The Nation Newspaper

Tag: NERC

  • Anxiety mounts over increase in fixed electricity charge

    Fears over possible increase in monthly electricity fixed charges have gripped consumers as 2014 draws near. Though the National Electricity Regulatory Commission (NERC) has prevailed on the power companies not to hike tariffs until power improves, the fears have persisted.

    A top official of one of the distribution firms, who spoke on condition of anonymity, said the companies are making efforts to revisit the issue. The sources said it has become imperative for the distribution companies (DISCOs) to increase the fixed charges and other tariffs. He said fixed charges have been increased over a period of time, arguing that the issue is not new.

    The sources said: ‘’ Under the Multi- Year Tariff Order (MYTO) fixed monthly charge has increased from N75 per month in 2011 to N500 in 2012 and N750/metred customers in 2013. The fixed charge would definitely increase to N1,000 to enable the companies generate more revenues for operation. We are planning to meet NERC on the issue early next year. We hope to get favourable response from the Commission.’’

    A lawyer, Mrs Ponle Olurotimi, said the fear about the increase in fixed charge heightened following a meeting the power firms had with NERC.

    She said tarriff is high, adding that people are paying for the energy they do not consume. She said it is illogical for the power firms to increase tarriffs in the face of incessant power failure.

    ‘’From previous events, it is obvious that fixed charge would increase next year. That would further compound the woes of the consumers. Consumers can only be compensated for any short, or long-term increase in tarriffs when there is regular power supply. Once the GENCOs and DISCOs have been able to improve power supply, there would be little or no resistance to increases in fixed charge for metered consumers monthly,‘’ she added.

    The Managing Director, Addax Photomania Nigeria Limited, Dauda Adesiyan said any attmept to increase tarriffs would further improverish Nigerians, stressing that consumers are groaning under heavy bills. He urged the government not to add to their problems.

    The Secretary, NERC, Ada Ozomenan, said fixed charge is N750, adding that consumers are expected to pay whether they use the light or not. She said the charge is fixed and in line with the regulatory directives, adding that there is nothing anybody can do to stop it.

    On the agitation of Power Holding Comapny of Nigeria’s (PHCN) successor companies for increased fixed charge, among other tariffs, she said the Commission has met with the chief executives of the companies and told them that it would be suicide if they should increase the tarriffs.

  • MAN adopts wait-and-see attitude to power reforms

    MAN adopts wait-and-see attitude to power reforms

    THE Manufacturers As sociation of Nigeria (MAN) will not assess the power sector reforms for now, its Chairman, Infrastructure Committee, Riginald Odiah, has said.

    He told The Nation that the body wanted to watch the situation as it unfolds before passing judgment on issues relating to the sector reforms.

    He said: ‘’As regard the issue of privatisation of the Power Holding Company of Nigeria (PHCN), it is a good development in the history of Nigeria’s energy sector. The idea is aimed at repositioning the sector for growth, and further prepare it to compete with others in the emerging economies.

    “Though we believe that the National Electricity Regulatory Commission (NERC) is competent to regulate the sector and further make it work, we are still studying the situation. We want to see how the whole thing will play out before stating our position on the matter.’’

    Odiah further said the country was grouped into eight industrial clusters, out of which three were picked for citing of power plants after a careful appraisal of the developments in the country.

    He added the three clusters located in Ota/Abeokuta area of Ogun State have functional power plants generating about 550 mega watts in three of its eight delineated industrial clusters.

    Odiah said the Ota/Abeokuta axis was chosen because of its relatively huge concentration of industries.

    ‘’We were looking at areas with high concentration of industries and after necessary investigations, we arrived at a decision to choose Ota/ Abeokuta area. Besides, we discovered that the cost implication of having power plants is the area was not much, when compared with others. In the three industrial clusters located in the Ota/Abeokuta axis, we have three power plants with an output of 550 mega watts,” he added.

    The Federal Government has fixed next year for the privatisation of the National Independent Power Projects (NIPP). It is aimed at increasing electricity supply.

