The Nation Newspaper

Tag: DISCOS

  • BPE urges banks to invest in power infrastructure

    BPE urges banks to invest in power infrastructure

    The Director-General, Bureau of Public Enterprise (BPE), Benjamin Dikki has urged banks to invest in the provision of infrastructure in the power sector, lamenting that in spite of  the agency’s efforts to attract investors into the sector, the level of investment remains very low.

    He urged the lenders  to enter into agreement with the distribution companies (DISCOs) by funding transformers’ purchase.

    He said infrastructure remains the major problems besetting the sector, noting that BPE has on several occasions appealed to investors to set up companies that would manufacture transformers, cables, meters and other components needed to distribute power effectively in the country.

    He said one or two companies produce meters in the country, adding that they have not been able to meet the demands.

    He said: “We have appealed to investors invest in Nigeria.  We have shown them that there is an opportunity in the country. We have provided an opportunity for investors meet us (BPE) on the issue of producing transformers, cables, smartcards, meters, but to no avail. These components are important in the industry, if we are to achieve meaningful progress.  The DISCOs need them to distribute electricity they get from the gas-powered plants.’’

    He said huge capital is required to set up companies that would manufacture power equipment, giving the state of the country’s economy.

    “Nigeria requires millions of metres to provide power to people.  To produce these meters and other equipment in Nigeria, billions of dollars are needed to achieve results,”  he added.

     

  • Power drops by 700Mw as govt shuts gas plants

    Power drops by 700Mw as govt shuts gas plants

    • NERC slashes fixed charge for DISCOs

    Nigeria is expected to witness a major blackout following the shut down of the Utorogu and Ughelli East gas infrastructure in Delta State.

    The Minister of Power, Prof. Chinedu Nebo, said in Abuja yesterday that the gas plants would be shut for 20 days for routine maintenance and upgrade.

    Utorogu and Ughelli East gas plants, owned by Shell Petroleum Development Company (SPDC) joint venture (JV), produce between 300 and 120 million standard cubic feet per day of gas (mmscf/d), and generate about 500 megawatts (MW) and 200MW to the national grid.

    With the shutdown of the plants, power generation will drop by at least 700Mw reducing supply from the grid to just above 3000Mw.

    The minister said the action is in line with efforts to consolidate on the successes recently recorded in improved electricity supply to homes and businesses in many parts of the country.

    A statement signed by Prof. Chidiebere Onyia, Senior Special Assistant (SSA) to the minister said the planned shut down which began yesterday, will be completed on  June 22, 2014.

    The government assured that on completion of this scheduled maintenance and upgrades, the facilities will be re-commissioned hence it will improve gas production and ensure quality output from the lines to the power plants.

    Prof Onyia’s statement said on-going maintenance will slightly affect power plants fed by these gas facilities which also include Egbin and Omotosho power stations.

    The statement explained that the maintenance work that is being carried out by the Nigerian Petroleum Development Corporation (NPDC), is regrettable, just as the Minister requested understanding and support of Nigerians in the arduous task of revamping the sector.

    The two gas plants were shut down at the same time in 2011 to repair leaks suspected to be caused by vandals.

    Also the maintenance of Ughelli, which feeds Ughelli power plant, is good news for Transnational Corporation of Nigeria Plc (Transcorp), the new owner of the power plant. Transcorp has changed the name of the power plant to Transcorp Ughelli Power Limited (TUPL), and plans to increase power generation from the asset from the current level of about 200MW capacity to 1000MW within the next three to five years.

    Meanwhile, following the 2014 review of Multi-Year Tariff Order (MYTO) customers of Benin Electricity Distribution Company (Benin DISCO) commenced the implementation of a 50 per cent reduction on fixed price yesterday, the National Electricity Regulatory Commission (NERC) has said.

    Its Chairman, Dr. Sam Amadi,   said Benin DISCO consumers now pay N750 fixed charge instead of N1,500.

    The company tops the list as the highest reduced fixed charge followed by Yola Distribution Company (Yola DISCO’s) which customers who now enjoy 40 per cent fixed charge reduction. Yola DISCO’s customers now pay N750 instead of N1250.

    In a statement titled: NERC lowers fixed charge for electricity consumers, he said the development is in line with the review of the MYTO.

