Tag: PHCN

  • NUEE faults govt’ deadline to electricity firms

    NUEE faults govt’ deadline to electricity firms

    The National Union of Electricity Employees (NUEE) has faulted the June deadline given to the Power Holding Company of Nigeria (PHCN) by the Federal Government to stabilise power supply in the country, saying it is not feasible.

    Its General Secretary, Comrade Joe Ajaero, said the workers were shocked by the ultimatum given by the Minister of Power, Prof Chinedu Nebo, arguing that the minister had earlier identified shortage of gas as the major cause of the instability.

    He said: “If he knew the problem was gas, why did he hand over the sector to private operators? He should have addressed the gas supply problem first. Even within six months, will the gas problem be over, especially with the political siting of power stations in Nigeria? You site a power station at 200 or 300 kilometres  away from the source of gas because you are a minister, you want a power station to be sited in your state.

    “Rather than site the power stations close to the source of gas, they sited the stations in their states and you then construct a pipeline from the gas source to where the power plant is situated.”

    He continued: “Every now and then, you will say the pipeline has been vandalised or sabotaged. So long as the distance between the stations and gas source are far, so long as we depend on gas, the mandate the minister has given them will remain a mirage. It will not be actualised.

    “The same minister had equally said before that he was afraid whether some of the investors have the capacity to revive the sector or change some of the facilities sold to them. This has raised the question whether there was due diligence or whether they knew the capacity of these investors before selling the plants to them.”

    He added: “Nevertheless, it is too late for all these. We have to live with these investors. We have applied a drug on a patient; we have to wait and watch the effect. I want to appeal to Nigerians to exercise patience and see the effect of this drug.”

    On the plight of workers in the sector, Ajaero said it was serious.

    “The issue of disengagement is happening daily.The kind of private sector you have in Nigeria is such that operators ask workers to go orally. It is a terrible private sector and we have tried to tolerate them for the first, two and three months because Nigerians would say, we disrupted their activities;  that is why they are not performing.

    “The poor power situation in the country would have been blamed on the union if we had engaged them mmediately they started all these anti-labour practices. But we are going to engage them from now. Wherever they are, from today, they should be aware that for every anti-labour policy they take, we are going to engage them.

    “Some of them have the pedigree of being anti-labour inside out. With such people, you know that it is going to be very interesting. In the next few months, some of the stations would be very hot,” Ajaero warned.

    He said for firms that refuse to recognise workers’ rights, the union would tackle them, adding that whether that brings any problem to power situation in the country will not be the union’s  business.

    He said: “We have given them time to stabilise, but not to distabilise or enslave the workers.

    “However, in some places because of the number of workers sacked, they are equally re-engaging. In many places, they are reengaging. They have discovered that the job cannot go on because of the number of workers disengaged. It is a question of disengaging and reengaging with a whole lot of issues coming up.”

  • Ex-PHCN workers protest non-payment of  severance benefits

    Ex-PHCN workers protest non-payment of severance benefits

    • Threaten shutdown of operation

    Disengaged Workers of the defunct Power Holding Company of Nigeria (PHCN) under aegis of the National Union of Electricity Employees (NUEE) yesterday protested against non-payment of their severance benefits by the Federal Government and threatened to shut down operation.

    The protests took place nationwide, with the workers barricading the entrance to the PHCN headquarters in Abuja, those of Ikeja and Eko Electricity Distribution Companies in Lagos.

    In Enugu, the protesters carried placards some of which read, “complete the payment of Severance Benefit to Staff”, “Pay us our 2013 bonus”, “Re-engage the disengaged casuals, anti-Union activities should be discouraged,” ‘Retirement benefits should be paid to staff who retired before November 2013” and “Pay death benefits to deceased families, our workers need protection.”

    The aggrieved electricity workers also lamented the non-remittance to the union’s Check-off deductions from their salaries for the months of November and December 2013 amounting to over N2 million by the new owners.

    In Ilorin, the Kwara State capital, no fewer than six workers of the defunct PHCN have died without receiving their retirement savings allowance (RSA), the state chapter of the National Union of Electricity Employees (NUEE) has said.

    The late workers were some of those disengaged from service in October last year following the privatisation of the company.

    The state chair of NUEE, Bamidele Okogbe, alleged that the federal government was wrong on its claim on the payment of the allowance.

    Addressing reporters at the Abuja Electricity Distribution Company Limited, the Chairman of NUEE, Abuja chapter, Comrade Wisdom Nwachukwu, said the union has discovered that one of the banks located at the Abuja Central Area was one of the banks delaying the final process of payment packages.

