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Tag: DISCOS

  • Declare DISCOs as non-state actors, Reps urge FG

    Declare DISCOs as non-state actors, Reps urge FG

    The House of Representatives has urged the federal government through the Ministry of Power to declare Distribution Companies (DISCOs) in Nigeria as non-state actors.

    It urged that immediate measures be taken to address “their reckless actions, threatening the nation’s economy.”

    The House also urged the DISCOs to undergo recapitalization of not less than 500 billion Naira.

    It said only those with the required financial muzzles that can provide maximum satisfaction to consumers should be allowed to continue to operate.

    The House mandated the Committee on Power to investigate the activities of the DISCOs with the intent of holding them accountable and safeguarding consumer rights.

    The Committee is also to examine the implementation of the stricter regulations governing the operations of DISCOs, to ensure transparency and fairness in dealings with Consumers;

    These resolutions followed the adoption of a motion titled, “Need to Address to Activities of Distribution Companies (DISCOS) in Nigeria” moved by Hon. Ibrahim Ayokunle Isiaka.

    The House noted that the activities of Distribution Companies (DISCOS) in the country and their recent actions are posing a threat to the economic stability and welfare of the Nigerian populace.

    It also noted that Nigerian consumers paid for electricity meter installation, but DISCOs are demanding additional payments for the replacement of these metres under dubious pretences, undermining consumer trust and exacerbating financial burdens.

    The House worried that Consumers are being coerced into paying for meters that they have earlier financed, causing financial strain on households and businesses already facing economic challenges.

    It also worried about the sabotage of economic development by Discos, where essential services are used against citizens intended to serve thereby, stifling growth and development.

    Read Also: Reps direct CBN, finance ministry to refund deduction from Shippers Council’s account

    The House was concerned that despite constant regulatory oversight and demand for accountability by the Committee on Power from these companies, DISCOs remained recalcitrant in operating with impunity and disregard for consumer rights

    It recognised that the DISCOs’ actions pose a significant threat to Nigeria’s economic stability and the welfare of citizens.

    The House said it was cognizant of the need to stand against injustices and prioritises constituents’ needs and rights.

  • NERC warns DisCos against charging customers for faulty meter replacement

    NERC warns DisCos against charging customers for faulty meter replacement

    The Nigerian Electricity Regulatory Commission (NERC) has issued a stern warning to electricity distribution companies (DisCos) over the reported directive asking customers to pay for the replacement of faulty and obsolete meters.

    In a statement via its official X handle on Monday, NERC emphasised that such instruction “contravenes the Commission’s Order No. NERC/246/2021, Structured Replacement of Faulty and Obsolete end-use Customer Meters in the Nigerian Electricity Supply Industry”, which mandates DisCos to handle meter replacements at no cost to customers.

    According to the Commission, the order explicitly prohibits the forced migration of customers with faulty meters to estimated billing systems.

    It clarified that where a meter is deemed faulty or obsolete, it is the responsibility of the DisCo to replace it free of charge, provided the fault is not due to customer negligence.

    The announcement followed the growing customer complaints and alleged non-compliance by some DisCos. Many customers have raised concerns over being forced to pay for replacements, a practice that NERC describes as illegal and unacceptable.

    Read Also: Adelabu summons TCN, NERC over grid collapse

    “The Commission restates its commitment to protect customers’ interests and rights by ensuring compliance with established regulatory standards and enforcing regulatory penalties for non-compliance by its licensees,” the statement noted.

    NERC also urged affected customers to report non-compliance cases directly to the Commission through phone numbers and email addresses provided to enable swift action against any DisCo violating the order.

  • Abiku Grid and the greedy DisCos

    Abiku Grid and the greedy DisCos

    Power transmission and distribution remain at its lowest ebb ever in the history of the nation. Since the classification of customers into bands under which they are billed according to the hours of supply they enjoy daily, electricity distribution has not been the same again. Whatever band you may be, supply is at the discretion of the distributors who have prioritised Band A customers.

