Power

Nigeria: NERC – Mass Meter Rollout Stalled By Govt’s 35% Import Tax

Published

5 years ago

October 27, 2020

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Federal government’s sudden introduction of an additional 35 per cent tax on imported meters, electricity users in Nigeria who still do not have meters may have gotten one, the Nigerian Electricity Regulatory Commission (NERC) has disclosed.

The NERC stated that its plan to use an improved supply framework to reduce the number of unmetered electricity users in the country’s power sector was largely stalled by the government’s import levy.

In its first quarter 2020 operational report on the country’s power sector, the NERC explained that its Meter Assets Providers (MAP) framework which sought to improve meter deployment, reduce estimated billing and expand revenue collection capacities of the 11 electricity distributions companies (Discos) suffered a deployment setback with the government’s new import levy.

As a result, the regulator also noted that 59.61 per cent of registered electricity customers in the country are still on estimated billing, adding that this contributes to customer apathy towards payment of electricity bills.

The NERC further stated that in the quarter under review, N3.88 out of every N10 worth of energy sold by the Discos remained uncollected from consumers, inferring that meters could have helped to limit the collection losses of Discos.

In March 2018, the NERC introduced the MAP framework to fast-track the roll-out of end-user meters through the engagement of third-party investors for the financing, procurement, supply, installation and maintenance of electricity meters. It also approved a number of companies that met its regulatory benchmarks as participants in the scheme.

However, it stated in the report that, “although the effective meter roll-out date started in May 2019, the performance has been below targets due to a sudden introduction of a 35 per cent additional importation levy imposed by the federal government on fully assembled meters.”

It also noted that it, “is currently working with the Federal Ministry of Finance, Budget and National Planning to address this major challenge,” adding that while it is important to encourage local content in the metering sector, “a case has been made by the commission for a deferral of the new import levy to allow for the roll out of meters under the framework of the MAP Regulation.”

“In addition, the commission has continued to review the performance of MAPs with a view to addressing all other challenges affecting meter deployments by Discos under MAP initiative,” the NERC said.

According to it, there was a slight improvement in metering in the quarter under review, but the huge metering gap for end-user customers remained a key challenge in the industry.

“The records of the commission indicate that, of the 10,477,856 registered electricity customers as at the end of the first quarter of 2020, only 4,231,940 (40.39 per cent) have been metered. Thus, 59.61 per cent of the registered electricity customers are still on estimated billing which has contributed to customer apathy towards payment of electricity bills.

“In comparison to the fourth quarter of 2019, the number of registered and metered customers increased by 1.00 per cent and 8.00 per cent respectively. The increase in registered customer population was due to the on-going customer enumeration exercise by Discos through which unregistered consumers of electricity were brought unto the Discos’ billing platform. Similarly, the increase in metered customers was attributed to the roll-out of meters under the MAP scheme,” it said.

The NERC also reiterated its intention to see that all Discos close their existing metering gaps in the sector by the end of December 2021 and has continued to take measures in this regard.

“To ensure speedy metering of electricity customers in line with the target of closing the metering gap in NESI by 31 December 2021, the commission continued its monitoring of Discos’ implementation of and compliance with the provisions of the MAP Regulations to fast-track meter roll-out.

“The commission during the quarter approved more preferred MAPs for Discos that had finalised their MAPs procurement process, increasing the total number of approved MAPs to twenty-nine as at the end of the quarter,” it noted.

The NERC equally stated that the sector’s financial challenges were still huge and delaying its progress, and that Niger, Benin and Togo who owed Nigeria $13.22 million debt for electricity supplied to them within the quarter paid only $6.66 million to it.

Power

OGD Writes IBEDC, Demands Solution To Simawa’s Blackout

Published

3 years ago

May 4, 2023

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Otunba Gbenga Daniel – Ogun East Senator-Elect

The former Governor of OGUN State and Senator-Elect of the Ogun East Senatorial District, Otunba Gbenga Daniel has written to the management of IBEDC concerning the total darkness currently being experienced by Simawa Community and her environment.

In the letter directed to the MD/CEO of IBEDC and titled: SIMAWA AXIS INDEPENDENT ELECTRICITY PROJECT – REQUEST FOR YOUR URGENT INTERVENTION Daniel expressed a deep sense of concern and necessity to seek urgent intervention on the subject matter.

Writing further, the former Governor who is also from Sagamu Local Government, said: “Simawa is a large community and a suburb of Sagamu Local Government in Ogun State. The Town is located behind the camp-ground of the Redeemed Christian Church of God (RCCG). The population is in excess of 50,000 people consisting of various ethnic groups across different tribes of Nigeria while the town has potentials for rapid development”

According to Daniel: “during my ward-to-ward tour of Sagamu Local Government and as the APC Senatorial Candidate for Ogun East, I met with leaders of the various communities within the axis of Simawa town and I was greeted with the pathetic stories of the perpetual darkness enveloping the entire area”

Daniel confirmed that “the community is experiencing rapid development and daily increase in human traffic with influx of new migrants from the Lagos end”

He however expressed sadness that “despite these attractions and the opportunities for growth, the town has remained in perpetual darkness with threats to socio-economic and business survival”

