The Nation Newspaper

Tag: Electricity

  • Firm to introduce mini refineries, generate electricity

    Evolve Trading & Investment Limited has signed a Memorandum of Understanding (MOU) with Awaritse Nigeria Limited; a local oil servicing company to introduce mini refineries with capacity to process crude oil, produce water and also generate electricity.

    The partnership was signed after meetings in London between Awaritse Nigeria Limited team and Evolve Trading & Investments, represented by Mr. George Karstein Irvine, Senior Vice President and Godwin Omar Atsimene Jnr.; Strategic Alliance Partner.

    “Our innovative refining technology is far ahead of the standard refining process, which does not produce the additional outputs of electricity and drinking water. The unit has been named, the ‘Genesis Life Cube (GLC)’ and is based on the context of creating life by producing the basic elements of water and light.

    Evolve feels that these are the first building blocks needed to expand the socio-economic benefits to communities where the Genesis Life Cubes are sited” said George Karstein Irvine, Senior Vice President of Evolve.

    The GLC has the ability to produce a basic yield of refined products designed for the local market as well as electricity and drinking water for local consumption.

  • Electricity: US to help Nigeria generate 10,000mw in five years

    Nigeria may, in five years, generate 10,000 megawatt (mw) of electricity if United States (US) President Barack Obama implements the report of the President’s Advisory Council on Doing Business in Africa (PAC-DBIA) before leaving office in January.

    The PAC-DBIA comprising 15 American private sector leaders with business operations throughout Africa was  appointed by Obama in 2014 to advise him on how to advance the US-Africa business agenda.

    It recommended, among others, the acceleration of energy infrastructure in Nigeria where the U.S. is expected to  pursue a detailed action plan to achieve 10,000mw of electricity.

    The report advised that as a result of Nigeria’s enormous potential as the largest country in the continent in terms of both population and GDP, and because the electricity generation and distribution capacities in Nigeria are among the least developed on the continent,  President Obama should focus on Nigeria as the focal point for energy infrastructure on the continent.

    The advisors recommended that US and Africa policy makers should collaborate on identifying and facilitating investment in electricity generation, especially for the hard- to-finance early stage projects.

    They further asked Obama to see the provision of electricity in Nigeria and other sub Saharan Africa countries as his greatest achievement to drive growth and development in sub Saharan Africa.

    They asked President Obama to pursue tax treaties with key African countries poised for large scale growth and development, including Nigeria and Ethiopia.

    While the advisors all have active business operations on the continent, they  travelled as a delegation led by US Secretary of Commerce Penny Pritzker to East and West Africa to meet with presidents, ministers of trade, investment and commerce, as well as the leading private sector players in both African and US owned businesses.

    Pritzker believes the private sector representatives comprising the PAC-DBIA have been instrumental in helping the Obama administration develop the trade and investment priorities that have led to an expanded U.S.-Africa commercial relationship.

    “We have utilised their invaluable information, analysis, and recommendations to create sustainable commercial partnerships that lead to job growth, a stronger entrepreneurial ecosystem, and expanded economic opportunities. PAC-DBIA’s efforts continue to pay dividends for companies on both continents in areas as diverse as workforce training, energy, and transportation infrastructure.”

    One of President Obama’s greatest legacies will be Power Africa, a comprehensive set of resources including US government backed financial and technical support to electrify Africa it added.

    “Energy infrastructure is a fundamental enabler of growth, security and quality of life. It is for this reason that PAC-DBIA recommends that the US president make electricity its first and foremost priority”.

    They also suggested the strengthening of vocational and skills training noting that Africa cannot develop without huge investment in skills training or sustained, without a well-trained workforce. Most countries in Africa have a skills shortage it added. There is a wide gap between the strong academic programs offered by many universities in Africa, and the pragmatic skills required to advance the economies of most African nations”.

    Another recommendation the group is to improve travel routes and transportation based on their observation that Africa is the least connected continent, with less than 12 per cent of its trade being intra-regional versus over 60 per cent for the European Union.

