High electricity bill kills man; Nigerians beyond shock

 

In 2011, Nigeria’s erratic power supplier, the PHCN, jacked up its tariff from N8 to N40 for each kilowatt consumed. Nigerians barely grumbled as the PHCN had its ways.

But in Sri Lanka, a man has suffered a fatal heart attack after being presented with a shocking electricity bill, a media report said Saturday.

The 61-year-old victim had protested at the Ceylon Electricity Board in Colombo Friday that his bill had suddenly spiked, the Ceylon Today newspaper said.

It said the man was told that the bill was due to a hefty tariff increase from last month and suffered a heart attack on the news, collapsing at the electricity board headquarters.

 

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Fixed Charges On Electricity Tariffs For Review – NERC

 

The Head, Media Relations, Nigerian Electricity Regulatory Commission (NERC), Mrs Mariam Abubakar,on Tuesday said fixed charges on electricity tariffs since 2012 was being reviewed annually.

Abubakar told newsmen in Lagos that the Multi Year Tariff Order 2 (MYTO2), which was inaugurated in 2012 – formalised the annual reviews till 2017.

She said that MYTO2 legalised the review of fixed charges on electricity tariff for the next five years from 2012.

“The annual tariff changes provide for yearly minor reviews to incorporate any changes in crucial indices such as gas price, inflation and exchange rates.

“Not all such minor reviews result in any change in the tariff though.

“For example, the minor review we conducted at the end of 2012 resulted in no change to the existing tariff. “

?She said MYTO 1 terminated on the midnight of May 31, 2012.

Abubakar said that MYTO 2 was for the period of June 1, 2012 to May 31, 2017.

“MYTO 2 is intended to be cost-reflective and provide financial motivations for instantly needed incremental investments in the industry.

 

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FG fails to pay PHCN workers’ severance package

 

 

The Federal Government has reneged on its promise to complete the payment of the severance benefits of the staff of Power Holding Company of Nigeria (PHCN) by the end of June 2013, it appeared yesterday.

Minister of Power, Prof. Chinedu Nebo, had on April 22 told President Gooluck Jonathan at the banquet hall of the State House, Abuja that before the end of June, 2013, government would have completed the payment of PHCN severance benefits.

Yesterday was the last working day of June, and as at press time, no PHCN worker had acknowledged any notice of payment. The ministry had promised to commence payment on June 17.

The President of Nigeria Union of Electricity Employees, Comrade Mansur Musa, confirmed that none of the workers had received his or her severance benefits.

He said the union had already added government’s failure to the so many times it had disappointed the country on various issues.

 

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Crazy PHCN bills: 60-year-old man to commence hunger strike on Monday

 

A 60-year-old activist and initiator of The Stable Power Movement, Abayomi Gbode-Ogun Dawodu, has declared that he will embark on hunger strike from Monday, July 1 to prevail on the federal government and top officials in the power sector to abolish estimated billing which leads to crazy billing by the Power Holding Company of Nigeria (PHCn).

Speaking with Saturday Mirror, Dawodu demanded that estimated billing must be permanently abolished and prepaid meters given free to electricity consumers.

“I urge the government to pay special attention to the behaviour of PHCN staff.

Since electricity tariff was increased in July last year, PHCN has kept increasing it, even when there is no power and when people should be charged for their consumption only,” he said.

Having complained to the officials of PHCN, Nigerian Electricity Regulatory Commission (NERC), Coalition of Residence and Business Association of Nigeria (CRBAN) and many others on several occasions without any meaningful change, he stated that he has no other option than to embark on hunger strike.

 

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FG rates PHCN privatization most transparent

 

From ISAAC ANUMIHE, Abuja

Federal Government has acknowledged the privatization of Power Holding Company of Nigeria (PHCN) successor companies as one of the most open and transparent transaction processes in recent history.

