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Tag: NERC

  • NERC creates office to resolve BEDC’s power disputes

    NERC creates office to resolve BEDC’s power disputes

    The National Electricity Regulatory Commission (NERC) has opened an office in Benin, the Edo State capital, to be closer to the consumers to address unresolved electricity issues between the Benin Electricity Distribution Company (BEDC) and its customers in the latter’s coverage area of the state.

    Minister of Power, Prof Chinedu Nebo, who inaugurated the office, said the initiative would enhance NERC’s mandate of protecting the right.

    Nebo, who was represented by a Deputy Director in the Ministry, Omololu Ogunleye, hinked the success of reforms in the sector on the level of interaction among the stakeholders.

    He called for support for the distribution firms to ensure that consumers’ rights were protected. “These companies must ensure that Nigerians have adequate power supply,” he stressed.

    Ogunleye said the forum would serve as a platform and a major talk point for the resolution of electricity issues from various communities.

    He said: “The commission has the mandate to ensure that Nigerians have adequate and reliable supply of power. Let me use this opportunity to emphasise that the Federal Government’s efforts are quite glaring and it will not rest on it oars until it has achieved the desire to provide electricity for all.

    “It takes the commitment of all stakeholders and patience of the consumers to achieve this goal. There is no gain-saying that the success  of the electricity sector is dependent on the effective coordination of the sector.”

    Speaking on the occasion, Edo State Governor, Adams Oshiomhole, who was represented by the state Commissioner for Energy and Water resources, Chris Ebare, said the NERC forum office was expected.

    He suggested that such offices should be opened in all  local government areas in the state to reduce the burden of people in the rural areas travelling to the state capital to lay complaints.

    NERC’s Chairman, Dr. Sam Amadi, represented by Dr Albert Ibrahim, said the forum office was set up specifically to bridge the gap between power consumers and the electricity distribution company in the state.

    “The forum is a body charged by the commission to hear and resolve customer complaints on appeal in the operational area of every distribution licensee. Complaints that may come to the forum are complaints not settled at the customer care units situated in the distribution company,” he said.

    Amadi said officials of the complaints’office were drawn from relevant stakeholders, which he said included the Manufacturers Association of Nigeria (MAN), Consumer Protection Council (CPC), Nigerian Society of Engineers (NSE), non-governmental organisations (NGOs),  civil society organisations and the Benin Chamber of Commerce, Industry, Mine and Agriculture (BENCCIMA)

    He however, urged electricity consumers to demonstrate understanding with the distribution company in the state, bearing in mind that the transformation in the power sector was a gradual process.

    The Managing Director/Chief Executive Officer of the BEDC, Mrs. Funke Osibodu, who was represented by, her Executive Director, Commercial, Abu Ejoor, described the effort as a timely intervention to boost the interaction between the firm and its numerous consumers.

     

    On his part, Chairman House of Representatives on Power, Patrick Ikhariale, said he believed that the revolution in the telecom sector would be a child’s play when the power sector becomes fully operational under private sector management.

    He said: “If we get the power sector right, we would have solved 60 to 70 per cent of Nigeria’s challenges. The business of electricity is not a tea party business. It is capital intensive, it requires commitment, interest and technical know-how to succeed.”

     

     

     

     

     

  • NERC to take responsibility for regulations outcome

    NERC to take responsibility for regulations outcome

    The Chairman, Nigerian Electricity Regulatory Commission (NERC), Dr Sam Amadi yesterday said although the commission considered the inputs of stakeholders for the draft Nigerian Electricity Supply and Installation Standards (NESIS) regulations, the commission would take responsibility for the outcomes of the regulations.

    In his opening remarks at the public hearing on the draft NESIS at Abuja, he said: “As always, we take responsibility for the final outcome. But we depend on your contributions to make sure that the regulation is such that it will achieve its purpose.”

    He promised stakeholders that all their contributions would be incorporated into the final draft of the commission’s regulation.

