The Nation Newspaper

Tag: Electricity

  • Electricity workers protest in Ibadan

    Former employees of the Ibadan Electricity Distribution Company (IBEDC) yesterday marched on the streets of Ibadan, the Oyo State capital, to protest their alleged wrongful disengagement.

    They said their sack violated the October 2013  agreement between the Bureau of Public Enterprises (BPE) and the National Union of Electricity Employees (NUEE).

    The aggrieved workers from Oyo, Osun, Ogun, Kwara and Kogi states called on the Senate Committee on Power, which is probing the sale of the former Power Holding Company of Nigeria (PHCN), to consider their plight.

    They claimed that sequel to the privatisation and subsequent handover of the company to investors on October 30, 2013, many workers, particularly newly regularised staff, were wrongly disengaged.

    Carrying a banner “Disengaged Newly Regularised Staff of Ibadan Electricity Distribution Company”, the protesters stormed The Nation’s Ibadan office decrying the attitude of the IBEDC management.

    Their spokesman, Saka Fatai, said many of them have served the company for over 15 years as casual workers and were later given full appointment which did not last for 15 months before they were wrongly disengaged.

    He said: “This is sad. It has caused hardship to our well-being socially, economically and even spiritually.

    “Our children have been sent out of school for non-payment of fees.

    “Some of our colleagues have died because they couldn’t afford their medical bills.”

    Fatai added that despite several appeal letters, IBEDC management did not respond to their demands, which included payment of entitlements and recall of sacked workers.

    “Unfortunately, we were laid off shortly after we got appointment letters as regularised staff.

    “We have our members who have been with the company for 15 to 20 years. And you just tell them to go on retirement with peanuts. That is wicked.

    “We appeal to President Muhammadu Buhari, Minister of Power Babatunde Fashola and his Labour counterpart Chris Ngige to prevail on IBEDC management to pay us.”

  • New electricity tariff: NLC, TUC to picket DISCOs nationwide

    New electricity tariff: NLC, TUC to picket DISCOs nationwide

    The extended labour unions, including the Nigerian Labour Congress (NLC) and Trade Union Congress (TUC) have set machinery in motion to picket the offices of the electricity distribution companies (DISCOs) nationwide, The Nation has learnt.

    Rising from a stakeholders’ meeting convened in Lagos at the weekend, NLC president Comrade Ayuba Wabba and his counterpart at TUC, Comrade Bobbi Kagama, and Messrs Adeola Samiel-Ilori, Coordinator, Electricity Consumer Protection Forum, Toluwani Yemi-Adebiyi, a human right activist and Chinedu Bosah, publicity secretary, CDWR, described as illegal, unfair and unjustifiable a further exploitation of the exploited Nigerians the intention to increase electricity tariff come February 1st, 2016.

    Justifying the need for the rejection of the new tariff they said due process was not followed in line with Section 76 of the Power Sector Reform Act, 2005.

    Besides, they said there has been no significant improvement in service delivery just as they accused the DISCOs of reneging on the memorandum of understanding in which the latter promised to provide meters to al electricity consumers but failed to do so.

    Subsequently, they hinted that the labour unions will as a matter of necessity mobilise all Nigerians to resist the new tariff by embarking on mass protest and picketing of all DISCOs’ offices nationwide.

    “We direct all consumers to reject any bill with the new tariff and so many other actions we may deem necessary.”

    It may be recalled that Yemi-Adebiyi who had taken the NERC to court got an order by the Federal High Court in Lagos to stop it from further increasing its tariff, said the injunction granted by Justice Ibrahim Idris against any increment was subsisting and had not been discharged.

    Justice Idris made the order on May 28 restraining NERC from increasing tariff in June.

  • ‘Solar can provide electricity to 90m Nigerians’

    ‘Solar can provide electricity to 90m Nigerians’

    The Council for Renewable Energy of Nigeria (CREN) has said solar energy can provide electricity for about 90 million Nigerians. This will speed up business investments in the country and create opportunities for employment, it added.