    Amadi had explained in a press briefing that the reduction diifrential is as a result of the fact that the power companies operate under different cost structures.

    According to the NERC, Kaduna Disco Fixed Charge got reduced by 39 per cent from N1,280.00 to N781.13, while thar of Abuja Disco was  reduced by 29 per cent from N985.92 to N702.11.

    “Enugu Disco – Fixed Charge (got) reduced by 26 per cent from N874.50 to N650.  Eko – Fixed Charge (was) reduced by 34 per cent from N1,125 to N750. Jos – Fixed Charge reduced by 34 per cent from N1,162.50 to N775.

    “Kano – Fixed charge reduced by 25 per cent from 889.50 to 669.90;

    Yola – Fixed Charge reduced by 40 per cent from N1250 to N750; Port-Harcourt – Fixed Charge reduced by 33 per cent from 1050 to N700; Ikeja – Fixed Charge reduced by 17 per cent  from N899.50 to N750; (while) Ibadan – Fixed Charge reduced by 20per cent from N781.13 to N624.95.”

  • NERC warns DISCOs for flouting directive

    NERC warns DISCOs for flouting directive

    The Nigerian Electricity Regulatory Commission (NERC)  has came down hard on eight electricity distribution companies ( DISCOs)  for failing to report their obligations to the regulator.

    NERC’s Head, Public Affairs Department, Dr. Usman Abba Arabi, said the action was in disregard of its directives. It will soon enforce the relevant section of the Electricity Power Reform Act (EPSR Act of 2005) on reporting obligation, the commission said.

    NERC expressed reservations on the compliance level of DISCOs in the reporting and submission of data that would allow it do proper network data assessment.

    The reporting obligation as contained in part 10, section 94(2) of the Electricity Power Sector Reform Act (2005) states that any person who fails, or refuses to furnish a return or to supply information in the manner and time prescribed, or gives false or incomplete information commits an offence and is liable on conviction.

    Its Chairman and Chief Executive Officer, Dr. Sam Amadi, said the CEOs had been told at their April meeting to comply with the Commission’s request on submission of baseline statistics on distribution assets they took over.

    According to Dr. Amadi, there is a need for network data assessment to establish a data bank of all existing distribution assets, monitor, track and report performance of the DISCOs with respect to strengthening of distribution systems and capacity expansion as well as facilitate expansion and development of the distribution networks.

    He urged the DISCOs to improve on their performances and make necessary adjustments, adding that a similar exercise with the Transmission and Generation Companies will soon be carried out.

    “Discos are to note their performances and make necessary adjustments to ensure timely and accurate reporting. Similar exercises would be conducted for Transmission and Generation Companies,” Amadi said.

    This is the first time NERC is assessing the utilities on their key performance indicators (KPIs) since they took over six months ago.

  • Senate to partner power investors to tackle challenges

    Senate to partner power investors to tackle challenges

    • Eko DISCO votes N6.9b for meters

    The Senate Committee on Privatisation and Commercialisation has assured to work with the newly privatised Electricity Distribution Companies (DISCOs) and others in the electricity sector to ensure that the privatization of the sector meets expectations of Nigerians for improved power supply in the country.

    Its Chairman, Senator Gbenga Obadara made the assurance during the committee’s oversight visit to Eko Electricity Distribution Company yesterday in Lagos.

    Obadara said the committee is aware of the expectations of Nigerians from the newly privatised electricity companies as well as the challenges facing the sector. He said the committee in its oversight visits has noticed the major problem confronting not just Eko DISCO but other DISCOs is energy theft and vandalism of power equipment.

    The Managing Director/ Chief Executive Officer of the company, Oladele Amoda, said the company has earmarked N6.9 billion to be spent in the next five years on acquisition of meters. He said customers, who are presently being billed without meters, will soon have cause to smile as the 360,000 meters are on the way.

    He explained that N1.3 billion would be expended on the first phase of the project, which would be for purchase of about 5,000 meters for all high voltage or maximum demand customers of the company.  The maximum demand customers, he said, were responsible for about 70 per cent of the company’s revenue generation; hence the company is starting with that category of customers.

  • Schneider, Mikano to boost DISCOs’ activities

    Schneider, Mikano to boost DISCOs’ activities

    Two energy solution firms   Schneider Electric and Mikano International Limited have signed an aggrement  to boost activities of the 11 power distribution companies (DISCOs).