Speaking at an investment forum in New York with prospective investors seeking to purchase of 80 per cent equity in the 10 National Integrated Power Project (NIPP) power plants yesterday, Vice President Mohammed Namadi Sambo, who was represented by Governor Gabriel Suswan of Benue State, said all the three tiers of government and the private sector in Nigeria are collaborating in the privatization process of the 10 NIPP power plants being jointly offered for sale by the Bureau of Public Enterprises (BPE) and Niger Delta Power Holding Company (NDPHC) to ensure that same level of transparency is replicated.

He pointed out that the PHCN transaction was a highly transparent process and government has assured investors that the same level of transparency will be replicated.

 

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Nigeria’s Power Sector Viable, FG Tells US Investors

 

Vice President Mohammed Namadi Sambo, has acknowledged the privatisation of the Power Holding Company of Nigeria (PHCN) successor companies as one of the most open and transparent privatisation transaction processes in recent history.

Represented by Governor Gabriel Suswan of Benue State, the VP made the observation at an investment forum in New York with prospective investors interested in the purchase of 80 per cent equity in the 10 National Integrated Power Project (NIPP) power plants.

Suswam while addressing the ongoing Niger Delta Power Holding Company’s Summit in New York yesterday, assured all potentials investors in the sector that the Nigerian power sector was viable, urging them to take advantage of the forum to really understand the efforts of the federal government to bridge the power gap for sustained economic growth in the country.

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NERC asks Nigerians to help secure electricity equipment

 

NERC inaugurated the Ibadan Customers’ Forum on Thursday.

The Nigerian Electricity Regulatory Commission, NERC, has solicited the cooperation of consumers for the protection of electricity equipment across the country.

Chairman of the commission, Sam Amadi, made the plea in Ibadan on Thursday while inaugurating the Ibadan Customers’ Forum Office at Magara Police Station, Iyaganku GRA.

The NERC chief, who was represented on the occasion by the Commissioner, Government and Consumers Affairs Division, NERC, Abba Ibrahim, said the forum was put up as a redress mechanism for settling disputes between the PHCN and its consumers

“You need a lot of investment in the power sector to be able to sustain it. The reason why government has not been able to sustain it is because it has been unable to provide the required input to make things run.

 

 

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Politics of the power sector (2)

 

ALSO, the NDPHC has added 274 kilometres (km) of transmission lines to the national carrying capacity through the completion of six transmission projects namely, the 330KV DC Ajaokuta-Lokoja-Gwagwalada lines, 222Km; 330KV DC Ihovbor-Benin Main-Oshogbo Line A, 17km; 330KV DC Papalanto-IkejaWest-Ayede line, 16KM; 330KV DC Ganmo-Jebba-Oshogbo SC-Turn In/Turn Out Line, 12KM; 330KV DC Omotosho-Ikeja West Line, 5Km; and the two-kilometre, 132KV DC Ganmo-Ilorin-Oshogbo Turn In/Turn Out line.

Furthermore, the NDPHC has strengthened the transmission capacity of 12 substations, built three new ones from the scratch and rehabilitated two across the country, with a cumulative capacity of 2,370MVA. In the distribution end of the NIPP project, the NDPHC also has a haul of 30 completed zonal projects as follows: Abuja zone two; Benin zone two; Eko zone nine; Ibadan zone six; Ikeja zone six; Kaduna zone three; and Jos/Yola zone two.

 

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Nigeria: A sleeping giant in darkness

 

Then, I was not born but history has it that by the time of Nigeria’s independence, the colonial masters had high expectations from the country they were leaving. It was predicted that we would become one of the leading economies in a few years and a force to reckon with in Africa after independence.

Perhaps, revelling in its potential to be a great nation, Nigeria prides itself the “Giant of Africa”. I am not a believer in forecasting, but I know most forecasts are as a result of extensive research and analysis. Nevertheless, I would not have expected anything less than fact from scientific forecast.