    Generation, we have been told, has been fantastic. The problem is that of  transmission and distribution. The government-owned Transmission Company of Nigeria (TCN) which acts as offtaker to the generation companies (GenCos) has the capacity to transmit but the distribution companies (DisCos) lack the capacity to distribute the entire stock.

    These DisCos, which dot the six geo-political regions servicing the states in those places, more often than not decline to take all the transmitted power for distribution, citing various reasons. They claim that they are being owed by many customers and as such do not have the financial muscle to pay for the supply. At times, they ask for credit facility, which they do not extend to customers who they treat with levity. Some people have, however, argued that the issue has to do more with infrastructure than finance.

    They may have a point there. Since the privatisation of the power sector by the Jonathan administration in November 2013, there has been no new major investment in the public utility’s infrastructure by the successor-distribution companies which have today become law unto themselves. They are more interested in reaping without sowing in what they acquired.

    What value have they added to the Power Holding Company of Nigeria (PHCN), as it was then known, which they acquired under different guises and forms? They quickly mopped up the assets, without doing anything about the decaying infrastructure. The nation is where it is today in its power generation, transmission and distribution drive because the assets of PHCN fell into the wrong hands. The privatisation was not properly done and the nation is paying for it today.

    The incessant collapse of the National Grid has shown that we are still a long way from achieving our dreams of regular power supply despite the introduction and classification of consumers under bands, with the assurance that those on the elite Band A will enjoy an uninterrupted 22-hour supply per day, at a heavy price.

    Those who can afford it have been paying, but many are complaining that there is a catch somewhere, which they cannot put a finger on. They claim that it is a scam, pointing at the fast rate they say their meter credit burns out despite switching off many appliances to control use. Is there really any need for band classification where there is an efficient and effective power system? The answer is no.

    By resorting to band classification, many Nigerians have been deliberately shut out of the power supply chain because they are men of straw. It is only men of means who now enjoy power yala yolo, as some will say, at any given time of the day. Even when the grid collapses, their supply is not affected. Where does that come from? From a grid that is hidden somewhere unknown to the majority of the people.

    The frequent incidence of grid collapse has worsened the problem. For the 11th time this year, it happened again last Thursday. It was the second time in 48 hours that we were witnessing such a national embarrassment which followed that of Tuesday. What a way to celebrate the 11th month with the grid collapsing for the 11th time last Thursday. Jokes apart, why this incessant collapse? Is there no way out of it? How many megawatts are we producing that this vast network of transmission lines linking power stations to end-users nationwide cannot cope?

    In September, we were celebrating the generation of 5,313 megawatts (MW) of electricity in a country of 232.6 million people. Whereas South Africa and Ghana, with a population of 64.2 million and 34.4 million, generate 58,095MW and 2,837MW. The truth is our Abiku National Grid is no longer fit for purpose. It outlived its usefulness long ago when it started packing up at the slightest hint of trouble, be it of infrastructure or the DisCos’ inability to take all the transmitted power.

    Read Also: EFCC arrests 11 suspected currency racketeers in Rivers

    Things cannot continue like this. Otherwise every other thing will collapse as a result of the failure to fix the national grid. It is time to look for an alternative before the grid turns us into a grieving nation. We have been at its mercy for too long. To rub insult upon injury, the DisCos are threatening fire and brimstone over prepaid meters that they claim would become outdated on November 24.

    They have rebuffed all entreaties by the Nigerian Electricity and Regulatory Commission (NERC) and the Federal Competition and Consumer Protection Commission (FCCPC) to replace the meters at no cost to consumers. They are insisting on customers paying for a replacement. How do you pay for a replaced item? There is nowhere in the world that replaced items are paid for by consumers when such exigencies arise. It is for the service provider to replace an item where the need to do so is not of the consumer’s making.

