The Nation Newspaper

Tag: DISCOS

  • TCN, AEDC trade blame over load allocation, rejection

    The Transmission Company of Nigeria ( TCN ) and Abuja Electricity Distribution Company (AEDC) on Friday traded blames over why power supply to the DisCos and customers was low.

    TCN’s Managing Director Usman Gur Mohammed said there was no network constraint in the Nigerian Electricity Supply Industry (NESI) that would have amounted to load reduction.

    The TCN boss spoke at the official commissioning of 2*60 power transformers in Suleja Transmission Substation, Niger State.

    According to him, the constraint was simply that of the AEDC equipment.

    He promised to take the reporters on a tour on the transmission substations around within the territory of the AEDC.

    He said: “The constraint that Abuja has is within their equipment not within the network.

    “And there is no place in Abuja where we have the network. Let me tell you, some of the things we did in Kano, Kaduna, if you are interested we can take you.

    “In Kaduna they created this problem and said we have problem with network, I instructed our regional manager and said take them to the sub-station and show what was the capacity and what distribution were taking.

    “So, we will do the same thing for you to enter our sub-station in Abuja so that you can see for yourself what is the capacity there and what has Abuja DisCo taken.”

    But AEDC Head of Corporate Communications Oyebode Fadipe told our correspondent on phone although the AEDC had its challenges, it was unfair for the MD of TCN to blame all the constraints in the sector on it since there were also challenges of transmission network.

    He said: “It will be unfair to say that it is our company (AEDC) that made our customers not to have power in the homes.

    Read Also; TCN targets 20,000 megawatts in 2021, says MD

    “We have our challenges and TCN has its own constraints too, it is unfair for him to keep saying that the DisCos are the weakest link in the value chain. TCN should face its challenges and let us face our own.”

    The Nation, however, learnt from a source who did not want her name mentioned that “in this week, the breaker in Gwagwalada was bad. The line in Kukwaba, Kubwa tripped off.”

    The sources wondered whether those faults were those of AEDC equipment.

    The commissioned transformers, according to TCN, were from the $100million loan intervention that the Federal Government received from the International Development Association.

    The contract was awarded to Messrs MBH Power limited in June 2016 with a completion date of June 2018.

    The transformers that have load capacity of 48mw to 162mw will increase the substation’s capacity from 66mw to 162mw.

  • Govt, DisCos, others urged to improve power supply

    The Federal Government, power distribution companies (DisCos) and gas suppliers have been urged to provide to improve  electricity supply.

    Recently, the Federal Government claimed that the power generation has hit 7,000 megawatts (Mw).

    Research and Planning Director, Association, Nigerian Electricity Distributors (ANED) Sunday Oduntan said a lot needs to be done  to ensure that the sector performs optimally.

    In an interview on phone with The Nation, he urged stakeholders, including the Federal Government to improve liquidity, proffer solution to gas problems, rid the sector of pipeline vandalism among solving other problems, before power supply would improve in the country.

    Oduntan said: “There are some challenges that need to be tackled by many stakeholders especially the Federal Government, the DisCos and gas suppliers. These include lack of liquidity that hampers operations, energy theft and others.

    “The vandalism of facilities that occur too often is also a serious problem that leads to huge deficit. No bank would lend you money unless your business is bankable.

    According to him, liquidity crisis is a major threat to the power sector, adding that the issue has culminated in revenue shortfalls, poor network expansion, and others.

    He said DisCos do not have enough money to repair and replace equipment that is vital to their continued growth in the industry.

    A non-governmental organi-sation,  Socio-Economic Rights and Accountability Project (SERAP), in a report, blamed the problems on corruption.

    The organisation said allegations of corruption have had catastrophic effects on the lives of millions of Nigerians, akin to crimes against humanity as contemplated under the Rome Statue and within the jurisdiction of the court.

    It said huge amounts of public funds alleged to have been stolen over the years in the electricity sector created these problems.

    “Crimes against humanity are not only physical violence; allegations of corruption in the electricity sector hold a comparable gravity, which the Prosecutor should examine and thoroughly investigate.

    “Corrupt officials and corrupt contractors in the electricity sector know well that their conduct is criminal and injurious, and the denial of human dignity coupled with a radical breach of solemn trust, aggravate their alleged crime,” it added.

