BPE processes bids for Afam, Kaduna Distribution Companies

The Federal Government has started processing bids for Afam Power Plc and Kaduna Distribution Companies.

A source at the National Council on Privatisation, NCP who confirmed the development stated that the processing of bids was moving according to plan to enable the government work on the privatization of the firms.

He said: “The Bureau of Public Enterprises, BPE which received 20 bids for Afam Power Plc and Kaduna Distribution Companies started screening the bids immediately after closure.

The official said that nine bids were received for Afam Power Plc and 11 for Kaduna Distribution Company.

At the deadline of January 31, 2013 for the submission of Expressions of Interest (EOIs) from prospective bidders, BPE received 19 applications for Kaduna Disco and 29 applications for Afam Generation Company. Consequently, the Bureau, on February 4, 2013, sent Requests for Proposals (RFP) to the 48 prospective bidders.

Afam Power Plc and Kaduna Electricity Distribution Plc were among the 17 PHCN successor companies that were earlier advertised for sale in December 2010 along with the 15 other PHCN Successor Companies that went through a full competitive tender process which culminated in the submission of technical and financial proposals in July 2012.

 

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PHCN privatisation: Agony of private investors

 

 

AS privatisation of the 17 successor companies of the Power Holding Company of Nigeria enters its final stage, industry operators have complained about complacency on the part of workers in the power sector. In this report, TUNDE DODONDAWA examines reasons for this inaction and the implications on the nation’s economy. Excerpts:

NO country would experience economic growth without a functioning and reliable power sector. It has been said times and again by the experts that, for Nigeria to achieve Vision 20:2020 objective, it must get it right in the area of power, but events in the last few months have made experts to think otherwise.

This is because it has been observed that workers of the Power Holding Company of Nigeria (PHCN) have become too complacent with their job in the past few months, a development that made some people to believe that the workers were actually working against the interest of the economy.
This might not be unconnected with the privatisation of the PHCN which is expected to be concluded in June this year once the irregularities in the labour issues are corrected.

It was obvious at inception that local and foreign investors, who emerged as preferred bidders for the Generation Companies (GENCOs) and Distribution Companies (DISCOs), were excited when they realised that they would take over the ownership and management of the highly lucrative 15 successor PHCN companies.

The former Minister of Power, Bart Nnaji, did a lot to reposition the company before he left office. For example, he made sure that workers were on their toes, working tirelessly to address customers’ complaints and fix every problem ranging from transformer breakdown and replacement of faulty power lines. Nnaji’s directive then was that any problem identified must be fixed within 24 hours.

However, the case is different now, as some people say that the new Minister of Power, Prof Chinedu Nebo, seems to have no clue about the operations of the Power Ministry.

 

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PHCN: Uncertainties as Negotiation Committee Flunks 3-Weeks Deadline

 

Minister of Power, Prof. Chinedu Nebo

Chineme Okafor

Thirty nine days after it was set up and 18 days after expiration of its task deadline, the Severance Package Negotiation Committee of the Federal Government and labour unions in the Power Holding Company of Nigeria (PHCN) is yet to turn in its report. This is eliciting concerns that various entrenched interests might have hijacked the negotiation and prevented it from progressing.

The committee was set up on March 19, to amongst other objectives, seek honest and swift processes for the settlement of severance packages due to workers of PHCN as well as approaches to fast-track proceedings in the privatisation of PHCN with regards to labour relation.

But the failure of the committee to achieve truce within an agreed three weeks task deadline has created uncertainties in the swift settlement of the workers’ severance packages.

THISDAY gathered that chief amongst challenges in arriving at a conclusion was governments’ disagreement with the union on modalities of pension remittance. The government has insisted that it would adhere to extant provisions in the Pension Reform Act 2004 in the pension remittance, but this has been disapproved by the labour union.

Although Minister of Power, Prof. Chinedu Nebo, recently confirmed that negotiation with the unions were at advanced stages and that substantial agreements had been reached, sources said the disagreement on the modalities for remitting the pensions may stall the negotiations.

“They have done a substantial amount of the work, in fact, even to the point of calculating one by one what it is all going to take but the problems on ground are very few and minor because the government side insists that whatever is done will not go beyond the constitutional provisions and the union representatives feel that it is not right and they should be treated separately but all of us know that if we want to treat them separately, then we are setting a precedent.

The government said the PenCom Act gives stipulations as to how things are going to be done and if you do not do it that way, then we will be doing things that are inimical and could be sued.

“Litigation could result from that and other unions might begin to complain and before you know it the entire legal system is being attacked from every angle and that is why we are appealing to the union to understand that we cannot go beyond what the constitution recommends. Government is insisting on adhering to the PenCom Act and has to, otherwise if you do anything other than that, it is illegal and the unions really know because we cannot bend the rules for the PHCN workers, almost everything here has been agreed,” Nebo had said.

 

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Nebo and His Imaginary Cabals in Power Sector

 

Prof Chinedu Nebo

For the umpteenth time, the Minister of Power, Professor Chinedu Nebo has blamed non-existent “cabals” for the rot in Nigeria’s power sector, diverting attention from the main problems of lack of gas to fire the new power stations and weak transmission infrastructure to evacuate new capacity,Ejiofor Alike writes

Apparently ignorant of Nigeria’s power sector, the Minister of Power, Professor Chinedu Ositadimma Nebo, had told the Senate when he appeared for screening that he was aware that some highly placed Nigerians had constituted themselves into a “mafia” in the sector.

