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Tag: DISCOS

  • DisCos distributes 93,219 pre-paid meters

    Nigerian electricity distribution companies (DisCos) distributed 93,219 prepaid meters between January and March, according to data from the power sector report of National Bureau of Statistics (NBS).

    The report said the number of consumers with prepaid meters rose from 1,496,587 at the end of 2017 to 1,589,805 at the end of March 2018.

    It showed that Benin Electricity Distribution Company (BEDC) issued 260,667 meters during the first quarter.

    Abuja DisCo shared 282,868 meters, while Ibadan DisCo, the largest DisCo, followed by 254,261 prepaid meters to its customers.

    Ikeja DisCo metered 157,797 consumers in its franchise area while Eko DisCo issued 158,157 prepaid meters.

    In addition, Kaduna DisCo also issued 138,164 prepaid meters as at March 31, while Enugu DisCo had 116,623 of its consumers metered.

    It said Port Harcourt DisCo distributed 66,507 meters to its customers; Kano DisCo followed with 63,037 while Jos Disco had 54,395 metered customers.

  • Fed Govt to DisCos: be competitive or quit

    THE Federal Government has advised the electricity distribution companies, otherwise known as DisCos, to compete or exit the electricity market for investors that are ready to satisfy Nigerians.

    Minister of Power Works and Housing Babatunde Fashola, who made known government’s position, directed the Nigeria Electricity Regulatory Commission (NERC) to work toward eliminating estimated billings.

    Fashola said if he had his way, he would have directed that estimated billing regime terminates immediately, but added that the local capacity was not enough to bridge the metering gap in the market.

    The minister, who spoke at a news conference in Abuja, said complaints coming to government about meters, estimated billings and mass disconnections, where everybody was not owing, should not continue.

    He said: “Government must act. DisCos bought these assets with their eyes wide open and they must compete to deliver or exit.”

    Fashola directed NERC to ensure that the DisCos improve on their distribution equipment and capacity to take up the available 2,000 megawatts (mw) to optimise the use of electrical resources produced by the GenCos.

    The minister mandated NERC to “enforce the contracts of the Discos to supply meters and act to ensure the speedy installation of meters with a view to eliminate estimated billings and promote efficient industry and market structure”.

    He also urged NERC “to stop the DisCos from preventing entrepreneurs from entering the market to supply the consumers whom the DisCos cannot yet supply and to license such persons subject to terms and conditions in order to promote competition and private sector participation and avoid a private monopoly in the market”.

    Fashola said it was neither his intention nor that of government to take over the investors’ business, but the government desires to see the firms flourish in a competitive environment.

    The Federal Government, he said, would however find a solution whenever the DisCos were inefficient and not ready to improve.

    He lamented that even where DisCos installed 10,000, about 8,000 were bypassed within weeks after installation.

    Fashola ruled out the possibility of increasing tariff without adequate provision of meters and noted that metering was a condition precedent to tariff review.

    He said for the customers to pay the correct tariff for the power they consume, the suppliers have to defray the distrust by first providing meters for consumers to know what they were paying for.

    Asked whether by the directive that the DisCos should compete or quit was a direct invocation of privatisation clause against inefficient private investor, the ministry’s Permanent Secretary, Dr. Louis Edozien, explained that the eligible customers regulation was a means of getting the customers who were not satisfied with the service they were getting from the DisCos to buy their power directly from the GenCos.

    “Secondly, that the DisCos should not refuse unsatisfied customers from going to get power,” Edozien said.

    He, however, noted that upon the realisation that they have nothing to lose from the eligible customers’ policy, the distribution firms have started complying with the pitch reluctantly.

    NERC Chairman Prof. James Momoh, whom the minister asked to inform the public when the Metering Asset Providers licensees would begin providing the meters, said the meter manufacturing companies in Lagos were ready to roll them out.

    Fashola mandated Momoh to after the briefing present to him a report on the number of licensed companies for meter provision, the DisCos they are working with and the areas they are supplying meters to.

    Momoh said over 50 firms have been licensed to supply meters.