  • DisCos seek government intervention

    Electricity distribution companies (DisCos) are seeking Federal Government’s interventions to make their operations and service delivery efficient, safe and profitable.

    Eko Electricity Distribution Company (EKEDC) Managing Director, Adeoye Fadeyibi made the call when the Senate Committee on Power, Steel Development and Metallurgy, visited the company as part of its oversight function at the weekend in Lagos.

    He urged the Committee, led by its chairman, Senator Enyinnaya Abaribe, to make the government and National Assembly look into making legislation specifying stringent punishment and prosecution of offenders involved in the acts of vandalism, energy theft, tampering with public power facilities and building on right-of-way of power firms.

    Other areas Fadeyibi appealed to the government include facilitation of payment of government’s ministries, departments and agencies’ (MDAs) bills as at when due, approval of special exchange rate for the power industry, and consideration and approval of intervention bond for the power sector.

    The EKEDC chief also noted the importance of streamlining policies and regulations that guide the power sector. According to him, proper alignment and allocation of risk along the electricity supply value chain and creation of a roadmap/template with measurable indices of agreed key performance indicators (KPIs) are very necessary.

    He said: “All intervention projects funded by the Federal, State and Local Governments need to be done in full partnership with DisCos to ensure that it falls within their business requirements. Improved collaboration/consultation between the government and the operators, that is, creation of an inter-ministerial committee that involves the sector operators is important. Similarly, consistent, transparent and participatory policy/regulation making and implementation as well as improved transparency by Nigerian Bulk Electricity Trading Plc (NBET) and Nigerian Electricity Regulatory Commission (NERC) should be the way forward.”

    Fadeyibi said DisCos are running the business at a loss, their workers harassed by customers and electricity tariff is not cost-reflective. He noted that power, oil and gas sector is exposed to banks at about N3 trillion, adding that customers owe DisCos nationwide about N1.5 trillion.

    The committee urged the DisCos to enhance their networking with the parliament to tackle their problems, adding that complaint of revenue shortfalls implied a call for subsidy. The lawmakers noted that the issue of legislation is apt as it will address the problems of energy theft, vandalism, debts and lack of cost-reflective tariffs, among others.

  • DisCos disconnect 750 houses under power lines

    Electricity distribution companies (DisCos), have disconnected over 750 houses under the power line nationwide, the Managing Director, Nigerian Electricity Management Service Agency (NEMSA), Peter Ewesor, has  said.

    Peter told The Nation that the directive followed from  a directive from the Federal Government.

    He said: “In line with the government policy we have issued directives to the distribution companies to say as a first step, to secure the lives of those living under the line, DisCos should disconnect any structure, any facility, or any building that is within the right of way from the public supply and that we are already doing.

    “And that we are already complying. And they are already sending us the compliance level. And we are compiling them. As of today they have disconnected well over 750 houses, structures from supply within the right of way nationwide.”

    Speaking with The Nation in the agency’s head office in Abuja, he insisted that the power line dwellers that were seeking compensation or resettlement before quitting the right of way (RoW) had been duly compensated in the past.

    He said the Federal Government had a department under the Transmission Company of Nigeria (TCN) in the Power Holding Company of Nigeria, that was called “leave right of way” that assessed the structures under the right of way before they owners were compensated.

    He said some of the residents were complaining about compensation that was inadequate to build new houses, although the compensation was proportional to the value of the demolished structures.

    He said: “government wants to build a 132kV line and a 330KV line, they will do a survey, they will do enumeration for the right of way they are acquiring, and those enumerations are properly documented. And under the then TCN; PHCN there was a way leave department, which assessed all the structures within the right of way.

    “Not just structures, even those who have crops within the right of way. They will pay them and make them to sign for what they have been paid.

    “But some of them said what they paid them was not enough for them to build a house. That too cannot be true because they evaluated the structures because if you built a ramshackle house you cannot be compensated like somebody who has built a standard house.”

    Ewesor, who is also the Chief Electrical Inspector of the Federation, said government used qualified valuers to value the properties but only God knows what the beneficiaries did with the money.

    He expressed surprise that even as the residents claimed that their houses predated the power line, it was physically obvious that most of the structures were erected under the high tension a few years ago.