But the revered professor failed to reveal to the stunned law makers the identity of the cabals.

Rather, he stated that the same God, who helped him salvage the University of Nigeria, Nsukka (UNN), which he said had been taken over by cultists before he became the vice-chancellor in 2004, would also give him the strength to “chase away the demons” who had taken over the power sector.

Last week, the minister reportedly re-echoed this sentiment blaming “powerful cabals” for the slow pace of reforms in the sector, insisting that “there are very persons who do not want the power sector to progress in Nigeria.”

As if he knew that Nigerians would be interested to know the individuals or organisations that have made regular electricity supply a mirage in the country, Nebo declined to reveal the identity of the cabals.

“I wouldn’t want to start mentioning names but it is important to remember that there are people who are benefiting from the sufferings of the masses,” he was quoted as saying.

 

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Gas to power gap to be bridged by 2015

 

The enormous gas to power demand, projected to grow sharply as National Independent Power Plants (NIPPs) come on stream, will be bridged by 2015, Diezani Alison-Madueke, minister of Petroleum has said.

The minister, represented by David Ige, an official of the ministry, was speaking on Monday at a one-day roundtable session in Abuja, organised by the Nigerian Economic Summit Group (NESG).

Minister of power, Chinedu Nebo, also informed that the power sector’s gas debt has dropped from its estimated N30 billion in 2012 to “a little over N20 billion” today as the government continues to pursue its undertaking to settle all liabilities.

It is estimated that by year end, gas demand by NIPPs will grow by 340mmcf/day, coming notably from Geregu and Ihovor power plants. Current demand by NIPPs is about 260 mmcf/day in the western area.

Madueke said, “Several efforts are being taken to assure gas supply growth, in line with this demand. In the short term to end 2013, about 130 mmcf/d is expected in the west. However, between 2014/15 almost 1,000mmcf/d is forecast to be added. This will bridge the gap in demand by NIPP.

“In the East, the short-term objective will be to utilise already available gas for which either delays in completion of the power plants, or other infrastructural projects, prevent gas usage. These are expected to be addressed through 2014/2015 bridging shortfalls in the East. In essence, with our current supply plans, there is confidence that NIPPs demand can be met by 2015,” she assured.

 

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FG sets final takeover condition for PHCN buyers

 

Stories by Adeola Yusuf/ Lagos

Prospective buyers of Power Holding Company of Nigeria (PHCN) successor companies will now negotiate terms to complete the transfer from state hands, before being required to pay the remaining money for the plants and distribution firms they emerged preferred bidders.

A Presidency source told **Daily Independent** at the weekend that the government has begun negotiation of these terms with the bidders for the transfer of the various assets.

President Goodluck Jonathan, some weeks ago, accepted deposits from the 14 firms that emerged preferred bidders for 15 state electricity assets, a milestone in a privatisation process meant to end decades of power blackouts.

A signing ceremony at the presidential villa came one month after the bidders for 10-generation companies and five distribution companies paid 25 per cent of the bid sum as deposits.

The nation’s dysfunctional state electricity provider has been broken up into 15 separate generation or distribution firms in different parts of the country, with the aim ensuring self sufficiency in electricity generation and distribution nationwide.

Despite being Africa’s top energy producer with the world’s seventh largest gas reserves, Nigeria produces and distributes only enough power for a few hours a day in the places that get it at all.

Economists say power outages cost Africa’s second biggest economy billions of dollars on imported diesel for generators and in lost output. They say current GDP growth of around 7 percent could be pushed into double figures if electricity supply could be sorted out.

 

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Crushing the cabals in the power sector

Last week, the Minister of Power, Prof. Chinedu Nebo in an interview with The Guardian, bemoaned the activities of cabals as inimical to the success of reforming the nation’s electricity sector but promised not be discouraged by such activities. In that interview, Nebo said: “You know that evil forces inhabit human beings and I am sure that you are aware of the fact that the cabals that don’t want the power sector to heal in Nigeria are very powerful. I wouldn’t want to start mentioning them one by one but it is important to remember that there are people who are benefiting from the sufferings of the masses. There are people who are benefiting from Federal Government’s funds that were supposed to be used to address issues but were not used.”

We appreciate the position of the minister in identifying this problem as a first step to solving what has become an intractable problem. But we hope this will not be an excuse that will define his tenure as has been the case in the past.

Just as the failure of the fuel subsidy regime was attributed to the cabals, we hope the Minister of Power will confront this problem head-on from beginning in reforming the electricity sector.

Every day, Nigerians are inundated with reports of the huge sums of money that are being spent in various sectors of the economy without meaningful developments. In the past, there were reports that the Power Holding Company of Nigeria (PHCN) under former President Olusegun Obasanjo’s regime between 1999 and 2007, gulped US$10 billion, yet we are still in total darkness. So, these claims of spending so much money in one sector or the other of the economy without commensurate development is not new to Nigerians. We therefore want to see actions on the part of the minister as he has promised that it will not be business as usual.

It would have been gladdening for the minister to have mentioned members of the cabal, since he has identified them. We want to take this as being tactical instead of lack of courage.

