarbons industry, and the Foreign Investment Network’ (FIN)“.

    CNL Chairman and Managing Director, Jeff Ewing, received the two awards. The first award was presented by the Nigeria’s Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu, while the second was presented by FIN Chief Executive Officer, Michael Dragoyevich.

    The event was attended by dignitaries such as Kebbi State Governor Abubakar Atiku Bagudu; Petroleum Ministers from other countries, including Equatorial Guinea, Sudan, Cote D’Ivoire, Chad, Niger Republic, Togo and Norway. There were others such as NNPC representatives, industry regulators, participants from other African countries, and other industry players.

    CNL General Manager, Policy, Government and Public Affairs (PGPA) Esimaje Brikinn, who spoke at the event, expressed joy over the awards.

    He explained that the NNPC/CNL Joint Venture is a major oil and gas producer and has provided substantial revenue to NNPC, the Federal Government and state governments for over 50 years.

    He also said the company is the leading domestic gas supplier and has made great strides in putting out gas flares and increasing supply to the domestic market through its integrated gas development projects.  “Chevron is the largest domestic gas supplier in Nigeria,” he said.

    On corporate responsibility, Mr. Brikinn said CNL has demonstrated its commitment to the ideals of meeting the needs of the community in health, education, economic development areas.

    “CNL has provided thousands of scholarship awards worth billions of naira to Nigerian students. CNL has also established the scholarship for the Blind to cater for the visually-impaired students,” he noted

  • CBEA plans $16m mini-grids facility for 170,000 people

    CrossBoundary Energy Access (CBEA), Africa’s first project financing facility for mini-grids, has begun operation with funding commitments from The Rockefeller Foundation and Ceniarth.

    CrossBoundary Energy Access will initially invest $16 million into mini-grids serving 170,000 people, providing first-time power to homes and businesses. The focus is on markets with supportive mini-grid regulatory frameworks, such as Tanzania, Nigeria, and Zambia.

    The CBEA has an innovative blended finance structure that demonstrates a pathway to unlocking more than $11 billion for mini-grids needed from investors to connect at least 100 million people.

    Over 600 million people in sub-Saharan Africa still lack access to electricity. CrossBoundary conservatively estimates that at least 100 million of these people can be most cost-effectively served by mini-grids today, and that using private sector development and investment could accelerate the build out of those grids.

    However, so far, private sector mini-grids have not attracted the needed funding. Like all energy infrastructure projects, mini-grids require a significant upfront investment while delivering predictable returns over a 10–15 year period. To scale up, the capital provided must be long-term, affordable and accept lower yield returns. Operating in an emerging asset class with smaller balance sheets, mini-grid companies have so far struggled to raise that kind of financing.

    CrossBoundary Energy Access bridges the gap to commercial scale, allowing private capital to invest by blending it with patient equity from impact-first investors such as Ceniarth and development-focused debt from institutions such as The Rockefeller Foundation. The facility also allows private investors to invest in the projects themselves, similar to how most of the world’s 1,000 gigawatts of wind and solar projects have been financed.

    Private sector capital and private sector mini-grids have an essential role to play in achieving Sustainable Development Goal 7 (SDG7): Ensure access to affordable, reliable, sustainable and modern energy for all. CrossBoundary Energy Access is seeking additional equity investment to expand this blended finance vehicle that provides both social and financial returns.

    Shell Foundation and United Kingdom aid, through the Transforming Energy Access programme, provided support to design and launch CrossBoundary Energy Access.

    CrossBoundary was advised by Norton Rose Fulbright, and Rockefeller Foundation was advised by Simpson Thacher & Bartlett.

    CrossBoundary Head of Energy Access Gabriel Davies,  said: “Mini-grids are critical to achieving universal electrification in Africa at the least cost. We believe long-term project finance structures will allow mini-grids to scale. We’re building investment portfolios that will attract the long-term, infrastructure-type capital the sector needs from institutional investors.”

    Managing Director, Power, the Rockefeller Foundation, Ashvin Dayal,  said: “We’re proud and excited to be an early investor in the CBEA facility because it represents an ambitious, concrete effort to realise the comparative advantage mini grids have to serve over 100 million people in Africa. The opportunity cost of energy poverty is huge, both in terms of suppressed human wellbeing and lost economic development. We believe that CBEA brings a much-needed sense of urgency, and provides a platform for more effective public and private sector coordination that can transform the pace of last-mile electrification.”