  • NERC moves to clip GENCOs,’ DISCOs’ wings

    NERC moves to clip GENCOs,’ DISCOs’ wings

    TO ensure that the 14 power generation and distribution companies do not derail, the National Electricity Regulatory Commission (NERC) will soon release the guidelines for their operations

    The guidelines will regulate the safety, health and environmental operations of the GENCOs and DISCOs, NERC Chairman Dr. Sam Amadi said.

    Amadi told The Nation that NERC’s action was to prevent the firms from siting plants indiscriminately and posing security risks to the society, under the pretext of overcoming infrastructural problems. The commission, he said, would ban any of the firms without adequate safety and health standards from operating outside their domain when the guidelines are out.

    He said the commission was fine-tuning the guidelines to ensure that the firms carried out their operational obligations without problems.

    NERC, he said, had subjected the draft to public scrutiny to get more input. The guidelines will encourage safety of people during the installation, maintenance or operations of equipment by the firms.

    Amadi said: ‘’ In anticipation of the entry of private sector participants in the electric power sector, the Nigeria Electricity Regulatory Commission (NERC) is in the process of perfecting guidelines that will ensure that operators do not breach their licence obligations, and at the same time are able to temporarily operate out of compliance, where the urgent need arises.’’

    He defined the right to allow the firms operate outside their boundaries as “derogation,’’ adding that the idea is tied to certain safety and health conditions which the companies are obliged to meet.

    “Operators would be made to apply to NERC seeking for time to comply with codes and standards, and then submit detailed plans and timelines for eventual compliance,” he said, adding that the commission will consider the applications, and if found not to impinge on health and safety issues, and are justifiable, derogation may be granted.

    “We have our expectations from the companies and we would try not to compromise the safety of the operational environment of the operators,’’ he added.

    Amadi attributed the development to the weak state of the industry inherited by the new operators, noting that the sector is yet to rid itself of obsolete equipment, a development, he argued, that has made it difficult for the firms to operate and comply with the standards set by NERC on generation, transmission, distribution and customer welfare.

    According to him, issues such as distribution networks and customer care are vital to the industry’s growth. He noted that the companies are required to do something along that line. He said the DISCOs were obliged to take care of their customers by opening as many care centres as possible.

    Chief Executive Officer, Septa Energy Nigeria Limited Philip Iheancho said the industry is battling with infrastructural problems, adding that the GENCOs’ failure to access gas, among other materials, may force them to open plants outside their base without considering the implications.

    Environmental safety, he said, should be given priority when establishing plants in the power sector.

    President, Senior Staff Association of Power Holding Company of Nigeria (PHCN) Godwin Ifenacho said the planned privatisation of the National Independent Power Plant (NIPP) projects would succeed if investors were sure of getting production materials. There would be a challenge when the power plants find it difficult to access materials, Iheancho said.

    ‘’For instance, the distance between Omotoso and Papalanto power plants and Escravos Gas Project in Delta State is long, making it difficult for the plants to access gas for production. Based on this, the operators may be compelled to site gas plants outside their areas of operations, not minding the implications to the health of the environment,’’ he said.

  • SNG wants NERC to monitor new power sector investors

    SNG wants NERC to monitor new power sector investors

    The Save Nigerian Group (SNG) has advised the Federal Government to monitor the operations of the new investors in the power sector to check their excesses.

    SNG also said government should allay Nigerian’s fear of incessant hike in electricity tariff.

    The group’s National Coordinator, Benedict Ezeagu gave the advice in Abuja at a news conference on the privatisation of the power sector and the proposed national conference.

    He said:“The Federal Government, through the Nigerian Electricity Regulatory Commission (NERC) and the Bureau of Public Enterprises (BPE) should monitor the operations of these private investors They should also allay the fear of incessant hike in electricity tariff following the transfer of ownership of power distribution to the private sector.

    “NERC as the regulator of the power sector must ensure that all the new stakeholders in the sector play according to the rule and that the new investors in the power sector would not rip off Nigerians.”

    He said what Nigerians expect from the new investors is regular power supply at affordable rate, adding that there have been a long line of broken promises in the past about the power sector.

    While commending the Ministry of Power for the efforts made so far to pay over 40, 000 of about 48, 000 disengaged Power Holding Company of Nigeria (PHCN) workers, SNG, said: “We appeal that the remaining PHCN workers that are yet to receive their severance package due to the reported lack of biometric data records are promptly paid their entitlements as agreed by the parties, including those described as casual workers among them.”