Surely, every contract agreement is signed before release of funds and therefore all parties are expected to stick fully to the terms of such an agreement which must be invoked in the case of default. Therefore, that Nebo has started ensuring that the letters and spirit of whatever agreement he enters with contractors is respected and all funds remitted for projects are fully utilised to the last kobo, cannot but be cheering. That is the only way to go and that is the only way to defeat this cabal. We believe that the problems in the power sector and other sectors of the Nigerian society were not created by the so-called cabals, but rather by past government officials who failed to check them or even encouraged them by simply remaining aloof, treating them with kid gloves or conniving with them outright for personal gains.

 

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Govt denies alleged plans to sack 20,000 electricity workers

 

ECHOING mischief, the Federal Ministry of Power has dissociated itself from the reports in a national newspaper (not The Guardian) that it is planning to lay off 20,000 electricity workers.

Power Minister, Prof. Chinedu Nebo said in a statement in Abuja Monday that at no point did government issue a directive asking the successor companies to sack workers.

He said: “The attention of the Minister of Power Prof. Chinedu Nebo has been drawn to a media publication alleging that the Federal Government has issued directives for the sacking of 20,000 workers of the Power Holding Company of Nigeria (PHCN), ahead of take-over by successful bidders of its assets.

“Contrary to the said report, neither the Federal Ministry of Power nor the Bureau for Public Enterprises, (BPE) ever issued any directive to Chief Executive Officers of PHCN successor companies to retrench workers before payment of their severance package.”

The minister said there was no such thing as nocturnal meetings between the Federal Government and all chief executive officers in PHCN where the decision to sack the workers was purportedly taken.

Special Assistant, Media and Communications to the Minister, Kande Daniel, stressed that the minister won’t be discouraged by the allegation, describing it as an indication of mischief “on the part of those who appear to be bent on creating disharmony between government and electricity workers, and attempting to derail the now moving train of the reforms.”

 

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Govt denies directive to sack 20,000 PHCN workers

 

Oscarline Onwuemenyi

29 April 2013, Sweetcrudereports, Abuja - The Minister of Power, Professor Chinedu Nebo has denounced a media publication alleging that the Federal government has issued directives for the sacking of 20,000 workers of the Power Holding Company of Nigeria PHCN, ahead of take-over by successful bidders of its assets.

A statement from the Ministry signed by the Special Assistant on Media and Communications to the Minister, Kande Daniels, and made available to our correspondent noted that contrary to the said report, neither the Federal Ministry of Power nor the Bureau for Public Enterprises, BPE, ever issued any directive to Chief Executive Officers of PHCN successor companies to retrench workers before payment of their severance package.

The Minister also described as unfortunate, the media’s allegation of “nocturnal meetings between the Federal Government and all chief executive officers in Power Holding Company of Nigeria, PHCN”, for this purpose, at a time when most of these officials were on an official assignment outside the country.

According to the staement, Prof. Nebo, although saddened, is not discouraged by this allegation, which is an indication of mischief on the part of those who appear to be bent on creating disharmony between government and electricity workers, and attempting to derail the now moving train of the reforms.

 

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PHCN preferred bidders get certificates

 

By NOEL ONOJA

Successor companies of the Power Holding Company of Nigeria (PHCN), yesterday got their certificates after having successfully paid the statutory 25 percent initial bid fee to commence the take-over of the companies at the occasion of the Presidential Power Reform Transaction Signing Ceremony (PPRTSC) in Abuja.

The event, which had President Goodluck Ebele Jonathan, the Vice President Namadi Sambo, and other industry captains in attendance was described by the Minister of Power, Prof Chinedu Nebo, as ground-breaking; “This ceremony represents a major milestone in the government’s power reform initiative, as you will agree with me, and to the credit of my predecessor in office, we have made great strides and have recorded major success in the achievement of the power reform.”

Recall that after the bidding process conducted by the Bureau for Public Enterprise (BPE), 15 successor companies emerged as preferred bidders including ten (10) Generating Companies (GenCos) and five (5) Distribution Companies (DisCos) who paid up 25 percent the initial bid prices for which they have received certificate for; these companies are also expected to the balance of 75 percent within the next six months.

 

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PHCN staffer electrocuted, glued to pole in Minna

 

MINNA, the Niger State Capital was thrown into mourning at the weekend, following the electrocution of a casual technician with the Power Holding Company of Nigeria (PHCN).

He was attempting to carry out some repair works on an electricity high tension pole at the Maikunkele, in Bosso Local Government Area of the state.

The incident occurred at about 2pm on Saturday after officials of PHCN had switched off electricity in the community on the arrival of some of its staff in company with the deceased, identified as Habib Yisa.

He was believed to have been a casual worker with the organization.
The Nigerian Compass learnt that officials of the organisation suddenly switched on the light just after the deceased had climbed the pole and was busy working on the faulty high tension electric cable.

A relation of the deceased, Mr. Usman Suleiman Majindadi Bosso, said: "I was called by some concerned citizens and neighbours who knew that I was responsible for his education and grooming to come and see the lifeless body of Habib Yisa dangling on the pole."

He said that the understanding of the bereaved family members was that there was no way electricity could be restored by PHCN without knowing what was happening on the high tension wire, adding that about one hour later there was no PHCN official to speak to on the incident.

It was further learnt that the deceased and his colleagues had arrived in the company’s van loaded with familiar equipment, including tools, ladder and belt brought from the PHCH office in the area.

The Deputy Police Public Relations Officer, Niger State Police Command, Mr. Richard Adamu Oguche during an interview with the Nigerian Compass on Monday in Minna.