    The firms, at the signing of the deal in Lagos, said they  are leveraging on their successes to make equipment, such as transformers, circuit breakers, panel builders and voltage regulators available for the  power companies.

    The Vice President, Retail Business, Schneider Electric, Tonye Briggs said the partnership would help in strengthing the relationship with the DISCOs.

    Briggs said his fim  has partnered with the Federal Government to ensure stable and reliable distribution of power at the national grid, adding that partnership would help  a lot.

    He said Mikano has a wider reach in Nigeria, adding that the idea would help in improving electricity distribution and transmission in Nigeria.

    He said:  “While Schneider Electric is a global specialist in energy management, Mikano has a wider reach in Nigeria where it provides power solution apparatus to homes and industries. We are leveraging on Mikano’s huge presence in Nigeria to provide equipment to energy service companies.

    ‘’Schneider Electric is a global specialist in energy management, Mikano has a wider reach in Nigeria where it provides power solution apparatus to homes and industries. We are leveraging on Mikano’s huge presence in Nigeria to provide equipment to energy service companies, especiallythe new power investors. Through this, we would impact more on the ector. It is a case of two of the major players coming together to chieve mutual growth. The partners, power firms and consumers would benefit.

    Also, the Managing Director, Mikano International Limited, Christiane Farine said the partnership is timely, giving the on-going privatisation of the power sector.

    Farine said: “Through the partnership, we want to provide a afer, reliable and economical energy services to consumers.This ould boost the activities of the ower Holding Company of Nigeria’s (PHCN) successor compan s and the 10 National Independent Power Plants (NIPPs) when they are eventually privatised son.  Gas is not the only problem facing the power sector. There istribution and transmission challenges. Transmission should be given due consideration by the power regulators.

    “No matter the volume of electricity generated from the turbine and hydro plants, it is of no use if the transmission mechanism is not in place. Electricity must bedistributed to the consumers at the right time for growth,’’ he added.

    Farine said the firm deals in ower generation, solution, steel fabrication and heavy constru ion equipment, adding that the four areas are critical to the growth of the sector.

    He said the partnership ensures that Mikano supply critical electricity components to homes and industries for growth. He explained that high power voltage s destroyed many appliances because consumers do not have means of controlling it.

    He said the partnership was on distributorship, adding that Schneider Electric plans to establish offices in 15 cities in the country to grow the scheme. According to him, the idea would help in complementing the partnership the Schneider Electric has with the Federal Government, especially in ensuring stable and reliable distribution of power at the grid level.

  • Group faults NCP, BPE on power privatisation

    Group faults NCP, BPE on power privatisation

    The National Council on Privatisation (NCP) and the Bureau of Public Enterprises (BPE) claims that they carried out financial and technical due diligence on new power investors may not be true.

    The General Secretary, Senior Staff Association of Electricity Workers and Allied Companies (SSAEAC), Abiodun Ogunsegha, said the claims were misleading, in view of the financial and technical problems the 15 power generation companies (GENCOs) and  distribution companies (DISCOs) were experiencing.

    He said: “Had it been that NPC and BPE conducted a thorough financial and technical due diligence on the investors, they would know that many investors are not financially prepared for the electricity business. Many are struggling to pay back the banks the money they borrowed to purchase the assets of Power Holding Company of Nigeria (PHCN).  Some of the distribution firms cannot provide money for imprest because they could not generate enough revenue.

    “Many investors are technically deficient. They do not have deep knowledge of operations of the sector. They were not properly advised on  the technical partners needed for growth. They thought they would recoup their money within the three months. However, events and circumstances have proved them wrong.’’

    Ogunsegha said the sector is suffering because the investors were not ready to commit additional funds.  He said it is illogical for investors to use money realised from other business to finance the loans, adding that the sector would continue to suffer.

    According to him, the pre- and post-privatisation mistakes committed by the BPE and NCP have culminated in the problems facing the sector. He said consumers are protesting because they could not get regular power, arguing protests would not stop until there is improvement in electricity supply.

    However, BPE’s Spokesman, Joe Anichebe said the allegations that proper due diligence was not carry out on the bidders was not true. He said the bodies consulted on wide range of issues before taking decisions, noting that they spent months in examining the bidders’ proposals.