With such an overwhelming population, Nigeria is blessed with human resource. Then talk about the black gold – petroleum – one of the world’s most widely-used and expensive resources, was found in addition to favourable weather and welcoming temperature; we could not have wished for more blessing from God; we are blessed.

With the reality of today, Nigeria seems to have moved many centuries in backward direction. The promising statistics of the late 50’s and 60’s have all become a myth. But where did we get it all wrong?

In essence, there are so many aspects of our stagnant development in which we have terribly failed. I have chosen to dwell on the problem of electricity ravaging the nation. Since my childhood days, Nigerians have not enjoyed uninterrupted power supply; instead of improving and provide more turbine to generate more megawatts of electricity, the fact is that the nation’s total power output has gone worse. As a student, I am schooling in one of the hottest parts of the country and as a result, I’m not finding it easy to cope with heat. Michael Faraday would be laughing at us, for if the scientist were to be a Nigerian, we would not have built on this excellent invention.

 

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Politics of the power sector

 

 

“Then there is also the group that does not know that the power companies have already practically been fully privatised and that government control in the sector will soon be reduced to that of transmission and regulation of the sector thereby ushering us into the sort of improved services that we currently enjoy within the Telecommunications industry; they would also tell you that these companies have been dashed to some cabals even though these companies fought through very competitive processes to win their bid in the full embrace of the international business community.“

I HAVE noticed that those that love to use this issue as a convenient political excuse to always lampoon the current administration are actually largely ignorant of what is going on in the sector – and I have decided to discuss these developments under the following categories A-H as described below:

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NERC Inaugurates Ibadan Forum Office

 

Dr Sam Amadi, the Chairman, Nigerian Electricity Regulatory Commission (NERC), says privatisation of the power sector is the best step to improve power generation in the country.

Amadi said this on Thursday in Ibadan at the inauguration of NERC’s Ibadan Forum Office at Iyaganku Quarters, Ibadan.

The Chairman, who was represented by Dr Abba Armiya’u, a NERC Commissioner, said the privatisation of the sector would create more opportunities for Nigerians.

Amadi, who said a major opportunity would be in the aspect of improved services, added:

“However, the privatisation and the reform cannot work if we do not have the support of all stakeholders.

“As we have noted in the telecom sector, the mobile phone, which was once a symbol of the elites, is now available to all irrespective of your status.

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Nigeria: FG Decries Age-Long Neglect, Vandalism of Power Infrastructure

 

 

As the country continues to grapple with the enormous challenge of delivering stable electricity to Nigerians, the Minister of Power Prof Chinedu Nebo, said there are difficulties in fixing the problems due to lots of man-made causes and the age-long neglect of the sector.

The minister, who noted that the situation in the power sector is getting out of hand, called for the support of Nigerians in checking vandalism of the facilities being put in place by the government.

Last week, the vandalism of two major gas pipelines which supply gas to eight power generation stations across the country drastically cut power supply by 1,598 megawatts (MW). The affected pipelines take gas from the Okoloma gas plant and Escravos and supply to Egbin/AES thermal stations, Olorunsogo, Omotoso, Geregu NIPP as well as Afam IV and VI thermal power stations and Independent power station in Rivers State.

 

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N384bn severance: Bandits, kidnappers target PHCN workers

 

The announcement of the payment of N384bn severance package to Power Holding Company of Nigeria workers from June 17, 2013, has attracted armed robbers and kidnappers to employees of the power firm.

The President-General, Senior Staff Association of Electricity and Allied Companies, Mr. Bede Opara, told our correspondent on Wednesday that the hoodlums had started demanding their share of the money which the Federal Government had yet to pay the workers.

He said, “We don’t want to be advertising this issue of payment. The lives of our members are in danger. Even now that the money is yet to be paid, armed robbers and kidnappers have started harassing our people here and there.

“This is because they heard that payments will be made from June 17. When they go to some homes of PHCN workers, they tell them that government said it had paid since June 17, bring our own share.”

He urged the government to desist from making public the date for the payments .