    They also recommended that US develop a coordinated financing strategy for Africa aviation projects across US government financing institutions, including the Export Import Bank and the Overseas Private Investment Corporation, both of which have programs that assist in the financing of aviation infrastructure.

    • Additional report from International Trade Administration of Department of Commerce USA
  • Coal to contribute 30% of electricity, says Fayemi

    Coal to contribute 30% of electricity, says Fayemi

    • Ajaokuta Steel Company not concessioned

    Nigeria will soon be using coal as an alternative source of energy, the Minister of Solid Minerals and Mining, Dr. Kayode Fayemi, has said.

    Fayemi, who spoke when the Executive Director of a Non-Governmental Organization, CSR-in-Action, Bekeme Masade, led a team of civil society organisations on a visit to him, said the Ministry of Power, Woks and Housing, has set itself the policy on energy needs and it has proposed that coal will contribute 30 per cent into the energy needs.

    He said: “We have dedicated that coal licenses will only be awarded to those who want to generate electricity and we are collaborating with the FMPWH on this,” adding that the process is on.

    “There are certain processes you need to fulfil. You need to have a licence for power generation before you acquire a licence for mining. Since the inception of this administration, no licence for coal has been awarded which is not for the purposes of power generation.

    “So if you acquire a licence for mining coal, you have to also have that for power. Once the application is filed and it is not encumbered by any legal, or existing holder of a licence, the licence is awarded, but it must be for power generation only. Quite a number of companies have applied directly either to us or to the FMPWH,” he stated.

    On Ajaokuta, Fayemi said the Federal Government has not  conceded control of Ajaokuta Steel Company to either Chinese or Indian firms, saying there is no official engagement with anybody on ASC. He described as misleading, reports in some quarters to the effect  that the steel company has been handed over to a Chinese firm.

    Fayemi, who was represented by his Technical Adviser,  Egghead Odewale, said the original concession agreement that was signed between Nigeria, Global Steel Holding Limited and Global Infrastructure Nigeria Limited, “has been re-modified.

    “The original concession agreement that was signed between the Federal Government of Nigeria, Global Steel Holding Limited and Global Infrastructure Nigeria Limited has been re-modified. It has been modified to decouple Ajaokuta Steel Company Limited from Nigeria Iron Ore Mining Company in Itakpe.

    “What that also portends is that Global Infrastructure Nigeria Limited now has seven years of their original concession to complete the mining operation to operate Neo-coal in Itakpe whereas Ajaokuta has reverted to the government of Nigeria. So it is now been held by the Federal Government of Nigeria, “ he stated.

    Speaking on those he called “artisanal miners” and those who work under the radars”, the minister said the menace was part of the development challenges in the country.

    He expressed concern over the menace of illegal miners in the country estimated to number about 15 million.

    He said: “Our approach is not a law and order approach to be able to regularise the operations of these illegal miners who work under the radar. Our approach is to incentivise them to formalise their processes, and to be able to get them to contribute to public revenue and for the benefit of their own operation so that they will be able to benefit from the mining operations that we undertake day-in-day-out because we are marking a process to undertake an extension service for artisanal miners.

    “I won’t say we have credible data on their number, but there are estimates that put their population to be up to between 10-15 million.

  • Electricity workers, others protest poor power services

    Electricity workers, others protest poor power services

    Members of civil society, Nigeria Labour Congress (NLC) and workers under the umbrella organisation, National Union of Electricity Employees have protested the shortfall in administration and services of the Enugu Electricity Distribution Company (EEDC) in Aba, the commercial nerve of Abia State.

    Consumers of electricity in Aba and its environs have been crying out over the arbitrary increase of electricity bills, irregular power supply and estimated bills. Some EEDC staff said they are understaffed, necessitating the engagement of casual workers.

    The protesters displayed placards, some of which read, “EEDC should provide electricity supply for its customers; EEDC should provide customers with pre-paid meters; Stop arbitrary sack of workers; NUEE say No to casualisation; NUEE say No to EEDC High-handedness; Stop giving customers estimated bills”.