    The President of the council, Anita Okuribido, said ‘’when people are sure that they could get 24 hours of electricity supply from off-grid sources such as solar, they would buy into it.Therefore, we need to be producing solar panels in quantum in-country.

    “It goes beyond looking for power production from solar, we should really take it seriously and invite solar panel manufacturers and experts from Germany, China, and other countries of the world to come and establish their companies here in Nigeria,” she said.

    The United Nations had warned that by the end of the millennium there would be no fossil fuel, therefore, this is the time to actually prepare for that period when all of us would certainly go into renewable energy to produce electricity, she said.

    Speaking on the theme: Renewable energy development – Option for sustainable investment, Okuribido stressed the commitment of the council to ensure appropriate implementation of renewable energy technologies in the country, adding the council would address the challenges of awareness, availability and cost.

    She also said the council would create public awareness and foster the emerging availability of reliable, economically viable renewable energy systems by supporting policy information and implementation, research, development and use of such systems.

    According to her, the council would facilitate the planning and partnerships necessary to achieve large-scale, renewable energy implementation in the country, adding it would enhance government and public awareness of renewable energy technologies.

    She said efforts are ongoing to advance renewable energy curriculum development in primary, secondary and tertiary educational institutions, enhance renewable energy initiatives of its members as well as establish a strong member base representative of all renewable energy stakeholders.

    The former Director-General, Energy Commission and former Vice Chairman, World Energy Council, Abubakar Sambo said with the implementation of renewable energy policy, the country would be more secured for sustainable growth and development. He said renewable energy is a subject that has to be deployed in all countries of the world including Nigeria.

    He said: “If you go to other countries of the world, you will lament over Nigeria, the giant of Africa, because it is really weighed down by the scale of globalisation.” He said other African countries are far ahead of us in terms of renewable energy policy implementation including Ghana, Egypt, Morocco, Tunisia, Algeria, Liberia, Kenya and South Africa.

  • MAN, LCCI express concern over new electricity tariff

    MAN, LCCI express concern over new electricity tariff

    The Organised Private Sector (OPS), including the Manufacturers Association of Nigeria (MAN) and the Lagos Chamber of Commerce and Industry (LCCI), has expressed concerns over the new electricity tariff planned to begin on February 1 as supply has not improved and the pending court order.

    The President, Manufacturers Association of Nigeria (MAN), Dr Frank Jacobs, said the body is waiting to see whether the Nigerian Electricity Regulatory Commission (NERC) would disregard court order by going ahead to implement the new tariff in February. He said any attempt to implement the tariff would force some manufacturers out of business.

    He said: “It is not all the manufacturers that can set up a power plant. Many are using power from the grid for production together with generators. Do you know how much the 45 per cent increase in tariff translates to in naira in a week, month, quarterly, and yearly? It is a lot of money, and I do not think the sector can cope with this,” he added

    Jacobs said the situation is appalling, as many operators have been forced out of business in the last 10 years, due to inadequate power supply.

    Director-General, Lagos LCCI, Mr. Muda Yusuf, said the new tariff would worsen the condition of the operators of the OPS in the country, if urgent measures are not taken to address problems bedevilling the power sector.

    He said despite the removal of fixed charges in December, last year, by the commission, consumers are still groaning under huge cost of accessing electricity for production activities.

    Also some corporate and individual consumers are not oblivious of the fact that they will face difficulties meeting their energy obligations as from February this year. Already, consumers are groaning over what they described as ‘making frivolous payment’ in form of bills to the power distribution companies (DISCOs) since they are unable to access power regularly.

    Some consumers, who spoke to The Nation, expressed concerns over the new tariff, that have been increased by 45 per cent, by the commission, to reflect the cost of producing electricity in the country.

    A lawyer,  Mrs. Ponle Oluwarotimi, said consumers are heading for a more challenging period, going by the  decision of NERC to implement the new tariff, albeit, disregarding the order of the House of Representatives stopping NERC from introducing and implementing its tariff.