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Mob attacks PHCN Office Over Crazy Bill

An angry mob in Abaranje, Ikotun area Lagos State, southwest Nigeria, went on the rampage and attacked the staff of Power Holding Company of Nigeria, PHCN, and destroyed their property.

The attack which took place at the weekend followed what electricity consumers in the area described as the crazy electricity bills slammed on them by the PHCN workers.

P.M.NEWS learnt that the mob, mainly residents of the area, vent their anger when they stormed the administrative branch office of PHCN at Customs bus stop, Abaranje, Ikotun and attacked the PHCN staff and destroyed their property.

Items damaged include chairs, tables, electrical appliances, fridge, television, glass doors and windows and other administrative materials such as files and book records kept in the office.

The police at Ikotun division intervened and brought the situation under control before they could set the office ablaze.

 

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Investors will determine PHCN workers’ fate –FG

 

Private investors are to determine the fate of workers of the Power Holding Company of Nigeria and its 17 successor companies, the Federal Government has said.

The Head of Public Communications, Bureau of Public Enterprises, Mr. Chigbo Anichebe, disclosed this in a telephone interview with one of our correspondents in Abuja on Monday.

The BPE had reportedly issued a letter to the chief executives of the power companies to submit names of 20,000 workers to be retrenched before the takeover of the firms by the successful private sector investors that won the bids for their sale.

Denying the allegation, Anichebe said the agency had never been responsible for the sacking of workers in any entity that it had privatised.

Anichebe added that the delay in paying the benefits accruing to the workers was as a result of their failure to submit their bank account numbers and Retirement Savings Account numbers.

Similarly, the Minister of Power, Prof. Chinedu Nebo, said neither the Federal Ministry of Power nor the BPE issued the directive that 20,000 workers should be retrenched.

Speaking through his Special Adviser on Media, Ms. Kande Daniel, the minister described as unfortunate the allegation of nocturnal meetings between the Federal Government and CEOs of PHCN successor companies.

According to Nebo, most of the officials cited in the report were on an official assignment outside the country.

He said funds for the payment of the workers’ severance package were ready and that in a matter of weeks, the workers would be paid as part of the process of the takeover of the companies by private investors.

 

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Transmission infrastructure neglect worsens power supply –Investigation

 

For many years, successive governments have focused on power generation, neglecting transmission and its infrastructure, OKECHUKWU NNODIM writes

Disregard for the upgrade and completion of power transmission infrastructure is one of the major problems that have plagued the nation’s power sector, investigations by our correspondent have revealed.

Between 2012 and now, the Federal Government through the Transmission Company of Nigeria has completed no fewer that 21 power transmission projects.

Sixteen of the projects were completed in 2012, while the remaining five were inaugurated this year.

Findings by our correspondent showed that of the projects completed last year, the government spent about 11 years to deliver five transmission infrastructure.

Two out of the five projects, the 2×30/40MVA, 132/33kV substation in Umuahia and the 132kV double circuit line in Alaoji-Umuahia, both in Abia State, were commenced in November 2001, but dragged till May 2012 before they were completed.

The Mbalano-Okigwe 132kV single circuit line in Abia State was started in September 2001, but was completed in November 2012; while the 150MVA, 330/132/33kV transformer and the 330kV bays in Onitsha, Anambra State, and Benin, Edo State, were completed last year though work began on them in May 2001.

A document on transmission projects completed in 2012, obtained exclusively by our correspondent, showed that it took six years for the government to complete the 2x150MVA, 330/132/33kV substations and line bay at Alaoji, Cross River State.

 

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FG targets 10,000MW of electricity by 2014

THE Federal Government, at the weekend, said electricity generation capacity would have hit 10,000 megawatts by first quarter of next year and by the time, all ongoing National Integrated Power Projects (NIPP) must have been completed.

This is even as it noted that the country was reaching a time of stability in power sector, while promising that the nation would experience a robust sector in coming years.

The permanent secretary in the Ministry of Power, Dr Godknows Igali, who spoke to select journalists in Abuja, at Nigerian Pilot/Newsworld Magazine Leadership Forum, also warned that the government would no longer accept the practice of vandalising power infrastructure across the country.

He disclosed that Kaduna power plant would commence power generation by the end of the year, noting that additional power plants were expected to come on stream soon.

“In the years ahead, we are going to have electricity sector that is robust. If you look at the past few weeks, many Nigerians agreed that power situation improved considerably.

“We had a problem about two and a half weeks ago when one of our main trunks had a shut-down for major maintenance work. We came out and said we had to shut down operations and for those weeks, we lost 1,000 megawatts of power

 

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NERC Extends Tenure for Electricity Licences to 25 Years

 

Sam Amadi, NERC Chairman

• Igali: Electricity may surpass 10,000MW this year

By Ike Abonyi and 
Chineme Okafor

The Nigerian Electricity Regulatory Commission (NERC) has revealed its intention to extend by additional 15 years, operational licences granted to companies that operate in the Nigeria’s Electricity Supply Industry (NESI).

This came as the federal government at the weekend disclosed that its target was to have 24 hours nationwide coverage of electricity as against the 12 to 16 hours currently being enjoyed by some Nigerians.

NERC said at the weekend in Abuja that the new provision had become necessary as it sought to mitigate the various operational risks associated with licences with short lifespan such as what it had granted to existing operators in the country’s power sector.