  • ‘Full deregulation key to growth’

    Nigeria requires full and not partial deregulation of the downstream sub-sector of the petroleum industry to record growth, Petrocam Nigeria Limited Chief Executive officer, Mr. Patrick Ilo, has said.

    Ilo said the sector was partially deregulated, going by Federal Government’s decision to officially fix the pump price of Premium Motor Spirit (PMS) at N145 per litre, adding that the development does not make the sector open enough for operators to play well.

    Speaking on the sideline of the opening of the firm’s 9th retail outlet near Cele Bus Stop, Lagos, Ilo said activities in the downstream sub-sector of the industry are fantastic, adding that the activities would be more interesting among operators when the government fully deregulates it.

    Ilo said: “There would be free exit and free entry in the fuel market once the subsector is fully deregulated by the Federal Government. Operators would be able to enter and exit the market at will. Also, there would be an end to government‘s interference as regards the issue of fixing the prices of petroleum products. When this happens, operators will not find it difficult operating at level playground. I said activities in the downstream sub-sector are interesting and they will be more interesting when the market is fully deregulated, the reason being that operators would be able to plan and do things without being coerced or compelled to do so.’’

    He said good mannerism is the key to the survival of business, stressing that that operators will be able to display it better in the face of full deregulation of the sub-sector.

    “At Petrocam retail outlets within the Lagos metropolis and those that will be built in other parts of the country, good mannerism would be emphasised. If a customer asks for a litre of fuel, he will get the right volume he requested for. That is good mannerism and this is being complemented by the good ambience offered by Petrocam Nigeria. This is aside the fact that Petrocam provides solar energy in its outlets and for the people that live around the outlets. Another area where the firm has distinguished itself is the services it renders to the people. Customer checks and other services are not compromised,” he said.

    He said operation at the downstream subsector is closer to the people, stressing the opportunities that abound in it will be well exploited once there is full deregulation. He said the firm has, within a few years of operation, built retail outlets in nine areas namely Idimu, University Road, Aja- Pan African University axis, Epe, Ijora-Badia, Celestial-MileTwo road and others, adding that the firm intends to build outlets in the 57 local councils in Lagos State.

  • Eko DisCo committed to safe, reliable power supply

    Eko Electricity Distribution Company (EKEDC) Plc, Chief Execultive  Officer, Mr Adeoye Fadeyibi, has assured electricity consumers within EKEDC’s network of safe and reliable power supply.

    Fadeyibi, who gave the assurance when EKEDC signed conditions of service with the National Union of Electricity Employees (NUEE) and Senior Staff Association of Electricity and Allied Companies (SSAEAC) in Lagos, lauded the successful conclusion and agreement reached with the labour groups in the power sector to sign the conditions of service. He urged the unions’ support to ensuring workers conditions of service in the DisCo implemented without rancour.

    The talks on the conditions of service, it was learnt, started since 2016 but the agreement on the side of the Eko DisCo management and the labour was achieved this month.

    Fadeyibi said the official signing of the documents was a great success to the company and power sector in general, and urged workers to reflect that in ensuring effective service delivery to consumers. “Today marks another turning point in the company. It is a good day because the issue had lingered for years now.

    “I’m celebrating today because both the management and the unions are agreeing on mutual understanding for the betterment of the company and workers. This would foster better understanding and mutual working relationship between the workers and management,” he said, adding that leaders of both labour groups had agreed to sign for the development and growth of the organisation geared towards improved power supply.

    He reiterated the management’s support to the growth and improvement of workers welfare in the organisation. The EkEDC’s boss said activities within the  company have increased, adding that everybody should be committed to the job in ensuring better services to the teaming consumers.

    He added that the company has improved its customer’s service delivery and boosted consumers’ confidence, which have boosted revenue.  “Therefore, I urge workers to put in their best in ensuring effective service delivery to electricity consumers to retain Eko DisCo’s position as the number one distribution company in Nigeria.”

    United Labour Congress (ULC) President and General-Secretary, National Union of Electricity Employees, Comrade Joe Ajaero, led junior staff union members and the Deputy President, SSAEAC, Comrade Jacob O. Adetunji, led the senior staff union members to the signing ceremony. They said with the signing of the conditions of service, “we (EKEDC management and the labour unions) are bound by certain rules and regulations and we will follow the law to the later”.