    According to him, the public hearing was a fulfillment of NERC’s mandate in ensuring effective, technical regulation for reliability and safety in the Nigeria Electricity Supply Industry (NESI).

  • CBN, NERC meet to reconcile N25b gas debt

    CBN, NERC meet to reconcile N25b gas debt

    • Explains delays in new gas price implementation

    The Nigerian Electricity Regulatory Agency ( NERC) and  the Central Bank of Nigeria (CBN) has begun work to establish the authetic debt profile of the gas suppliers to the power sector.

    Meanwhile, the Federal Government has said its inability to meet with chief executive officers of gas firms to okay a commitment for increased gas capacity is responsible for the delay in the implementation of the new gas prices it announced on August 2 .

    NERC Chairman, Dr. Sam Amadi, who spoke to The Nation at the weekend in Abuja, said: “The policy has not had an impact because it has not been operationalised basically.”

    Minister of Petroleum Resources Mrs. Diezani Alison-Madueke promised that the CBN would settle the N25billion debt owed to gas suppliers, stressing that NERC had  approved a new benchmark price of $2.50/mcf of gas supply, and $0. 80/mcf as transportation costs for new capacity, effective this year.

    Explaining why the new price has not resulted in increased gas to power, Amadi added that to implement the new price policy, the apex bank and the Bankers Committee have started deliberations on how to create a process for the payment of the debt in the next two weeks.

    He said: “The commitment will be extracted and a new  contractive framework that will be committing the gas supplier to clear enforceable commitment to deliver gas molecules will be framed-up and signed up.

    “The next issue is that we are going to meet with the CEO of the gas companies to sign off for a commitment to increase capacity. In the last one week we have been working on establishing the real debt profile.

    “The CBN has also started discussing with the Bankers’ Committee and the bankers will create a process by which the payment can happen.

    “In the next one or two weeks, the payments will be made and then the commitment will be extracted and a new  contractive framework that will committing  the gas supplier to clear enforceable commitment to deliver has molecules will be frame-up and signed up.

    “So, what happened that day was a trigger and since then several meetings have been held and first -price is concluded. Two, debt is about to be signed off and paid in a matter of days or weeks, the new contract framework will be fully agreed upon and that will put the framework in total good shape.”

  • NERC to FG: Pay N50b electricity subsidy arrears

    NERC to FG: Pay N50b electricity subsidy arrears

    •‘Why DISCOs delay provision of metres’

    CHAIRMAN of the Nigerian Electricity Regulatory Commission (NERC), Dr Sam Amadi, yesterday advised the federal government to fulfill its commitment to the Nigerian Electricity Supply Industry by paying the subsidy  arrear of N50billion.

    He told The Nation that although consumers have met their part of the obligation, government remains the reneging partner.

    The arrear, if paid, he said “will reduce the great impact of the review going forward” ahead of the announcement of the outcome on the Multi-Year Tariff Order review in December.

    He also added that the subsidy “can help to take away some of the shortfalls and improve the financial viability of this electricity market.”

    According to him, the electricity subsidy fund was supposed to run-off by June but government reneged on its commitment resulting in a backlog debt now up to the tune of N50b arrear.

    “So government ought to pay for what it is committed to so that it can help to take away some of the shortfalls and improve the financial viability of this electricity market,” Amadi submitted.

    He, however, revealed that the NERC is not relying solely on the subsidy arrear, stating there are alternative plans to keep the electricity market solvent.

    “We are also putting out contingent plans assuming government does not pay the arrears so that we must keep the electricity market solvent and strong with or without the subsidy,” he stated.

    On why the Electricity Distribution Companies (DISCOs) have been reluctant to make metres available to customers, Amadi said that some of the companies have since November recorded significant metering while others are yet to act.

    According to him, the companies may not have done much in terms of metering since they are waiting for the declaration of Transition Electricity Market (TEM) and tariff review.