    The minister, who asked the Permanent Secretary to take note of the directive, said the customers should know when meters are delivered to their areas for them to make relevant arrangements.

    On billing, Momoh said NERC has put together a prepaid market for which customers can decide which power they want to use and for the appropriate rate to be paid for.

    He added that with the investment in metering, NERC would be able to eliminate estimated billings for people to pay their appropriate cost.

    The commission, he said, is working hard in the area of customer enumeration to avoid a foul play on the customers by the DisCos.

    He said NERC is putting in place penalties to ensure that the DisCos abide by the rules and regulations.

  • Fashola to DisCos: Deliver power or quit

    The Minister of Power Works and Housing, Babatunde Fashola Monday advised the electricity distribution companies otherwise known as DisCos to compete to deliver power to customers or exit the electricity market for investors that are ready to satisfy consumers.

    He directed the Nigeria Electricity Regulatory Commission (NERC) to work toward eliminating estimated billings.

    Fashola said supposing he had his way, he would have directed that estimated billing regime terminates immediately, but the local capacity is not enough to bridge the metering gap in the market.

    The minister, who made this disclosure in a press briefing at Abuja, said complaints coming to government about meters, estimated billings and mass disconnections, where not everybody is owing cannot continue.

    Read Also:http://staging.thenationonlineng.net/discos-sell-power-at-shortfall-of-n49-38-per-kilowatt/

    He said that “government must act. DisCos bought these assets with their eyes wide open and they must compete to deliver or exit.”

    Fashola directed NERC to (a) ensure that the DisCos improve on their distribution of equipment and capacity to take up the available 2,000mw in order to optimize the use of electrical resources produced by the GenCos.

    He mandated NERC to “enforce the contracts of the Discos to supply meters, and act to ensure the speedy installation of meters with a view to eliminate estimated billings and promote efficient industry and market structure.

    “to stop the DisCos from preventing entrepreneurs from entering the market to supply the consumers whom the DisCos cannot yet supply and to license such persons subject to terms and conditions in order to promote competition and private sector participation and avoid a private monopoly in the market.”

    He said that it is neither his intention nor that of government to take over the investors’ business, but the government desires to see the firms flourish in a competitive environment.

    Government will however find a solution whenever the DisCos are inefficient and not ready to improve, he said.

    He lamented that even where DisCos installed 10,000, about 8,000 were bypassed within weeks after installation.

    Fashola ruled out the possibility of increasing tariff without adequate provision of meters, noting that metering is a condition precedent to tariff review.

    Expressing his opinion in favour of tariff increase, the minister countered himself on the issue, stressing that “after that tariff increase why should we increase tariff without meters.”

    He said for the customers to pay the correct tariff for the power they consume, the suppliers have to defray the distrust by first providing meters for consumers to know what they are paying for.

    Asked by the directive if his statement that the DisCos should compete or quit is a direct invocation of revocation the privatization to the inefficient private investor, the Permanent Secretary, Dr. Louis Edozien explained that the eligible customers regulation is a means of getting the customers who are not satisfied with the service they are getting from the DisCos to buy their power directly from the GenCos. Secondly, that the DisCos should not refuse unsatisfied customers from going to get power.”

    He however noted that upon the realization that they have nothing to lose from the eligible customers’ policy, the distribution firms have started complying with the pitch reluctantly.

    The NERC chairman, Prof. James Momoh, whom the minister asked to inform the public when the Metering Asset Providers licensees would start providing the meters, said that the meter manufacturing companies in Lagos are ready to roll them out.

    As Fashola insisted that the chairman informed Nigerians on when the installation would begin, he mandated Momoh to after the briefing present to him, a report on the number of licensed companies for meter provision, the DisCos they are working with and the areas they are supplying meters to.

    Momoh said that over 50 firms have been licensed to supply meters.

    The minister, who asked the Permanent Secretary to take note of the directive, said that the customers should know when meters are delivered to their areas for them to make relevant arrangements.

    On billing, Momoh said, NERC has put together a prepaid market for which customers can decide which power they want to use and for the appropriate rate to be paid for.”