    Ikeja Electric (IE) has been adamant over the matter. Where its counterpart, Eko Electricity Distribution Company (EKEDC), has shown some  understanding through the upgrading of the meters to ensure their continued use, IE is insisting on the replacement of the meters at a cost to the consumer or nothing. This is not business; it is sheer wickedness and exploitation of its poor and suffering customers. It wants to play hard.

    But it should be mindful of the consequences of such action. They are usually not good for business, no matter how indispensable the service provider may think it is. Like EKEDC, IE will lose nothing by allowing its customers to upgrade their meters with ease. It should remember the saying: “customer is king”.

  • Fed Govt steps into meter row between DisCos, consumers

    Fed Govt steps into meter row between DisCos, consumers

    The Federal Government yesterday intervened in the growing row between Electricity Distribution Companies (DisCos) and consumers over meter replacement fee, estimated billing and banding.

    It said DisCos must not pass the cost of replacement of functional meters to consumers.

    DisCos are also directed not to classify consumers into bands without consultations with them. 

    It warned DisCos against exploitation of consumers, stressing that they should adhere strictly to industry regulations on billing of unmetered consumers.    

    The Federal Competition and Consumer Protection Commission (FCCPC) headed by Mr Tunji Bello, National Electricity Regulatory Commission (NERC) and Nigerian Electricity Management Services Agency (NEMSA) made the government’s position on this issues known yesterday.

    The two DisCos servicing Lagos and parts of Ogun State –Eko Electricity Distribution Company (EKEDC) and Ikeja Electricity (IE) – have set a November 14 deadline for the phase-out of all  Unitstar pre-paid meters  that are more than 10 years old  in place of new ones.

    Consumers have kicked against this move because they are being asked to pay for the replaced meters, and threatened with declaration of the meters as expired. After this, such customers will then be placed on estimated billings.

    In various messages, the DisCos warned their customers that they would be unable to recharge their electricity tokens on meters that fall within the category of those to be phased out, should they fail to meet the November 14 deadline.

    An example of such messages sent to a customer by IKEDC reads: “All Unistar meters will be phased out by 14th November 2024, as TID rollover beckons.

    Read Also: DisCos must bear cost of replacing phased-out meters, says FCCPC

    ‘’Apply for a prepaid meter today to avoid estimated billing” due to technological upgrades and the Token Identifier (TID) rollover issue.’’

    Ikeja Electric  informed its customers that they would need to pay N134,000 for a single-phase meter and N224,000 for a three-phase meter.

    Following pressure from consumers, EKEDC backed down.

    It sent another message to consumers, saying: “Dear valued customer, upgrade your meter to STS2 for free. Visit kctcheck.ekedp.com, enter your details, and click search to receive your two sets of 20-digit Key Change Tokens (KCTS). Input them and complete the upgrade.”

    The IE had not reversed the plan as at yesterday.

    Enquiries sent to IE on the issues were not responded to as at last night.

    However, at the Abuja  meeting,  Bello,  citing complaints received by FCCPC from an IE customer, who   expressed frustration at being asked to replace a functional meter at a significant personal cost, said to  prevent potential exploitation, FCCPC directed that all meter replacement processes be conducted transparently, with costs borne by the DisCos and not passed on to consumers.

    Bello stressed that FCCPC  would  enforce strict compliance with the  regulatory requirements to protect consumers from arbitrary charges and estimated billing.

    He noted that systemic inefficiencies and a culture of impunity among some service providers had intensified the issues, leading to the routine exploitation of consumers.

    Bello also noted that DisCos frequently place consumers with faulty meters on estimated billing, which is prohibited under NERC’s regulations.

    NERC’s  Head of  Consumer Engagement   Zubair Babatunde, reiterated the commission’s commitment to consumer protection, specifically regarding the replacement of old meters.

    “Obsolete meters must not only be replaced, but must not be removed without immediate replacement. The consumer should not bear the cost of replacing meters,” Babatunde said.