To this end, the commission explained that it would now guarantee a 25-year maximum tenure for licences it issues to companies engaged in electricity businesses in the country, after which further renewal of the licences could be granted upon due consideration.

The Chairman of NERC, Dr. Sam Amadi, had hinted of the proposed licence extension when he spoke at the recent signing of a number of power industry transaction agreements between the federal government and operators in the industry following government’s reform of the sector and the privatisation of successor companies of the Power Holding Company of Nigeria (PHCN).

Amadi had made this disclosure while reiterating the tenacity of the commission to protect extant rights of domestic and industrial electricity end users and preferred bidders of PHCN companies in the country as the privatisation exercise comes to conclusion.

 

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Boko Haram: Electricity workers seek mass transfer

 

Workers of the successor companies unbundled from the Power Holding Company of Nigeria (PHCN) are seeking mass transfer from the northern part of the country as a result of the state of insecurity created by the Boko Haram religious sect, The Nation has gathered.

Besides, the officials of electricity generation and distribution companies in the affected states are complaining about the dip in revenue generation as customers of the utility companies are unwilling to pay their electricity bills despite persuasion by the companies.

It was also gathered that the chief executive officers (CEOs) of generation and distribution companies from the north complained about the situation when the Minister of Power, Prof. Chinedu Nebo, had a meeting with them, heads of parastatals of the power industry and the leadership of the ministry in Abuja.

An official of the Power ministry, who spoke in confidence to The Nation, said: “The officials in charge of power facilities in the northern parts of the country complained about the peculiar problems created by the security situation in the region.

 

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Nebo and the power sector

 

There is a particular saying that when a child is crying and pointing in a particular direction, it is either the mother or father is there. When the Minister of Power, Prof. Chinedu Ositadimma Nebo, stood before the Senate earlier this year to declare that he was going to exorcise the demons in the power sector, it immediately made headlines in the media.

It had to, because this line of thought was completely new. Nobody before him had openly pursued it. If they contemplated it, they never brought it to the public space. That Nebo has blazed this trail, is not surprising.

He possesses what many of his ilk lack, or overlook. It is strange that many people who have gone through the academic mills and acquired the first-grade credentials he has, soon abandon the most essential and crucial part – God. Many of them even begin to delude themselves and commit the most atrocious infamy and sacrilege of declaring with their mouth that there is no God, while others, at best, pay half-hearted heed to His existence and dictates.

That, of course, is one of the major fundamentals the former Vice Chancellor of two federal universities in Nigeria, is bringing to the table, which, rather than serving as a footnote, is likely to define his era in his present job and from there create the template to leapfrog Nigeria into the future of greatness that has become so elusive, but which everybody, including its enemies, believe is waiting right at the next bend.

 

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Stop misinformation, FG/PHCN negotiation is in good faith-SSAEAC

THE Senior Staff Association of Electricity and Allied Companies (SSAEAC) have declared that the negotiation between the Federal Government and the workers of Power Holding Company of Nigeria (PHCN) on December 12, 2012 was carried out in good faith.

SSAEAC’s President, Bede Opara said this in a statement made available to journalists on Sunday, in Lagos.

The statement jointly signed by the president and general secretary explained how some enemies of PHCN are trying to denigrate the workers and incite the public against the workers in their legitimate pursuit of getting their terminal benefits from PHCN.

He said “the negotiation between the Federal Government and the workers of Power Holding Company of Nigeria (PHCN) on December 12, 2012 was carried out in good faith having considered the interests of the nation and those of our members in this matter”.

 

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PHCN: workers negotiate with FG

 

By Sylvester Enoghase

Senior Correspondent

The Senior Staff Association of Electricity and Allied Companies (SSAEAC) has declared that the negotiation between the Federal Government and the workers of Power Holding Company of Nigeria (PHCN) on December 12, 2012 was carried out in good faith

SSAEAC’s President, comrade Bede Opara made the declaration at the association head office in Lagos on Sunday while interacting with newsmen on how some enemies of PHCN are trying to denigrate the workers and incite the public against the workers in their legitimate pursuit of getting their terminal benefits from PHCN.

He said, “The negotiation between the FG and the workers of PHCN on December 12, 2012 was carried out in good faith having considered the interests of the nation and those of our members in this matter”.

Opara, who warned that those involved in quoting figures without investigation to get the right information before going to the general public said, “We warn those involved in quoting estimated figures to get the right information before going to the public because up till this moment the total benefits of PHCN workers to be disengaged due to Government Privatization Programme are yet to be determined by Committees set up by the government to do so”.

“Even the figure of N144billion mentioned as total workers benefits during the former Minister Prof. Barth Nnaji, represented what government flouted to the Unions during negotiations was never a figure borne out of agreement of the parties involved”, he added.

Arguing that different types of figures had been brandished by government, since then which was severally disputed, he said, “This prompted the inauguration of Technical Committee by Government to work out details of the benefits of PHCN”.

“We need to mention that Professor Adeola Adenikinju of University of Ibadan (UI) which was said to have doubted the quality of negotiations that emerged from Government-Labour parley on PHCN labour issues pretended not to know that the labour-union negotiation under reference was headed by a well-known labour negotiator and sound Administrator, Comrade Hassan Sumonu, former President of NLC and immediate past General Secretary of OAU Trade Union Unity”, he claimed.

