Tag: NERC

  • Why electricity market take-off is delayed, by NERC

    Why electricity market take-off is delayed, by NERC

    The Nigerian Electricity Regulatory Commission (NERC) may not implement the Transitional Electricity Market (TEM) policy soon, its Chief Executive Officer, Dr Sam Amadi, has said.

    He told The Nation that it would be futile to declare the market open because of problems, such as tarrifs and shortfall in gas supply.

    He said indices, such as calculations and pricing, must be engaged in the buying and selling of electricity before the market is opened.

    “The Commission is monitoring the market conditions. Once the conditions are satisfactory to stakeholders, including NERC, the power generation companies (GENCOs) and distribution companies (DISCOs), among others, we would declare the market open. If the conditions are not okay, we would not declare the market open. The review of the market conditions is on-going; when it is completed and growth mitigating factors are addressed, we would know what to do,” he said.

    He described TEM as a post-privatisation phase, where energy will be bought and sold based on agreement among stakeholders, adding that its operations are crucial to the industry.

    The market, Amadi said, allowed the GENCOs and DISCOs to buy electricity without going through the bulk trading agency.

    Also, the Head, Power Procurement & Power Contracts, Nigerian Bulk Electricity Trading Plc, Yesufu Alonge, said there were some assumptions in the fixing and implementation of tariff adding that the market may not start until these problems are solved.

    “There are lots of assumptions around the tariff. I understand that a consultant has been hired to work on the assumptions as part of efforts to ensure the commencement of the operations of the market. NERC will validate the outcome of the review. This, among others, would help in determining the terms of the market,’’ he added.

    He said a workshop was organised to address issues impeding the take-off of the market, adding that the interim market rules are being addressed.

    ALonge said the main rules to govern the market would be rolled out later.

    The implementation of the TEM was expected last month, but was postponed following complaints by chief executive officers of the 15 power generation firms.

    The complaints include operational losses, tariff review and challenges in gas supply.

  • House to probe meter scarcity, says lawmaker

    House to probe meter scarcity, says lawmaker

    The power distribution companies (DISCOs), the Ministry of Power, the Nigerian Electricity Regulatory Commission (NERC), and other stakeholders may appear before the House of Representatives Committee on power over the scarcity of prepaid metres, a member, Hon Abike Dabiri-Erewa, has said.

    Speaking during a tour of Momas Meter Manufacturing Company Limited (MOMCOL) in Mowe, Ogun State, Mrs Dabiri-Erewa said the probe was necessary to get to the root of the problem.

    She said the Committee would probe metres’ scarcity, low patronage suffered by indigenous manufacturers, and local content, adding that manufacturers have suffered despite the huge market.

    The lawmaker said: “We are going to invite all parties involved, be it DISCOs owners, NERC, Ministry of Power and all stakeholders to know why local manufacturers are not been patronised.

    “Nigerians deserve better electricity services and we are going to get to the root of the challenge in the sector. There is need for us to give deadline to all DISCOs on installation of pre-paid metre to all electricity customers, but we equally gathered that most new owners face the challenge of finance.”

    Mrs Dabiri-Erewa said the House would have given deadline to all DISCOs on installations of pre-paid metres, if not because of the financial challenges facing them.

    She urged investors in the power sector to step up efforts aimed at improving electricity generation, transmission and distribution in the country.

    She said DISCOs must ensure that customers are metered to prevent estimated billings, and other problems faced by the consumers.

    She urged power firms to improve electricity generation, distribution, and transmission in the country

    Mrs Abike-Dabiri said metres had become difficult to come by in many homes, advising the firms to make the product available in the country.

    ‘’We should learn how to believe and celebrate ourselves. We should be determined to develop. As a parliamentarian, I am going to discuss with my chairman on power on ways to enforce local content through patronage of local metre manufacturers,” she said.

    She said the House would ensure that local content is embedded in power sector, as done in the oil and gas sector.

    MOMCOL’s Chairman Mr Kola Balogun decried poor patronage of metres by companies and government agencies in the country.

    He said Nigeria does not need to import metres, given the potential available in the country.

