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  • NERC to begin mass metering on May 1

    The Nigerian Electricity Regulatory Commission (NERC), will begin mass metering for electricity consumers by May 1, to bridge the metering gaps in the country.

    Dr Usman Arabi, NERC General Manager Public Affairs in a statement said the metering will be executed under the Meter Asset Providers(MAP) programme of the Federal Government.

    “The commission issued permits to MAPs on April 5, in accordance with section 4(3) of the MAP Regulations 2018, to MAPs that were successful in the procurements.

    “The procurement was conducted by Abuja Electricity Distribution  Company  Plc  AEDC  and  Jos Electricity Distribution Company Plc (JEDC).

    “Section 4(3) of the MAP Regulation 2018 requires all electricity distribution licensees to engage MAPs that would assist, as investors, in closing the metering gap.

    “AEDC has appointed  Mojec International Limited, Meron Consortium and Turbo Engineering Limited to provide 487,000, 213,000 and 200,000 meters, while JEDC has appointed Triple 7 and Mojec International Limited consortium to provide 500,000 meters.’’

    Arabi said customers of Abuja Electricity Distribution Company (AEDC) and Jos Electricity Distribution Company(JEDC) should expect meters to be installed in their premises within 10 working days of making payment to MAPs.

    He said the payment and installation of the meters within the time frame was in accordance with section 18 (3) of the MAP Regulations 2018.

    “MAPs shall charge a maximum of N36,991.50 for single phase meters and N67,055.85 for three-phase meters.

    “These costs are inclusive of supply, installation, maintenance and replacement of meters over its technical life,’’Arabi said

    He said NERC  shall monitor closely the rollout plan of distribution licensees and overall compliance with the regulation and various service agreements by the MAP and electricity distribution licensees.(NAN)

  • Anxiety as NERC meets operators on metering

    Anxiety has gripped firms, which applied to serve as Meter Asset Providers (MAPs) under the new metering arrangement, following the Nigerian Electricity Regulatory Commission’s (NERC’s) decision to invite them for a meeting this week.

    The 115 firms were in a last minutes rush to know the details of the meeting as they made frantic efforts to ensure that their chief executive officers, were available for the meeting, which is billed to hold in Abuja.

    However, sources told The Nation that the meeting may not be unconnected with granting approval to firms shortlisted for reducing the metering gap of 4.8 milliion people in the country.

    The sources further said the need to fashion out modalities for the take-off of the firms and the date for the commencement of their operation, among others, informed NERC’s decision to invite them to the meeting.

    Reacting, Momas Electricity Meter Manufacturing Company Limited (MEMMCOL) Chief Executive officer, Kola Balogun, said he believed the meeting would discuss knotty issues that pertain to the operation of the meter asset providers.

    He said the Commission was eager to move the sector forward by proffering solutions to meter shortage in the country, adding that stakeholders in the value chain, especially meter providers and the consumers, are looking forward to a date, when the scheme would be fully implemented.

    Balogun, whose firm is also a prospective meter asset provider, said the sub-sector is bedeviled with problems such as shortage of meters, adding that NERC’s decision to take off the burden of distributing meters from the eleven power distribution companies (DIsCos) and instead allow some privately owned companies to help in providing meters to consumers, would move the sector forward.

    According to him, meter asset providers would be happy to start operation as soon as possible, adding that the indigenous manufacturers of meters are ready for the job. He said operators are expecting the meeting to iron issues that are bothering them and provide them the way forward.

    Read also: Metering is DisCos’ obligation, NERC insists

    “I believe the meeting would come out with a communiqué that would tell us the position of things on the new metering programme. It is after the meeting that everybody, especially the prospective meter asset providers, would know when they would commence operation,” he said.

    The Federal Government through the Minister of Power, Works and Housing, Babatunde Raji Fashola, last month, announced plans by the government to license meter asset providers to help in providing meters to consumers across the country.

    Thereafter, NERC obtained and sought out applications from firms that want to play as meter asset providers and fixed January 2019 for the commencement of their operation.  However, firms are waiting for NERC to fix a new date for the commencement of their operation following their inability to start operation in January as planned.

  • Meter asset providers to begin operation soon, says NERC

    The Nigerian Electricity Regulatory Commission (NERC) is working to ensure that firms, which applied to serve as meter asset providers under the new metering arrangements, begin operation soon, its officer in charge of Meter Asset Providers (MAPs), Mr Shittu Shuaibu, has said.

    In an interview with The Nation on phone, he said the Commission is not leaving any stone unturned to ensure the success of the new metering scheme, which culminated in the introduction of the meter asset providers, as a third-party in the distribution and supply of electricity meters to the customers.