 

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Labour Kicks against FG's Plan to Retrench 11,000 PHCN Workers

 

 

Emeka Wogu, Labour Minister

• NLC, TUC to build 600,000 houses

Linda Eroke and 
Adebiyi Adedapo
The federal government may have concluded plans to lay off about 11,000 employees of Power Holding Company of Nigeria (PHCN) in a bid to cut cost. The figure represents 27.5 per cent of the 40,000 members of staff of the electricity company.

THISDAY learnt that the Bureau of Public Enterprises (BP E) had two weeks ago issued a directive to the Chief Executive Officers (CEOs) of the PHCN to compile a list of staff members that would be affected in the exercise.

The implication is that those that would be affected would not be paid their pension entitlements ahead of the winding down of the public corporation.

However, the unions in the sector have kicked against the move, stating that it was rather unfortunate and provoking that the federal government could hatch such obnoxious idea when agreement reached with the unions on the payment of severance benefit is yet to be implemented.

It was gathered that the two unions in the sector had petitioned the federal government through the Ministers of Power and Labour and Productivity explaining the dangers and futility of the government action when the agreement on labour issues had not been honoured.

General Secretary of the National Union of Electricity Employees (NUEE), Joe Ajaero, who confirmed the directive, said it had become obvious that the federal government had decided to truncate the implementation of the collective agreement reached with the unions.

Ajaero said the union had equally directed its members to stop work should the government make good its threat to retrench workers in the sector when labour issues had not been settled.

He added that government should be held responsible for any reaction the directive may generate in the power sector.

 

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FG orders sack of 20,000 PHCN workers

 

By Emma Ujah, Abuja Bureau Chief & Victor Ahiuma-Young
ABUJA — THE Federal Government has ordered the retrenchment of no fewer than 20,000 workers of the Power Holding Company of Nigeria, PHCN, ahead of takeover by successful bidders of its assets.

Vanguard gathered that the Bureau for Public Enterprises, BPE, issued the directive to the Chief Executive Officers, CEOs, of the 18 successor companies to PHCN at a meeting in Abuja, to compile names and drastically reduce the 50,000 strong workforce before the new investors take over.

It was gathered that new investors demanded that the workforce must be pruned before government hands off.

Labour kicks, warns on danger of action

Though it is not clear how government arrived at this figure, however, General Secretary of the National Union of Electricity Employees, NUEE, Mr Joe Ajaero, who confirmed the directive to massively retrench the workforce, said it was obvious that the Federal Government had decided to truncate the implementation of the collective agreement reached with the unions.

Already, organised labour had kicked against the move and warned the government against such action even as the agreement reached between both parties in December 2012 on the terminal benefits of workers had not been implemented.

The Senior Staff Association of Electricity and Allied Companies, SSAEAC, has petitioned the government through the Federal Ministry of Labour to explain the dangers and futility of government action when agreement on terminal benefits had not been honoured by the government.

On its part, NUEE directed members to shut down the power sector once any worker is issued a retrenchment letter without a financial back up in line with the December 2012 agreement.

NUEE, in a statement by Ajaero, rejected the planned retrenchment of workers without honouring the agreement the government entered into with the workers.

According to NUEE, “our attention has been drawn to the nocturnal meetings being held between Federal Government and all chief executive officers in Power Holding Company of Nigeria, PHCN, where a mandate to retrench workers in the power sector has been handed down to them. It is rather unfortunate and provoking that the Federal Government is hatching such obnoxious idea when agreement reached with the unions on payment of severance benefit is yet to be implemented.

“Information reaching us reveals that arrangement to close down PHCN’s Corporate Headquarters has been put in place. While people are still working, government plans to kill their management.

“It was equally gathered that the Federal Government has concluded plans not to pay pension or transfer money to the Pension Fund Administrators, PFAs, all in the name of driving workers to their early graves. We are worried that the government could be privatizing without cash backing, as information at our disposal suggests that about N43 billion is available out of the over N400 billion agreed with the unions.

“At the moment, agreement on certain indices to be used in calculating entitlements like life expectancy which the Federal Government put at 14 years is yet to be reconciled.

“By this posture, it is obvious that the Federal Government has decided to truncate the implementation of collective agreement reached with the unions. Nigerians should, therefore, hold government responsible for any reaction this action may generate.

“While there is still opportunity for the Federal Government to follow due process, we wish to state unequivocally that PHCN workers will legitimately resist every attempt to shave their hair in their absence. Should the Federal Government make good its threat to retrench workers in the sector when labour issues have not been settled, all members are advised to stop work, while those monies paid into their accounts should be seen as free money. The hour has come for you to defend your rights.”

FG set to pay off workers —Igali

Meanwhile, the Federal Government has said it is now set to pay off the staff of PHCN. The Permanent Secretary, Federal Ministry of Power, Ambassador Godknows Igali disclosed this, weekend.

Igali told journalists in Abuja that the fund for the payment of the workers’ severance package was ready and that in a matter of weeks, they would be paid as part of the process of the takeover of the sector by private investors.

 

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Implications of presidential seal on power transactions

 

The quest to have the private sector as the driver of electricity power delivery in the country received a presidential seal on April 22, 2013, with the issuance of certificates of transactions to successful private bidders for the PHCN unbundled companies. The certificates represented the 25 per cent down payment of the bid price.