    According to him, some of the residents that are now complaining of being short-paid were silent when they were compensated. He added that it is incorrect to also say they were not compensated “because there are standard procedures for doing it.”

    The Chief Executive Officer of NEMSA said that there has been a marginal decline in the incidents of electrical accidents and electrocution since the establishment  of the agency.

    He however insisted that “the DisCos still needed to do more because the target is to ensure that we are going to zero tolerance for electrical accidents and electrocution. But it is better than in the past. And probably if NEMSA has not been there doing its job, electrical accidents would have been something else.”

  • DISCOs: MURIC calls for revocation of contracts

    The Muslim Rights Concern (MURIC), on Monday, called on the Minister of Power, Works and Housing, Mr Babatunde Fashola to revoke contracts of non performing power supply stakeholders.

    MURIC made the call in a statement issued to the News Agency of Nigeria (NAN) in Lagos.

    The group accused the Electricity Distribution Companies (DISCOs) of sabotaging efforts of the Federal Government to boost electricity supply to Nigerians because it worked at cross roads with the interest of government.

    Prof. Ishaq Akintola, Director, MURIC making reference to a recent protest by electricity consumers in Lagos, said that protests were being staged in various geopolitical zones of the nation because customers were not satisfied.

    Akintola recounted the ordeal of electricity consumers on the Iba axis in Lagos where power supply was for about six hours daily.

    He accused the EKDEC, some DISCOs and greedy politicians of frustrating the impact of the good work which President Muhammadu Buhari administration had been doing.

    The director appealed to the Minister of Power, Mr Babatunde Fashola, to come to their aid.

    “We are really suffering. It is high time the Federal Government called the bluff of the DISCOs.

    “If it is true that the contract of the DISCOs will be expiring this month (November, 2018), we strongly advise that the contracts should be revoked. These DISCOs are not on the same page with the current administration.

    “They are cogs in the wheel of progress. Let them go back to their avariciously gluttonous politicians and superfluously voracious capitalist bourgeoisie.

    “For the sake of microscopic clarity, we affirm that the concern of MURIC is the welfare of the masses. We are greatly concerned that the DISCOs are supplying darkness instead of light.

    “We are concerned as socio-intellectual jihadists seeking 24-hour electricity supply to Nigerians, freedom for the oppressed, food for the hungry, healing for the sick, clothing apparels for the naked and shelter for the homeless.

    Read Also: Electricity supply: Edo condemns failure of BEDC

    “We remain oppressed until these welfare objectives are attained. The struggle for better life for the poor masses is a noble jihad and we will not abandon this great path,’’ he said.

    Akintola said the residents of Iba were suffering, adding that activities of the huge academia population on the axis were also distorted by lack of adequate power supply.

    “The case of Lagos State University (LASU) is pathetic. Although the university’s visionary, purposeful and dynamic leadership has taken the university to world class status with several initiatives; lack of regular power supply constitutes a potent threat to the sustenance of LASU’s current enviable status.

    “In an effort to ensure regular power supply in Ojo campus, the University management spends a humongous amount every month on diesel and maintenance of the big generators which are installed all over the campus. This eats deep into the coffers of the university.

    “Apart from students who are in the hostel and who must use electricity at night, LASU students also read on campus during the night and this poses another big challenge.

    “It is the height of sadism to give consumers light in the daytime only,’’ he said.

    He called on the EKDEC to turn a new leaf, describing the performance of the DISCOs as disappointing, adding that they worked at variance with the passion of Fashola.

    “MURIC will not hesitate to spearhead a massive but peaceful demonstration against them if they do not perform.

    “We urge the federal government to put an end to the DISCO’s contracts as quickly as possible because they have failed Nigerians,” he said.

    He said that MURIC delegation met with EKDEC management in Iba area about eight months ago to lodge complaints of having power supply for an average of six hours daily at night but the trend had continued.

    He explained that dissatisfied residents dragged EKDEC to court over a year ago.

    According to him, EKDEC treats consumers in high brow areas like Ikoyi with special respect but treats those in Iba area with contempt. That is class segregation.