    He said no privatisation programme succeeds without sound due diligence, adding that BPE considered many factors before starting the exercise.

  • Power firms move to stop estimated billing

    Power firms move to stop estimated billing

    In line with the Nigerian Electricity Regulatory Commission (NERC) directive to power firms to provide metering plans and further reduce charges imposed on consumers, the management of the 11 power Distribution Companies (DISCOs) are fashioning out modalities to stop estimated billings and further ensure that consumers pay fair prices.

    The General Manager, Customer Services, Ikeja Electricity Distribution Companies (IKEDC), Ms Olubukola Ojuronpe, said the firms have, as part of their growth plans, want estimated bills to be stopped soon.

    Ojuronpe said each of the firms have expressed displeasure at the poor metering system in the country, and are ready to put a stop to huge charges.

    She said: “The new owners are angry with estimated billing. They do not want to see anything estimated billing again. They frown at the development, and want to put a stop to it to enable consumers have confidence in the system. They also share in the pains experienced by consumers at all levels.

    “KEPCO, the Korea-based technical partners to Ikeja Electricity Distribution Company would bring in meters in May 2014. The meters are going to be cost-effective and better, and would be given to as many consumers as possible. This is our own way of stopping estimated billing and further makes consumers to pay the right price.’’

    According to her, the movement from the state-owned electricity corporation to privately run power institutions ensures that good, efficient and cheaper services are provided to consumers to gain their confidence.

    ‘’Before, contractors are supplying meters on behalf of the government. But now, there is a paradigm shift from government to private companies’ electricity management system. Based on this, consumers must be treated fairly to encourage the industry’s growth,” she added.

    She said the new power investors are not happy with the developments in the sector, urging consumers to be patient with them. Power, she said, would improve as Ministry of Power, NERC, Chief Executive officers of the power firms and other stakeholders are meeting to proffer solution to the lingering power problems.

  • Let there be light

    Let there be light

    Six months after the coming of the distribution and generation companies, DISCOs and GENCOs, power supply and generation remain absymally low. The privatisation of the Power Holding Company of Nigeria (PHCN) seems not to have solved the epileptic power problem. What is the way out? The DISCOs and GENCOs say it is by sacking the inherited PHCN workers, who they believe do not measure up. They plan to inject fresh funds into their operation after the planned sack; writes Assistant Editor, EMEKA UGWUANYI.

    When private investors acquired the assets of the Power Holding Company of Nigeria (PHCN) last year, many electricity consumers felt their prayers had been answered. They thought that the era of blackouts, excessive load-shedding, power rationing and paying for electricity not consumed was over. But things have not gone that way. Shortly after the generation and distribution companies GENCOs and DISCOs took over, supply dropped and has since remained so.

    Then came the blame game. The Federal Government blamed the GENCOs for not supplying enough electricity for transmission and distribution; the GENCOs berated the government for failing to wheel enough gas to run the turbines. Since gas is the feedstock for the turbines, it is difficult to run them without it.

    However, the power sector is undergoing a paradigm shift. To meet consumers’expectations, The Nation gathered that the investors are set to implement their agenda for improving power.

     

    Current investment/operational plans

    Initially, investors in the 11 DISCOs had an understanding with the Nigerian Electricity Regulatory Commission (NERC) to invest $1.8 billion between last year and 2017 as capital expenditure (CAPEX) to improve supply on sustainable basis through repairs and replacement of damaged and obsolete equipment.

    A breakdown of the investment shows that Ikeja Electricity Distribution Company (IKEDC) requires an average annual investment of $58.737 million for five years to improve power supply, Eko and Ibadan Electricity Distribution Companies, $45.17 million and $43.865 million yearly, and Abuja Electricity Distribution Company, $36.606 million.

    Others include Kano DISCO, $30.379 million; Kaduna DISCO, $29.96 million; Enugu DISCO, $27.23 million; Port Harcourt DISCO, $25.514 million; Benin DISCO, $24.314 million; Jos DISCO, $22.755 million and Yola DISCO, $13.133 million.

    What they met on ground, however, has made them to restrategise. Before their takeover of PHCN assets, the investors had an agreement with labour groups in the power sector to retain the workers of the former state-run power firm for six months. But, when the investors took over, they discovered that the wage bill was “too huge” for them to bear and as such they disengaged some workers. The workforce is still large. To get the right size, they decided to further reduce the staff.