    Some of the protesters including Mr. Ossy Abangwu, chairman, National Union of Electricity Employee (NUEE) in the state, and a national officer of the union, Mr. Tony Ndubuisi told our reporter on the EEDC premises that they were protesting what they described as “anti-labour policies and inhuman workers treatment policy of the EEDC.”

    Ndubuisi said, “In addition to the anti-labour policies of EEDC and inhuman treatment working conditions in which the workers have been subjected to, which includes arbitrary sack of workers as if we are not working or as if we are in slave labour and we say no.

    “This is not how people should work in their own country, there should be dignity in labour. People should be punished or sacked when they commit an offence that warrants sack, the country has labour laws and the labour laws of Nigeria should be followed by the EEDC; that is our point. The National Union of Electricity Employees is saying that they should follow and obey the labour laws of the country.”

    Continuing, Ndubuisi who accused the management of the EEDC of failing to use professionals, said “We say no to load rejections…EEDC refuses to pick loads and when you refuse to do so you suffer the masses, we say no to it. When there is load, the electrical facility will be busy which will also need manpower and this will create employment to the unemployed. We are telling the EEDC to pick loads so that their workers will  have work to do.”

    Abangwu corroborating Ndubuisi added “There are cases of sack even as I am speaking. Lists are being compiled on a daily basis and people are losing their job everyday. Someone can be sacked without any reason even by mere gossip which is very wrong to sack workers based on mere gossip or allegation. It is also not every misconduct that should attract sack. These are what we are saying no to, because we don’t have to work and be treated like slaves in our own country. We are protesting so that the management will change this attitude because it looks as if we are working under threat and fear.

    “We are also protesting the absence of pre-paid meters by EEDC; the federal government has said that the distribution companies should give customers pre-paid meters so that you only collect money for services you render. But it has been recorded that when you are going about, EEDC is also going out to collect money from people for services they do not render, using a system that everybody has discredited called estimated billing and crazy billing, and this is why workers are sacked often.

  • Electricity workers, others protest poor power services

    Electricity workers, others protest poor power services

    Members of civil society, Nigeria Labour Congress (NLC) and workers under the umbrella organisation, National Union of Electricity Employees have protested the shortfall in administration and services of the Enugu Electricity Distribution Company (EEDC) in Aba, the commercial nerve of Abia State.

    Consumers of electricity in Aba and its environs have been crying out over the arbitrary increase of electricity bills, irregular power supply and estimated bills. Some EEDC staff said they are understaffed, necessitating the engagement of casual workers.

    The protesters displayed placards, some of which read, “EEDC should provide electricity supply for its customers; EEDC should provide customers with pre-paid meters; Stop arbitrary sack of workers; NUEE say No to casualisation; NUEE say No to EEDC High-handedness; Stop giving customers estimated bills”.

    Some of the protesters including Mr. Ossy Abangwu, chairman, National Union of Electricity Employee (NUEE) in the state, and a national officer of the union, Mr. Tony Ndubuisi told our reporter on the EEDC premises that they were protesting what they described as “anti-labour policies and inhuman workers treatment policy of the EEDC.”

    Ndubuisi said, “In addition to the anti-labour policies of EEDC and inhuman treatment working conditions in which the workers have been subjected to, which includes arbitrary sack of workers as if we are not working or as if we are in slave labour and we say no.

    “This is not how people should work in their own country, there should be dignity in labour. People should be punished or sacked when they commit an offence that warrants sack, the country has labour laws and the labour laws of Nigeria should be followed by the EEDC; that is our point. The National Union of Electricity Employees is saying that they should follow and obey the labour laws of the country.”

    Continuing, Ndubuisi who accused the management of the EEDC of failing to use professionals, said “We say no to load rejections…EEDC refuses to pick loads and when you refuse to do so you suffer the masses, we say no to it. When there is load, the electrical facility will be busy which will also need manpower and this will create employment to the unemployed. We are telling the EEDC to pick loads so that their workers will  have work to do.”