Opara added, “We really want to see that the money has been paid and not necessarily making it public that it will be paid on a particular date. Since PHCN workers are warming up to have their entitlements, thieves are also warming up to come and rob them of it.

 

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Privatisation Of PHCN Involves All Levels Of Govt - Sambo -

 

The current privatisation process of the Power Holding Company of Nigeria (PHCN) involves all tiers of government, the Vice -President, Alhaji Namadi Sambo, has said.

Sambo made the statement at an investment forum in New York, Mr Chigbo Anichebe, the Head of Public Communications, Bureau of Public Enterprise (BPE), said in a statement in Abuja on Thursday.

He said this was the first time the private sector, the National Assembly, federal, state and local governments would collaborate to ensure an all-inclusive transaction process.

The vice-president, who was represented by Gov. Gabriel Suswan, said that the Nigeria delegation was at the forum to meet with investors interested in the purchase of 80 percent equity in the 10 National Integrated Power Projects (NIPPs).

He said the transaction in the sale of PHCN successor companies followed a transparent process and assured prospective investors that the same level of transparency would be replicated in the sale of NIPPs.

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N384bn severance Bandits, kidnappers target PHCN workers

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System collapses investigative report: Minister says roadmap for stopping the menace, found

 

  The Minister of Power, Professor Chinedu Nebo has said that the power sector is at the threshold of stopping incessant system collapses, as the investigative panel’s report will provide the much needed road-map for taming the monster.

While speaking in Abuja upon receiving the investigative panel’s report, to which he earlier gave a two-week matching order, the Minister said that soon Nigerians will heave a sigh of relief as there would be reliable and uninterrupted power supply.

He reminded Nigerians that President Goodluck Jonathan’s Transformation Agenda is anchored on priority attention to the power sector as it is the bedrock of the nation’s quest for prosperity.

While debunking the notion that Committees are often times “all time wasting strategy”, the Minister of Power, Professor Nebo, while receiving the report from the Olapade-led panel to investigate incessant collapses in the power system in recent times, asked the Committee to stay and ensure the full implementation of its findings.

Professor Nebo commended the panel for its doggedness and thorough work, as it has turned in the report within a record time. He described the feat as truly a manifestation of a new Nigeria and indeed a new dawn for the power sector

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6,000MW to be added to national grid – FG

 

 

As investors take over in Oct

By ADEWALE SANYAOLU

Hope of reliable power supply to Nigerians may be realised before year end as the Presidency through the Bureau of Public Enterprise (BPE) has assured that additional 6,000 mega watts would soon be added to the national grid to complement the 4500 megawatts currently been distributed.

The assurance was given by the Director General of BPE, Mr. Benjamin Dikki, just as he hinted that new investors in the power sector will be taking over the facilities in October this year, after payment of 75 per cent outstanding bid price.

Dikki argued that power supply in the country will improve when the private investors eventually take over; adding that the introduction of sound maintenance culture would ensure that the current installed capacity of 6000 megawatts is exploited and put on the national grid.

 

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FG may ban generator importation declare emergency on power sector

 

By Emmanuel Okwuke

Senior Correspondent

President Goodluck Jonathan, on Tuesday in Lagos said the Federal Government is currently studying a proposal to restrict importation of electricity generating sets into the country soon.

The move, the President said at the fifth Academy for Entrepreneurial Studies, Nigeria (AES), will be part of declaring a state of emergency in the nation’s electricity sector.

The President, who was represented by Works Minister, Mike Onolememen, expressed belief that soon, electricity problem will be a thing of the past, because the administration has put all necessary measures to achieve this goal.

Also, he praised the efforts of the AES in repositioning the youths of Nigeria rthrough her ‘Operation 500 Students-Entrepreneurs Programme’, where 500 students in each tertiary institution in Nigeria are trained on leadership and entrepreneurship free of charge in collaboration with the school authorities every year.