    The chairman said that the commission recorded significant improvement in the remittances which the DISCOs made to Market Operators from May to June.

    He revealed that NERC has decided that Eko Electricity Distribution Company that has achieved 98% remittance should have a new benchmark.

     

  • NERC presents safety code

    The Nigeria Electricity Regulatory Commission (NERC) yesterday said it would penalise any  power sector operator whose faults result  in electrocution cases.

    Presenting the Nigerian Electricity Health &Safety Code at Abuja, the Chairman, Dr. Sam Amadi, said “with the Health Safety Code in place, it is expected that the industry operators will step-up the health and safety activities in their respective companies, otherwise they will be faced with stringent penalties. From now on, electrocution cases will no longer be treated lightly.”

    He explained that while  the Commission works hard to ensure cost reflective tariffs to improve the funding and revenue stream of the utilities to provide world class services to customers, it is  expected that the utilities will pay greater attention to the improvement of efficiency and safety of the network.

    In his rejoinder-like speech, which he titled “There is no gap in the technical regulation of the Nigerian Electricity Supply Industry ( NESI ), Amadi corrected the misinformation which created the impression that there is a gap in the technical regulation  of the industry.

    According to him, the impression “is wicked misinformation aimed at distracting the commission from its core mandates, causing disharmony and derailing the progress made in the power sector reform.”

    Amadi however held that the National Electricity Power Policy (NEPP 2000) and the Electric Power Sector Reform Act (EPSR) 2005 which are the guiding spirit for the Power Sector Reform, unambiguously mandate the commission as the an independent technical and economic Regulator of the NESI.

    He recalled that following the hardwork and transparency of the commission, it has received a lot of commendations and grants from some local and international organizations.

    His words: “I would like to categorically state here that there is no gap in technical regulation in the NESI as been alleged, the commission has put in place several regulatory instruments to address technical and safety issues arising from across the electricity supply chain. As a matter of fact this has earned the commission several commendations and grants from within and outside the country;  Multi-national organisations such as the World Bank, USAID, and USTDA etc have one time or the other supported and commended the commission on the progress made specifically with the development of the ground rules especially in commercial and technical aspects of the NESI.”

  • Minister warns NERC, EMS over rivalry

    Minister warns NERC, EMS over rivalry

    The Minister of State for Power, Mohammed Wakil yesterday warned against the rivalry between the Nigeria Electricity Regulatory Commission ( NERC) and the  Electricity Management Services that are both under the ministry.

    He advised that  “only collaboration and positive interface can speed up attainments of the goals of the power sector reforms”.

    This was contained in a statement made available by the Special Adviser, Media to the minister, Rasheed Olawale yesterday.

    According to the statement, speaking  while inaugurating the Technical Committee on the establishment of the Electricity Management Services Limited in Abuja on Tuesday, the minister noted that “inter agency dispute has negative impact on the implementation and achievement of government goals. We must never engage in disputes to the extent of engaging in press war.

    “Agencies must avoid taken to public domain operational issues that should be resolved within the ministry. The transformation of the power sector has recorded so much progress that we cannot for whatever reasons fight each other over mandates. The ministry can no longer watch the infighting which has now reached the media. That is why this committee is conceived.

    “You are to ensure that all areas of disputations between the EMS and the Nigeria Electricity Regulatory Commission are resolved with respect to the bill before the National Assembly. Your committee is to provide options and recommendations on how to ensure synergy between the two agencies”, the minister said.

    The Permanent Secretary of the Federal Ministry of Power, Dr. Godnows Igali told the committee that the EMS was set up by the same instrument that set up other agencies during the power sector reform exercise. EMS was not a creation of the present leadership of the ministry. The National Council on Privatization created EMS.

    “The only thing was that it was registered as a limited liability company with the Corporate Affairs Commission before the National Assembly in its wisdom recommended a legal backing for the body. So it is not a new creation”, Dr Igali said.