    She said the country is experiencing poor power supply, coupled with the fact that the economy is bad. “For the Commission to justify the 45 per cent increase in tariff, there must be an improved power supply in Nigeria. Given the fact that the sector is in a dire strait, with no hope of improving soon, consumers must be ready to pay huge bills, while at the same time, experience poor power supply,’’ she said.

    She said the situation is unhealthy for the economy that is struggling to grow.

  • NLC rejects electricity tariff hike

    • Pushes for free pre-paid meters

    The Central Working Committee of the Nigeria Labour Congress (NLC) has rejected the 45 per cent upward review of electricity tariff in the country by power firms.

    It said pre-paid meters must be given to electricity consumers freely.

    The congress also rejected the planned re-introduction of toll gates on federal high ways across the country. It said proceeds from the toll gates in the past were never put to judicious use but were used to“line the pockets of some individuals.”

    In a communique issued at the end of its emergency meeting in Abuja, Congress said increasing electricity tariff at this point in time with the challenges in the economy, which have drastically reduced the purchasing power of ordinary Nigerians and slowed down businesses, including manufacturing, is not justifiable.

    It said electricity distribution companies (DisCos) have continued to exploit customers through estimated billing systems, while deliberately refusing to make pre-paid meters available.

    The communique which was signed by its President and General Secretary, Comrade Ayuba Wabba and Dr. Peter Ozo-Eson respectively noted that: “It is clear therefore that the 45 per cent tariff increase is an additional heavy burden on consumers and will have a telling effect on business especially, manufacturing.”

    The Congress rejected  government’s plan to re-introduce toll gates on the highways and roads. It recalled  “the enormous public resources expended in the past on the construction and demolition of toll gates; CWC observed that the proceeds from toll collection were never effectively deployed for the maintenance of roads, but lined the pockets of collectors.”

    It further said it was convinced that proceeds from any new toll collections will suffer the same fate, CWC disagrees with the planned re-introduction of toll gates.

    On the issue of the N18,000 minimum wage, the Congress said: “There have been discordant tunes from state governors on the issue of the national minimum wage.  “Whereas, at one moment, they deny that there are plans to reduce the minimum wage, at another moment, they threaten to sack workers or reduce the minimum wage.

    “The national minimum wage of N18,000 has been rendered valueless by the mindless devaluation of the naira and  rising inflation;  moreover, it is legally due for a review.

  • Art, science of billings, receivables: Case study of Nigeria’s electricity industry

    In the service industry, one can never eliminate accounts receivable due to the need to certify services provided, upon which payments are based.

    The service provider owes the duty to prove that services contracted have been delivered in the right quantity and quality. Disputes can and often arise with regards to these two issues. Resolutions often involve discounts, where service quality is below par, and sometimes, resolution may involve the issuance of credit notes.

    With regards to infrastructure, the need for accurate and transparent billings is a sine-qua-non. The curious case of Nigerian electricity billings and receivables include the situation, where a utility service provider would brazenly continually provide bills on estimation, the basis of which is unknown to the consumer. The service provider fears no dispute nor loss where he makes no attempt whatsoever to provide a means of ascertaining the quantity or quality of services rendered.

    Another curious case in the Nigerian electricity industry is that in which an MDA will obtain appropriation in the annual budget for utilities and still refuse to pay the service provider for continuous periods. The question is, “what happens to the funds appropriated for that purpose?” Another question is, “how would such an MDA obtain an appropriation for the settlement of utility bills (power) for previous physical periods without being queried?

    In Nigeria, the art involved in power billing to the individual consumer consists mainly of the art of pole-climbing – the popular extortionist tactics of NEPA – PHCN – DISCOS. It also includes the sneak distribution of bills when the consumer is most unlikely to be available to challenge the bill.