    “Indigenous (metres) manufacturers do not get enough patronage from government ministries and that is why our economy is not growing. The story of poor patronage is still the same in metres manufacturing sub-sector where foreign firms are patronised by government agencies. I can confidently say that local manufacturers can meet our needs. Nigeria has reached a stage where she is not supposed to be importing metres. In our company alone, we have a production capacity of 500,000 to one million meters a month,’’ he said.

    Balogun said manufacturers are facing funding as they find it difficult to access credit facilities from banks. He said the Small and Medium Scale Entrepreneurs (SMEs) needed to be encouraged to produce metres’ spare parts to grow the economy.

  • NERC, BPE to monitor DISCOs, GENCOS

    NERC, BPE to monitor DISCOs, GENCOS

    The Nigerian Electricity Regulatory Commission (NERC) and the Bureau of Public Enterprises (BPE) are contemplating an inter-agency committee to monitor the 15 power firms.

    BPE’s spokesman Joe Anichebe told The Nation that the committee would monitor the activities of the firms since they took over the Power Holding Company of Nigeria (PHCN) assets last year to ascertain whether they have complied with the post-privatisation and regulatory laws.

    He said the committee would look at whether the companies have achieved some of their objectives or not, and their ability to meet the goals enshrined in the reforms act.

    The modalities for assessing the operators, he said, would be provided by the Committee.

    Anichebe BPE and NERC perform different functions, hence the need for them to jointly monitor the firms’activities from their perspectives.

    He said: ‘’There would be an inter-governmental agency committee to work out modalities on how to monitor the activities of the newly approved players in the power sector. The committee would be saddled with the responsibility of providing accurate and objective observation of the events in the sector to foster growth.”

    Anichebe explained that while the BPE would look at the post-acquisition plans of the companies and the Share Purchase Agreement (SPA), the NERC would look at the technical and regulatory obligations the companies are expected to meet to achieve their goals of improving electricity supply.

    ‘’ Under the post-acquisition plans, the firms told us the things they want to do; they told us what they intend to achieve within a particular period of time. Through the exercise, we would find out whether the companies have accomplished some of their set goals or not.’’

    Also, the NERC’s Chairman, Sam Amadi said the commission would ensure that the firms comply with the best practices of corporate governance. Amadi, who gave the assurance in a telephone interview with The Nation, said no stone would be left unturned in making the companies operate in line with the established frameworks. He said there would be checks and balances, adding that the firms must obey the laid down rules to ensures success of the reforms.

    NERC, in line with the Electric Power Sector Reform Act (EPSRAct 2005) is expected to formulate and implement policies that would protect the interest of consumers. It will also set and review tarrifs, issue licensces to operators, and where possible promotes competition.

  • Tributes for ex-student leader Segun Okeowo

    Tributes for ex-student leader Segun Okeowo

    It was a gathering of the academic community on Monday night as serving and ex-student union leaders converged at the Reiz Continental Hotel, Abuja, to pay tributes to a former student union leader, Mr. Segun Okeowo, who died last month.

    The late Okeowo is popularly known for leading the “Ali Must Go” students’ protest in 1978.

    The Night of Tributes was organised by the Office of the Senior Special Assistant to the President on Youths and Students Affairs, Jude Imagwe.

    Imagwe said the late Okeowo impacted positively on many lives and should be immortalised.

    He said it was sad that no group gathered to celebrate the late Okeowo since his demise in January, adding this prompted the organisation of the Night of Tributes.

    Imagwe said: “I will do everything possible to ensure that this foremost ex-student leader does not die in vain. His legacies must forever be remembered. He will be immortalised.”

    Urging student union leaders to shun partisan politics and avoid being bought over by politicians, he said: “Students’ leaders should act responsibly. The student union body should return to what it used to be in the past, which was the voice of millions of Nigerian students.”

    Chairman of the Nigerian Electricity Regulatory Commission (NERC) Sam Amadi, who is also an ex-student union leader, called for better interaction among youths on critical issues on the social media.

    He cautioned youths against unwarranted criticisms, urging them to engage in productive ventures.

    The deceased’s son, Kolade, said his father “will forever be his hero”.