    An assistant manager at  NEMSA,  Okeme Obiabo, said: “We’ve been addressing obsolete meters and Discos must adhere to the procedures for replacing them.

    ‘’Meter testing and certification are essential and DisCos are responsible for carrying out these replacements and ensuring that faulty meters are replaced promptly.” 

    Consumer Rights Advancement Organisation (CRADO) President  Adeolu Ogunbanjo said it was unfortunate that DisCos are taking their customers for granted.

    Ogunbanjo argued that it was not the customers’ prerogative to upgrade meters supplied by the DisCos.

    He said: “If a Disco wants to change meter, then, that should be their responsibility because they supplied it. A meter is the connection between a consumer and a DisCo and it is the means through which they(customer) are paying.

    ‘’The onus rests on the DisCos to provide   meters for free to their customers.’’

    Token Identifier code

    Token Identifier (TID)  is a secret code hidden in every energy token used on a prepaid electricity meter. It ensures that each token is only once. It is also a number that counts the minutes since the starting date of 1993.

    TID rollover is the process of updating such meters to enable them to continue to function seamlessly. The TID is a 20-bit field found in Standard Transfers Specifications (STS) compliant tokens, serving to identify the date and time of token generation.

    Globally, a meter owner can from his bedroom upgrade his meter using a 20-digit code sent to him by his power supplier to upgrade his meter.

    Electricity consumers who got the message argued that since they paid for the meters initially,   it was wrong of DisCos to demand payment again.

  • DisCos collect N391.72b revenue in Q2 2024, says NBS

    DisCos collect N391.72b revenue in Q2 2024, says NBS

    The National Bureau of Statistics (NBS) said electricity Distribution Companies (DisCos) collected N391.72 billion revenue in the second quarter of 2024 Q2 2024.

    Its document titled: “Electricity Report Q2 2024,” which made the disclosure also said the revenue increased by 48.90% on a year-on-year basis from N263 billion the corresponding quarter of 2023.

    NBS said: “Revenue collected by the DISCOs during the period was N391.72 billion from N291.62 billion in Q1 2024.

    ” On a year-on-year basis, revenue generated in the reference period rose by 48.90% from N263.08 billion recorded in Q2 2023.”

    NBS also said total customer numbers in Q2 2024 stood at 12.99 million from 12.33 million in Q1 2024, showing an increase of 5.35%.

    According to the report, on a year-on-year basis, customer numbers in Q2 2024 rose by 13.24% from 11.47 million reported in Q2 2023. 

    Read Also: Ikeja Electric leads DisCos’ N162b revenue

    It stated metered customers stood at 5.92 million in Q2 2024, indicating a growth of 0.25% from 5.91 million recorded in the pre ceding quarter. 

    NBS said on a year-on-year basis, this grew by 8.18% from the figure reported in Q2 2023 which was 5.47 million.

    It added that  estimated customers during the quarter were 7.07 million, higher by 10.04% from 6.43 million in Q1 2024. 

    NBS said on  a year-on-year basis, estimated customers increased by 17.86% in Q2 2024 from 6.00 million in Q2 2023.

    The data added that “Electricity supply was 5,612.52 (Gwh) in Q2 2024 from 5,769.52 (Gwh) in the previous quar ter.

    ” However, on a year-on-year basis, electricity supply decreased by 5.03% compared to 5,909.83 (Gwh) reported in Q2 2023.”

  • Ikeja Electric leads DisCos’ N162b revenue

    Ikeja Electric leads DisCos’ N162b revenue

    Twelve electricity distribution companies (DisCos) in the Nigerian Electricity Supply Industry (NESI) collected N162 billion revenue in July 2024.

    The Nigerian Electricity Regulatory Commission (NERC), in a report titled: “Commercial Performance of Distribution Companies (DisCos)” yesterday indicated that the energy distributors failed to collect N34.96 billion, being 17.74 per cent of the total bills during the period.