    Other NUEE officers in attendance are NUEE  President Martin Uzoegwu; NUEE National Treasurer, Mercy Oronsanye and NUEE Chairman, Lagos Chapter Bisi Idowu, among others.

  • Benin residents praise BEDC for improved supply

    Residents of Benin and its environs have praised the Federal Government and the Benin Electricity Distribution Company Plc (BEDC) for the improvement in power supply to their areas.

    Some of the residents, who spoke  in Benin in separate interviews, said the commendation was due to their experience within the last quarter of 2018.

    The residents said with the improvement in power supply, they have been enjoying electricity supply from a near zero hour daily to at least 12 hours daily. They further stressed that the improvement in supply had remarkably led to the improvement in their means of livelihood as well as their lifestyle.

    A resident of Abuja quarters in Ugbor, Benin, Mr. Osaigwe Aghedo,  said electricity supply to his area was constant at 12 hours daily. “It is usually brought for every three hours, I mean three hours on and three hours off, which add up to 12 hours daily and it has been ongoing since January,” he said.

    Aghedo said this was not the case between October and November 2018, when residents practically stayed in the dark for weeks.

    Another resident, Miss Jemima Osaikhuiwuomwan, who lives around Iduoriyekemwen area of Ugbowo, said most of the areas around Isihor are also enjoying 18 hours power supply daily. “I don’t know where the electricity supply came from, but it has improved recently to the extent that sometimes I have to switch off some of my electrical gadgets,” she said.

    The story is the same with John Omoruyi and Festus Napoleon, who both reside at Irhirhi area, off Airport  Road, Benin. They said the area usually have power up to 12 hours daily supply. The duo, however, bemoaned the issue of estimated billing which they described as “extortion.”

    Similarly, Osato Udiase, who resides at Utese, Ovia North East Local Government Area, said the communities around his area benefitted from supply between 12 to 20 hours daily unlike before. While commending BEDC for the improved electricity supply, he also lamented over the excessive billing system.

    Also commenting, Mr. Kayode Osasuyi from Olumoye community in the same Ovia North East said: “We enjoy light for at least 14 hours daily except when there is fault or during rainy season. BEDC officials do the fault tracing promptly and restore power afterwards.”

  • DPR outlines achievements

    The Department of Petroleum Resources (DPR) has unveiled its achievements targeted at boosting the industry and making its operations transparent and accountable.

    The achievements include the establishment of technologies that will track online/real time of production volumes from the oil fields, terminals, the vessels taking them out for exports and their destinations.

    DPR monitors 19 oil fields online.The technology enables the Federal Government to know oil production. It also tracks movement of vessels bringing in petroleum products and ensuring there is no round-tripping of imports and sharp practices which substantially push up the estimated daily fuel consumption in the country and the subsequent subsidy payment.

    Some of the achievements include early oil lease renewals and recovery of royalties as well as reduction of cost of crude production to make Nigeria be at the same level with other oil-producing countries that have reduced their cost of oil production, among others.

    Minister of State for Petroleum Resources Dr. Ibe Kachikwu, who unveiled the achievements in Lagos, said the technologies introduced by the DPR include the Crude Oil and LNG Tracking (COLT), adding that the achievements were worth celebrating.

    Kachikwu said the achievements were part of the results of reforms in the industry. He said: “I intervened with the approval of President Muhammadu Buhari to steward and supervise a lot of the interventions and changes in the oil and gas sector and the DPR and others have worked collaboratively with me in the last three and half years to see to some of the steps I have taken both the time I was the Group Managing Director of NNPC, but now I’m largely focused on the regulatory aspects of the sector.

    “My clear mandate when I became the Minister of State was to change the oil industry because we were deeply worried by what seemed like a value dip in the industry and the corruption that was all over the place and to track our resources, among others.

    “Therefore, we have launched a series of computer-based applications which will enable us to track volumes of crudes produced from various terminals and how those volumes or products are moved, whether they are going to vessels and where those vessels are going to. It is a vessel-tracking mechanism so that at any given point in time, you can tell on real time basis what the country has produced for the very first time. These applications will tell where the vessels have gone to in terms of export and say whether they discharge at the given points. We will also be able to say on forensic basis whether there are some suspicious movements of the vessels when they have products in them. We have also extended it to the downstream sector to capture everything that is brought into this country in terms of importation of refined products and track how they are distributed within the country. So, for the first time in this country, we have holistic IT data-based applications that enable us to do that.