    His words: “We had a case where one or two of us threatened that we had learnt what they were doing and within a space of four hours, those two individuals were paid, that is to tell you that something is going wrong. We have people that have been paid with wrong account numbers. We gave them the real account details; they paid the people with the wrong account details making the transactions not to sail through.”

     

  • Stable power soon, say Makoju, others

    Nigeria will enjoy stable power supply soon as power firms are adopting measures to address the sector’s problems , experts have said. In an interview in Lagos, they raised hopes that things would be over soon.

    Joseph Makoju, a former Managing Director of the Power Holding Company of Nigeria (PHCN), said the prospects for fresh investments, new technology and expertise of the new owners represented hope that the power challenges would be over soon.

    He said the gains of the reforms would soon be made known to Nigerians, giving the commitment shown by the government and the private investors.

    “I believe the future is bright for the sector. I see a lot of opportunities for uninterrupted power supply, capacity building and employment prospects for Nigerians in the long run,”’ he said

    He called for patience and understanding from Nigerians as the investors embark rehabilitation, upgrade and deployment of robust infrastructure.

    Abiodun Ogunleye, the Managing Director, PowerCap Nigeria Limited, urged Nigerians to be patient as the operators are overhauling the subsisting infrastructure to improve electricity supply.

    Ogunleye said achieving uninterrupted power supply would require patience from Nigerians since the companies are deploying new technology in achieving growth.

    “I am aware that the new investors are already thinking along the line of new technology and have plans to train and retrain their workforce. I believe we will get the breakthrough we all deserve in the near future,” he said.

    Abraham Williams, Project Coordinator, Dubril Consortium Ltd. said the handover of some power assets to the private sector had brought new lease of life to the sector.

    “The participation of the private sector would bring about more efficient and cost effective power supply arising from increased investment, enhanced infrastructure and opportunity for transfer of technical know-how to Nigerians,” he said.

    Fashola Charles, Managing Director, Seacof Enginering Ltd., said the power sector transition represented unprecedented milestone for the nation.

    “What private participation did to the telecom sector is what we will eventually witness in the power sector. But I believe a lot of consumer education and enlightenment programmes are required to make the average Nigerian know that the handover did not mean we would begin to witness uninterrupted power immediately. The good news is that it kicked off the journey of a process that would eventually get us there,” he said

  • Ikeja DISCO to customers: report  extortion

    Ikeja DISCO to customers: report extortion

    The Ikeja Electricity Distribution Company (IKEDC) has advised customers to report staff trying to extort money from them to buy pre-paid meters or repair faulty equipment.

    The company’s Assistant General Manager, Public Affairs, Pekun Adeyanju, advised customers to report at any of the IKEDC’s 11 business units at Abule-Egba, Akowonjo, Ikeja, Ikorodu, Ikotun, Ipaja, Odogunyan, Ogba, Ojodu, Oshodi and Somolu.

    He said the firm supplies, repairs, and replaces its equipment. He said the management had since started customer education campaigns aimed at creating awareness on the efforts to improve service delivery and encourage customer involvement in ensuring the success of the power reform.

    He said: “It has come to our notice that some former PHCN members of staff have allegedly been extorting money from members of the public under the guise of receiving contributions towards the repairs of equipment in their localities and purchase of prepaid meters. For the avoidance of doubt, no former PHCN staff or IKEDC staff is authorised to make such demands. We urge the public to rebuff these impostors and report such cases to the nearest IKEDC office, ikedcc@yahoo.com or send SMS to 08174598393 for prompt investigation and resolution.”

    The firm warned that it is a criminal offence for unathorised persons to tamper with any IKEDC facility or equipment, adding that defaulters will be prosecuted. The company, he said, had embarked on an upgrade of its customer-care centre at its 11 business units to accelerate complaint resolution and respond promptly to issues bordering on metering, estimated billing, shedding and vandalism, among others.

    Adeyanju said IKEDC was partnering with relevant authorities to address vandalism of its equipment, but however, urged consumers to be vigilant and report any suspicious activities around equipment in their areas to the law enforcement agencies as well as IKEDC

    “It is imperative that people who ask for their rights should first be responsible to the society,” he added.

    IKEDC management has been holding inaugural town hall meetings across its various locations to establish a roadmap towards providing uninterrupted quality power supply to consumers. The company is also holding corporate social responsibility activities, which kicked off with free medical services in Ketu last December and free eye care treatment for residents of Ikorodu and Odogunyan this month with plans to hold in other areas.

  • Electricity workers threaten to down tools

    Electricity workers threaten to down tools

    The National Union of Electricity Employees (NUEE) has threatened to embark on a nationwide strike from Tuesday should the federal government fail to meet its demands to recall sacked workers over perceived victimisation.