    Shuaibu said: “Meter asset providers are likely to start operation very soon as the regulator is working hard to ensure they are licensed to carry out the responsibilities of metering the unmetered customers in the country.”

    Meanwhile, stakeholders are upbeat on the future of the scheme, adding that the flagging off of the new metering scheme and subsequently meter asset providers, marked a new dawn in the sector, which has for long been grappling with problems such as acute shortage of meters, estimated billings and huge arrears of unpaid bills, ostensibly owed by electricity consumers.

    Momas Electricity Meter Manufacturing Company Limited (MEMMCOL) Chief Executive officer, Mr Kola Balogun, said meter asset providers may be licensed by NERC to start operation before the end of the first quarter of 2019.

    According to him, firms that wish to play as meter asset providers in the sector have applied to NERC, granted ‘No Objection’ status by the Commission, had their performance reviewed in the market, made to seek the power distribution companies (DisCos) they would partner, while also awaiting final approval from NERC.

    “Between this February and March ending, something concrete as regards the commencement of the activities of meter asset providers would happen.  I’m sure that the firms that are seeking to start operation as MAPs would start work, either by end of February or March 2019,” he added.

    According to him, the new metering plans would provide opportunities for operators to play better by acquiring and building bigger markets for themselves, stressing that direct and indirect jobs will be created, more meters would be made, which would culminate in appreciable reduction in metering gap in the country.

    On funding, Balogun said the Central Bank of Nigeria (CBN) is planning to provide interventions for operators in the nation’s metering sub-sector by assisting them to get facility at more beneficial rates.

    The CBN, he said, is looking for a platform through which it would intervene in the activities of the meter asset providers as NERC gives them operating licences soon.

    Electricity Meter Manufacturers Association of Nigeria (EMMAN) Executive Secretary, Mr. Muhideen Ibrahim, said his members are keying into the new metering programme introduced by the Federal Government in the wake of the rising scarcity of meters in the sector. EMMAN is an umbrella body for meter producers in Nigeria.

    He said meter manufacturers are working to complement the efforts of the Federal Government,by participating fully in the new metering initiatives. This, Muhideen said, is evident by the new technologies acquired by producers of meters in order to be able to mass-produce meter and further help in reducing the 4.7million metering gap in the country.

    He said, beyond this, manufacturers are providing logistics as well as building capacity in order to strengthen the operation of the sub-sector. He said operators are preparing highly skilled technicians and engineers to work when the meter asset providers commence operation soon.

    He said the building of a training school by MEMMCOL and the subsequent inuaguration by Vice President Yemi Osinbajo in 2018, was an indication that operators, especially metering companies, are ready to make the government programme work.

    He said Unistar High-Tech Limited is another indigenous metering firm, which has keyed into the government’s policy of providing meters to customers through meter asset providers.

  • Why NERC is unable to grow sector, by group

    The Nigerian Electricity Regulatory Commission (NERC) is unable to grow the power sector because of the commercial and technical problems in the supply value chain, a source at the Association of Nigerian Electricity Distributors (ANED) has said.

    The source, who preferred anonymity, said the sector has not been able to perform optimally because NERC has refused to resolve the fundamental problems plaguing it.

    In an interview with The Nation on phone, the source said the 11 power distribution companies (DisCos) are not getting the right value for the electricity they are distributing to consumers, adding that the issue is retarding growth.

    The source said: “Traditionally, the power distribution firms are supposed to distribute the quantum of electricity coming from their counterparts in the generation arm – the power generation companies GenCos) – to the final consumers at a price that is beneficial to them and the market.

    ‘’However, the reverse is the case as the tariffs are not commensurate with the price of electricity in the market. Imagine a situation where a buyer buys a product at N50 and sell it at 50kobo. Where is the profit for the buyer?

    The source said the DisCos would continue to grapple with liquidity problems until a review of the tariffs is done by NERC.

    The source accused NERC of being inactive when it was supposed to act. “As a matter of fact, a review of the tariffs is expected to take place every six months. However, there was nothing like that in the past six years. The Multi-Year-Tariff-Order (MYTO) is not being implemented in line with the Nigerian Power Sector Reforms Act. Therefore, how can the DisCos get the right price for the product they are supplying their customers?

    ‘’The sector is fundamentally unable to close the gap in the tariffs it is passes to the consumers. This, the source added, has resulted in the inability of the DisCos to meet their obligations by subsidising electricity.

    The source urged stakeholders to come together and address the problems, adding that the sector would not grow until this was done. He said the Federal Government had intervened by giving N750billion to the sector, which would not do much due to the plethora of problems besetting the sector.