By personally supervising the process, President Goodluck Jonathan signalled that the deal was done and there was no going back. The significance of such a confidence-building measure was evidently not lost on the private investors. An elated Tony Elumelu, representing Trancorp Plc, one of the preferred bidders, stated that, with the commitment shown by the Government, his company was ready to pay the outstanding bid price immediately, if required to do so.

Perhaps the reason for his elation can be better appreciated when viewed in the light of some of the concerns that serve as a disincentive for private sector participation in the privatisation exercise. These concerns include fear of breach of obligations and/or agreements by government, and the need for a predictable and consistent policy.

As part of events marking the issuance of the power transactions certificates were two other significant businesses, which also signal government’s determination to ensure that its power sector reforms succeed. One is the signing of the World Bank’s partial risk guarantee for gas supply to Egbin Power plant, while the other is the execution of the template on Power Purchase Agreement. For the uninitiated, these may not seem to mean much. But not so for those who have being schooled and toughened in the dynamics and complexities of the electricity market.

 

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PHCN Kano installs 56, 965 pre-paid meters in three months

 

The Power Holding Company of Nigeria (PHCN) on Friday said it installed 56,965 pre-paid meters in Kano, Jigawa and Katsina State between January and March.

The Assistant General Manager, Alhaji Baffa Usman, Public Affairs, said this during in Kano.

He said Kano got 46,465, Katsina, 7, 219 and Jigawa received 3, 281 pre-paid meters within the period.

The breakdown of Kano’s share indicates that Dakata got 4,221; Dala, 6,229; Kumbotso, 7,024; Nasarawa 7,623; Sabobgari, 10,062 and Sharada, 1,306.

In Katsina State, Katsina town got 6,549 and Funtua got 670, while in Jigawa, Dutse got 2,795 and Hadeija got 486 pre-paid meters.

Usman said the installation of the meters was ongoing and would cover all residential customers in the three states.

He said monitoring teams had been constituted to detect those by-passing or willfully tampering with the seals of the meters.

The spokesman said customers found tempering or bypassing the meters would pay a penalty of N50,000 and N25,000 for three and one-phased meters, respectively.

 

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PHCN promises to resolve issue of outrageous bills in Lagos

 

The Power Holding Company of Nigeria (PHCN) on Friday assured Lagos residents that the issue of outrageous bills would soon be resolved.

Mr Olawale Salami, Station Manager of Amukoko Undertaking, gave the assurance at a town hall meeting with communities of Alaba-Oro, Mosafejo and Alafia in Ojo area of Lagos.

Salami said that efforts were ongoing to address all complaints related to over billing and estimated billings.

``We have created an environment for both the PHCN officials and customer to fashion out issues relating to billing in our unit.

``We will only attend to complaints of overbilling, estimated and faulty meters, we will not be able to attend to those whose meters are malfunctioning, `` he said.

A community leader, Mr Rabiu Ojora, appealed to the PHCN official to resolve the issue of outrageous bills, adding that ``it has affected everybody in the community, including my palace``.

Mr Yekini Olawale, Chairman, Alaba-oro, Mosafejo Landlords and Tenants Association, appealed to PHCN management to reduce the outrageous bills by 75 per cent so that they could pay the bills.

``We have seen the adjustment done to the outrageous bills for the residents of Ojo community from N120, 000, their bills were adjusted to N15, 000.

``The outrageous bills they have been distributing to the community will not be paid until reasonable amendment is made.

``Our community will not pay a single kobo into PHCN account until the amendment is done; we feel cheated by the decision of PHCN to give us crazy bills without having power supply, `` Olawale said.

 

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Jonathan Promises Uninterrupted Power Supply In 2014 - Guardian - The Guardian Nigeria

Leadership NewspapersJonathan Promises Uninterrupted Power Supply In 2014 - GuardianThe Guardian NigeriaTHE President of the Federal Republic of Nigeria, Goodluck Jonathan has given firm assurance that Nigerians by December 2014, would begin to enjoy uninterrupted power supply with nothing less than 10,000 megawatts. Addressing top members of The ...Insecurity: Nigeria Begs For US InterventionLeadership NewspapersUS Secretary Kerry, Nigerian Foreign Minister Ashiru Before Their MeetingAllAfrica.comall 5 news articles »...

 

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Nigeria's power generation hits 5,228 megawatts

 

 

THE Federal government has announced that the nation’s installed generation capacity of electricity risen to 6000 MW while generation capability has jumped to 5,228 MW with peak generation at over 4,500 MW, even as it said a total of $3.4 billion is required to expand the transmission grid to enable it evacuate the generated power.

Minister of Power, Professor Chinedu Nebo said in Abuja during the Presidential power reform transaction signing ceremony projected a generation of between 10,000 MW and 20,000MW in 2014 and 2016 respectively for the country.

He said, "We expect to add additional generation capacity of about 2,200 MW from the NIPP projects (1,896 MW), IPPs (296MW) and FGN legacy assets (514 MW) before the of 2013.

"The Federal Government is also investing heavily to boost generation through the large, medium and small hydrostatic with total capacity of over 4, 234MW. These include Zungeru-7000MW; Mambilla-3,050MW; Gurara 11-360MW; Isti-40MW; Small hydro power-84MW."

The Power Minister lamented however that though generation was on the increase, the nation's grid remained a weak link with a wheeling capacity of about 4,800MW thereby necessitating for a robust transmission grid.

According to him, "With government's objective to achieve 10,000 MW in 2014 and 20,000 MW in 2016, the urgent need to expand our transmission capability to evacuate the projected additions becomes eminent.