    Speaking at a press briefing in Benin City yesterday, the Zonal Organising Secretary of the Union, Comrade Joseph Ndem, chided the federal government for the “unfair and unbalanced” disengagement.

    It called on the federal government to rescind the decision and recall affected workers on or before Tuesday.

    The aggrieved workers lamented a situation where their young and productive counterparts were made to leave the job while those due for retirement are left to work with the new owners in the generation sector.

    Expressing their displeasure and disagreement at the recent disengagement from service of young, dynamic and able-bodied personnel from the services of the organisation, Ndem noted that most of those disengaged had not been paid their full severance in the generation and transmission sectors.

    He described the purported sale of Power Holdings Company of Nigeria (PHCN) to be another “food for the boys” because the so-called foreign investors the federal government claimed will be coming to acquire the organisations are never there.

    “What we have is the federal government sharing PHCN to 15 or 16 loyal members of the ruling Peoples Democratic Party (PDP) as their own share of the national cake,” he alleged.

    He advised the federal government to take a second look at the matter with a view to ensuring that justice was done by recalling the sacked workers for the benefit of the system.

     

  • Why power failure may persist

    Why power failure may persist

    Why have the 14 successor-companies of the Power Holding Company of Nigeria (PHCN) not been pulling their weight since taking over the utility’s assets two months ago?

    It is because of the rising cost of gas needed to power the thermal plants and the unresolved labour issues inherited by the firms, say some experts.

    The Nation learnt that many of the firms cannot meet their gas demands because the products’ commercial price under the Federal Government’s domestic gas supply obligations will rise from $1.80million British thermal unit(mbtu) to about $2mbtu this year.

    Sources close to West Gas Limited (formerly Eko Electricity Distribution Company Limited), who pleaded anonymity, said gas was a major problem in the industry. A source said the companies could not get enough gas for operations, thereby crippling efforts to improve electricity supply.

    According to the source, power supply will improve when the gas supply challenge is resolved.

    The Chief Executive Officer, Seven Energy International Limited, Philip Ihenacho, said the cost of production and transportation of gas to the power plants was huge, lamenting that the development has impacted negatively on the operations of the firms.

    He said: ‘’The production and transportation of gas to power plants come with attendant problems. It is difficult selling gas to power firms at $1.8mbtu when you add up the cost of transportation and tariff. Given the harsh operating environment, gas cannot be sold for less than $2 or $2.5mbtu.

    “This means the firms are required to pay above the commercial gas price of $1.8mbtu before they can operate well. Failure to pay the required amount of money for gas, means that they would not be able to access the product for improved electricity supply.

    Collocation is another problem in the industry.The power plants are situated miles away from gas sources. “The cost of taking gas to power plants is cheaper, if the plant is not far. But the reverse is the case in Nigeria.’’

    He said multiple gas plants are required to improve electricity generation in the country.

    Former President, Senior Staff Association of PHCN, Godwin Ihenacho, said the failure to locate the power plants close to gas supply was a problem in the industry.

    He said: “For instance, the Escravos Gas Project in Delta State is far from Omotosho and Papanlato power plants in Ondo and Ogun states. Based on this, the plants are unable to get enough gas for operations.’’

    The government’s inability to resolve labour issues, he said, would affect the companies’ performance of the companies. He also said some workers had yet to receive their entitlements, adding that these workers were ready to frustrate the reform programme.

  • How we were ushered into the New Year in darkness – Nation Facebook friends

    How we were ushered into the New Year in darkness – Nation Facebook friends

    Different strokes they say for different folks, it was a stream of comments on the fan page of The Nation Newspaper.  In the wake of the promises by the Federal Government that power supply would improve across the country by mid-2014, a question seeking to know how power supply fared during the cross over night into the New Year was raised and thousands of fans recounts experiences in their various locations.

    As multitudes confirmed they were greeted with blackout, others claimed they had relatively stable power.

    Below are some of the comments (UNEDITED):

    Anuforo Chuck Matt no light! Everywhere dark and noisy with various sounds of generators! God bless Nigeria.

    Bright Tiloro No power, no trace of even power blink b4 and after, u can come and see wt ur eyes now in DSC steel towns in Warri.

    Unonu Raphael Ozor I must say the truth, at my area in Onitsha Anambra state, yesterday we enjoyed electricity from 6 am to 6:20 pm and from 8 pm till this morning even though they haven t take it. It’s wonderful.

    Mattew Owolabi Ajorutu Worse than it was before

    Ashiru Umar As usual no light at all here in Daura.