The President said his administration lays emphasis on entrepreneurship and human capital development as it is his administration’s determination to reduce the level of unemployment in the nation.

“That is why the government places much emphasis on the number of jobs each project or contract it embarks on would create,” he added, noting that Nigerians are enterprising people who would excel in whatever legitimate venture under an enabling environment.

 

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FG to Pay 54,000 PHCN Workers Severance Pay Soon

 

The Senior Staff of Allied and Electricity Corporation (SSAEC), Tuesday, confirmed that the 54,000 workers in the electricity sector would soon receive their severance pay. The SSAEC President, Mr Bede Opara, who disclosed this to the News Agency of Nigeria (NAN) in Lagos said that the Federal Government and labour had reached an agreement on payment of the workers entitlements. Opara however did not disclose the total sum that would be paid to the workers.

 

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PHCN chief tasks staff on ethics

By Chinwendu Nnadozie/ Minna

The new Business Manager (BM), Power Holding Company of Nigeria (PHCN), Minna, E O Paul, has cautioned staff to rise up to the challenges of their jobs by avoiding acts of laxity and other behaviours capable of dragging the image of the company to disrepute in the course of discharging their duties.

Paul spoke against the backdrop of allegations that some staff connive with unauthorised persons to sabotage the company in the distribution of electricity in parts of the state, including Dutsen Kura-Gwari area, which has for years been faced with supply challenges due to illegal connections and constant tampering with PHCN installations.

It was however gathered that electricity supply in some parts of Dutsen Kura-Gwari area has for years been under ‘load-shedding’, a development said to have caused by the attitude of some PHCN officials who connive with some retired workers of the agency to indiscriminately tamper with cables.

Apart from constant tampering with cables during power outage, load-shedding, illegal connections, including burying cables under-ground to extend electricity to houses distances away from main power source or transformers is very rife.

Other factors aiding the activities of those in the illegal business of the PHCN in some areas include total aberration from the master plan as the shanty nature of the area aids the perpetrators in perfecting illegal under-ground connections. This, the source said, is causing severe damage to the company’s installations

 

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Investors to take over PHCN firms October —BPE

 

Core investors in the successor companies carved out of the Power Holding Company of Nigeria are expected to fully take over the electricity companies in October, the Director-General, Bureau of Public Enterprises, Mr. Benjamin Dikki, has said.

Dikki, who said this in a statement made available to our correspondent in Abuja on Tuesday by Head of Public Communications at the privatisation agency, Mr. Chigbo Anichebe, added that by then, the investors would have paid the balance of 75 per cent of the bid price for the respective companies since they had earlier made the mandatory 25 per cent payment.

He also gave assurance that power supply in the country would improve when the private investors take over.

The BPE boss expressed confidence that the introduction of sound maintenance culture would ensure that the current installed capacity of 6,000 megawatts was exploited and put on the national grid, stressing that this alone would stabilise power supply in the country.

 

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PHCN Assets: BPE to Sanction Bidders Who Fail to Meet 75% Payment Deadline

 

BPE’s Director General, Mr. Benjamin Dikki

Chika Amanze-Nwachuku
The Bureau of Public Enterprises (BPE) has warned that investors, who fail to pay the balance of the 75 per cent of offer value of their bids for the successor companies carved out of the Power Holding Company of Nigeria (PHCN) within six months from the date the mandatory 25 per cent bid payment was made, would be penalised.

BPE’s Director General, Mr. Benjamin Dikki, gave the warning while speaking on Nigerian Television Authority (NTA) Channel 10 programme in Lagos, at the weekend.

Dikki, according to a statement yesterday by the Bureau’s spokesman, Mr. Chigbo Anichebe, said the investors were expected to fully take over the power assets after paying the balance of 75 per cent bid price since they had made the mandatory 25 per cent payment assured them that power supply would improve when the private investors take over.

He expressed the confidence that all the investors were serious businessmen, who have the required financial means to pay the bid price.