    Responding, the Chairman of the committee, Engr. Nyelampa Nggada said there can be no robust power sector without technical regulation as different from economic regulation.”Lack of proper testing of equipments is an invitation for troubles.

    “We must address the technical challenges facing the power sector and one of the best way is to have a technical regulation. We must commend you for setting up this committee and we will bring our expertise to bear in the discharge of our responsibilities “,the Chairman said.

  • ‘No plan to stop fixed tariff’

    The Nigerian Electricity Regulatory Commission (NERC) will not reverse the payment of fixed tariff by customers, its  Chairman Dr Sam Amadi, has said.

    Last May 1, NERC ordered the Electricity Distribution NERC Companies (DISCOs) to stop collecting N750 monthly fixed charge in any area without power supply for 15 days in a month.

    The directive was given to make the DISCOs more responsive to the plight of consumers and ensure that the comission is fair.

    The order followed complaints from the DISCOs, which complained that it was affecting their revenue.

    Amadi told The Nation that NERC was working on issues, such as Transitional Electricity Market (TEM), fixed charge policy, among others, which are crucial to the growth of the sector.

    He said: “There is no timeline as regards the reversal of the directive on fixed charge policy. We are still working on modalities to ensure that various policies achieve their desired objectives.  After the declaration of the Transitional Electricity Market, we would tell the public our position on the issue.”

    But a top official of the Ikeja Electricity Distribution Company (IKEDC) told The Nation in confidence that he was not aware of any decision by NERC to reverse the directive on fixed charge policy. The source said IKEDC had never complained that the directive was affecting its operations.

    “To the best of my knowledge, I’m not aware that NERC is planning to reverse the directive stopping DISCOs from collecting N750 monthly fixed charge in areas without electricity for 15 days,’’ he said.

  • Obiano to partner Fed Govt on power reform

    Obiano to partner Fed Govt on power reform

    Anambra State Governor Chief Willie Obiano has promised to support the Federal Government to ensure that the power sector reform is achieved.

    This followed the National Electricity Regulatory Commission (NERC) blaming Nigerians for the poor power supply.

    Obiano and the NERC General Manager, Dr. Tony Akah, spoke yesterday at the Nnamdi Azikiwe University, Awka during a lecture organised by the Department of Economics.

    Speaking on a lecture titled: “Energy consumption, challenges and prospects in the 21st century,” Akah said electricity is not a social product, so it must be priced appropriately for investors to bring in their money.

    He said because of the flat rate billing system, most Nigerians leave their appliances on throughout the day, thereby wasting the little available energy.

    His words: “In Nigeria, you find a situation where families leave their electrical appliances on throughout the day. This affects the facilities.

    “In some cases, you see people using 100 and 200 watts bulbs. But the normal thing is for people to us the LED bulbs, which are just three and five watts. We will conserve energies by using these bulbs.”

    Akah said people should learn to maximise energy, to enable others have electricity, adding that they should use low energy consuming bulbs.

    Obiano, represented by the Commissioner for Education, Prof. Kate Omenugha, described the theme of the lecture as apt.

    Hailing the Federal Government on its commitment to the power reform sector, he urged Nigerians to be patient to allow a workable reform.

    The Head of Department, Uche Nwogwugwu, said the theme of the lecture was chosen to recognise the role power plays in people’s lives.

  • NERC blames poor power supply on Nigerians

    NERC blames poor power supply on Nigerians

    The National Electricity Regulatory Commission’s (NERC) has blamed Nigerians for being partly responsible for the poor power supply in the country. Its  General Manager Dr Tony Akah who spoke yesterday said most electricity consumers in the country prefer to swicth on electrical appliances even when they are not at home, addinmg that wastages such as this results in erratic power supply.

    Speaking at the Nnamdi Azikiwe University, Awka, at a lecture organised by the institution’s Department of Economics on: “Energy Consumption, Challenges and Prospects in the 21st Century,” Akah said electricity is not a social product, and as such it must be priced appropriately to attract investors.