    SNG urged both parties as well as the new stakeholders in the sector to leave up to their commitments and responsibilities to improve the power sector arguing that it is the engine room of development in the country.

     

  • Power firms: NERC’ll prosecute fraudulent directors

    All is set for enthronement of corporate governance as the Nigerian Electricity Regulatory Commission (NERC) has vowed to prosecute erring directors of the 14 power firms.

    The firms, penultimate week, took over the assets of the unbundled Power Holding Company of Nigeria (PHCN) as part of plans for starting operations in January next year.

    They include Amperion Power Company Limited (Geregu); Transcorp/Woodrock(Ughelli); Integrated Energy Company(Ibadan); NEDC/KEPCO (Ikeja); Vigeo Power Limited (Benin); Aura Energy Limited (Jos); Mainstream Energy Limited(Kanji).

    Others are KANN Consortium (Abuja), Power Consortium (Port Harcourt), Sahelian Power SPV Limited (Kano), North South Power (Shiroro) and Interstate Electric Limited (Enugu).

    Speaking to The Nation, the Chairman, NERC, Sam Amadi said the commission would review the guidelines guiding the appointment of people into the board of the companies to ascertain their fitness.

    He said after investigation, NERC would hand over to the police any director found guilty.

    He said the development became necessary to have only the ‘fit and safe’ personnel on the board.

    Amadi said: ‘’The guidelines stated that the would-be- directors must be above 18 years, have enough experience/ training, good financial records, among others. If we find out that the person has questionable character via engaging in under-hand dealings, we will allow the law to take its course. We want to find out whether they have money to run the companies or not. If there is anything, we hand them over to the police,’’

    ‘’We will be reviewing the law guiding the appointment into the board of the14 power generation (GENCOs) and distribution companies (DISCOs),’’ he said.

    Also, the Secretary, NERC, Ada Ozamenan, said the commission wants to ensure that only people with good financial backgrounds run the affairs of the firms as from next year.

    She said anybody who engages in money laundering would not be allow to be in the board of the firms.

    A former President, Senior Staff Association of Power Holding Company of Nigeria, Godwin Ifenacho, said the commission needs to continue due diligence in view of the problems that accompanied the selection and approval of the power companies.

    He said one cannot guarantee the genuineness of the directors, arguing that they may be bad eggs in the board.

    ‘’To rule out bad eggs from the board of the companies is a problem. That is why NERC must apply the big stick by removing board members found engaging in shady practices when the companies start operations in 2014’’ he added.

     

     

     

     

    It would be recalled that the Vice President, Namadi Sambo said companies that failed to operate in line with the privatisation guidelines would be sanction.

    Sambo at the handing over of Ikeja and Eko Distribution Companies to their owners in Lagos, penultimate week, said the Nigerian Electricity Regulatory Commission and the Bureau of Public Enterprises have been mandated to monitor the operations of the PHCN’s successor companies for growth. He said the agencies would not hesitate to sanction any core investor that does not deliver on the performance agreement that was executed with the government.

  • Govt opts for renewable energy to boost power supply

    Govt opts for renewable energy to boost power supply

    TO address the power problems, the Federal Government is considering the use of renewable energy, such as solar, coal, wind and biomass, to boost hydro supply.

    The Chairman, National Electricity Regulatory Commission (NERC), Dr Sam Amadi said the government had granted waivers and tariff, among other incentives, to prospective and existing producers of renewable energy to foster its growth.

    The incentive, he said, were to motivate producers of renewable energy as well as assist the government to diversify its energy sources in line with the Roadmap for the Power Sector, launched in 2010 by President Goodluck Jonathan.

    The commission, he said, introduced the Feed-In-Tariff to enable producers of renewable energy to sell power to the grid at prices higher than the ones produced by conventional producers of power that rely on either gas or hydro for production. The 30 megawatts solar plant in Katsina State is an initiative that would benefit from the tariff regime, he said.

    NERC, Amadi said, approved and implemented an import duty waiver for companies bringing renewable energy parts into the country, stating that the idea was part of efforts to bring more people into the renewable energy net and further boost Nigerians’ access to electricity supply.

