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Tag: NERC

  • Only MD customers exempted from bills, says NERC

    Only MD customers exempted from bills, says NERC

    The Nigeria Electricity Regulatory Commission (NERC), yesterday said the  only customers exempted from estimated billing are those within the threshold of 45KVA consumption and above.

    In a statement issued yesterday in Abuja, the body said the clarification was a follow up to the directives given over the weekend  on the verification and validation of the Maximum Demand (MD) electricity customers metering exercise.

    It said: “The Commission wishes to clarify that the affected electricity customers are those within the threshold of 45kVA consumption and above.

    The Directive to exempt MD customers from estimated bills, was sequel to an earlier Directive of the Commission to the 11 Distribution Companies (DISCOs) to completely meter all their MD customers on or before 31st November, 2016. However, the DISCOs sought for and were granted extension to 1st March, 2017.”

    The Commission directed over the weekend that no MD customer should henceforth be billed based on estimation to further validate the confirmation and assurance given by the DISCOs that all such customers are now metered.

    It was further directed that no The DISCOS were directed disconect any Maximum Demand electricity customer that was not metered by March 1, 2017 on the basis of the customer’s refusal to pay a bill issued after the compliance deadline, on the basis of estimated billing methodology.”

    Any maximum demand electricity customer so affected was also advised to promptly report any attempt to disconnect him on the basis of refusal to pay estimated bill issued after March 1, 2017 to the Commission.

    The underlying rationale to this directive is the effect that since this category of customers have been completely metered as directed by the Commission and reported by the DISCOs, no MD customer should be issued with estimated bills.

  • Only maximum demand customers exempted from bills – NERC

    Only maximum demand customers exempted from bills – NERC

    The Nigeria Electricity Regulatory Commission (NERC) on Tuesday said that the only customers exempted from estimated billing are those within the threshold of 45KVA consumption and above.

    According to a statement that Assistant General Manager Media, Mrs Vivian Mbonu issued in Abuja yesterday, the explanation further to the directives over the weekend on the verification and validation of the Maximum Demand (MD) electricity customers metering exercise.

    The statement noted that “the Commission wishes to clarify that the affected electricity customers are those within the threshold of 45kVA consumption and above. 

    The Directive to exempt MD customers from estimated bills was sequel to an earlier Directive of the Commission to the 11 Distribution Companies (DISCOs) to completely meter all their MD customers on or before 31st November 2016. However, the DISCOs sought for and were granted an extension to 1st March 2017.”

    The Commission directed over the weekend that no MD customer should henceforth be billed based on estimation to further validate the confirmation and assurance given by the DISCOs that all such customers are now metered.

    It was further directed that no “electricity distribution company shall disconnect any Maximum Demand electricity customer that was not metered by March 1, 2017, on the basis of the customer’s refusal to pay a bill issued after the compliance deadline on the basis of estimated billing methodology.”  

    Any maximum demand electricity customer so affected was also advised to promptly report any attempt to disconnect it on the basis of refusal to pay estimated bill issued after March 1, 2017, to the Commission.

    The underlying rationale to this directive is the effect that since this category of customers have been completely metered as directed by the Commission and reported by the DISCOs, no MD customer should be issued with estimated bills.

    For non-MD unmetered customers on their networks, electricity distribution companies have been warned to adhere strictly to the Commission’s approved estimation methodology in accordance with the Estimated Billing Methodology Regulation.

    Electricity customers are also advised to avail themselves of the Commission’s redress mechanism in instances of contested bills before seeking legal advice.  

  • Power operators urge govt to develop capacity to buy power from GenCos

    Power operators urge govt to develop capacity to buy power from GenCos

    Power sector operators have advised states governments to develop capacity of becoming “eligible customers’’ to procure premium power direct from Generating Companies (GenCos).

    The operators also encouraged states governments to appoint energy advisers to ensure understanding of the sector before formulating power policies.

    These were part of resolutions of a communiqué issued by the operators at the end of their 16th monthly meeting hosted by the Niger Delta Power Holding Company (NDPHC) at the Ugwuaji 330/132 KV Transmission Sub-Station in Enugu.

    A copy of the communiqué was obtained by the News Agency of Nigeria (NAN) in Abuja on Tuesday.

    The meeting, attended by the Minster of Power, Works and Housing, Mr Babatunde Fashola and other operators, also observed that Nigeria Electricity Regulatory Commission (NERC) was conducting consultations with stakeholders to operationalise the customer eligibility decision.

    The communiqué said that certain steel companies and GenCos had shown clear interest to ensure undelivered power was purchased by industries that need it.

    According to the communiqué, Distribution Companies (DisCos) have been encouraged to improve service, as customers benefitting from the efficiency of some DisCos will be unwilling to leave their coverage.