    He added that that with the investment in metering NERC will be able to eliminate estimated billings for people to pay their appropriate cost. The commission, he said, is working hard in the area of customer enumeration in order to avoid a foul play on the customers by the DisCos.

    He said that NERC is putting in place penalties to ensure that the DisCos abide by the rules and regulations.

     

  • ‘DisCos sell power at shortfall of N49.38 per kilowatt’

    The inability of the power distribution companies (DisCos) to meet their obligations to customers is because they incur huge losses in the market, the Executive (ED) Director, Research and Planning, Association of Nigerian Electricity Distributors (ANED), Mr. Sunday Oduntan, has said.

    He said the power firms are recording a shortfall of N49.38 per kilowatts. They buy electricity at N80.88 and sell it to consumers at N31.50.

    He said the 11 DisCos lose billions of naira weekly, adding that the development makes it impossible for them to provide transformers, wires, meters and other equipment to customers.

    He also said the firms further suffer huge losses because of some customers who steal energy through meter by-pass, stressing that the DisCos and ANED frown at these untoward practice.

    In an interview on phone with The Nation, Oduntan said this was why it was difficult for the firms to meet the rising demands of their customers.

    Oduntan said: “Rather than consumers facing the reality that the power firms are battling huge losses in revenue and unable to recoup the money they spent in buying the assets of the defunct Power Holding Companies (PHCN) privatised in 2013, they keep on blaming energy distributors for not supplying transformers, meters and other facilities to them.  Where power firms would get money to provide poles, wires and other equipment to customer?’’

    On meters, he said the Federal Government has removed the burden of providing meters from the DisCos by allowing Meter Asset Providers (MAPs) to take over sales and deployment of meters to the customers, adding that this would soon enable consumers to get meters without stress.

    He said the introduction of Meter Asset Providers by the Federal Government would make deployment of meters to customers seamless, noting that the government should have done that long time ago.

    Oduntan said Meter Asset Providers are contractors and consultants hired to make meters easily accessible to customers. According to him, the problem posed by the imposition of estimated billings on the consumers by the power firms can only be resolved when there are enough meters, assuring Nigerians that they would get over the problem of lack of meters soon.

    He noted that the absence of meters gave rise to estimated billing, adding that few Nigerians are lucky to have prepaid meters through which they know their electricity consumption.

    “In the meantime, ANED as a body overseeing the activities of the electricity distribution firms is trying its best to resolve the issue of estimated billing by collaborating with power firms to stop giving such bills to their customers pending the time the Meter Access Providers give meters to customers captured in the enumeration exercise conducted by the DisCos,” the ANED ED added.

    He said the Federal Government was yet to pay the DisCos outstanding N100billiion tariff debt promised them during privatisation of the sector in 2013, noting that the issue of N100billion tariffs came under the Service Performance Agreement (SPA) reached during the exercise.

  • DisCos lose N30b monthly to energy theft, others

    Electricity Distribution companies (DisCos) suffer N30billion revenue deficit monthly due to government’s fixed pricing per unit of electricity and theft, Ikeja Electric Plc said yesterday.

    The company stated this at the maiden roundtable on the Nigerian Power Sector organised by Sahara Group Limited in Victoria Island, Lagos.

    With The Nigerian Power Sector: Narratives for Transformation and Sustainability as theme, the event had in attendance representatives of all electricity value chains including consumers, distribution, transmission, generation companies and regulators.

    Lamenting the challenges facing the sector, the Group Managing Director (GMD), Sahara Power, Kola Adesina said there was need to develop a purpose driven, credible and coherent framework to solve the problem.

    He said: “We need to have a sense of coherence in the system, alignment of all the relevant stakeholders so that everybody knows what is happening on the other side and not the current blame game we seem to be having. If we all work together, most definitely, we can deliver a better result. I am certain we will have light in Nigeria. It will be steady, regular and affordable and that is what the consumers want.

    “Customers want to turn on their switches at home and see light. It is not metering that would make that happen. Let us stop putting the horse first.