    The investors, it was learnt, have concluded their staff auditing and, penciled down for sack former PHCN workers deemed to lack the requisite skills. It was also learnt that some of them hired KPMG and PricewaterhouseCoopers (PwC) for the auditing to ensure transparency and professionalism. The workers may be asked to go by the end of this month.

    An official of one of the DISCOs, who spoke to The Nation in confidence, said: “We have concluded our staff auditing. You are aware that the six months agreement will expire by the end of this month. Some of us have engaged reputable auditing firms, such as KPMG and PwC, to carry out the exercise. The essence is to ensure transparency and professionalism in carrying out the exercise and the truth is that the era of family connection as a criterion to secure job in the power sector is over.

    “We have decided to sieve the workforce, keep those that have the required skills, prepare those who have the motivation to move the company to the next level, and have the operational excellence to give power to the man on the street, and disengage those without the required skills. In fact, the auditing was both scientific and professional.”

    The GENCos and DISCOs have new investment plans following a facility inventory showing areas requiring attention. For instance, the management of West Power and Gas Limited, owners of Eko Electricity Distribution Company (EKEDC), said it has drawn a N42 billion investment plan for the acquisition of transformers, feeders and other equipment to strengthen its network and reinforce electricity supply within five years.

    Its Chairman, Charles Momoh, and a Director, Dr Tunji Olowolafe, said the company is being repositioned to serve customers better. They added that because of poor power supply from the national grid, the company is exploring possible off-grid supply.

    The Chairman, Sahara Energy Group, owners of Ikeja Electricity Distribution Company and Egbin Power Generation Company, Mr. Kola Adesina, said he could not give the amount the group would invest because of what it plans to achieve. He, however, noted that a substantial investment is being planned to improve supply and customer service in both companies.

     

    Gas supply challenge

    The Group Executive Director, Gas and Power, Nigerian National Petroleum Corporation (NNPC), Dr David Ige, confirmed that the corporation has gas supply challenge. He said the complaints of the investors are genuine.

    Ige said: “There is truth in their complaints. Over the last two to three years, we have seen a big growth in our gas supply development. “We have maximised our efforts in infrastructure; every day we are building new pipeline infrastructure. Gas supply has grown from 500 million standard cubic feet per day (MMscf/d) three years ago to 1.5 billion standard cubic feet per day (Bscf/d). But we are having serious short time challenge and there are two things responsible for that.

    “The first arises mostly from vandalism. So, at every point in time, we are repairing one pipeline or the other. Last year, Escravos-Lagos Pipeline System (ELPS) was down for seven months. Now ELPS is back, Trans Forcados is down. At every point in time, we have been experiencing one major outage or the other. And the way our system works is that the pipeline artery connects major gas supply assets. Trans Forcados pipeline is connected to Oben, Sapele and Pan Ocean gas plants, so when it is down, we lose three plants at once.

    “When ELPS is down, we lose Escravos, so we are truly struggling with these outages and because it happens repeatedly and there is almost no time one of them is not down, all the efforts that we have made in terms of bringing supply up, the consumers never have been able to see the full benefits. This is because there is always one problem or the other.”

    The other problem, Ige said, is that of supply shortfall. He said facilities working normally need regular maintenance but this is made difficult by the high rate of vandalism and the few facilities available. This, he said could cause serious disruption in the system.

    Ige continued: “By not taking them out on maintenance, they are also turning over more than expected. So, we are suffering a little bit of short term challenge. We expect that through the course of this year, they (power investors) would have had more gas supply.

    “Really, the problem now is a short term stabilisation problem. I agree we haven’t built supply to the full capacity of demand for gas but we have always known the gap would be there until next couple of months. We are going up in gas supply and they (power suppliers) are going up. There is a gap but we are closing the gap over the next couple of months. That has always been in our plan but our biggest challenge is that the supply we have brought to bear is like at any point in time we are struggling with unplanned outages.

    “I think the power sector investors are jittery right now. There is no doubt about it but the (gas supply) challenge is a short term challenge because the fundamentals are there, the gas pipelines are being built. We have never put as many pipelines as we are putting right now and the supply is being developed as well.