    “We also launched the benchmarking system to track expenses and see how we can continue in our process to pull down the cost of producing oil in this country which is a major challenge for us. Given the oscillating price of oil globally unless we are able to do this, we produce all the oil and no make no money out of it. So, this is very helpful to us and we will be able to challenge the oil companies to match the very best practice internally and collectively match the best practices externally in terms of oil pricing. We have explained to you what we have done in terms of early renewals of oil leases and what we generated both in terms of forcing people to be concurrent on payment of outstanding royalties and what we generated in terms of current licences and early renewal basis.’’

    The minister added: “The few interventions that we have had include National Production Monitoring System (NPMS) which focus includes using online to gather data. We have been able to track online/real time data of what our productions are and so we are now in the position to say what the country’s production is. We have also had the COLT, which is basically tracking of crude oil and liquefied natural gas (LNG).”

  • DPR outlines achievements

    The Department of Petroleum Resources (DPR) has unveiled its achievements targeted at boosting the industry and making its operations transparent and accountable.

    The achievements include the establishment of technologies that will track online/real time of production volumes from the oil fields, terminals, the vessels taking them out for exports and their destinations.

    DPR monitors 19 oil fields online. The technology enables the Federal Government to know oil production. It also tracks movement of vessels bringing in petroleum products and ensuring there is no round-tripping of imports and sharp practices which substantially push up the estimated daily fuel consumption in the country and the subsequent subsidy payment.

    Some of the achievements include early oil lease renewals and recovery of royalties as well as reduction of cost of crude production to make Nigeria be at the same level with other oil-producing countries that have reduced their cost of oil production, among others.

    Minister of State for Petroleum Resources Dr. Ibe Kachikwu, who unveiled the achievements in Lagos, said the technologies introduced by the DPR include the Crude Oil and LNG Tracking (COLT), adding that the achievements were worth celebrating.

    Kachikwu said the achievements were part of the results of reforms in the industry. He said: “I intervened with the approval of President Muhammadu Buhari to steward and supervise a lot of the interventions and changes in the oil and gas sector and the DPR and others have worked collaboratively with me in the last three and half years to see to some of the steps I have taken both the time I was the Group Managing Director of NNPC, but now I’m largely focused on the regulatory aspects of the sector.

    “My clear mandate when I became the Minister of State was to change the oil industry because we were deeply worried by what seemed like a value dip in the industry and the corruption that was all over the place and to track our resources, among others.

    “Therefore, we have launched a series of computer-based applications which will enable us to track volumes of crudes produced from various terminals and how those volumes or products are moved, whether they are going to vessels and where those vessels are going to. It is a vessel-tracking mechanism so that at any given point in time, you can tell on real time basis what the country has produced for the very first time. These applications will tell where the vessels have gone to in terms of export and say whether they discharge at the given points. We will also be able to say on forensic basis whether there are some suspicious movements of the vessels when they have products in them. We have also extended it to the downstream sector to capture everything that is brought into this country in terms of importation of refined products and track how they are distributed within the country. So, for the first time in this country, we have holistic IT data-based applications that enable us to do that.

    “We also launched the benchmarking system to track expenses and see how we can continue in our process to pull down the cost of producing oil in this country which is a major challenge for us. Given the oscillating price of oil globally unless we are able to do this, we produce all the oil and no make no money out of it. So, this is very helpful to us and we will be able to challenge the oil companies to match the very best practice internally and collectively match the best practices externally in terms of oil pricing. We have explained to you what we have done in terms of early renewals of oil leases and what we generated both in terms of forcing people to be concurrent on payment of outstanding royalties and what we generated in terms of current licences and early renewal basis.’’

    The minister added: “The few interventions that we have had include National Production Monitoring System (NPMS) which focus includes using online to gather data. We have been able to track online/real time data of what our productions are and so we are now in the position to say what the country’s production is. We have also had the COLT, which is basically tracking of crude oil and liquefied natural gas (LNG).”