    Another component of this art is the haggling and negotiations involved in arriving at the non-disconnection or on-the-spot reconnections fee. The final component of this art is the skill involved in arriving at the estimation. The marketing officers take casual inventory of the type of car the consumer uses, his fashion preferences, and possibly the facial ambience of the property occupied. These are the requirements for providing an expert judgment of power consumption – NO METERS REQUIRED. In other climes, meters are the only basis for charging utility bills?

    With the level of technological advancement and knowledge freely available, I can bet with any Disco that a set of junior secondary school kids will design a tamper – proof App that will ensure electricity meters cannot be circumvented. Personally, I can design such meter for any willing Disco at less than one million naira and a royalty of 2% of the value of any such meter deployed by them.

    The greed of the Discos is the major factor at play here. The continuous issuance of estimated bills is nothing but extortion from the helpless individual consumers to make up for the shortfalls from MDAs who are powerful enough to resist the monthly balloons of estimated bills.

    I believe its high time government beams its searchlight on the regulators in the electricity industry (NERC) to ascertain why they are reluctant to apply the sanctions in the privatisation agreement or relief to the consumers. How can we explain a situation where a consumer has been placed on estimated billing for years without being offered a meter? Obviously, the service provider “does not give a dam!”

     

    • Aibangbe, a Media and Energy Relations Consultant, wrote from Lagos

  • Electricity fixed charge: Where is the change?

    Sir: The affable minister of power, works and housing, Babatunde Raji Fashola, SAN has explained to Nigerians why it is necessary to jerk up the tariff for electricity. But he didn’t talk about the fixed charge which all Nigerians have been  kicking against since the privatization took place. The fixed charge is now seen as Federal Government-regulated fraud. It makes the DISCOs not to be serious with the business of improving power supply, as cheap money enters their pockets on a monthly basis. I give an example : If 50 million Nigerians are using pre-paid meters, they pay N750 to the DISCOs monthly, that is N750 x 50,000 000.

    A consumer who wants to recharge his or her prepaid meter with N4,000  gets  units worth N3,250 as N750 is forcefully deducted from the amount presented for the recharge. If there is equipment failure such as a broken down transformer for six months, whenever the affected consumers want to recharge  after restoring power, the fixed charge must be paid for the six months that power was not supplied. Is this not fraud? If not that many Nigerians don’t know their rights, this can be argued in the court. Nigerian Electricity Regulatory Commission (NERC) has said that consumers should not pay fixed charge if they didn’t have light for 14 days in a month. How do consumers prove to the cashier in the bank that light was not supplied for 14 days?  It is now very obvious that Nigerians are paying for staying in darkness!

    The  fixed charge was imposed on Nigerians by the PDP-led government in favour of its cronies who acquired the DISCOs. The regulatory body, NERC, was appointed by the former regime to be in an unholy alliance with the largely ineffectual DISCOs to perpetrate the fraud. It is strange that the APC -led government is still maintaining the status quo. Then where is the CHANGE? The fixed charge should please be abolished or embedded in the tariff to propel the DISCOs to be serious.    Some of the DISCOs have formed the habit of switching off power so that they pay less to the GENCOs at the detriment of consumers who pay outrageous estimated bills and unholy fixed charge. It is imperative that the honourable minister looks into these issues dispassionately before approving the new tariff.

     

    • Terry Andrews Odisu,

    Warri, Delta State.     

  • NERC’s planned electricity tariff hike aborted

    NERC’s planned electricity tariff hike aborted

    The House of Representatives has halted the planned increase in electricity tariff by the Nigeria Electricity Regulatory Commission, (NERC) pending the completion of its committee’s investigation of some stakeholders in the sector.

    In a December 15 letter addressed to NERC, the Hon. Babajimi Benson headed House Ad-hoc Committee investigating the activities of Electricity Distribution Companies (DisCos) told NERC to abide by the directives in a previous letter it wrote urging it to suspend the review of electricity tariffs in the country.

    The letter, signed by Benson, reads:  “In paragraph 3  of our letter dated 29th October, 2015 under the same subject heading, we requested you to suspend the implementation of any increase in electricity tariff until the committee concludes its investigations.