    Representatives of the Nigerian Labour Congress (NLC) were at the event.

     

  • Tributes for ex-student leader Segun Okeowo

    Tributes for ex-student leader Segun Okeowo

    It was a day of tributes on Monday night, as serving and ex-students’ union leaders converged on the Reiz Continental Hotel, Abuja, to eulogise a former students’ union leader, Mr. Segun Okeowo, who died last month.

    Okeowo was famous for leading the “Ali Must Go” students’ protest in 1978.

    The Night of Tributes was organised by the Office of the Senior Special Assistant to the President on Youths and Students Affairs, Jude Imagwe.

    Imagwe said Okeowo impacted positively on many lives and should be immortalised.

    He said it was sad that no group gathered to celebrate him since his demise last month, adding that this prompted the organisation of the Night of Tributes.

    Imagwe said: “I will do everything possible to ensure that this foremost ex-students’ leader did not die in vain. His legacies must forever be remembered. He will be immortalised.”

    Urging students’ union leaders to shun partisan politics and avoid being bought over by politicians, he said: “Students’ leaders should act responsibly. The students’ union body should return to what it used to be in the past, which was the voice of millions of students.”

    Chairman of the Nigerian Electricity Regulatory Commission (NERC) Sam Amadi, who is also an ex-students’ union leader, called for better interaction among youths on critical issues.

    He cautioned youths against unwarranted criticisms, urging them to engage in productive ventures.

    The deceased’s son, Kolade, said his father “will forever be his hero.”

    Representatives of the Nigerian Labour Congress (NLC) were present at the event.

     

  • NERC to limit repatriation of profit from power sector

    NERC to limit repatriation of profit from power sector

    The Nigerian Electricity Regulatory Commission ( NERC) will enforce the Central Bank of Nigeria (CBN) policy which limits the repatriation of  profit from Nigeria’s power sector.

    NERC’s  Commissioner for Finance and Management, Mr. Patrick Umeh made the declaration in Abuja during the public consultation on draft enforcement and regulations on national content development for the Nigerian Electricity Regulatory Supply.

    He said : “ we go by that guideline to ensure that the money legally needed to be repatriated is repatriated, the one that needs to stay, stays. It is a policy issue of the Federal Government and Central Bank and the commission will work in that regard .”

    Speaking on behalf of himself, one of the stakeholders at the meeting, a staff of Total Exploration and Producing , Dr. Moses Amadason who raised the point, suggested that in order to avoid the telecom experience in the power industry, there should be a policy that insists that after years of operations and turn over in Nigeria, the firm should be listed in the Nigerian Stock Exchange.

    Amadason said : “Some people are raising the question that why is it that MTN Nigeria today makes more profit for the MTN group than its parent company in South Africa. But most of the profit is repatriated to South Africa. So, such a mistake should not be made in the electricity industry.

    “There should be a provision that will make it mandatory that after a company of a certain size makes some turn over, and years of operation in Nigeria, must be listed in the Nigerian Stock Exchange so that some of this profit or dividends will also be for the Nigerian public.”

    A representative of the Muman Electricity Meters Manufacturing Company Limited (MELCON)- Nigeria’s first indigenous meter manufacturing  company, Ibrahim Adebayo sought the protection of local manufacturers from the operation of importers of electricity equipment.

    According to him, the company has the capacity to produce 100 meters daily if the market is available.

    He stated that only six countries; Morocco, Algeria, South Africa, Senegal, Tunisia and Nigeria produce electricity  meters in Africa.

    Speaking, the Managing Director, Ikeja Electricity Distribution Company, Abiodun Ajiofunwade, questioned why nobody has been prosecuted for violating NERC rules.

    He urged the commission to enforce the rules to strengthen the power industry.

    In his presentation entitled : “Regulations on National Content Development for Nigerian Electricity Supply Industry, Mr. Moses Pila of NERC noted that “Licensees working through their Nigerian subsidiaries shall demonstrate that a minimum of 51% of the equipment deployed for execution of work are owned by the Nigerian subsidiaries.