    “What we should be looking at the enablers that will drive investment and make players credit worthy in the banks. At the moment, those enablers are not there. The power sector is largely foreign exchange driven. Have we asked what the cost of production per unit of electricity is and how much consumers are paying?

    “The power sector is meant to encourage foreign investment, that is what electricity is meant to do anywhere in the world. But the enablers of electricity itself are not there. One of the numerous reasons government left the sector was the fact that they realised the efficiency required was not there. Government saw that if the private sector could come in with her own degree of efficiency, things are likely to improve. The investment we are making is predicated on certain fundamentals which need to be addressed.”

    Earlier, the Managing Director, Transmission Company of Nigeria (TCN), Usman Mohammed, said efforts were on to upgrade transmission networks so that energies generated would get to the distribution companies without wastage.

    To this end, Usman said $1.57billion has so far been invested in upgrading the transmission network, adding that they have achieved two out of four requirement for a steady grid.

    He said: “As of December, the capacity of transmission was 7124 megawatts (Mw), which is the same with generation. If you look at the power pyramid, when generation is 7,000, transmission is supposed to be 14,000.

     

     

     

     

    “That is why we have raised huge amount of money from several donors including World Bank, JICA and the African Development Bank to build the transmission network.

    “So far, we have raised $1.57billion. Some of the monthly have already been utilised like that of World Bank. Some of the projects are in the finishing phase. We are implementing projects to put necessary flexibility required internationally, so that if any transformer goes out, it will not affect supply.

    “What we are doing is to put capacity that would be able to dispatch all the generated power and ensure that in case of accident or problem with any of our equipment, it would not affect supply.

    “We are currently rehabilitating all our substations and building new lines across the country. We are changing old cables and equipment. Look at Lagos, for instance, we are trying to close the loop. Though the Ajah-Egbin Transmission line supplies the whole of Lagos Island one of the lines had been out for five years now.

    “So, we have awarded the contract recently and the second line is being rehabilitated to bring supply stability to the island. Still, we are working on closing the lope by building another 330KV line to serve the island. And this is what we are doing all over the country.

    “Uninterrupted power supply is achievable in Nigeria. It is a matter of investment and purposeful leadership. If we have leadership at all spheres, we can do it. In transmission, we have done two of the four things we need to stabilise the grid. The other two, we are working on and would achieve it by the grace of God.

    “We have achieved frequency control of 49.5 and 50.5 which have not been achieved in the last 20 years. We have also achieved significant investment in the network upgrading. What is remaining now is the spinning reserve and functional communication system that would enable the system operator to see everybody on the grid.”

    In his submission, Lagos State Commissioner for Energy, Olawale Oluwo said TCN’s Eligible Customer  innovation was threatening the business of DisCos the most.

    He said with the steps the government was taking towards generating 3000MWs from its Independent Power Plan (IPP), it would in the next five to 10 years, cut off national grid completely.

    On why the state was yet to advertise expression of interest in its IPP project, Olowu said the government would do so by next month.

     

  • Meter manufacturers to govt: break DisCos’ monopoly

    Electricity Meters Manufacturers Association of Nigeria (EMMAN) has advised the Federal Government to break the monopoly of electricity distribution companies (DisCos) in the sale of meters to consumers.

    Its Executive Secretary, Muyideen Ibrahim, told The Nation  that the development would go a long way in addressing the challenges with estimated billings.  According to him, breaking the monopoly would enable electricity consumers buy and own meters.

    He said it would also address complaints over-estimated and outrageous billing from the DisCos.

    Ibrahim said the association had always advocated that the government should liberalise the metering arm of the sector so that everybody could have access to a meter.

    He said: “If every consumer has a prepaid meter, it will allow them to manage their electricity consumption and the DisCos will collect revenue maximally without billing outrageously. But now the consumers are short-changed because they are being given estimated bills. It presupposes that the DisCos are smiling to the bank while the consumers are suffering.

    “Unfortunately, some of the DisCos complain that they don’t have the fund to invest in metering, whereas the meters are available in various warehouses of the manufacturers. If the telecom sector could be liberalised, why not in metering? It will enhance the  power sector and also add value to it.”