    Abangwu corroborating Ndubuisi added “There are cases of sack even as I am speaking. Lists are being compiled on a daily basis and people are losing their job everyday. Someone can be sacked without any reason even by mere gossip which is very wrong to sack workers based on mere gossip or allegation. It is also not every misconduct that should attract sack. These are what we are saying no to, because we don’t have to work and be treated like slaves in our own country. We are protesting so that the management will change this attitude because it looks as if we are working under threat and fear.

    “We are also protesting the absence of pre-paid meters by EEDC; the federal government has said that the distribution companies should give customers pre-paid meters so that you only collect money for services you render. But it has been recorded that when you are going about, EEDC is also going out to collect money from people for services they do not render, using a system that everybody has discredited called estimated billing and crazy billing, and this is why workers are sacked often.

  • Electricity firm seeks mass action against energy theft 

    The Port-Harcourt Electricity Distribution Company (PHEDC) is one of the 11 distribution companies licensed to operate in Nigeria. But the firm does not derive joy operating within its jurisdiction of Bayelsa, Akwa Ibom, Cross River and Rivers State.

    Ordinarily, one expects a company that renders services to 440,000 residential, commercial, industrial and street lighting customers to have a robust balance sheet. But PHEDC is not smiling to the bank despite having such customer base.

    Its operational profit has been seriously hampered by energy theft. In fact, the statistics reeled out by the company in a forum it recently organised in Yenagoa, Bayelsa State, showed that the PHEDC is operating at a huge loss. Such losses according to the firm is the reason behind its inability to effectively buy and distribute megawatts of electricity to its real customers.

    Present at the forum were the Chairman, Board of Directors, PHEDC, Chief Amalate Turner,  represented by the Special Adviser to Bayelsa Governor on Energy, Mr. Francis Ekio;  Manager, Corporate Communications Department,  John Onyi; Head, Glory City Main Integrated Business Centre, Mrs Ngozi Manafa, among others.

    A presentation by a member of the company’s Legal Department, Mr. Ephraim Munachiso showed that the company loses over N233million representing over 7million kilowatts of energy to electricity theft every month. Yearly the company incurs a loss of N3bn to the menace.

    Munachiso further posited that 10 per cent of prepaid customers had never vended since they were connected while the Technical, Commercial and Collection (ATC &C) losses of the company is as high as 60 per cent monthly representing 30megawatts or N2bn average monthly losses.

    Defining ATC & C, he said: “The most critical challenge facing the distribution sector is how to reduce the technical, commercial and collection (ATC & C) Losses.

    “Unfortunately, the Aggregate Technical, Commercial and Coll ection losses is what is used in assessing the health status of anys utility company like PHED. The lower the value of ATC & C, the healthier the utility company is considered to be.

    “Technical  distribution losse s are electrical losses arising from the transformation of electrical energy into heat energy as it flows and transmitted through conductors to any of the DISCO’s”.

    On commercial losses, he said they are revenue losses arising from electricity theft, poor b illing practices, inaccurate c ustomer database, wrong tariff classification and  unbilled energy. He defined collection losses as simply revenue losses arising from discos’ inability to collect revenues for energy billed to known customers.

    He said two years after privatisation, PHED was still grappling with very high losses caused by poor collection and revenue shortfall, network infrastructure challenges and grid energy insufficiency and instability.

    He identified common types of electricity theft as hooking or direct tapping, meter bypass and illegal connections. But he said the law frowns on electricity theft saying it is classifying as stealing under the Criminal Code Act Section 400.

    He said civilians are empowered by the Police Act to arrest anybody seen to be committing energy theft. According to him currently, PHEDC is prosecuting 13 different criminal cases emanating from energy theft within its network. He named key players to the theft as staff sabotage, casuals and electricians.

    Munachiso lamented that the company incurs its major loss at the Yenagoa district adding that most people living in Bayelsa State do not pay their bills. He said it is not profitable to operate in the state.

    Speaking on the matter, Turner further explained that the poor power supply especially in Bayelsa is because consumers were not paying their bills.

    On stealing and vandalism of PHEDC equipment, he urged the perpetrators to desist from such act, saying the menace had far reaching implications for power supply.