    The collection efficiency for the month was 82.26 per cent. Ikeja DisCo recorded the highest collection efficiency of 115.45 per cent while Kaduna DisCos was the least performing firm with 58.65 per cent.

    The collection of over 100 per cent in July was due to outstanding bills in the previous month.

    In terms of revenue recovery efficiency, NERC said the allowed average tariff/kilowatt-hour in the month under review was N115.74kilowatt/hour while the actual collection was N83.77kw/h, indicating an average subsidy of 31.97kw/h, being N64.92 million for the total 2,030.75Gwh (2,030,750MW).

    72.38 per cent, said NERC, was the recovery efficiency in July 2024.

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    NERC also revealed that in terms of energy billed and billing efficiency, 2,520.82Gigawatts hour (Gwh), which is also 2,520,820MW was the total energy  received while the total energy billed was 2,030.75GWh, which is 2,030,750MW.

    The firms, according to NERC, recorded 80.56 per cent billing efficiency in the period under review.

    Aba DisCo, which received 16.99GWh (16,990MW) and billed 16.34Gwh (16,340MW) recorded 96.17 per cent billing efficiency topping the list in terms of billing efficiency.

    It is noteworthy that the DisCos is in a ring-fenced business environment.

    It was followed by Ibadan DisCo which received 310.63 Gwh, (310,630MW) billed 299.21 Gwh (299,210MW) to record 89.76 per cent billing efficiency.

    Kaduna DisCo which received 161Gwh (161,000MW)  and billed 92.63Gwh (92,630MW) recorded the least billing efficiency of 57.53 per cent.

    In July 2024, according to NERC, Abuja Disco received 379Gwh (379,000MW) energy being the highest in the industry while Aba DisCo got least energy of 16.99Gwh (16,990MW).

  • 12 DisCos earn N162.14 b revenue in July, says NERC

    12 DisCos earn N162.14 b revenue in July, says NERC

    Twelve electricity Distribution Companies (DisCos) in the Nigerian Electricity Supply Industry (NESI) collected N162 billion revenue in July 2024.

    The Nigerian Electricity Regulatory Commission (NERC) broke the news in its document titled: “Commercial Performance of Distribution Companies (DisCos),” on Thursday, October 3.

    According to the document, the energy distributors failed to collect N34.96 billion, being 17.74% of the total bills.

    NERC said the DisCos having lost N34.97 billion of the bills, recorded 82.26 percent collection efficiency.

    In the period under review, Ikeja DisCo recorded the highest collection efficiency of 115.45 percent while Kaduna DisCos was the least-performing firm with a record of 58.65 percent.

    The document, however, explained that the collection of over 100 percent in the month was due to outstanding bills in the previous month.

    In terms of revenue recovery efficiency, NERC said the allowed average tariff/kilowatt-hour in the month under review was N115.74kilowatt/hour while the actual collection was N83.77kw/h, indicating an average subsidy of 31.97kw/h, being N64,923,077.5 for the total 2,030.75Gwh (2,030,750MW).

    72.38 percent, said NERC, was the recovery efficiency in July 2024.

    NERC also revealed that in terms of energy billed and billing efficiency, 2,520.82Gigawatts hour (Gwh), which is also 2,520,820MW was the total energy received while the total energy billed was 2,030.75GWh, which is 2,030,750MW.

    Read Also: NERC transfers regulatory oversight to Kogi

    The firms, according to NERC, recorded 80.56 percent billing efficiency in the period under review.

    Aba DisCo, which received 16.99GWh (16,990MW) and billed 16.34Gwh (16,340MW) recorded 96.17 percent billing efficiency topping the list in terms of billing efficiency.

    It is noteworthy that the DisCos is in a ring-fenced business environment.

    It was followed by Ibadan DisCo which received 310.63 Gwh, (310,630MW) and billed 299.21 Gwh (299,210MW) to record 89.76 percent billing efficiency.

    Kaduna DisCo which received 161Gwh (161,000MW) and billed 92.63Gwh (92,630MW) recorded the least billing efficiency of 57.53 per cent.