    “Further recall that at the joint investigative hearing with the Committee on Power, it was agreed that any tariff increase should be suspended until all stakeholders are carried along.

    “Our attention has been drawn to various news items published in many newspapers of yesterday December  13,  2015 to the effect that your commission has concluded plans to announce  new electricity tariff to Nigerians this week.

    “It is our opinion that any plan by your commission to announce new electricity tariff will run contrary to the spirit of the letter under reference and undermine the outcome of the investigative hearing by this Committee as it relates to infrastructure and billing by Electricity Distribution Companies.

    “We hereby once again, demand that you suspend the announcement and/or implementation of any increase in electricity tariff until (the) above stated issues are concluded.”

    The Committee through the letter, reminded NERC of its request for the list of Ministries, Department and Agencies (MDAs) indebted to the DisCos, adding that the Commission should forwards the list of DisCos to it to enable it conclude its investigation.

    The Reps Committee’s position on the planned tariff hike stemmed from the revelation by the NERC chairman, Sam Amadi during a recent hearing that DisCos over-bill customers and charge flat rates for consumers without meters.

  • Electricity workers seek review

    Electricity workers, acting  under the aegis of the National Union of Electricity Employees (NUEE), has called for a review of the power sector privatisation exercise, saying the new core investors have failed to make significant investment in the growth and development of the sector.

    Speaking at the Union’s 5th Quadrennial/10th Delegates Conference in Lafia, the Nasarawa State capital, NUEE National President Comrade Mansur Muhammed Musa said aside the investment Federal Government made in the sector before the the successor firms of the defunct Power Holding Company of Nigeria (PHCN) were sold out, the new investors have not considered it expedient to invest in the sector’s growth.

    He siad in spite of the privatisation, Nigerians still groan in darkness, lack of meters, dearth of power infrastructure and high tariff, among other issues, while the investors smile to the bank at the expense of Nigerians especially workers who have little or nothing to show for their hard work.

    “I strongly advocate for a review of the privatisation exercise,” Musa said, adding that the successor companies of PHCN have failed to meet most of the Key Performance Indicators (KPIs), which the Bureau of Public Enterprises (BPE) spelt out to them before the privatisation exercise.

  • Ghana launches power ship to boost electricity

    Ghana launches power ship to boost electricity

    Ghana has taken delivery of a power generating ship which would boost power supply- bringing an end to the chronic blackouts the nation had been thrown into.

    Ghana’s Power Minister, Kwabena Donkor, stated this amid anger over the blackouts, which can last for 24 hours at a time, a development that threatens President John Mahama’s chances of re-election next year.

    The government contracted the ship from independent Turkish producer, Karpowership, to generate 235 megawatts of electricity daily to help offset a national supply deficit of around 500 megawatts.

    “This is only one element in our solution, but it is a very useful element,” Donkor told newsmen in the port of Tema, east of the capital Accra.

    “It is a strong signal that we are on course to ending the blackouts and to restoring investors’ confidence in our economy.”

    Traditional chiefs welcomed the ship on Sunday by pouring alcoholic spirits onto the ground.

    The power blackouts, which have been going on for three years, stem from insufficient rain to operate hydro facilities, obsolete equipment, inefficiency and a long-term failure to add capacity to the grid.

    Irregular power has compounded a slowdown in economic growth in a country that, until recently, was investors’ favourite.

    Ghana’s economy grew strongly for years through its exports of gold, cocoa and oil, but lower global commodity prices have blunted that expansion and the government began an International Monetary Fund (IMF) aid programme in April.

    The generating ship, Aysegul Sultan, should be plugged into the national grid by mid-December and is the first of two plants that will provide a total of 450 megawatts of power under a 10-year contract, Donkor said.

    Donkor said an additional supply of up to 250 megawatts was coming next month from the Dubai-based independent producer, Africa, and Middle East Resource Investment.

    He added that other projects would deliver about 1,000 megawatts in 2016- that would give Ghana a power-reserve.