    “Hopefully, we will get to a point where we will overcome this very short term issue and people would see the benefits. A lot is going on in the background that will make that happen.”

    On whether the Joint Task Force (JTF) is not doing its job of policing the pipeline as vandalism is getting worse, he said: “Everybody is doing his job but it is a very difficult problem to deal with and, ultimately, you need a social re-engineering. “These pipelines are hundreds of kilometres long and it is impossible to man every kilometre 24/7. We really need to get to the people who are doing this to change their attitude.

    “Social re-engineering will contribute significantly to solving the problem because people need to know that there cannot be a sustainable solution in their attacking a national infrastructure; it doesn’t solve their problem. There has to be a better way of agitation. For those who break crude oil pipeline, we really have to reorientate them because we can put as much security but we have got over 5,000 kilometres of pipeline. So, how many security people are we going to put on every kilometre?”

     

    Finding solution

    The investors are facing the challenges of meeting customers’ power supply needs and recouping their investments. But, with the state of power supply, it is clear that they need alternatives to remain in business. Currently, some of the DISCOs cannot pay for their supplies from the Nigerian Bulk Electricity Trading Plc (NBET) from the national grid.

    Lagos, Eko and Ikeja DISCOs are contemplating sourcing power from captive power generators and other embedded generators (generation outside the grid) to be able to meet the power demands of customers. Adesina said grid supply has become insignificant, adding that the management of Ikeja DISCO is sourcing about 230 megawatts (MW) from off-grid supply.

    Mr Yeom Gyoo Chull, Managing Director, Korea Electric Power Nigeria Limited, Sahara Group’s technical partner, said management has been discussing the transformation of Egbin plant. He said the power firm is to restore Egbin to its full capacity of 1,320MW this year and build more turbines that will provide additional 1,350MW.

    He added that the construction of the 1,350MW additional capacity will begin within three years, promising that on completion, it will bring the combined output of Egbin to 2,670MW. He noted that the target is to achieve a total capacity of over 10,000MW in the next decade if the demand permits.

    He said: “We intend to collaborate with our partners in Nigeria to initially restore Egbin to its fully built capacity of 1,320MW within the year and provide additional projected capacity of 1,350MW commencing within the next three years, thus at completion, we’ll have 2,670MW, with the aim of achieving a total capacity of over 10,000MW in the next decade if the demand permits.”

    The Managing Director, Egbin Electric Power Plc, Mike Uzoigwe, said only one turbine of the six-turbine power plant is not working. The six turbines generate 220MW each but the plant generates far below what it is supposed to generate. He said Egbin can generate 1080MW but gas supply constraint has limited output to just over 600MW.

    The Chief Executive Officer, Eko DISCO, Dr Oladele Amoda, told The Nation that the management was exploring other options of getting power outside the grid for distribution to customers because of gas supply challenge.

    Amoda said: “We want to get power from embedded generation. The main purpose of this initiative is that we will not continue to rely on the power that we get from the grid because it is not constant; it fluctuates. Besides, in the past five months, we have not been able to get more than between 250 and 260 megawatts (MW) and even sometimes less than 100MW while we have the capacity to take 700MW, which is the demand. You can see the difference between an average of 200MW and 700MW daily.

    “The consequence of this huge supply gap is rationing of available power and massive load-shedding going on now. The power supply gap, according to the GENCOs, is due to inadequate gas to run the power stations following pipeline vandalism and sabotage. “So, that is where we are now. But going forward, we are looking at about 400MW from embedded generation that will be under our control and will not be subject to grid supply. This will enable us to offer our customers a measure of stable power supply. “The initiative will enable us plan maintenance of our facilities when necessary by having a regulated load-shedding programme that everybody will know but currently, we cannot do any reasonable load-shedding programme.

    “We hope to roll out the first PPA Power Purchase Agreement) and actual embedded generation into our system between July and August this year. Currently, we are also discussing with companies that have excess captive power such as Flour Mills and Honeywell as well as other companies in Apapa and Agbara that are generating more than they need. That one will come on very quickly. We have Island Power where we get 1.5MW. The Island Power arrangement is ready but we get the 1.5MW during off-peak period (10pm to 6am daily), so we target some companies that will take the power. The Island Power deal will come into operation by the end of this month.”