    “NERC has come up with a tariff rate for renewable energy to spur investment in that area, and further expand sources of energy in Nigeria. It is part of efforts to deepen the market and subsequently make people to have an array of electricity sources to choose from for socio-economic growth,’’ Amadi said.

    The Minister of Power, Prof Chinedu Nebo, has inaugurated an eight- committee to develop a framework to help in generating power from coal.

    He said the ministry was working on a renewable energy and energy conservation policy for the country, stressing that the scheme would guide the government on how to tap into the opportunities in the renewable energy sub-sector. The government, he said,was diversifying the sources of energy because it wanted more Nigerians to access electricity.

    “The idea will enable many of the rural areas that are not connected to the national grid to have some kind of ring-fencing, where they would be serviced with renewable energy.’’

    He said there are plans by the government to build coal-fired plants in Enugu, Benue, Kogi and Gombe states, adding that the idea is aimed at providing energy mix in the country.

    Besides, the Chairman, Presidential Task Force on Power, Beks Dagogo Jack, said the country needs energy mix for growth, stating that government should not rely only on thermal, or hydro sources of power because of Nigeria’s size and population.

    He said Nigeria has solar, fossil fuel and wind in abundance, adding that they would be useful as the electricity market is unlocked, adding that thousands of electricity mega watts could be harnessed from renewable energy sources, thus the call for advocating the energy mix.

    The government is committed to the transformation of the power sector as evident by the recent privatisation and unbundling of the energy sector, Jack, said.

    Nebo, and the Minister of Mines and Steel Development, Mohammed Sada, have concluded a visit to coal plants and other facilities operated by HTG-Pacific Energy Consortium in India and China to ascertain the competencies of the consortium to render good services to Nigeria.

  • Govt pushes for renewable energy production

    Govt pushes for renewable energy production

    The Federal Government is encouraging the production of renewable energy, such as solar, coal, wind and biomass, in addition to thermal and hydro sources for electricity supply.

    The Chairman, National Electricity Regulatory Commission (NERC), Dr Sam Amadi said the government has provided waivers and tariffs, among other incentives, to prospective and existing producers of renewable energy to foster its growth.

    He said the incentives are to motivate producers of renewable energy as well as assist the government to diversify its energy sources in line with the Roadmap for the Power Sector, launched in 2010 by President Goodluck Jonathan.

    He said the commission has introduced a scheme, the Feed-In-Tariff, to enable producers of renewable energy sell power to the grid at prices higher than the ones produced by conventional producers of power that rely on either gas or hydro for production. He added that the 30 megawatts solar plant in Katsina State is one initiative that would benefit from the tarrifs regime.

    He said NERC has approved and implemented an import duty waiver for companies bringing renewable energy parts into the country, stating that the idea was part of efforts to bring more people into the renewable energy net and further boost Nigerians’ access to electricity supply.

    “NERC has come up with a tariff rate for renewable energy to spur investment in that area, and further expand sources of energy in Nigeria. It is part of efforts to deepen the market and subsequently make people to have an array of electricity sources to choose from for socio-economic growth,’’ Amadi said.

    Also, the Minister of Power, Prof Chinedu Nebo, has inaugurated an eight-member committee to develop a framework that would help in generating power from coal.

    Nebo said the ministry was working on renewable energy and energy conservation policy for the country, stressing that the policy will guide the government on how to tap into the opportunities in the renewable energy sub-sector. He said the government was diversifying the sources of energy because it wants more Nigerians to access electricity.

    “The idea will enable many of the rural areas that are not connected to the national grid to have some kind of ring-fencing, where they would be serviced with renewable energy.’’

    He said there are plans by the government to build coal-fired plants in Enugu, Benue, Kogi and Gombe states, adding that the idea is aimed at providing energy mix in the country.

    Besides, the Chairman, Presidential Task Force on Power, Beks Dagogo Jack, said the country needs energy mix for growth, stating that government should not rely only on thermal, or hydro sources of power because of Nigeria’s size and population.

    He said Nigeria has solar, fossil fuel and wind in abundance, adding that they would be useful as the electricity market is unlocked, adding that thousands of electricity mega watts could be harnessed from renewable energy sources, thus the call for advocating the energy mix.