    Turner said the Bayelsa State Government was coming out with a law to punish anybody who engaged in unwholesome practices such as vandalism, tapping of light, meter manipulation,  among others.

    He also urged the public to report any errant officials of the PHEDC, challenging the customers not to be docile.

    A safety manager with the company, Mr. Gabriel Egede,  urged customers to be safety conscious and avoid engaging in unwholesome activities as such could lead to loss of lives.

    He said no fewer than 557 fatalities had been recorded in the last four years because of vandalism,  illegal connection and tempering with electricity equipment. He said it was dangerous for people to engage in the practice of erecting structures under high tension wires.

  • ‘10,000Mw of electricity not achievable’

    ‘10,000Mw of electricity not achievable’

    Ten thousand megawatts  (Mw) of electricity target in the country may not be achievable, the Vice Chairman Senate Committee on Power, Senator Bukar Mustapha, said yesterday.

    He, however, said President Muhammadu Buhari has laid the foundation for the country’s prosperity in the last one year of his administration.

    The lawmaker who spoke to reporters in Abuja expressed disappointment over the poor performance of electricity generating and distribution companies in the country.

    He tasked the Federal Government to urgently review the privatisation exercise of the power sector if it wanted to achieve the desired results.

    The review, he said, should be informed by the glaring inability of the generating companies (GenCos) and distribution companies (DisCos) to fulfill their own part of the bargain of providing electricity in the country.

    He lamented that the country is losing between N10 billion and N15 billion monthly due to some weaknesses in the power sector chain.

    The lawmaker noted that if electricity generation is not adequately improved, DisCos cannot perform well.

    He insisted that 10,000 Mw of electricity is not achievable unless the power sector is stabilised and repositioned.

    He also urged the Federal Government to take a second look at the Power Sector Act with a view to fine tuning it to serve the country better.

  • Fraud called electricity privatization

    SIR: It is now obvious that whatever yards tick used in privatizing the power sector was largely faulty. This is because the outcome so far leaves much to be desired. The sector is still bedeviled with lots of problems. There is no difference between now and the PHCN era. The only remarkable difference is the like in electricity tariff without a corresponding improvement in service delivery.

    Before deregulating the power sector, flattering promises were made: that with privatization, Nigerians would not experience darkness any longer; that power outages would be a thing of the past; that the best hands had been picked to ensure this. The bitter truth today is that the Generation, Transmission and Distribution companies with odd sounding acronyms of GENCOS, TRANCOS and DISCOS respectively have failed Nigerians. It has been a cacophony of blames among these key players.  While the DISCOS claim they can only distribute what has been generated and transmitted, the GENCOS and TRANCOS haves their own excuses. At the end of the day, hapless Nigerians are the worse for it.

    The case of the DISCOS is the most annoying. If they claim they can only distribute what they generate, how about their billing system? Take for example the BEDC (Benin Electricity Distribution Company). This one is in charge of supplying power to Edo, Delta and Ondo states. From all indication, this company lacks the manpower and expertise to carry out the task it has chosen to undertake. Not long ago, the Edo State governor, Comrade Adams Oshiomhole summoned the management of this company and read the riot act: he warned that he would revoke the company’s C of O should it continue with its incompetence and exploitation of Edo people with crazy bills that do that justify the power  supplied.  In Delta State, the story is the same. In the state capital Asaba and envious especially, power supply is worse than epileptic. Same is the fate of Ondo State.

    Deliberately, many of these DISCOS have reneged on their promise to supply Nigerian homes and offices with pre-paid meters even though this was part of the contract they signed. They prefer the ‘Estimated Billing’ regimen. The reason is simple: it benefits them more because of its exploitative nature. The DISCOS have misconstrued the tolerance and patience of Nigerians as acceptance of their ineptitude and fraudulent tendencies. So far, they are giving private entrepreneurship a bad name.

    This government should revisit the entire process of electricity deregulation and correct the anomaly therein. It should not fold its hands while some bloated capitalists take undue advantage of Nigerians.