"A total capacity outlay of US$3.4 billion is required up to 2016 to bring our transmission to evacuate all the generated power. Government is working out the funding of the TCN long term expansion plan from a mix which will include the Transmission Development Fund, International Development Banks and Multilateral agencies."

He cited that despite the positive improvements achieved, the reform had some challenges including the large scale of the reform and resolution of labour issues “which has reached advanced stage which is expected to be concluded before end of June, 2013.”

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NERC explains 25yrs tenure for electricity license

Written by Yunus Abdulhamid

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Chairman of the Nigerian Electricity Regulatory Commission (NERC) Dr Sam Amadi has explained that investors in the power sector who have been issued licenses by the commission stand a chance of using their license for a cumulative 25 years before they expire.

Although, Section 71(10) of the Electric Power Sector Act 2005 provides that a license shall be valid for a period not exceeding 10 years, and an extension by NERC for five years, Amadi said “Section 72 (1) guarantees the licensee a cumulative license of 25 years.”

This is made up of initial 10 years grant, a five year extension and another 10 years upon renewal.

Speaking in Abuja at the transaction signing ceremony between the federal government and investors in the power sector, Amadi noted that the NERC reserves the power to interpret the provision of the act establishing it.

 

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Electrocution and maiming of 12 year-old lad: Father battles PHCN

By EGUFE IAFUGBORI, PORT HARCOURT

TO be born with disability is quite challenging. Being born whole and having to suffer sudden disability for no fault of yours at a tender age could be cruel, far more challenging and regrettable.

This is the agony 12-year-old Master Uchechukwu Ewurum, a JSS2 student resident at No 8 Ojoto Street, Mile 2, Diobu, Port Harcourt, Rivers State now has to contend with. Until February 23 this year, the youngster, according to his father, Peter Ewurum, had been able-bodied, normal and “full of energy”. But that normalcy was shattered when the lad suffered electrocution which prompted the amputation of his entire right arm and left a wide wound on his belly.

Uchechukwu’s ordeal began at House 1 on same Ojoto Street where he had gone with his mother, Stella, to visit a bereaved cousin to his father. Time was about 8.30pm. On the top floor of the storey building where his host lives, high tension power lines of the Power Holding Company of Nigeria, PHCN, dangle across less than a metre apart from the outdoor handrail. Overtime, the space between had become even closer following collapse of the cross arm at the nearby PHCN pole which left a cable sagging a finger tip from the handrail, according to residents.

 

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Lack of funds hampering installation of prepaid meters – PHCN official

The lack of funds is the major factor preventing Power Holding Company of Nigeria (PHCN) from installing prepaid meters for all customers at the same time, an official said.

The Principal Manager, Public Affairs of PHCN, Abuja Zonal Office, Mr Debo Adegoke, gave the explanation in Abuja, yesterday.

“The reasons we cannot supply every customer with prepaid meters at the same time is because of the financial implication which we cannot for now adequately afford. Also, PHCN is facing some challenges with the customers regarding prepaid meters that were installed for them because some of the customers are fond of tampering with the meters,” Adegoke said. (NAN

 

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PHCN’s Liabilities Up To N510bn – Agbogun

 

Mr. Samuel John Agbogun is the managing director/chief executive, Nigeria Electricity Liability Management Company Ltd (NELMCO). In this interview with DAVID ADUGE-ANI, he speaks on the mandates, responsibilities and challenges of the new agency.

What’s your key mandates at NELMCO?

Well, NELMCO is just an acronym for Nigeria Electricity Liability Management Company Limited, which was set up as part of the unbundling of the Power Holding Company of Nigeria (PHCN). As you are aware, the federal is trying to set up PHCN sub-companies. What happened was that during the planning stages, it was discovered that PHCN has more liabilities than assets.

So what government did was to create an institution to manage those liabilities. This institution is similar to Assets Management Commission of Nigeria (AMCON). The intention is for the liabilities to free those assets, so that government can sell those assets, which would encourage investors to buy and improve networks. That is what Bureau for Public Enterprises is doing now.

Now, NELMCO has therefore inherited all the PHCN liabilities. The National Council on Privatization has transferred it to NELMCO, through a transfer order. The shareholders of PHCN, which is the Bureau for Public Enterprises (BPE) and AMCON have signed all the necessary instruments. So, as I speak to you today, NELMCO has all the liabilities of PHCN.

What kind of liabilities are you talking about?

Yes, what we do here is that there are three kinds of liabilities. First are the liabilities owed to suppliers of services? There are also liabilities owed to government agencies, like the Federal Inland Revenue and the Industrial Training Fund (ITF). There are liabilities owed to power suppliers’ producer, like the Integrated Power Projects (IPPs).

There are also the liabilities owed to staff of PHCN, which is the pension. Basically these are the duties of NELMCO. So, What NELMCO does today is that it has inherited all these liabilities and is finding ways to paying them back. However, in carrying out this payment, the policy states that the company would inherit what they called non-core assets of PHCN.

These non-core assets of the PHCN are not necessarily needed to run the business. Examples of such non-core assets are the corporate headquarters, some golf courses and some staff quarters. NELMCO will inherit them, sell them and then use the proceeds, to settle part of the liabilities. If after that there is any shortfall, we will go to the federal government through the budget appropriation and get money and pay.

 

 

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