  • Coleman votes N7b for expansion

    Coleman votes N7b for expansion

    Coleman Technical Industries makers of Coleman Wires and Cables has earmarked N7billion for expanding its production line to include the production of high voltage cables that is up to 33 KV that will rank it as the first manufacturer in West Africa, its Managing Director, Mr. George Onafowokan, has said.

    He said when the fund is injected into the firm, it will allow it to produce high capacity cables that will fill whatever gap that may be existing for the new generating companies (GENCOs) and distribution companies (DISCOs), all successor companies from the bundled Power Holding Company of Nigeria (PHCN).

    According to him local production of the cables will save the nation the much needed foreign exchange and grow the nation’s gross domestic product (GDP). He said the products will not only be cheaper, it will also save the time wasted by the power firms while awaiting the products to come from abroad.

    He said an additional investment of N200million be would dedicated towards expanding the production lines to include Coxial cables, CAT 5 and 6 cables used for computer networking and others making them the first in the country too.

    Onafowokan said if given the enabling environment, cable manufacturers will not only build capacity but will put the nation in global reckoning terms of the quality and standards of the products manufactured thereby creating jobs in the process.

    He advised the public to stop patronising imported cables because of the dangers of fire outbreaks in homes and offices.

    He urged the Federal Government to set aside more intervention fund for cable manufacturers in particular, noting that it is only through such interventions that the sector could make significant input into the economy.

    According to him, the intervention fund is needed in the sector because operators have deployed previous intervention fund to capacity utilisation and quality improvement making the nation’s cables the best for the purposes they are made for.

    He said from studies, it has been proved that houses or offices that experienced fire incidents patronised imported cables and wires which are not made to specifications and also not suitable to the weather conditions in the country.

    On ways to discourage making the nation a dumping ground for sub-standard cables, he said such products should not be allowed into the country from their countries of origin.

    He commended the Standards Organisation of Nigeria (SON) for their effort in checking the importation of fake and substandard materials into the country.

  • Ikeja, Eko DISCOs ‘get only 26 per cent of power’

    The Ikeja and Eko Electricity Distribution Companies (DISCOs) get 15 per cent and 11 per cent from the national grid, their new owners have said.

    Chairman, Sahara Energy Group, Kola Adesina and Chairman, West Power and Gas Limited, Charles Momoh, owners of the two firms, said power supply had become so insignificant that it has worsened the “precarious situation” in Lagos.

    They spoke to The Nation during the Lagos Economic Summit.

    Adesina’s company plans about 230 megawatts (MW). “We want to make available about 230 megawatts (MW) not captured by the Nigerian Bulk Electricity Trading Plc (NBET) as part of the agenda to stabilise power supply. The two DSICOs in the state receive only 11 per cent and 15 per cent of generated power stock from the national grid,” he said, noting that the poor grid supply has worsened the precarious situation of consumers.

    He also noted that a change of attitude would help in curbing or eliminating pipeline vandalism and other national assets used for power generation, which consequently, would help in achieving improved power supply.

    Lagos, Nigeria’s commercial centre with a population of over 20 million needs about 20,000MW to meet its industrial and domestic power needs.

    The utility chiefs said Ikeja DISCO requires at least 950MW, but gets only 300MW, a deficit of 650MW. Eko DISCO gets only 240MW as against its 750MW requirement.

    Eko DISCO is asking for the submission of bids from independent power generators and has received applications from at least 45 bidders.

    Successful bidders are to supply the shortfall from the grid supply – in an initiative that was part of the agenda to generate over 500MW to meet the needs of consumers within the Eko network.

    A Director in the company, Dr Tunji Olowolafe, said the company would invest N42 billion in power facilities in the next five years to reinforce electricity supply

    A Commissioner in Nigerian Electricity Regulatory Commission (NERC), Eyo Ekpo, advised the two DISCOs to collaborate with the private sector to boost power supply.

    Ekpo added: “We must build foundation blocks to boost power supply in Lagos. The state has a population of over 20 million. If you look at the scenario, you will discover that 1000MW will meet the power needs of about one million people, multiply that by 20; therefore, Eko and Ikeja Discos have to embark on embedded power supply deal. This is one of the key enablers of achieving the dream of meeting the power demand of residents of Lagos.”