  • ‘DisCos not charging punitive tarrif’

    Electricity distribution companies (DisCos) are charging tarrifs that are below the ones approved for them by the Nigerian Electricity Regulatory Commission (NERC), and are, therefore, not making life unbearable for consumers, the Sahara Group Managing Director, Mr Kola Olabisi, has said.

    Also, the Managing Director, Ikeja Electric, Mr Anthony Youdeowei, said the firm was giving meters to its customers, adding that only customers owing electricity bills would be made to reconcile their accounts with the company, before they are given meters.

    He said the aim was to enable the company recover debts owed by its customers and to also dispute the claims that power firms are charging huge tarrifs amid inability to provide meters to customers.

    Corroborating Youdeowei, Olabisi said power firms were not happy that customers do not have meters, adding that the welfare of customers was paramount to energy distribution firms, as evident by the tarrif of N6.00 they are collecting from customers, as against N10.00, recommended by the commission.

    Adesina said: ‘’The power firms are collecting N6.00 for electricity consumed in the sector as against N10.00, which NERC ordered them to charge customers. Taking into consideration the cost of procuring facilities through which electricity is distributed to final consumers, and other costs incurred by the firms, it is evident that the DisCos are not making enough profits. Remember, there are losses arising from poor collection of revenues, which only the power firms are made to bear.’’

    He said the development contradicted the notion that power firms were collecting huge charges from the customers

    Speaking at the opening of the new undertaking office of the Ikeja Electric in Lagos, he said energy distributors are charging tarrifs of N6, as against N10 tarrifs imposed on the industry, by the regulators.

    He said the pricing formula was good for the industry, adding that NERC introduced the formula to enable consumers pay their bills and get the product they paid for.

    He urged customers to pay their bills as and when due, adding that when they pay their bills, they should expect services that are commensurate to what they paid through regular supply of electricity.

    ‘’The power firms make money from the light they give to customers, not darkness. The only product they sell is light, and this means that consumers must pay their bills in order to ensure that they are in business,’’ Adesina added.

  • Power Outrage: Discos worse than NEPA – Senator

  • Why meters reject low voltage – NEMSA boss

    The Managing Director, Nigeria Electricity Management Service (NEMSA), Engr. Peter Ewesor Thursday explained why some electricity meters were rejecting low voltage.

    Ewesor, who is the Chief Electrical Inspector of the Federation, said that the meters were programmed to reject low current in order to avoid damage to the appliances the current was supposed to power.

    Speaking on Service and Safety Half Hour on Radio Nigeria, he noted that such meters were functioning in accordance with their programming.

    The meters, he said, were set to trip off automatically when the power supply was no longer good for consumption.

    He described the measure as a safely device that the manufacturers adopted to secure the lives and property.

    His words: “What is happening is the proper thing and it shows that the meter is working effectively to cut you off when the power supply is no longer good enough. When the voltage is very low, you are actually go to have more current and then you meter cannot support it. It is not even able to drive the load and service in your house. So the meter has been made such that if the voltage goes below a certain level, rather than continue to create heat, and cause problem in your applicances, it will cut you off. It is a safety device.”

    A caller asked what could be responsible for his power outage whenever there was low voltage, the NEMSA boss said that the “meters are actually made and preset in a manner that they that they will take care of any issue that could affect either proper consumption in terms of billing or in terms of safety.

    “If the voltage becomes so low, the meter is manufactured and set to a minimum level to which it can no longer read.  So, definitely it has to go off so that it makes sure that you are not using bad power and you are paying for it.”

    He warned power consumers not to tamper with their meters when they reject low Voltage, adding that “you should not touch the meter unless you know how to do it and you are authorized to do so because you could get yourself electrocuted.”

    He said that in order to prevent the consumers from tempering with the meters, the electricity distribution companies could change the meter or its code.

    According to him, “once the seal there is tampered, they (DisCos) will know that it has been tampered.”

  • DisCos: we must speak for our $1.4b investment

    The Association of Nigerian Electricity Distributors (ANED) yesterday told the  Nigeria Electricity Regulatory Commission (NERC ), that it has the legal backing to speak for the Electricity Distrubution Companies (DisCos) that invested $1.4 billion in the power assets.

    The association in its reaction to the Communique that barred them from denigrating the Minister of Power, Works and Housing, Babatunde Fashola, said it the legal backing that the other associations in the sector rely on to air thier views.