    The source said the Nigerian Bulk Electricity Trading Company (NBET), Transmission Company of Nigeria (TCN), the GenCos and the DisCos had some problems, which ranged from paucity of funds to dilapidated infrastructure, among others.

    Another problem that is inhibiting the growth of the DisCos and the sector, according to the source, is poor exchange rates. He said the DisCos bought some equipment at N160 per dollar some years ago, but that this had gone up to N360 per dollar.

    ‘’This makes it difficult for the operators to get enough dollars to buy equipment for maintenance. These problems have become  constraints to revenue generation for Discos,’’ he added.

  • FG stops payment of GenCos shortfall

    …urges evacuation of stranded 2,000mw for revenue

     

    The Federal Government on Tuesday announced its exit from the payment of the shortfall for the 4000mega watts per hour (mwh) to the Electricity Generation Companies (GenCos).

    According to the Permanent Secretary, Ministry of Power, Dr. Louis Edozein, who broke the news to stakeholders at the Nigerian Electricity Regulatory Commission (NERC) workshop on Eligible Customer Regulation in Abuja, the Electric Power Sector Act does not make provision for the Nigerian Bulk Electricity Trading Company (NBET) to pay for the shortfall to the GenCos.

    He told the stakeholders that in line with the contractual agreements, it is the consumers, who should pay for the power they consume.

    His words: “In addition to that 2,000 MW, the 4,000mwh that is consistently being delivered is not fully paid for. Government through the nation’s insurance Programme is paying the generation companies for any shortfall payment from NBET.

    “Clearly that is not what act intends the industry to be. And ultimately government has to exit from this role.

    “So, it is this regulation that will ensure that not just stranded power but delivered power, is delivered to consumers who are contractually bound to pay for it. And if they do not pay for it they do not enjoy the service.”

    The Permanent Secretary noted that it is obvious that there is more generation than the consumers can pay for, noting that the solution is for the stakeholders to look for the customers that are not well served under the Eligible Customers Regulation to take it and pay for it for their benefits.

    Read Also: FG may convert seized properties to museum

    He submitted that “if we do this aggressively, that 2,000mw of so-called stranded generation will quickly evaporate.”

    He told the stakeholders to look for customers to buy the stranded power because it is inappropriate for government to continue to pay for the power.

    According to him, government cannot perpetually pay for their power consumption.

    Edozein also told the Transmission Company of Nigeria (TCN) to stop the complaint about non-increase of tariff to the NERC and work with the GenCos to get willing customers to buy the available power.

    He said that “I have a message also for TCN: stop complaining to NERC about your tariff. Your job is to satisfy your own customers that is GenCos and DisCos.

    “Work with them as you have the money to find all customers using this policy who will take the power GenCos have, contract with GenCos at a tariff that you, the GenCos and customers agreed to transmit the power close to the customers. That is the way you will raise your revenue.”

    The Permanent Secretary urged the DisCos to satisfy their customers in order to encourage them to pay for the service.

    He explained to the DisCos that the reason the customers would want to take advantage of the eligible customer regulation is when they are not satisfied with the services rendered to them by the DisCos.

    He said “So DisCos this is your opportunity to service your customers better. Listen to them when there is infrastructure challenge in getting the product to them.”

    There was however a mild drama as the Deputy Managing Director, Ibadan Electricity Distribution Company, Engr. John Ayodele counted the Permanent Secretary on stranded 2,000mw.

    He told the stakeholders that there is no stranded 2,000mw anywhere in the Nigerian Electricity Supply Industry (NESI) but the Executive Director, Mainstream Energy Solution Limited, Mr. Siraj Abdullahi, insisted that his company, Kainji Power Hydro habours some stranded power.

    He challenged the stakeholders to come visiting the plant to observe the stranded power.

  • NERC screens 108 potential meter providers

    Efforts by the Federal Government to improve metering is yielding results as the companies that applied to be part of the meter asset provider (MAP) policy are going through the process of being certified by the Nigerian Electricity Regulatory Commission (NERC).

    Power, Works and Housing Minister, Babatunde Fashola, told The Nation on the sideline of the inuaguration of the Nigerian Electricity Management Services Agency’s (NEMSA’s) upgraded and remodelled chemical and engineering laboratory at Ijora-Olopa, Lagos State that meter issue will soon be addressed.

    Fashola said: “We have a policy on metering, which is the meter asset provider (MAP) policy, which allows new businesses to enter the metering area. Just the way generation (GenCos) and distribution companies (DisCos) were licensed, we will license them as MAPs in the value chain of power supply.