  • SERAC sues Ikeja DISCO, NERC, others for N13.37m

    A CIVIL Society group, Social and Economic Rights Ation Centre (SERAC) has sued the Ikeja Distribution Company (DISCO) Plc and others for the alleged epileptic power supply of electricity to its office and environs in Omole Phase II at Isheri area of Lagos.

    SERAC, which is before an Ikeja High Court, is seeking an order, directing the company and the Nigerian Electricity Liability Management Limited(NEMLCO) to pay to it N10million as general damages and N3.371million as special damages.

    The group named the Ikeja Electricity Distribution Company, the Nigerian Electricity Liability Management Company (NEMLCO) and the Nigerian Electricity Regulatory Commission (NERC) as defendants in the suit.

    NELMCO is the corporate body created by law in the course of the “unbundling” of the Power Holding Company of Nigeria (PHCN) to manage certain assets and liabilities of the PHCN.

    Executive Director, SERAC, Mr. Felix Morka, claimed that the PHCN and its successor, the  Ikeja Electricity Distribution Company, which took over “the sole generation and distribution of power” in Ikeja Distribution Zone of Lagos, wrongly billed it N3,877,190 between January 2012 and September 2013.

    According to him, going by its average daily use of 85.71KW and at the prevailing rate of N13.07 per KW, it ought to be billed N506, 119.35 within the period.

    The group argued that it has incurred additional expenses of N3,371,190 due directly to PHCN and its successor company’s breach”.

    In the statement of claims, SERAC claimed to have fulfiled its obligation to PHCN and that it is entitled to a steady supply of electricity by the first defedant (the Ikeja Distribution Company Plc).

    Instead of a steady supply, SERAC said it “incurred tremendous additional expense – buying, maintaining and fueling its generators”as a result of the epileptic power supply.

    He also argues that failure of PHCN and its successor firm to issue three days notice in the event of any planned interruption amounts to a breach of contract.

    The claimant stated that PHCN and its successor company is further required by the NERC regulations to notify its consumers including the claimant by giving three days notice in the event of any planned interruption of power supply.

    At trial, the claimant said it would rely on the Customer Service Standards of Performance, S. I. No. 40 of 2007, issued by NERC pursuant to its statutory mandate in the Electricity Power Sector Reform Act of 2007.

    It therefore, among other prayers, urges the court to make an order directing NERC “to promptly and without further delay establish standards for compensation to comsumers (such as itself), who do not enjoy regular power supply”.

    The matter has not been assigned to a judge as the defendants too have yet to file their defence in the suit.

     

     

  • Privatisation: BPE, NERC promise improved power supply

    Privatisation: BPE, NERC promise improved power supply

    Dr Benjamin Dikki, the Director-General, Bureau of Public Enterprises (BPE), has promised to work with the Nigeria Electricity Regulatory Commission (NERC) to ensure improved electricity supply in the country.

    Dikki said that the two organisations would ensure that the new owners of the power companies met the country’s expectations of adequate power supply.

    This was contained in a statement issued in Abuja over the weekend made available to newsmen by the Head, Public Communications, Mr Chigbo Aniechebe.

    Dikki said that the bureau was aware of the high expectations of Nigerians from the outcome of the power sector reform.

    He said that this necessitated the BPE and NERC to put in place monitoring mechanisms to ensure that the new owners of the power companies fulfilled their obligations to improve power supply.

    Dikki said that during the privatisation exercise, documents were signed to give BPE and NERC the power to monitor these companies after the sales to help them ensure that power supply improved.

    He said that these agreements were the Share Sale and Purchase Agreement (SSPA), Performance Agreements (PA), BPE’s Post Privatisation Monitoring Template, NERC’s Reporting Compliance Regulation and NERC’s Terms and Conditions of Licensing.

    “SSPA clearly spells out the terms and conditions of sale of shares to the investors, while the PA contain terms of payment and Post Acquisition Plans implementation.

    “It also stipulates clear milestones the investor must achieve within a specified period.

    “The NERC’s Reporting Compliance Regulations clearly outlines the level of compliance to set standards by the companies.

    “Also, NERC’s license terms and conditions is the document that shows the mandatory requirements for acquiring a license and the violation of the terms will lead to NERC’s withdrawal of the license,” he said.