    Ibrahim called for a metering summit where stakeholders would come discuss the challenges facing the DisCos and meter manufacturers.  According to him, the manufacturers had invested massively in meters, but unfortunately, they did not have enough patronage for them to do more.

    “It would only be driven by technology. The key thing is the metering code and specification that all the meter manufacturers will comply with. The local meter manufacturers should be encouraged, and as such the government should provide an enabling environment and facilities such as power for them, because they all rely on generating sets to run their businesses.’’

    He urged the Central Bank of Nigeria (CBN) to provide funds for meter manufacturers at single interest rate, stressing that the idea would enable them to import basic raw materials from overseas.

    He said meter manufacturers must have unfettered access to foreign exchange, adding that the development would enable manufacturers to produce at full capacity,

  • DisCos need N299b to bridge metering gap

    The electricity Distribution Companies (DisCos) yesterday said they require  about N299 billion  to bridge the 4.1 million metering gap.  They seek more capital expenditure (capex) window and legislative actions for mobile courts to swiftly tackle energy theft and meter bypassing.

    The Association of Nigerian Electricity Distributors (ANED) during a public hearing on the Bill to Criminalise Estimated Billing at the National Assembly said the DisCos are making investments in providing meters for customers and cutting down those on estimation.

    The body noted that estimated billing methodology was standard practice in over 150 countries globally. These countries include United States, Turkey, Germany, Brazil, Chile, China, India, Indonesia among others. Over 26 African countries including Egypt, Ethiopia, Ghana, and Cameroon.

    In a statement, its Director of Advocacy and Research, Barr Sunday Oduntan, said while the capex allowed for all the 11 DisCos is N305billion for five years to provide meters, maintain networks and perform other obligations, the 4.1million metering gap stands at N299billion amounting to 98 per cent of the allowed capex.

    ANED also noted that any new legislation would need to consider the historical challenges of the DisCos which include non-cost reflective nature of the electricity tariff which has created a significant market shortfall of over N800billion; a nascent private-led power sector worsened by macro-economic factors that are affecting the DisCos’ operations and performance.

  • ‘DisCos need $80b to connect customers’

    Electricity distribution companies (DisCos) require about $80 billion to connect their customers nationwide, including those powered by off-grid supply,  the Managing Director, Rubitec Africa (Rubitec Solar), Bolade A. Soremekun, has said.

    Soremekun told The Nations at the launch of Exeron Technology by Metkas in Lagos that over $50 billion has been spent in the past 10 years in the electricity sector.

    He said this has resulted in only 1,500 megawatts (Mw) of added capacity, with only five per cent of customers connected.

    Soremekun, who spoke on: Off-grid solutions for Nigeria, said the country has an installed power generation capacity of about 8,600Mw (more than half of the capacity of the whole of West Africa), but noted that generation capacity available on the grid fluctuates between 4,000Mw and 5,000Mw for a demand that is escalating with the rising population and socio-economic activities.

    According to him, about 80 per cent of the energy mix is made of electricity generated through gas-fired power plants, while the balance is got from hydropower plants.

    He noted that grid power is only available to meet the need of about 30 per cent of the population (mostly urban centres), while the rest (mostly rural dwellers, comprising about 70 per cent of the population) are left at the mercy of traditional biomass energy.

    He said ‘interconnected mini- grids’ has to do with connecting with DisCos while ‘isolated mini- grids’ serve rural communities. He further explained the opportunities in the two grids, adding that interconnected mini-grids can be cost-competitive to alternatives, lower cost for fixed assets as grid infrastructure already existent, enhances faster deployment resulting in lower deployment costs. This is because less planning/engagement would need to be done with a focus on system optimisation, he added.

    Another benefit of ‘interconnected mini grids,’ he said, is wider technical knowledge from the developer-DisCo relationship, which can unlock ability to scale faster across DisCo territory and readily available base load and hence better capacity utilisation.

    The Rubitech chief, however, agreed that mini-grids are the best way to address underserved households quickly, affordably and sustainably.