    In July 2024, according to NERC, Abuja Disco received 379Gwh (379,000MW) energy being the highest in the industry while Aba DisCo got the least energy at 16.99Gwh (16,990MW).

  • 11 DisCos collected N1.07tr revenue in 2023- NERC

    11 DisCos collected N1.07tr revenue in 2023- NERC

    …international customers pay $50.36m

    The Nigerian Electricity Regulatory Commission (NERC) on Monday, September 23, revealed that the 11 electricity Distribution Companies (DisCos) of the Nigerian Electricity Supply Industry (NESI) collected N1.07trillion in 2023.

    The energy distributors, said NERC, failed to collect N385.83 billion out of the total N1.46 trillion electricity bills for the year.

    This culminated in 73.64% collection efficiency in the year under review, according to the NERC document titled: “2023 Annual Report and Account.”

    NERC said: “The total billings to electricity consumers by the DisCos was ₦1,463.24 billion of which only ₦1,077.51 billion was collected, leaving a total outstanding of ₦385.73 billion and corresponding to a collection efficiency of 73.64%.”

    On Market Remittances by DisCos, the report said in 2023, a total invoice of ₦858.033billion was issued to all the DisCos for energy received from NBET and for service charges by the MO, out of which a sum of ₦706.73 billion was settled by DisCos, leaving a total deficit of ₦151.30 billion in the market.

    Read Also: DisCos urged to embrace NERC vision

    NERC said this payment translates to an overall remittance performance of 82.37%.

    The report revealed that Eko and Yola DisCos had high remittance performances of 105.76% and 105.14% respectively to NBET in 2023 while Kaduna achieved the lowest remittance performance to NBET (17.59%).

    NERC also said the highest remittance performances to the MO were recorded by Yola, Eko and Ikeja at 90.91%, 90.85% and 90.38% respectively while Kaduna recorded the lowest MO remittance performance of 10.75% in 2023.

    On Market Remittances by Special and Bilateral Customers, NERC said in 2023, the NESI continued to provide electricity to three international bilateral customers – i) Societe Beninoise d’Energie Electrique; ii) Compagnie Energie Electrique du Togo; iii) Societe Nigerienne d’electricite.

    It noted: “Cumulatively, these 3 customers received an invoice of $53.55 million from MO and made a payment of $50.36 million.

    “This corresponds to a remittance performance of 94.04%. There were nineteen (19) active domestic bilateral customers in 2023.

    “Cumulatively, these customers received a total invoice of ₦10,320.84 million from MO and made a payment of ₦8,766.15million corresponding to a remittance performance of 84.94%.”

  • DisCos reject 1,400mw over under-capacity

    DisCos reject 1,400mw over under-capacity

    • Fed Govt to invest $800m in substations, distribution

    Electricity distribution companies, otherwise known as DisCos, were unable to take the full power generation in recent period, underlining a major challenge in the electricity supply chain.

    Minister of Power, Chief Adebayo Adelabu, yesterday said that power generation had peaked at 5,170 megawatts on Friday, August 30, 2024 but this had to be ramped down by 1,400 megawatts due to inability of DisCos to pick the supply.

    “This is really regrettable considering that government is on course to increase generation to 6,000 megawatts by the end of the year,” Adelabu said.

    He however assured that all efforts were on to ensure that the country attain stable power supply.

    Adelabu, who is in China to attend the China-Africa Cooperation Summit as part of the delegation of President Bola Tinubu, spoke during a facility tour of TBEA Southern Power Transmission and Distribution Industry in Beijing, China.

    He said the federal government has concluded arrangements to release $800 million for the construction of substations and distribution lines under the Presidential Power Initiative (PPI).

    The money will ensure the construction of substations for Lot 2, substations and distribution lines for Lot 3 at a cost of $400m each.