    Dikki said that among the documents was the Compliance Monitoring which gave BPE the right to audit, enter and monitor privatised enterprises every six months upon five days notice to the company.

    “The performance obligations and liquidated damages mandates the purchaser to ensure the company achieves the minimum performance targets, failing which the purchaser shall be made liable to pay liquidated damages for performance below agreed standards.

     

  • Power: Govt, investors meet over gas

    Power: Govt, investors meet over gas

    The Federal Government is meeting with the new power firms and relevant agencies to address the acute gas shortage which has caused a drop in electricity supply nationwide.

    The meeting will continue until solution is found to the problem, it was learnt, at the weekend.

    At a meeting convened by the Nigerian Electricity Regulatory Commission (NERC) in Abuja, the stakeholders were said to have expressed concern that rather than improve, power supply is worsening under the new firms.

    An official of one of the firms said their major challenge was gas supply. He said: “We have a challenge now but we are still meeting with the government people and people in the gas sector to find a way out because we have not had our best in terms of gas supply.

    “We have the capacity, though it is a little below the installed capacity but over the past three to four months, we have not reached our available capacity because of gas challenges. We had a meeting in Abuja called by NERC on how best to tackle the challenges. Part of the bigger challenge that was discussed was the issue of gas. There was another meeting in Abuja over the same issue.”

    The Nigerian National Petroleum Corporation (NNPC) and its subsidiary, Nigerian Gas Company (NGC), were summoned to explain what they are doing to address the issue.

    NNPC Group Managing Director Andrew Yakubu said pipeline vandalism was jeoparding efforts to boost gas supply to power.

    He said: “Despite these efforts, the gas sector has been faced with a major challenge in pipeline vandalism and this has significantly eroded available gas supply to the power plants. As at last week, over 30 per cent of the installed gas supply capacity was out due mainly to vandalism. This is equivalent to the gas requirement to generate about 1,600megawatt (MW) of electricity.

    “The pipelines involved are the Escravos-Warri, which is part of the Escravos Lagos Pipeline System (ELPS), the Trans-Forcados crude pipeline and temporary maintenance of the Utorogu gas plant, which led to shutdown. We have suffered repeated outages on the vital Trans Forcados crude oil Pipeline (TFP), the latest being about two weeks ago. Although this is not a gas pipeline, it is used to evacuate condensate from Oben, Sapele, Oredo and Pan Ocean’s Ovade gas field. With a disruption of condensate evacuation, gas production has to stop.

    “The crude theft related outage of crude pipelines is also a challenge a in the East with recurrent breach of the Trans Niger Pipeline (TNP) almost on a weekly basis. The result of this is major disruption of gas supply in the East impacting on three power plants at Afam belonging to NNPC/SPDC JV, PHCN and RVSG as well as other industrial users in the East such as Notore and ALSCON.”

    Besides repairs of the vandalised pipelines, Yakubu said new gas projects would soon be delivered.

    He said: “Beyond the ongoing repair works, many projects are ongoing to bring in additional supply to bridge the growing demand by the power sector. By the end of Q2/Q3 2014, additional 200mmcf/d of gas is expected from two NPDC projects at Utorogu and Oredo. In addition, with the planned completion of the Omoku and Alaoji NIPP power plants, further boost in generation is expected as both plants have gas supply available awaiting completion of the power plants.

    “In 2015, many other projects are expected to mature progressively and by 2016 when the East-West pipeline is completed, a major boost in supply will be attained as over 250mmcf/d of gas stranded in the East will be diverted to meet the growing power demand.

    “If the occurrence of pipeline attacks is arrested, we expect nothing but a continuous and steady upward growth in gas supply to power from the end of this month, with a noticeable increase in electricity seen by Nigerians.”

  • Let that child speak his local language

    Let that child speak his local language

    Not long ago, I read a story in the media about the effort of the Bayelsa State government to ensure Ijaw language does not die. The government has earmarked money to sponsor Nollywood films done in Ijaw language.