 

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Why power crises persist, by minister

 

•Fed Govt begins payment to DISCOs

The Minister of Power, Prof. Chinedu Nebo, yesterday explained that the flurry of system collapses and the fall in the amount of generated electricity were caused by poor maintenance habit, vandalism, sabotage and poor funding.

Nebo, who admitted that Nigeria is undergoing very difficult moments in the power sector, spoke at the headquarters of the Federal Ministry of Power while receiving a report containing recommendation on how to address the incessant system collapse that had characterised the power sector in recent times.

The Minster said: “For instance, we lost close to 1,600megawatts of power at the weekend on account of vandalism. Our gas pipelines were vandalised and this knocked off our power plants. We urge our compatriots to stop such acts and behaviours that undermine the growth and development of our nation.

“We are facing very difficult times in the power sector. It will interest you to know that some of the problems are manmade, such as poor maintenance habit, vandalism, sabotage and poor funding.”

 

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Nigerians to experience more power cuts

 

Nigerians will continue to contend with erratic power supply for the time being as gas shortage, caused by pipeline vandalism, continues to hamper power generation at the different thermal plants in the country.

Power generation had dropped by 1,598 megawatts on Sunday as eight electricity generating stations were hit by gas shortage caused by vandalism of two gas pipelines.

The Egbin/AES, Olorunsogo, Omotoso, Geregu NIPP, Afam IV and VI plants as well as Rivers State Independent Power Station, affected by the gas supply shortage, as at the time of filing this report on Monday, were working far below their installed capacities.

Egbin, the biggest power generation plant in the country with an installed capacity of 1,320MW, was said to be generating only 300MW of electricity.

A source at the station confirmed that only three out of the six units were currently running due to gas supply shortages.

This has led to increased load shedding in most parts of the country. Our correspondents gathered that the situation might not improve until the vandalised gas pipelines were fixed.

The General Manager, Public Affairs, Transmission Company of Nigeria, Mr. Dave Ifabiyi, who spoke with one of our correspondents on Monday, said, “If two major gas pipelines are vandalised, you can be sure that the pressure of gas being supplied to the thermal stations will be very low.

 

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FG laments difficulty in fixing power sector

 

By Adeola Yusuf (Lagos) and Obas Esiedesa, (Abuja)

The Federal Government on Monday admitted frustrations in its efforts to fix the nation’s problematic power sector which are man-made, and age-long neglect of the sector.

This followed revelations at the weekend by the Transmission Company of Nigeria (TCN) that supply crashed to 2, 290 mega watt (MW), a situation the a source at the ministry said is an embarrassment to the government.

Minister of Power, Chinedu Nebo said in Abuja while receiving the report of technical investigative panel on system collapses headed by Fatai Olapade, urged Nigerians to see and protect public infrastructure as their own.

He said the situation in the power sector is getting out of hand, calling for the support of Nigerians in checking vandalism of the facilities being put in place by the government.

According to the Minister, “it interesting to note that some of the causes of system collapses could be corrected by very simple work that could be done seemingly effortlessly.

“I will like to plead with the generality of our people to understand that we are facing very difficult times in the power sector. Some of these problems are man-made, some have accrued from years of under-funding and under-development of the sector.

“And occasionally vandalism and sabotage, gas pipeline are vandalised as we saw this weekend. I do hope that with time we will mature to a level where we see infrastructure that is being put in place by government for the empowerment of the people as a sacred trust that should not be abused,” he added.

Nebo urged Nigerians to stop acts and behaviour that impoverish the people, adding that protecting public facilities is job for all, assuring that members of the panel would be retained to implement their findings, and that the report would not become another shelf document.

 

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As Electricity Supply Drops Nationwide, FG Admits Power Sector Challenges are Getting out of Hand

Prof Chinedu Nebo

Ejiofor Alike and Chineme Okafor
The federal government Monday admitted that it was facing serious challenges fixing the problematic power sector, adding that the sector was bedevilled by a lot of man-made challenges as well as that of age-long neglect.