    This, the communiqué said was in spite of the introduction of eligible customers’ power purchase option.

    It urged the DisCos to bring up their observations and concerns about the eligible customer declaration so that they could be addressed.

    The Federal Government had recently through the NERC announced that GenCos would be free to generate and sell electricity direct to end-users across the country.

    The government’s decision tagged; the ‘Eligible Customers’ Regime, is in line with the Provisions of Section 27 of the Electric Power Sector Reform Act 2005 (EPSRA).

    The communiqué also said that progress was being made in the incremental power drive of the sector.

    The communiqué said Azura 450 MW power plant was on course and expected to be completed by the first quarter of 2018.

    According to the communiqué, 160,000 households are expected to benefit from a more stable, effective and efficient power sector delivered by the commissioning of the rehabilitated power plant.

    It revealed that NDPHC had made considerable progress on the Okija Distribution Sub-Station as a transformer was being installed in Okija town.

    It also said that progress was being made on the Alaoji to Onitsha transmission sub-station.

    “The line would bring power to the vital industrial clusters of Ihiala, Nnewi, and Orlu communities in Imo and Anambra States.

    “The transmission line would also supply light to Onitsha metropolis when completed in first quarter of 2018,’’ it said.

    According to the communiqué, NDPHC announced that projects to supply power to the Omotosho community are expected to be completed by third quarter of 2017.

    The communiqué said operators noted that  transparency in the sector must be fostered by allowing information sharing between Transmission Company of Nigeria (TCN) and DisCos regarding energy delivered.

    It also announced that TCN had made progress in grid improvement, as compensation payments for Makeri – Pankshin line had been completed, adding that the project would be completed in fourth quarter of 2017.

    “TCN also revealed that Gombe injection sub-station was completed on May18, while work at Ikeja West injection sub-station was in progress.’’

    It said that Benin DisCo had begun the process of reconnecting the Okitipupa community and Ikaram/Egedegede, Ibaramu, Ikakumo, Ise, and Ipese.

    The communiqué also noted that Auga town had already been reconnected, adding that other reconnection process for other towns in Benin axis was on-going.

    According to the communiqué, petitions from Agulu town in Anaocha Local Government Area of Anambra and Ajijedidun/Abiola Alao Landlord Association have been forwarded to Enugu and Eko DisCos for review and swift response.

  • NERC probes Calabar tragedy

    The Nigerian Electricity Regulatory Commission (NERC) said on Saturday it has commenced investigations into the electrocution of soccer fans in Calabar, Cross Rivers.

    The commission’s preliminary report, according to a statement, revealed that the accident occurred when an 11 KV high tension line under which a television viewing centre was constructed snapped, causing the electrocution of some occupants of the centre.

    Several others were seriously wounded in the incident.

    The Head of Public Affairs Unit at NERC, Usman Arabi, said the commission’s team of experts had been dispatched to the scene of the accident to investigate the remote and immediate cause of the electrocution.

    He said, “Pending the outcome of our investigation, the commission commiserates with the families, friends and relatives of the deceased, the government and people of Cross Rives State.

    “We are also using this opportunity to remind the industry operators and members of the public on the need for strict observance of the health and safety codes for the industry.

    “The commission will avail the general public the outcome of the investigation.”

  • Buhari nominates Prof. Momoh as NERC Chairman

    Buhari nominates Prof. Momoh as NERC Chairman

    President Muhammadu Buhari has nominated Prof. James Momoh as Chairman of the Nigerian Electricity Regulatory Commission (NERC).

    The President’s nominee is a Professor of Electrical Engineering and Computer Science; and Director of Energy Services and Controls at Howard University, United States.

    A statement issued by the President’s Senior Special Assistant on Media and Publicity, Garba Shehu, said Prof. Momoh, a Life Fellow of the Institute of Electrical and Electronics Engineers and Fellow of the Nigeria Society of Engineers, has over three decades of teaching and research experience in power system, smart grid, optimisation and power communications.

    The 1987 recipient of the National Science Foundation-US White House Presidential Young Investigator Award is a widely published scholar and has held several leadership positions in the academia.

    Prof. Momoh has a Doctorate degree in electrical engineering from Howard University; Master’s degrees in systems engineering from the University of Pennsylvania; and electrical engineering from Carnegie University.

    He obtained his Bachelor’s degree in electrical engineering in 1975 from Howard University.

    President Buhari believed that Prof. Momoh has the technical knowledge, capacity and integrity to lead the Commission’s effort to bring about the much needed change in Nigeria’s power sector.