  • BEDC holds safety campaigns in Edo

    Benin Electricity Distribution Company (BEDC) has held safety campaigns in some primary and secondary schools in Edo State.

    It also donated over 20,000 exercise books to some pupils.

    The sensitisation was part of  the firm’s Corporate Social Responsibility (CSR).

    At Eyean Secondary School in Ikpoba Okha Local Government Area of Edo State, BEDC’s Health, Environment and Safety Manager, Mr. Gilbert Nweke, spoke on the dangers of tampering with electrical installations, living and trading under high tension overhead lines, overcrowded electrical sockets, stepping/touching lines (electrical wires) and playing near distribution substations, among others.

    The Principal, Eyean Secondary School, Mr. P. K. Idemudia, who was elated at the exercise, expressed appreciation to BEDC for the visit, saying: “This is a good innovation by BEDC, it is the first time we are witnessing this campaign from any electricity service provider in the country.”

    He advised other electricity distribution companies (DisCos) to take a cue from BEDC to reach out to children who formed major part of the vulnerable segment of their customer population and are prone to electrical accident.

    The team Lead of CSR Project, Mrs. Felicia Nlemoha, said: “The campaign will promote safety in the use of electricity at home, schools, road, and workplace and reduce the rate of electricity accidents and hazards, will  become safety ambassadors in their various homes.’’

    She further stated that as part of giving back to the society, selected schools would get educational materials from BEDC.

    “In addition to the safety campaign, BEDC will also commence the formation of energy clubs called ‘Joules’ in secondary schools. The growth of Joules club will metamorphose into a debate competition, among member- schools. The winners of the competition will in turn become brand ambassadors of BEDC.

    “The objectives of the Joules clubs are to groom secondary students to take up careers in the electricity industry and to boost the current drive by BEDC and other DisCos to tackle manpower gap in the power sector,” she added.

    According to Mrs. Nlemoha, it will also encourage students to embrace the STEM (Science, Technology, Engineering and Mathematics) initiative in their career path, especially the females and also bridge the knowledge gap in the power industry by educating students on the entire electricity value chain.

    BEDC also visited some primary and secondary schools in Edo State, including those in Ogbe, Oliha, Iyase Ugbekun, Ologbosere, Isohan, Ogenerie primary schools and Imaguero Secondary School.

  • BoI, firm seal N1b Niger Delta off-grid deal

    The Bank of Industry (BoI) and All On have agreed to establish a N1billion Niger Delta off-grid energy fund.

    The fund will provide local currency debt financing to facilitate the deployment of energy solutions by access-to-energy companies in the Niger Delta at 10 per cent interest rate per year (with a one-year moratorium) and tenor of up to seven years.

    The objective of the fund is to stimulate the growth and geographic spread of off-grid energy businesses in the Niger Delta to enable households, small and medium enterprises (SMEs) and communities have access to clean, affordable and reliable power solutions.

    In the Niger Delta, the majority of the population reside in rural areas and only 34 per cent of these have access to reliable grid power. The result is that SMEs in the region use expensive and inefficient diesel and petrol generators increasing their operational costs, families cook with firewood or kerosene while children study with flashlights or candles with the attendant negative health and safety concerns.  The provision of clean, affordable, and reliable sources of energy is therefore essential for improved economic activity and livelihoods of the people of the region.

    Speaking at the signing ceremony for the agreement, BoI Managing Director, Mr. Olukayode Pitan, said: “Bank of Industry keeps seeking and exploring strategic partnerships with reputable institutions like All On in developing sustainable solutions to facilitate social and industrial development. Power is a critical resource to achieving industrialisation, and is also a major cost driver for SMEs in Nigeria. We are, therefore, particularly, pleased with this partnership as the deployment of this fund will provide clean energy at affordable interest rate and friendly conditions not only to SMEs, but also to households and communities in the Niger Delta region of the country.”

    Chief Executive Officer, All On, an off-grid energy investment company backed by Shell, Dr. Wiebe Boer, said:  “We are excited to partner the Bank of Industry on the Niger Delta off-grid energy fund because of their reputation as a leading development finance institution and their deep experience as one of the earliest investors in the off-grid energy sector.

    This partnership will go a long way to encourage off grid energy companies to deploy in the Niger Delta and address the massive access to energy gap in the region.”

    The N1 billion fund is funded equally by the two institutions but will be operated by the Bank of Industry.