    Youngmoney Ojo Olusegun Hahahaha!!! In fact, it is more than saying because they turned it to toy in Badagry. It will be better to sell the light and 4get about using electricity and d money should be used 2 buy generator and shear it for everybody in the country even i better pass my neighbours wl b ok.

    Saifullahi Shaibatu Average of 6 hours per week

    Reginald Akpunonu Perfectly steady…..up GEJ

    Don Asty WOW! We’re enjoying light here ooo! Poly road Ibadan

    Egwu Amadi 24hours for now uninterrupted.

    Anthony Hanks Alalama Superb here in Jikwoyi phase 2 Abuja

    Osaro Edosa Ogbewe worse at Sapele road, Benin City

    Daniel Kenoly Danjuma In Kurmi Local Government Area, we dont even know what power supply is all about.

    Sam Effi JI Dat very night there was no light #ikot_ekpene_AKWA_IBOM_STATE.

    Ndubuizu Ebuka Man-spaco Fadan no light from 30th till date for my street @cardoso mushin Lagos

    Bernard Odike Superb @Elelenwo in Rivers State. Steady and standard. Kudos to the Transformation Agenda of Mr. President!

    Ojo Augustine They tried in my area o, Owan West Edo state…100% steady.

    Okiti Oghenemudia Believe No light since watch night till date in Abraka and environment

    Owobi David There was 24hr stable light at new Nyanya Nasarawa state up till now up GEJ

    Duncan Victor Ayemere Idokogi Sucks……dipped far worse than what it was under PHCN. Nigerians should hold their government accountable and not make excuses for them…they have all the tools they need to make life very comfortable for the average Nigerian.

    This talk about let’s give the new owners sometime…I don’t get it.

    PHCN worked with same infrastructure and gave us more light. Jonathan now promises 18 hrs of light…where did he get that from..?…No country can develop with just 18 hrs of light…24 hrs of constant light is what we need to talk about transformation. Does Jonathan now make excuses for the core investors…or he is one of them…but in a blind trust?

    APC should come out and promise 24 hrs of electricity….and be ready to deliver too. Right now things aren’t just working………………….

    Chinenye Ezimmuo Emejulu Too bad, very poor in Onitsha Anambra state

    Muhammad Tswayan bad in Dakwa Niger State.

    Commrade Omotayo Olorunyomi Kelvin 99 percent bad in Akure Ondo state, I beg will no de see light at aaaaaaaallllllloooooooooooooo

    Eneojo Joshua The defunct Power Holding Coy of Nigeria & FG have detained power that made it incapacited to cross over with us into 2014.Generators of different sizes were fully in-charge as their sound were part of the joyful noise. We are (Children of God) the shining light,

    Ameh Garba Ameh Worse! Generator everywhere in Valvary road Mararaba, Nasarawa state.

    Ik Ikponmwosa Worst in Edo state, expecially Ugbowo, Isiekhor quarters – UNIBEN axis

    Bernard Ocheme 17hrs power supply (Otukpo Benue state) Note: some generators and diesel sellers and viewing centres operators usually bribe PHCN so that there will be no power supply, what a country!

    ChukwuEmma OluwaArome Nelson 100% Ajaokuta, Kogi State

    Olayinka Olanrewaju No light here @ Fagba, Lagos, Nigeria

    Amiadamhen Jude Osalenkhor Noting like electricity in Seme Border Lagos. If u have d money buy ur own Gen Here.

    Victor Maurice there was no light @ Enang Uko by Abak road, Uyo, Akwa Ibom State for 3 days?

    Leonard Uchenna Ezieke Unthinkable! Worse than before @ Okwe, Asaba.

     

  • Generator Government

    Generator Government

    • N.8billion to fuel generators is hardly the way to inspire citizens’ confidence in govt promise of improved power supply

    Coming barely two months after the formal handover of the assets of the erstwhile Power Holdings Company of Nigeria (PHCN), subsequent to which the Federal Government has promised Nigerians improved power supply, it must come as a shocker that the Goodluck Jonathan-led government is proposing to spend a whopping N836.6 million to fuel generators in the coming year.

    The details as reflected in the 2004 budget under consideration by the National Assembly shows that the Presidency alone plans to spend N33.47 million to fuel its generators. For the Federal Ministry of Finance, a tidy sum of N76.5 million is proposed; for the Independent Corrupt Practices and Other Related Offences Commission ( ICPC), it is N29.05 million while N16.48 million is earmarked for the Office of the Secretary to the Government of the Federation.

    For the Office of the Head of Service, the budget is N40 million; Ministry of Interior, N20.75 million. For the works ministry, it is N25.05 million, while the National Population Commission has a budget of N22.53 million set aside for same –fuelling generators.