Expressing further concern on the state of affairs at Simawa Community and the other affected environs, Daniel said his people have become “tired of this state of hopelessness”

He further explained that “the community took the bull by the horn and in line with the laid down procedures, opted for an alternative source through the franchising method in which your Management was consulted”

Daniel, who as a Governor of Ogun State gave utmost attention to power generation said in the letter that “in consideration of improving the lives of Nigerians, I have listed the issue of poor power supply across the Country as one of the key areas that will attract my contributions at the Senate”

In appealing to the management of IBEDC, Daniel said “I therefore make a passionate plea that you revisit the applications submitted by the good People of Simawa and with a view to achieve a lasting solution to the lingering power supply to the area”

Daniel ended the letter by urging IBDEC management to rise to the occasion and grant the Simawa Community the request for the permit to switch to the independent power generation option as a lasting solution to the perpetual darkness being experienced by his people.

“I trust in your swift actions believing that this request will be accorded your utmost attention. Please accept the assurances of my esteemed regards”

Power

Black Out in Nigeria As Electricity National Grid Collapses Again

Published

4 years ago

April 9, 2022

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The national electricity grid collapsed again on Friday evening, making it the third time the grid had collapsed within the space of one month.

Some power distribution companies confirmed the development in separate messages on Friday evening.

The Abuja Electricity Distribution Company stated that the collapse had resulted in power outage in its area of operation, which covered about five states.

In a tweet via its official Twitter handle, the AEDC said, “Please be informed that there has just been a national grid collapse causing an outage in our franchise areas.

“We apologise for the inconvenience caused and appeal that you bear with us while we await restoration from the TCN (Transmission Company of Nigeria). We regret all inconvenience caused.”

Also, Eko Electricity Distribution Company said the grid collapse affected its entire network.

It added, “TCN team is working to resolve it as soon as possible.

Power

Lack Of Electricity Brings ‘Curse’ On Nigerians, Says Adebutu

Published

4 years ago

February 18, 2022

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Abeokuta – The Peoples Democratic Party leader in Ogun State, Hon. Oladipupo Adebutu has described as a curse, lack of electricity in the country.

Adebutu stated this on Tuesday at the 3rd symposium organized Ladi Adebutu Good Governance at Ota, Ogun state.

The former House of Representatives member said “The lack of electricity brings on us a curse. It brings on us the curse of expensive generators, this curse takes money out of every pocket in Nigeria. Even the perpetrators of this folly pay for it, we all pay for expensive diesel.”

Adebutu called on the state government to parallel generation, transmission facilities, distribution facilities in order to create a conducive environment for industries, which according to him, are relocating from Ogun industrial hub due to lack of power supply and road infrastructure.

He said “The states are allowed and truly enabled to build parallel generating facilities, transmission facilities, distribution facilities. What the constitution says is ‘don’t carry electricity to another state’s. Why are we for God’s sake, in a God blessed Ogun state have we not created a parallel electricity system? Why are we waiting for Federal transmission systems, Federal generating systems?

“We should create competition for them, let us allow investment from outside, let us allow competition for them from outside.”

Speaking earlier, the Executive Director for Research and Advocacy of the Association of Nigerian Electricity Distributors (ANED), Barrister Sunday Oduntan disclosed that Nigerians spend about N12 Trillion on self power generation annually.

Oduntan also revealed that Nigerian homes and businesses produce 40,000 megawatts of electricity with diesel and petrol per annum.

Delivering a paper titled “Power for Sustainable Development in Ogun State,” Oduntan, who is also the official spokesperson for the DisCos, noted that self generation is propelled by lower power generation by the country, which requires 40,000MW to guarantee stable electricity.

He identified corruption, increased energy theft, regulatory inconsistency and confusion, liquidity crisis of the power sector, non – cost reflective tariff and limited power generation, as some of the challenges confronting the nation’s power sector.

Oduntan also lamented non-payment of debts by the Government’s Ministries, Department and Agencies with N203,819bn debts.

Going down memory lane, he noted that “There was no institutional and regulatory framework to govern progress and development in the sector until 2005. This is why the tariff is only recovering about 30% of costs. All these informed part of the reason why NEPA was insolvent, inefficient and underperforming. Between 2012 and 2014, $5 billion dollar was spent on self generation which could have given us an additional 5000 MW additional generation capacity.”

Oduntan added that “without resolving the issue of power, Nigeria will remain underdeveloped, with no major industrial or agricultural development. Many Artisans will remain Okada riders without stable electricity. For that to happen, the Political Leadership at the highest level must embrace the change mantra in the power sector by articulating and implementing clear cut programmes and policies that can put the nation first. Nigerians need to be more Honest.”

In their separate remarks, the Chief Executive Officer of Ikeja Electric Plc, Mrs. Folake Soetan and a legal practitioner, Ehi Uwaifoh noted that stable power supply would boost industrialization drive of the state especially in Ota-Agbara industrial hub.

Uwaifoh particularly called on the state government to create a regulation that would allow it establish a mechanism for power generation and distribution in the state, to drive its industrial policy.