  • NERC seeks fair tariffs for consumers

    NERC seeks fair tariffs for consumers

    The Nigerian Electricity Regulatory Commission (NERC) has affirmed the commitment to tariffs that will ensure a self-sustaining power sector.
    This was contained in a communique issued after the 14th monthly meeting of the Minister of Power, Works and Housing, Mr Babatunde Raji Fashola with operators of the power sector at the National Control Centre, Osogbo, Osun State capital.
    According to the communique, the NERC has put structure in place to apply sanctions where appropriate to ensure that operators comply with the rules.
    The commission charged electricity consumers to play their role in the success of the power sector through prompt payment of their bills, put an end to vandalism of power assets and stop assaults of electricity workers who seek to read or install meters.
    According to the communique, the Federal Government has commenced payment of an initial tranche of N374,551,000 to Abuja Electricity Distribution Company for outstanding MDA debts.
    The communique also stressed that confirmation from Independent System Operator (ISO) ýthat the intention of Paras Energy (a private generating company) to sell 60MW internationally will not jeopardise the power purchased by the Nigerian Bulk Electricity Trader (NBET) for use in the domestic market.
    The electricity operators also acknowledged the importance of the Power Sector Recovery Plan as critical to ensuring accountability for losses, improving customer services, customer accessibility, safety and performance in the sector.

  • NERC orders Discos to set up more complaints units

    The Nigerian Electricity Regulatory Commission (NERC) has directed the 11 power distribution companies (DisCos) to open more Customer Complaints Units (CCS) in their jurisdictions to address the deluge of problems facing them, its Head, Consumer Division Head, Consumer Affairs Division, Mr. Hardley Blue Jack, has said.

    The regulator also ordered power firms to provide meters to their customers to reduce the problems affecting them.

    At a stakeholders’ forum in Lagos, he said the complaints units were vital to the growth of the sector since they would help to reduce problems in the industry.

    He said NERC had not shirked its responsibilities of ensuring that issues, such as shortage of meters, and other equipment were addressed.

    Jack said the units would help the power firms to aggregate the opinions of customers, prioritise them and attend to them.

    A deal among the DisCos, the customers and the communities, he said, was inevitable, if the sector wanted to achieve the much- needed growth.

    “We want service providers (DisCos) and customers to work as partners so also the communities where they operate. When this happens, operators and customers would have no choice than to follow due process in their pursuits for a well electrified society,” he said.

    According to him, it is illegal for anybody to buy and bring transformers into any community, without the approval of the DisCos, advising individuals or entities to desist from such acts.

    Jack said the sector was facing  a many problems, urging DisCos to try and solve them. He said gas was the bane of the sector, noting that the DisCos alone could not address the problems of gas and electricity generation.

    He said inability of consumers to pay their bills compounded the woes of DisCos, as well as made it dificult for them to meet their obligations to customers.

    He urged DisCos and the consumers to be alive to their responsibilities, by doing things that would engander growth.

    “DisCos can solve metering challenges as it affects them directly. However, major issues, such as gas, poor generation, should be jointly addressed by the stakeholders, including the Federal Government.

    DisCos have been inundated with complaints ranging from shortage of meters, cables,  poles,  transformers, to estimated billings, among others, in recent times. The development made them to launch the protests unit to seek redress.

  • NERC warns DisCos against non-provision of meters

    NERC warns DisCos against non-provision of meters

    The Nigerian Electricity Regulatory Commission (NERC) has warned power distribution companies (DisCos) over their failure to provide meters to their customers.

    Its Head, Consumers Department, Mr Hardley BlueJack, said the failure of the firms  meant that they would not be able to measure their energy consumption level accurately.

    He said the sector was battling problems, such as gas shortage, huge tariffs, funding, and metering, arguing that to provide accurate bills to the consumers would be difficult, when there is no meter.

    BlueJack said: ‘’One of the crises in the industry is how to measure the volume of energy, consumed by the customers nationwide. Whenever DisCos issue bills to their customers, the customers complain of over-billing. The customers alleged that power firms are charging them excessively.  But once meters are well distributed, there would no longer be complaints.’’

    Speaking on the sideline of a stakeholders’forum in Lagos with The Nation,  BlueJack said the sector is battling shortage of meters, adding that attempt to provide either pre-paid or smart meters by the firms, would help customers to know the volume of energy he or she has consumed.

    According to him, there would always be issue of estimation in the sector, arguing that it cannot be eradicated completely.

    ‘’What NERC is clamouring for is drastic reduction in the rate of estimated billings. We believe that once meters are many in the country, the issue of estimation would be reduced drastically, because people would be able to know how and when they consumed the electricity they are being asked to pay for.’’ he added.

    He however said estimated billing will continue to be in the system until meters are provided enmass to customers across the country.