    “This will relieve the pressure on the finances of DisCos to supply meters, but it does not discharge theDisCos of the contractual obligation that they have to do but we know they (disCos) are challenged by financing.

    “We think we can open this business up for new operators to come in. At this moment 108 companies have applied and are going through the process of being certified by the NERC, among others. The policy is now playing out and the distance and transition between policy and impact you will see as we go on as supply of meters begin to trickle down.

    “When those companies begin to operate they will employ a lot of people – fitters, technicians, installers and those into wiring will be trained. Many of them have been trained by our training institute, National Power Training Institute of Nigeria (NAPTIN).

    “Nigerians will see economic renaissance in the electricity sub-sector when MAPs come into operation just like what happened in the retail telecoms sector–telephone sales, repair and vending, among others.”

    On the laboratory, the Minister said: “We have an upgraded and properly fitted laboratory to help the agency in charge of enforcing safety compliance to actually do its job. They now have tools to offer better service delivery.”

    Managing Director/CEO and Chief Electrical Inspector of the Federation, Mr. Peter o. Ewesor, said laboratory upgrade is a major milestone for NEMSA in the enhancement of its functions and mandate at enforcing technical standards and regulations as they relate to electrical materials, power equipment and industry-related chemicals by providing quality chemical and engineering tests and analytical services to the generation, transmission and distribution companies, hydro power stations and other related companies in the Nigerian Electricity Supply Industry (NESI) and the nation at large.

    Ewesor said: “The chemical and engineering laboratory is one of the vintage assets in NEMSA, currently being strategically positioned to ensure that only the right type, quality and specification of insulating oil/chemicals, electrical materials, lubricants of various grades, among others, are used in the NESI and other allied industries.

    “This laboratory has been operating as a reference quality control laboratory for the entire power industry since the era of the defunct NEPA and PHCN, and now in the post-privatisation era when NEMSA took it over in a dilapidated state in 2014.  NEMSA, in realisation of its key role in furthering its mandate as enshrined in NEMSA Act-2015, embarked on the upgrading and remodelling of its chemical and engineering laboratory Ijora-Olopa, Lagos to provide accurate tests and analyses of insulating and cooling oils, lubricants and electrical properties of materials used in electrical equipment deployed or to be deployed in the Nigerian Electricity Supply Industry and in other allied industries and workplaces in Nigeria.

    “In line with NEMSA’s mandate as per NEMSA Act – 2015, the agency is to amongst others provide sustained technical inspection, testing and certification of all electrical materials, (including transformer oil and chemicals) or equipment, power systems, networks (generation, transmission and distribution), or electrical installations to be used in the power sector, to ensure a stable system to deliver safe, reliable, regular power supply, guarantee safety of lives and property, and avert loss of lives and property in the Nigerian Electricity Supply Industry. The effective performance of these services will enhance and sustain power supply stability in Nigeria.”

    He continued:“This laboratory is equipped with a wide range of world class test equipment, instruments, and devices including Dissolved Gas Analyser (DGA) – a diagnostic equipment for detecting, identifying and evaluating incipient faults occurring within transformers and reactors; Dielectric Strength Tester – to determine the insulation levels; Kinematic Viscometers – which determines oil viscosity & flow rate of the sample at specific temperatures; Potentiometric Titrator for determining the acidity/acid number present in an oil sample which is used as a measure of oil degradation and deterioration; Interfacial Tension Test Meter for determining the interfacial tension of an oil sample in an oil – water interphase; Cube Strength Testing machine for determining the strength of the concrete used for the manufacture of electric concrete poles; CoulometricTitrator for moisture content analysis, pH meters, Muffle furnace, Multimeters, among others.

  • 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

  • Ibadan DisCo to NERC: we’ve made all outstanding payments

    • Seeks directors suspension reversed

    The management of Ibadan Electricity Distribution Company (IBEDC), said it has made all outstanding payment on the N6billion loan that instigated the suspension of its directors by the Nigerian Electricity Regulatory Commission (NERC).

    A statement by the Company Secretary, Seye Alayande , said the news of the suspension was received with shock and disbelief.

    Alayande said as at yesterday, Integrated Energy Distribution and Marketing Group (IEDMG), has made all outstanding payment up till May 2018, in respect of the monthly ¦ 150million commitment to the loan.

    NERC had said it suspended the directors of the electricity distribution company (DisCo) over the company’s “inability to retrieve a N6billion inappropriate loan” given to IEDMG, its core investor.

    Alayande described the decision as unwarranted and lacking in judgement since the directors “demonstrated willingness and commitment” to fulfilling its financial obligations to IBEDC.