    He regretted that the flat rate billing system, which rather estimates a consumer’s consumption, rather than the metering system, which gives the actual electricity consumed, remains a huge disservice to investment returns in the sector. Besides, Nigerians’ attitude of leaving unused appliances on constitutes a huge wastage on the little energy geenerated and transmitted.

    “In Nigeria you find a situation where families leave their light on, all through the day and this has impact on the facilities. In some cases you see people using 100 and 200 watts bulbs. But the ideal thing is for people to us the LED bulbs, which are just three and five watts. We will conserve a lot of energy by using these kind of bulbs,” Akah said.

    He advised Nigerians to learn how to maximise energy in order to let others have electricity. One way of achieving this, he said, is by learning to switch to low energy consuming bulbs as this would help consumption.

    Speaking on the occasion, Anambra State Governor, Chief Willie Obiano, who was represented by the State Commissioner for Education, Prof Kate Omenugha, lauded the Federal Government on its commitment to the power reform sector. He also called for patience on the part of Nigerians, so as to allow time for a workable reform.

    Earlier in his welcome address,  Head, Department of Economics, Uche Nwogwugwu, said the theme of the lecture was purposefully fashioned out to recognise the role power plays in everyone’s life.

  • Govt plans new gas price for Gencos, others

    Govt plans new gas price for Gencos, others

    The Federal Government is planning what it calls a “competative gas price” for the benefit of power generation companies (Gencons), petro-chemical and fertiliser plants.

    The proposed price regime may be introduced before September, according to the Chief Executive Officer, Nigerian Electricity Regulatory Commission (NERC), Dr Sam Amadi.

    It is to encourage producers that have been clamouring for incentives to increase output.

    At present, there are varying price regimes. While the gas-based industries pay 90 cents per 1,000 standard cubic feet (SCF)  of gas, the power firms pay $1 per 1,000 cubit feet.

    When benchmarked against international rates, the prices are considered inadequate to encourage local firms to produce for domestic use. The proposed price regime is expected to bring the local price nearly at par with the international market rates.

    Amadi told The Nation that the Ministry of Power, NERC and other relevant stakeholders were working to ensure that the price comes out in September, adding that the price will precede the declaration of the Transitional Electricity Market also slated for  September.

    He said: ‘’The domestic gas price ranges from $1 to $2. We are still working on the issue to ensure that gas producers are incentivised  and produce more for the sector. Power is critical to the growth of the economy and we want to see a situation whereby the electricity companies would be able to produce optimally.

    “The declaration of the Transitional Electricity Market is slated for September. We hope to get the new gas price regime on ground before that date because of its importance to the energy sector.’’

    The  domestic gas users know how important the new gas regime is to their operations, and as such, would embrace it, he said, adding that the Commission has no doubt that companies in the oil and gas sector would comply with the policy.

    To the Director-General, Bureau of Public Enterprises (BPE) Benjamen Dikki, investment in gas is not attractive to foreign firms.

    He said  prices of gas in the domestic market were lower compared to  the international markets.

    ‘’While the domestic gas price is between $1 and $2, the international market price ranged from $5 to $6.  Foreign firms are not ready to invest in gas production in Nigeria because they would not be able to get good returns.

    ‘’Once there is a cost reflective price for our gas, we would see a lot of investments going into that area. The gas challenges we are facing would be taken care of in long-term, once all the variables that determine the cost of producing gas are taken into consideration.  The cost of mining, drilling, production  and piping gas should be well considered, ‘’ he said.

    He admitted that gas is a problem, noting that it has affected power generation.  He said power distribution firms should not be blamed for the problems in the industry.

    ‘’The distribution companies are not to blame. The generation companies generate electricity and supply to the DISCOs. The GENCOs do not have gas to generate. Once the GENCOs do not have power to generate and no power to give to the DISCOs,  the DISCOs would not have anything to distribute. None of the distribution companies generate power. It is the generation companies that generate power,‘’ he added.