    The initiative brought back to the fore the sorry state of our local languages. From Yoruba to Igbo, Hausa and others, damage has been done to these languages. Line up children between the ages of five and 15, from any of our ethnic groups, and ask them to speak their language, chances are that they cannot. In fact, not a few children have been known to react to their local languages when spoken by others as ‘nonsense’.

    The foundation for the mess that our languages have become was built in schools, where natives languages were barred and regarded as vernacular. Students were even punished for speaking their mother tongues. The practice is still prevalent today. Schools still forbid mother tongues. It is even worse with the private schools, where Yoruba, Igbo and others are not even taught. Only few private schools teach these languages. English is the better for it. Some even teach French.

    As if speaking in mother tongue is a plague, many parents have stopped speaking to their children and wards in their mother tongue, thus helping to swell the number of endangered languages compiled by the United Nations Educational, Scientific and Cultural Organisation (UNESCO). A directive from the National Education Research Council (NERC) has further harmed indigenous languages. NERC, citing the need to reduce the number of subjects students offer, ruled that indigenous languages should be removed from the list of compulsory subjects at the secondary school level.

    UNESCO recently warned that if nothing is done, about half of the over 6,000 languages spoken in the world will disappear by the end of the 21st century. Nigerian languages are among the endangered ones.

    Already, according to UNESCO, eight Nigerian mother tongues are extinct. They are the Ajawa (Bauchi State); Auyokawa (Jigawa State); Basa-Gumna(Niger and Nasarawa states); Gamo-Ningi (Ningi Local Government, Bauchi State); Kpati, Kubi, Mawa (Bauchi State) and Teshenawa (Jigawa State) languages.

    Interestingly, the emphasis on English language has not reflected in the number of candidates who pass the language in terminal examinations, such as the Senior Secondary School Certificate Examination (SSSCE). The 2012 result shows that 771,731 candidates, representing 46.14 per cent,  obtained six credits and above; 952,156 candidates, representing 56,93 per cent, obtained five credits and above;  while 1,107,747, representing 66.24 per cent,  obtained credits in four subjects.

    But, only 649,156 candidates, representing 38.81 per cent, obtained credits in five subjects and above, including English Language and Mathematics.

    The results of the two previous years, as regard passing English, were worse. May be the students would have done better if they understand their mother tongues better. Some experts say there is a correlation between this.

    But there is hope in the sense that outside of Nigeria, local languages, especially Yoruba are being taken seriously.

    As a result of a requirement that makes every American college undergraduate to gain proficiency in at least one international language before being certified worthy in learning and character, there is a partnership between the University of Ibadan (UI), Oyo State, and the American Council for International Education (ACIE), Washington DC, US. The agreement, which dates back to 2009, encourages American students who wish to learn Yoruba language and culture. Known as the Yoruba Language Flagship Programme (YLFP), which gave birth to the Yoruba Language Centre (YLC), the programme has helped Americans to learn Yoruba, which our people are ignorantly avoiding.

    Also, the US Bureau of Educational and Cultural Affairs, through an initiative called Foreign Language Teaching Assistants, is aiding young speakers of Yoruba and Hausa languages who have educational background in English or language arts. They are recruited as teaching assistants to teach their languages and cultures to American students in the US universities and colleges. Many American universities and colleges, such as Harvard University, Stanford University, Cornel University, University of Pennsylvania, University of Wisconsin-Madison, University of Massachusetts, Indiana University in Bloomington, Ohio State University, Michigan State University, Ohio University, University of California at Berkeley, University of California at Los Angeles, University of Florida, University of Illinois at Urbana Champaig and Howard University run full-fledged degree programmes in Yoruba language, which we are running from.

    But charity must begin at home. It will not augur well for us to get to a situation where foreigners will be more proficient in our languages. That is why I applaud the initiative to promote Ijaw language. We need more of that. We should also end the era of Yoruba films, with diluted English.

    The NERC must urgently make the offering of at least one local language compulsory for students. Parents also have a role to play here. Let your children or wards learn English in school. Speak your language to them at home and let them know it is not nonsense or ‘jagajaga’ as many of them see it.

    The time for action is now.

    • Fadun, an Insurance Executive, writes this piece from Lagos.