     

  • MAN seeks govt’s intervention in N29b tariff dispute with DisCos, NERC

    The Manufacturers Association of Nigeria (MAN) has appealed to the Federal Government to resolve its N29 billion electricity tariff dispute with the Electricity Distribution Companies (Discos) and the Nigerian Electricity Regulatory Commission (NERC).

    Its Director-General, Segun Ajayi-Kadir, made the appeal yesterday in an interview  in Lagos.

    Ajayi-Kadir spoke while assessing the three years performance of President Muhammadu Buhari’s administration, its impact on the manufacturing sector and setting agenda for the coming year.

    He urged the Federal Government to assist in settling the dispute out of court by picking part of the N29 billion  debt.

    According to the News Agency of Nigeria (NAN), he said the dispute arose because the DisCos and NERC (allegedly) failed to abide by the new Multi-Year Tariff Order (MYTO 2015) that was subsisting at that time.

    “By the last count, I was told that cumulatively manufacturers owe the DisCos N29 billion and that is absolutely a crazy figure.

    “We want the government to intervene and find an amicable solution to the issue so that the 2,000 megawatts that manufacturers ought to benefit from would be released and not hindered by this court process.

    “The government can also pick up part of the bill as a matter of urgency to bail out the sector,” Ajayi-Kadir said.

    It would be recalled that the dispute arose when MAN directed its members nationwide to ignore the new MYTO 2015.

    The association  later went to court to obtain an injunction restraining NERC and DisCos from implementing the new tariff regime.

    MAN said the tariff was too expensive for manufacturers and would lead to closure of many businesses.

    Besides, the Director-General said the Eligible Customer Policy evolved by the government might not have the desired impact on the manufacturing sector due to the unresolved N29 billion debt issue.

    He said the policy would not work because MAN was told that for it to access the eligible customer scheme, it must have a no debt bill with the DisCos.

    The policy was targeted at enabling consumers purchase power directly from the GenCos, instead of depending wholly on the DisCos.

    Ajayi-Kadir said although these measures were meant to assist the manufacturing sector, the government should ensure factors militating against their workability, such as the debt issue, were tackled.

    According to him, the current administration has  done a lot, but still expects we expect the government to work more on allowing these initiatives to work, particularly in the areas of power.

    “It is a dilemma for us in the manufacturing sector because the cost of power is high and we have inadequate supply.

    “I believe that government should work more on generation, particularly distribution. The DisCos are challenged and they have enumerated quite a lot of challenges that are militating against their effective performance.

    “The government needs to remove the impediments with the DisCos by intervening in the process of out of court settlement and also help them with their distribution challenges,” Ajayi-Kadir said.

     

  • Fashola urges states to partner with DisCos

    The Minister of Power, Works and Housing, Babatunde Fashola, has urged state governments to partner with the various electricity Distribution Companies (DisCos) to ensure improved power delivery in the country.

    Fashola made the call when he led a delegation on a courtesy visit to Enugu State Governor, Ifeanyi Ugwuanyi, on Saturday.

    He said the partnership was to identify areas of intervention by states in power distribution, adding that the federal, states and local governments are part owners of DisCos.

    The minister said 60 per cent shares of the companies were sold to the private sector while the remaining 40 per cent belong to the three tiers of government.

    Fashola expressed dissatisfaction with the rift between the Enugu Electricity Distribution Company and the state government and called for amicable resolution of the differences.

    “If I may advice, quarrelling with the Enugu Electricity Distribution Company is not the way to go and my advice is based on what I know.

    “I gave this advice for a couple of reasons, 60 per cent share of Enugu DisCo was sold to the private sector like other distribution companies in the country.

    “The owners of the remaining 40 per cent are the federal, state and local governments. So it seems to me that the more we quarrel with the companies, the more we quarrel with ourselves.

    “State governments must understand that they are part and parcel of the DisCos and so, they have a responsibility to ensure that they contribute their quota to make the companies work,” he said.

    Fashola said the generating companies had 2,000 megawatts of power that could not be distributed because of inadequate transformers and other distribution facilities.

    NAN