    Lot 2 covers Benin, Port Harcourt, Enugu DisCos’ franchise areas while Lot 3 covers Abuja, Kaduna, Jos  and Kano DisCos’ franchise areas.

    Speaking during an interactive session with TBEA management , Adelabu assured of the federal government’s  commitment towards working with world class organisations like TBEA to achieve the Renewed Hope vision of President Bola Tinubu for the power sector in Nigeria especially in areas of transmission and distribution of the entire power sector value chain as well as Nigeria’s renewable energy segment.

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    Speaking on the problems in the power sector which had hindered industrial growth, the Minister said this was due partly to the fragility of the Transmission and distribution infrastructure which have become old and dilapidated. “ This has led to historical epileptic supply of Power to households, industry and businesses”.

    According to him, more than 59 per cent of industries in the Nigeria are off the grid. “They did not see the national grid as reliable and dependable. So a lot of them now operate their own captive, self-generated power”.

    Adelabu said the administration of President Bola Ahmed Tinubu is determined to transform the power sector adding that a lot of activities have started that is gradually bringing back confidence in the sector and  among the power sector consumers especially the industries.

    Acknowledging the different initiatives of the government, Adelabu went down memory lane that in 1984, about 40 years ago Nigeria was able to generate 2,000 megawatts and it took us over 35 years to add additional 2,000 megawatts.  “When this administration came in last year, we met around 4 gigawatts (4,000 megawatts) of power but within a year, we were able to generate a milestone of 5,170 megawatts adding about 1000 megawatts of power within the first year. It may look small, but compared to the history of the country, this is commendable”. Our plan is by the end of the year, we aim to achieve 6,000 megawatts of power through a combination of hydro electric power plants and our gas- fired power plant. We are also targeting 30 gigawatts of Power to be generated, transmitted and distributed by year 2030 out of which 30 percent would be renewable energy”.

     He said the renewable energy segment will come from a combination of  hydro electric power from small dams, solar energy sources and wind farms from onshore and offshore winds.

    On the issue of the construction of the super grid, the Minister said the national grid in its present state can not support the vision for the power sector. “If we look at the strength, the capacity and the age of our existing network on the National grid, it cannot really support our vision for the power sector hence the need for the construction of the Western and Eastern super grid. Though we have been on this since my resumption, I can also tell you that the President is in full support of this because this will improve our transmission network, stabilise the grid and also expand the capacity and the flexibility of the National  grid”.

    He said 90 percent of the approval required is in place and would be concluded soon.

    Speaking earlier, President of TBEA, Huang Hanjie assured of the organisation’s continued support for the Nigeria’s government vision for the power sector. He said TBEA operates across 100 countries in the world and would be willing to share its experience in the provision of energy. He said TBEA is not new in Nigeria adding that the company is presently  working with the Omotosho, power plant, Ondo State owned by the Niger Delta Power Holding (NDPHC).

    Hanjie also commended the Minister for the improvement in the power sector as evidenced in improved generation and transmission since his assumption of office. While also acknowledging the short term improvement to 6 gigawatts by December 2024 and 30 gigawatts by 2030, he said TBEA would be willing to work with the Nigerian government to achieve the vision and contribute to the ongoing power sector revolution in the country.

    On the proposed Super grid by the Nigerian government,  he indicated TBEA’s interest in participating by  contributing its expertise in the project to guarantee its success.

  • Power minister laments as DISCOs reject power

    Power minister laments as DISCOs reject power

    • …says FG to released $800m for construction of substations

    Minister of Power, Adebayo Adelabu has lamented the rejection of power by the Distribution Companies (DISCOs) in the country. 

    This is as the federal government concludes plan to release $800m for the construction of substations and distribution lines under the Presidential Power Initiative (PPI).

    The money will ensure the construction of substations for Lot 2, substations and distribution lines for Lot 3 at a cost of $400m each. 

    The Lot 2 covers Benin, Port Harcourt, Enugu Distribution companies (DISCOs) franchise areas while Lot 3 covers Abuja, Kaduna, Jos  and Kano DISCOs franchise areas.