    He said: “The board of the Ibadan Electricity Distribution Company (IBEDC), received with shock and disbelief the decision of the Nigerian Electricity Regulatory Commission (NERC) to suspend all executive and non-executive directors of IBEDC in its order: NERC/181/2018 dated 19th June, 2018.

    The statement reads: “The suspension, which was premised on alleged non-compliance with the repayment terms of investors’ commitment to the company, is not only unwarranted but injudicious given the circumstances and realities of issues at stake.

    “We say so for the following reasons: firstly, as NERC rightly observed in its order, IBEDC complied with the payments of the fine and interest on the pre-takeover expenses as imposed by the regulatory authority.

    “Secondly, NERC and IBEDC reached an understanding in respect of the  N5.7billion outstanding due for payment by Integrated Energy Distribution & Marketing Group Limited (IEDMG).

    “The two parties reached an understanding that the repayment of the N5.7billion plus interests would be made from the refund of the sum due from the Federal Government on the stalled Yola Electricity Distribution Company transaction. This position was to the knowledge of the Bureau of Public Enterprises, BPE.

    “The understanding from BPE, which was conveyed to NERC was that the refund which had been due to IEDMG as far back as 2015, could only be made after the 2018 appropriation bill is signed into Law.

     

     

    “To demonstrate commitment and good intention, IEDMG reached an understanding with NERC to pay ¦ 150million monthly to IBEDC beginning from January 2018, while awaiting the refund from BPE in respect of Yola transaction.

    “It is true, as NERC claimed, that as at 20 April 2018, the payment for January February and an additional ¦ 130million had been effected.

    “More importantly, however, is the fact that as of Thursday, 14th June 2018, IEDMG had made all outstanding payment up till May 2018, in respect of the monthly ¦ 150 million commitment.

    “It is for this reason that the board of IBEDC is at a loss over this seemingly hasty decision to suspend the directors who had not only demonstrated willingness and commitment to fulfilling its financial obligations to IBEDC, but have collectively shown dedication to the cause of the company.

    “It is our hope that NERC will take a second look at the issue in contention and reverse this decision in the interest of all the stakeholders and the nation.”

  • NASENI, NERC to collaborate on meters’ distribution

    THE National Agency for Science and Engineering Infrastructure (NASENI) has announced plans to collaborate with the National Electricity Regulatory Commission (NERC) in the area of distribution of electric meters.

    Executive Vice Chairman (EVC) NASENI Prof. Mohammed Haruna, said the agency had been doing researches on meters and would be collaborating with NERC for a way forward.

    According to him, metres found in the country are of different models and from different countries, with no standardisation.

    The NASENI EVC, who spoke in Abuja after his second tenure inauguration, said a solution will be found with the collaboration.

    He said he is determined to put everything that happened behind him and focus on things that would move the agency forward.

    Before the renewal of his tenure by President Muhammadu Buhari, a row broke out in the agency, which created a crisis of confidence among top directors and workers.

    His words: “The most important thing that we are starting with now that I am back in office is accommodating everybody, putting all that happened behind us and focusing on things that will move the agency forward for the benefit of the nation.

    “We are determined more than ever to get new products that will solve the economic and social problems affecting the country and things that will benefit the general public and that will transform rural areas for the progress of the country. That is our main mission.”

    NASENI Director, Technology Business Development Nathan Pawa, said the management was happy to have him back.

  • NERC suspends board of Ibadan DisCo over N5.7b loan balance

    The Nigerian Electricity Regulatory Commission (NERC) has suspended the Board of Directors and key management staff of Ibadan Electricity Distribution Company  (IBEDC) over N5.7 billion loan balance d default. 

    The suspension, according to the commission’s Head of Media Unit,  Mrs Vivian Mbonu, in a statement yesterday,  was “vide its Order No NERC/181/2018 of June 19th 2018.”

    NERC suspended them on account of the company’s default in the recovery of an inappropriate shareholder loan of N6billion granted to Integrated Energy Distribution and Marketing Group (IEDMG) Ltd by the utility.

    Read Also: NASENI, NERC to collaborate on metres distribution 

    IEDMG, according to her, is the core investor in IEBDC following the privatisation of electricity distribution companies by the Federal Government. The loan was granted by IBEDC from funds released to all DisCos by the CBN under the Nigeria Electricity Market Stabilisation Funds (NEMSF) for the purpose of improving the networks and reducing aggregate technical, commercial and collection losses.

    The Commission had earlier fined IBEDC a sum of N50million on the 18th September 2017 for non-compliance with Order No NERC/173/2017 directing the company to fully recover the outstanding sum of N5.7bn being the balance of the loan granted by the utility to IEDMG.