    The government is committed to the transformation of the power sector as evident by the recent privatisation and unbundling of the energy sector, Jack, said.

    Nebo, and the Minister of Mines and Steel Development, Mohammed Sada, have concluded a visit to Coal plants and other facilities operated by HTG-Pacific Energy Consortium in India and China to ascertain the competencies of the consortium to render good services to Nigeria.

  • Help sought for power investors

    Help sought for power investors

    The National Electricity Regulatory Commission (NERC) has been implored to assist the Power Holding Company of Nigeria (PHCN) successor-companies to realise the objectives of the privatisation.

    The Manager, Consultancy Services, Nigerian Society of Engineers, Dayo Olugboye gave the advice during a workshop for journalists on reporting contract monitoring processes organised by Media Rights Agenda in Lagos. He said some measures should be in place before the power assets are handed over to the investors.

    Olugboye said NERC should set a benchmark for private investors to take over and manage the unbundled companies and ensure they operate within approved standards.

    NERC, he said should reconfirm that the investors have the financial capacity to run the companies and the technical capacity to manage the different value chain of the power industry.

    He said: “As a body that regulates the sector, NERC should set clear standards and make sure that the winning investors meet the standard and also monitor the fulfilment of the obligations by the investors once they take over the companies. The winning companies should prove that their personnel have the requisite capacity to perform the task as a company.

    “Depending on the area where the companies would be working, they would have to show that they have competent engineers in their companies that have both the qualification and experience to manage the task that they have for them.”

  • NERC to provide TEM order in 2014

    NERC to provide TEM order in 2014

    The National Electricity Regulatory Commission(NERC) will provide a Transitional Electricity Market(TEM) order for the fourteen power generation and distribution companies on January 2014, the Chairman, Presidential Task Force on Power, Becks Dagogo-Jack has said.

    Dagogo-Kack , in a statement, said the physical handing over of PHCN’s assets to the successor companies would take place in November 2013, and not 2014.

    He said the Commission would issue a pre-Transitional Electricity Market framework for the successor companies soon, adding that it would serve as a subsisting order until January when the sustentative TEM declaration would be provided.

    It will be recalled that President Goodluck Jonathan presented the companies with share certificates on September 30. The companies are  Amerion Power Company Limited (Geregu); Transcorp/Woodwork (Ugbeli); Integrated Energy Limited (Ibadan); NEDC/KEPCO( Ikeja); Vigeo Power Limited (Benin); Aura Energy Limited (Jos); Mainstreet Energy Limited (Kainji); West Power & Gas (Eko); KANN Consortium (Abuja); 4 Power Consortium (Port Harcourt); and Sahelian Power SPV Limited (Kano), among others.

  • NERC to prosecute thieves, vandals

    The National Electricity Regulatory Commission (NERC) is planning to sanction vandals and those who steal electric appliances belonging to Power Holding Company of Nigeria (PHCN) successor companies and the National Independent Power Project (NIPP) operators, the Commission’s Secretary, Ada Ozomena, has said.

    She told The Nation that the Commission is talking with relevant bodies to come out with punitive measures for people who steal cables and meters, among other appliances, as private operators get ready to take over the power sector.

    Ada said: “Before now, there were no clearly stated procedures for prosecuting people who engage in electricity theft in the country. Now, the Commission has stepped up monitoring activities to check cases of theft and vandalism in various power projects.

    “One way of checking the ugly incident is that we are coming out with penalties for people who commit such crimes. Such activities need to curtailed in view of the steps being taken by the government in repositioning the sector for growth.”

    She said severe penalties would be meted out after the Commission must have concluded work on the issue, adding that it is disturbing to hear that people are stealing and vandalising equipment meant to provide electricity for consumers.

    Ozomena said it is common knowledge that PHCN recorded several cases of theft and vandalism, leading to power outages in the affected areas, adding that only recently, the Ikeja Electricity Distribution Company asked members of the State Security Service(SSS), the Police and other law enforcement agencies to help arrest people stealing electricity materials in the zone.

    The company advised Community Development Associations (CDAs) to report cases of theft and vandalism to the police. It added that equipment worth millions of naira, ranging from transformers, insulators and streetlights, among others have been stolen between January and June this year.