    A statement issued by the ministry on Sunday said Adelabu during a facility tour of TBEA Southern Power Transmission and Distribution Industry in Beijing, China.

    The minister was in China to attend the China-Africa Cooperation Summit.

    The Minister saidon Friday, August 30, generation peaked at 5,170 megawatts, unfortunately, it had to be ramped down by 1,400 megawatts due to inability of the DISCOs to pick the supply. 

    “This is really regrettable considering that government is on course to increase generation to 6,000 megawatts by the end of the year.”

    Also speaking during  an interactive session with TBEA management, Adelabu also assured of the federal government’s  commitment towards working with world class organisations like TBEA to achieve the Renewed Hope vision of President Bola Tinubu for the power sector in Nigeria especially in areas of transmission and distribution of the entire power sector value chain as well as Nigeria’s renewable energy segment.

    Speaking on the problems in the power sector which had hindered industrial growth, the minister said this was due partly to the fragility of the Transmission and distribution infrastructure which have become old and dilapidated. 

    “This has led to historical epileptic supply of Power to households, industry and businesses”, he said. 

    Read Also: 8m metering gap bane of DisCos financial illiquidity, says minister

    According to him, more than 59 percent of industries in the Nigeria are off the grid. 

    He said: “They did not see the national grid as reliable and dependable. So a lot of them now operate their own captive, self-generated power.”

    Adelabu said the administration of President Bola Ahmed Tinubu is determined to transform the power sector adding that a lot of activities have started that is gradually bringing back confidence in the sector and  among the power sector consumers especially the industries.

    Acknowledging the different initiatives of the government, Adelabu went down memory lane that in 1984, about 40 years ago Nigeria was able to generate 2,000 megawatts and it took us over 35 years to add additional 2,000 megawatts.  

    “When this administration came in last year, we met around 4 gigawatts (4,000 megawatts) of power but within a year, we were able to generate a milestone of 5,170 megawatts adding about 1000 megawatts of power within the first year. It may look small, but compared to the history of the country, this is commendable. 

    “Our plan is by the end of the year, we aim to achieve 6,000 megawatts of power through a combination of hydro electric power plants and our gas- fired power plant. We are also targeting 30 gigawatts of Power to be generated, transmitted and distributed by year 2030 out of which 30 percent would be renewable energy”.

    The minister said the renewable energy segment will come from a combination of  hydro electric power from small dams, solar energy sources and wind farms from onshore and offshore winds. 

    On the issue of the construction of the super grid, the Minister said the national grid in its present state can not support the vision for the power sector. 

    “If we look at the strength, the capacity and the age of our existing network on the National grid, it cannot really support our vision for the power sector hence the need for the construction of the Western and Eastern super grid. 

    “Though we have been on this since my resumption, I can also tell you that the President is in full support of this because this will improve our transmission network, stabilise the grid and also expand the capacity and the flexibility of the National  grid.” 

    He said 90 percent of the approval required is in place and would be concluded soon.

    Speaking earlier, President of TBEA, Huang Hanjie assured of the organisation’s continued support for the Nigeria’s government vision for the power sector. 

    He said TBEA operates across 100 countries in the world and would be willing to share its experience in the provision of energy. 

    He said TBEA is not new in Nigeria adding that the company is presently  working with the Omotosho, power plant, Ondo State owned by the Niger Delta Power Holding (NDPHC). 

    Hanjie also commended the Minister for the improvement in the power sector as evidenced in improved generation and transmission since his assumption of office. 

    While also acknowledging the short term improvement to 6 gigawatts by December 2024 and 30 gigawatts by 2030, he said TBEA would be willing to work with the Nigerian government to achieve the vision and contribute to the ongoing power sector revolution in the country. 

    On the proposed Super grid by the Nigerian government,  he indicated TBEA’s interest in participating by  contributing its expertise in the project to guarantee its success.