    The above are just a few of the Federal Government’s departments expected to share in the bonanza that comes close to a billion naira.

    By way of comparison, the same Federal Government budget earmarked N654.02 million to purchase generators in 2013. Just as there may be those who may seek to rationalise the proposed expenditure on the grounds that no vote currently exists for the procurement of generators this year, even then, it is so easy to counter this by the fact that those generators purchased last year are nowhere near their replacement dates yet.

    The issue however isn’t just the absolute numbers in the proposed spend. Rather, it is the attitude of the Federal Government – its preference for the easy and convenient – that we find deplorable. Nigerians should be worried that nothing appears to have changed in any attitudinal sense for the Federal Government, despite its averments to the contrary.

    To start with, President Jonathan is on record to have made promises – not once or twice but severally – that Nigerians would by next year have no need for their generators. How does one reconcile that with the humongous allocation being proposed to fuel the generators at the seat of government for the same period?

    Isn’t it an admission that the administration cannot guarantee uninterrupted supply of electricity to anyone? So, why should citizens take the assurances of an administration that does not appear to suffer diminishing appetite for the use of generators with any pinch of salt?

    Today, despite the promises of vast improvements in services, the reality is one of acute regression. Not that Nigerians expected the new players in the power sector to wave the magic wand for the problems to disappear overnight. While the hiccups that have accompanied the take-over of the old PHCN entities by private investors may not be entirely unexpected, it would seem to have gone a shade beyond normal transition blues.

    Presently, the same recycled excuses about gas infrastructure, capacity issues and systems collapse are still being bandied despite the huge funds sunk into overhauling the chain. Even more worrisome at this time is that citizens do not even know which agency to hold responsible for the current regression.

    While it may seem impracticable to ask the Federal Government to throw away its generators, the point must be made that pooling nearly a billion of scarce public funds to fuel generators is hardly the way to inspire citizens’ confidence in the power sector’s so-called turn-around. Or, is the government saying that the delivery of uninterrupted electricity to the seat of government can only be done by generators?

  • Govt hailed on power sector reform

    THE Federal Government has been lauded for privatising the Power Holding Company of Nigeria (PHCN) Plc.

    The exercise is a right step to wards the diversification of the economy, according to the Chairman, Gold Horse Group, Mr Temple Peters.

    In a statement, Peters said the economy’s diversification was imperative because “we can no longer rely solely on oil as our mainstay’’.

    Peters urged the government to ensure that the 14 PHCN sugcessor-companies discharged their obligations to the people.

    ‘’The generation companies (GENCOs) and distribution companies (DISCOs) should not be left to do whatever they like, ” he said.

    “The only way to get the best out of them is to ensure that the government keeps them on their toes always or else we will return to the NEPA (PHCN) days of no light,”Peters warned.

    He added: ”You see, we are currently at a crucial time in our nation’s history. I applaud Mr.President and the entire privatisation committee for taking the bull by the horns. An average factory in Nigeria spends between N10 and 20 million monthly on diesel to generate power .If we get stable power that can be channelled into recruiting more hands, which automatically deals with the agitations around unemployment. We also have to start looking seriously at the non-oil sector”.

  • Group faults PHCN on contract variations

    A group, Nigerian Contracts Monitoring Coalition, has blamed the delay on execution of projects under the Power Holding Company of Nigeria (PHCN) on mild penalties.

    Its Head, Mrs Seember Nyager, told The Nation that the law guiding projects execution has been relaxed, resulting in the abandonment of some contracts.

    She said the penalty clause was relaxed in favour of some contractors, adding that the development has affected implementation of projects.

    She said: “There are lots of contract variations in the sector. These have affected negotiations made and subsequently implementation of contracts. Cases abound where some contractors do not do the job and were not heavily penalised.’’

    Nyager also the Chief Executive Officer, Public and Private Development Centre(PPDC), said the coalition is made up of Nigerian Society of Engineers (NSE), Media Right Agenda (MRA), Initiative for Environmental and Health Society, the Centre for Organisational and Professional Ethics (COPE-AFRICA) and the Bureau of Public Procurement (BPP). He said the coalition has been monitoring contracts to know their level of execution.

    Also, the Chairman, Prevention, Investigation and Failures Analysis Committee, (PIFAC), Nigerian Society of (NSE), Charles Mbelede, stressed the need for monitoring of contract documents, specifications, among others, to encourage growth. This, he said, would enhance the monitoring exercise

    Mbelede said the contracting firms did not place order on time, adding that the development has affected the implementation of several projects.

    According to her, the group has focused attention on power projects including some electricity distribution projects in Lagos, Ibadan and Abuja.