    In a statement issued  yesterday, ANED  Chief Executive Officer, Azu Obiaya said the association and its activities are guaranteed by Section 40 of the 1999 Constitution of the Federal Republic of Nigeria under the right of association.

    It said, “The DisCos with their formation of, and membership of ANED, are exercising this right, not different from similar entities along the Nigerian Electricity Supply Industry (NESI) value chain, such as the Association of Power Generating Companies (APGC), Nigerian Gas Association (NGA) and National Union of Electricity Employees (NUEE), among others .”

    ANED said it represents the DisCos with a principal mandate of advocacy, to protect the interests of its member companies directly and indirectly, the incomes of a 22,000-employee workforce.

    The statement state: “The investors who have sunk more than $1.4billion in the acquisition and operations of the DisCos to date, and our customers who seek to enjoy the benefits of the best practices that result from the interaction of our members under the ANED umbrella.”

    NERC had in a communique issued after a meeting with the DisCos on August 27, 2018, complained about ANED activities being a hindrance, saying the association should not interfere with policy directives, or regulatory pronouncements made by the Minister of Power, or the Commission.

    It also barred ANED from making any unwarranted remark against the minister and NERC Commissioners.

    ANED said its expression, or promotion of a viewpoint that is contrary to that of an established regulation, or policy should not be construed as ‘interference’, particularly in the context of the workings of an industry with multiple stakeholder interests.

    The association said there was need to address the widening tariff gap that hinders DisCos from performing their obligations due to freezing of the residential tariffs (R2) in 2015, for 18 months, removal of Collection Losses in 2015; non-implementation of five tariff reviews.

    It also said the N435.7 billion of under-recovered revenue, among others are the regulatory responsibilities NERC should focus on.

    The body restated its interested in the urgent reset of the sector, with the implementation of the Power Sector Reform Program (PSRP) to stop the sector from bleeding, drive the investment that is critical for injecting efficiency and provide electricity customers respite from the current difficulties of electricity supply.

  • NERC bars DisCos from villifying Fashola

    The Nigeria Electricity Regulatory Commission NERC ) has barred the Electricity Distribution Companies (DisCos ) from disparaging the Minister of Power, Works and Housing, Babatunde Fashola.

    In a communique issued after a meeting with the DisCos, it was agreed that the Legal Counsel of the Electricity Distribution Companies representing ANED, should never in whatsoever way interfere with the policy directives, or regulatory pronouncements made either by the Honorable Minister of Power, or the Commission.

    “That no unwarranted remark should be made by ANED representatives against the person of the Honorable Minister, NERC Chairman or against any of the NERC Commissioner going forward”

    According to the communique, the meeting stressed the need to uphold customer service standards especially as it relates to refund of monies collected from customers for meters under the scrapped CAPMI Scheme.

    It said the Discos were directed to publish a reminder in any two National Newspapers that customers who paid for CAMPI yet unmetered should come for refund with details of payment.

    The meeting also received reports that some MD customers’ were still unmetered inspite of NERC’s Order and  directed that Discos should report on the current status especially as it relates to Energy Theft and compliance.

    The Discos, NERC said, are to pay attention to MD Meters within their franchise being bypassed, or compromised, adding that Smart technologies should be deployed in appropriate areas going forward.

    The meeting raised concerns over non compliance of the Discos with the Estimated Billing Methodology, disregard for safety standards and the poor state of the Forum Offices, as well as their large backlog of unresolved cases.

    It said that Electricity Distribution Companies should ensure that estimated bills are kept within reasonable levels in accordance with the Methodology even before the MAP regulation and capping regulation come into  effect.

    The meeting agreed that the Uniform System of Accounts (USoA) reporting form should be on the Commission’s website by Friday August 31, 2018.

    A special session was agreed to be set aside for in depth discussion with the Operators on Competition Transition Charge (CTC) and Franchising before the consultation with the larger stakeholders will commence.

    In addition, the 72bn naira intervention fund is to be clearly structured. It was agreed that this offer should be fully utilised by the Electricity Distribution Companies.

    “The Electricity Distribution Companies were advised to make submission Energising Economic Clusters for the Commission’s consideration