     

    • Lucky Ofodu,

    Agbor, Delta State.

  • How TCN can be more effective, by workers

    How TCN can be more effective, by workers

    Electricity workers have listed two options for making the Transmission Company of Nigeria (TCN) more effective.

    In the last four years, TCN has been under Manitoba Hydro International (MHI), a  foreign management company. When its contract  expired, it was extended by one year by the government, last year.

    The Senior Staff Association of Electricity and Allied Companies (SSAEAC) suggested a re-composition of the MHI counterpart management team and injection of new technocrats from the sector in areas that require strengthening.

    SSAEAC’s President-General  Mr Chris Okonkwo also suggested that MHI and Nigerian counterparts should form a new structure.

    In the third option, the union suggested that MHI functions as advisers to the Nigerian management team.

    He also called on the government to revise the cost component of MHI contract and ensure an upward review of the remuneration of Nigerian management team.

    It would be recalled that in a memo it forwarded to the Presidency recently, SSAEAC  called for outright transfer of management of TCN to  a reconstituted Nigerian management team.

    Its position was premised on alleged poor performance of the foreign management contractor; perception of wastages of resources due to non-performance; lack of clear Key Performance Indicators and lack of appreciable change in operational challenges from commencement of contract (system collapse, poor funding, process bottlenecks, among others)

    Okonkwo said the union was giving the additional options in view of the possible misrepresentation of the first and preferred position of SSAEAC, which is now offering more options to widen government’ choice in taking  informed  decision on TCN.

    Okonkwo  said: “One option is to have TCN HQ structure collapsed to have one MD/CEO (no MD TSP, MD ISO) with the following structure: MD/CEO, ED (Tech. Service), ED (Market Operations), ED (System Operations), ED (Human Resources) and ED (Finance and Accounts) –General Managers and AGMs will fall under the EDs except for those to report to the MD/CEO.

    “The structure of TCN with MD/CEO TCN, MD TSP and MD ISO may also be used.However, it could be suspended to achieve some measure of targets by compressing it as suggested above, without loss of positions,’’ he said.

    He  listed  the problems impeding the growth of TCN to include poor budgetary funding for completion of a ring grid by constructing/completing critical lines to stem system fragility; poor tariff for wheeling of electricity; NERC’s  indisposition  to good tariff for TCN using same considerations for GenCos and DisCos; One-sided orders against TCN in favour of other stakeholders by NERC for instance; TCN surcharge for low energy delivery without corresponding sanction for GenCos for low generation and DisCos for rejecting loads and  surcharge of higher Transmission Loss Factor (TLF) without corresponding reward for TLF below benchmark of 8.05 per cent.

  • NLC asks FG to enforce court order on electricity tariff

    The President of the Nigeria Labour Congress (NLC), Comrade Ayuba Wabba, has urged the Federal Government to enforce last Wednesday’s Federal High Court order which annulled the the Nigerian Electricity Regulatory Commission (NERC)’s 45 per cent increase in electricity tariff.
    Speaking in Lagos at the weekend, Wabba advised NERC to immediately
    obey the court order to reverse its tariffs ‘so as to avoid the wrath of Nigerians.’
    The NLC, he warned, will not hesitate to file contempt proceedings against anyone who disobeys the order.
    While describing the judgment as a victory for the labour force, trade unions, civil societies and Nigerians in general, Wabba said it portrayed hope for democracy, rule of law and the judiciary.
    He said: “We collectively urge the regulatory body to immediately comply with this judgment of the court. The Presidency must prevail on the regulatory body.
    “If indeed this is a democratic government that respects the rule of law, the illegal tariff hike must be reversed immediately, as we will not hesitate to bring contempt proceedings against whosoever is to comply or ensure compliance”, he said.
    Justice Idris, while delivering judgment in a suit instituted by rights activist, Mr. Toluwani Yemi Adebiyi, declared that the increase was procedurally ultra vires, irrational, irregular and illegal because it was not in conformity with Section 76 of the Electricity Power Sector Reform Act(EPSRA) 2005.