    ‘’When there are dogs in the house of customers, it would be difficult for the officials of the power firms to ascertain the level of energy, which they have consumed. The next thing is to give them estimated bills,’’ he said.

  • Electricity tariff hike: Court faults NERC, DISCOs

    Electricity tariff hike: Court faults NERC, DISCOs

    The application instituted by the Nigerian Electricity Regulation Commission (NERC) for stay of action on the landmark judgment against electricity tariff hike has suffered a serious setback as the court has overruled the application.

    In the ruling delivered by the Federal High Court Judge, Justice M.B Idris recently, the judge described the application to stay the judgment of the court as unreasonable, lacking in merit and therefore dismissed.

    It may be recalled that the matter instituted on May 2015 through a motion by Barrister Toluwani Adebiyi led to an order of court not to increase tariff until the substantive suit was determined. But the motion was thwarted by the National Electricity Regulatory Commission (NERC) and electricity distribution companies (DISCOs), before the determination of the suit as they both act contemptuous of the court in February 2016 by unilaterally increasing the electricity by 45 per cent.

    But the court had delivered a ruling against the electricity tariff hike on 13th July 2016, saying it didn’t pass through the due process. However, while power supply firms appealed the judgement, the National Electricity Regulatory Commission (NERC) said it intends to comply but subsequently reneged on its earlier stance.

    Mr. Sunday Oduntan, Director of Association of National Electricity Distributors (ANED) which comprises all distribution companies in the country, on behalf of his members had vowed to fight the matter up to the Supreme Court if need be.

    Barrister Toluwani Yemi Adebiyi, the activist and the plaintiff who had sued the supply firms and the regulator at time had described the ruling as further victory for all Nigerian electricity consumers, saying it is class hypocrisy and share waste of time for NERC and electricity distribution companies (DISCOs) to continue to swim against the tide, in spite of the inadequate power supply and lack of meters, leading to estimated billings which make Nigeria consumers to pay for gross darkness.

    “The DISCOs are still sending estimated billings which the NERC Chairman had through public admission unknowingly confessed to be wrongful and unlawful,” Barr. Adebiyi stressed.

    Interestingly, on 13th July 2016, the matter was determined in favour of the Nigerian Consumers, meanwhile NERC and DISCOS have filed separate appeals before the Court of Appeal Lagos Division, hearing of which starts on the 9th of January, 2017.

  • Electricity tariff: NERC loses bid to halt judgment

    Electricity tariff: NERC loses bid to halt judgment

    Justice Mohammed Idris of the Federal High Court in Lagos has refused an application by Nigerian Electricity Regulatory Commission (NERC) to stay execution of the judgment barring tariff increment.

    The court, on July 13, declared illegal the upward review of electricity tariff.

    It ordered a reversal and restrained NERC from further increasing the tariff, except in compliance with the Electricity Power Sector Reform Act 2004 (EPSRA).

    “The upward increment in tariff was hasty and procedurally ultra vires,” said Justice Idris.

    NERC appealed the judgment and asked Justice Idris to make an order suspending execution.

    Justice Idris refused the application to stay judgment, describing the application as “unreasonable, lacking merit and therefore dismissed”.

    Activist-lawyer Toluwani Adebiyi challenged NERC’s bid to increase tariff in a suit of May 25 last year, following which Justice Idris granted an order barring tariff increase until the substantive suit was determined.

    But before the suit was determined, NERC and the electricity distribution companies (DISCOS), on February 1, increased the tariff by 45 per cent, which the court reversed.

    NERC and DISCOS have filed separate appeals before the Court of Appeal, Lagos Division, of which hearing will begin on January 9.

    Adebiyi prayed for an order mandating NERC to generate more power to meet the country’s power needs, and to develop a multiple long-term financing approach, sourced from banks, capital market, insurance and other sectors to finance the sector.

    The lawyer asked the court to mandate NERC to make available to Nigerians within two years, prepaid meters as a way to stop indiscriminate estimated bills.

    In a supporting affidavit, the plaintiff said despite NERC’s mission of “keeping the light on and to meet the needs of Nigeria for safe, adequate, reliable and affordable electricity,” most communities do not get more than 30 minutes of electricity supply daily.

    “The masses are paying an estimated and indiscriminate bills, ranging from N5,000 to N18,000, while spending an average of N15,000 to N20,000 for fuel to maintain generating sets weekly.

    “Businesses have collapsed, industries have closed down and residents cannot sleep comfortably at night due to inefficiency of our power industry.

    “Companies and commercial houses are groaning under throat-cutting power bills, which they are paying for, yet not getting benefits of such payment,” Adebiyi said.