Nationwide power generation had dropped to 2,290 MW, leaving a large number of the country's about 160 million people in darkness.

Minister of Power, Prof. Chinedu Nebo, said in Abuja, while receiving the report of a technical investigative panel on system collapses in Nigeria's electricity sector headed by former official in the Ministry, Mr. Fatai Olapade, that Nigerians must see and protect public infrastructure as their own.

He stated that the situation in the power sector was getting out of hand and called for the support of Nigerians in checking vandalism of power facilities being put in place by the government.

According to him: "It is interesting to note that some of the causes of system collapses could be corrected by very simple work that could be done seemingly effortlessly.

“I will like to plead with the generality of our people to understand that we are facing very difficult times in the power sector. Some of these problems are man-made, some have accrued from years of under-funding and under-development of the sector."

The disruption of gas supply to several generating stations had worsened electricity supply in the country.

Speaking further on the development, Nebo said: "And occasionally

 

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FG blames zero budget to PHCN for power outages

 

MYTO fund to the rescue

The zero allocation to the Transmission Company of Nigeria (TCN) and the 17 successor companies of the Power Holding Company of Nigeria (PHCN) in the 2013 budget appropriation is partly to blame for the frequent system collapse in the grid in recent times, a technical panel set up by the federal government has said.

Chairman of the committee, Engr. Fatai Olapade while presenting its report to the Minister of Power, Prof Chinedu Nebo, yesterday also identified ageing workforce, inexperienced hands, and over grown trees as some of the causes of system collapses.

Olapade said: “You know we are in the rainy season. There are some trees that grow so fast like the Indian Bamboos. They grow so fast that when wind blows they can touch the lines and cause transient faults. Most of the operators are old. Some of them are inexperienced and they should be trained. But all other issues are purely technical, like communications.”

Prof Chinedu Nebo, in his remarks said the disbursement of the Multi-Year Tariff Order (MYTO) has commenced to the electricity distribution companies (DISCOs) and Generation Companies (GENCOs) to enable them solve their financial challenges.

Two weeks ago, the minister constituted a committee to look into the causes of the disturbing frequency in system collapse, which throw the entire country into darkness.

Late yesterday night, the TCN announced a drop of 1, 598 mw in power generation, blaming it on vandalisation of major gas pipelines linking the power plants.

The statement, issued by the TCN, said the total power generation as at 2pm yesterday stood at 2,290mw.

 

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PHCN blames recent blackout on pipeline vandalisation

 

By LOUIS IBA

Nigeria’s power supply situation dipped further on Monday as parts of the country were thrown into darkness following drastic cuts in natural gas supply required to fire major thermal plants.

Daily Sun learnt that available generated electricity stood at a little over 2,290megawatts as PHCH reported it lost over 1,598 megawatts of power due to the vandalisation of the pipelines which supply gas to the thermal power plants.

The Transmission Company of Nigeria (TCN) in a statement said the vandalisation and the obstruction to effective gas supply to the power plants had forced PHCN to resort to “massive load shedding” a trend it said was responsible for the blackout presently being experienced nationwide.

“The massive loadshedding is caused by vandalism of two major gas pipelines supplying gas to eight power generation stations in the country, namely Egbin/AES Thermal Stations, Olorunsogo, Omotoso, Geregu NIPP, Afam IV and VI Thermal Power Stations as well as River State Independent Power Station, resulting in drastic reduction of power supply by 1,598 megawatts,” said Dave Ifabiyi, spokesperson for TCN.

 

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93% PHCN workers validated for payment

 

The Implementation Committee for the Settlement of Entitlements of Workers of the Power Holding Company of Nigeria (PHCN) has stated that nearly 93 per cent of the workforce in the electricity sector have been validated and cleared for the payment of their benefits. This equates more than 43,400 workers.

The committee said this in a statement on Monday, signed by the Special Adviser, Media and Communication to the Minister of Power, Kande Daniel.

The committee further commended the cooperation of the workers, as the last few steps towards the payment of their benefits were taken.

It stated that it was still working on the records of the remaining staff.

It also said that personnel whose records had passed the biometrics test had also been issued Benefit Statements showing their expected terminal benefits.

“They are to make necessary corrections and return the statements to the committee within one week,” the statement said.

According to the statement, “furthermore, in order to enable the workers to understand the process of computation better, committee members have been on a sensitisation tour of the different geographical zones.

 

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‘93% Of PHCN Workers’ Benefits Ready’

 

The Implementation Committee for the Settlement of Entitlements of Workers of the Power Holding Company of Nigeria (PHCN) has validated and cleared more than 43,400 (forty three thousand) workers in readiness for payment of their benefits. This equates to nearly 93 percent of the workforce in the electricity sector. The committee which is headed by the permanent secretary in the ministry of power, Ambassador Dr. Godknows Igali, commended the high level of cooperation of the workers, as the last few steps towards the payment of their benefits were taken. Special Assistant to the Minister of Power, Mrs Kande Daniel, said the committee was still working on the records of the remaining staff to clarify various issues arising from them.“Those personnel whose records have passed the biometrics test have also been issued Benefit Statements showing their expected terminal benefits. They are to make necessary corrections and return the statements to the Committee within one week,” she said. - See more ...

 

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Nigeria: 43,400 PHCN workers cleared for severance payment, as power sector privatisation progresses – official

 

Femi Asu, with agency report No fewer than 43,400 workers of the Power Holding Company of Nigeria (PHCN) are eligible for severance benefit, the Ministry of Power has said.

Kande Daniel, the Special Assistant on Media and Communication to the Minister of Power, disclosed this to the News Agency of Nigeria (NAN) in Lagos on Sunday.

``The committee, headed by the Permanent Secretary in the Ministry of Power, Godknows Igali, has cleared over 43,400 workers for the payment of the benefits."

Prior to this, there had been controversies about the payment of the severance package, the amount to be paid and the number of beneficiaries, slowing down the privatisation of PHCN assets and government reform agenda in the power sector.

The payment of the terminal benefits of the PHCN staff is expected to pave the way for the full privatisation of the successor generation and distribution companies of the nation’s power utility company.

The completion of the ongoing privatisation is expected to step up the nation’s power generation which currently hovers between 3,500 megawatts (MW) and 4,000MW. The country needs an investment of $10 billion annually to achieve 40,000MW of power generation by 2020.

Chinedu Nebo, power minister has said that government’s target is to generate 10,000MW by 2014 to meet the needs of about 120 million Nigerians who do not have access to electricity.

 

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Over 43,400 PHCN Workers Cleared For Payment Of Severance Entitlement – Official

 

No fewer than 43,400 workers of Power Holding Company of Nigeria (PHCN) are eligible for severance benefit, the Ministry of Power has said.

Mrs Kande Daniel, the Special Assistant on Media and Communication to the Minister of Power, disclosed this to the News Agency of Nigeria (NAN) in Lagos on Sunday.

``The committee, headed by the Permanent Secretary in the Ministry of Power, Amb. Godknows Igali, has cleared over 43,400 workers for the payment of the benefits."

She said that this figure constituted nearly 93 per cent of total workforce of PHCN.

Daniel said that the committee was still working on the records of the remaining workers to clarify various issues.

The special assistant said that the committee commended the workers for their patience and cooperation.

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Takeover fever grips PHCN

 

As electricity consumers eagerly await better services when the new owners take over the running of PHCN, some employees are jittery.

Earlier in the week, some customers who had gone to the Sagamu Business Unit to transact business, were taken aback by what one of the workers said.

One of the customers, Chidi, said, “I was told by the PHCN worker that there was no need to apply for a transformer as the company will cease to exist by the end of June.”

Out of curiosity, Chidi sought to know how reliable his information was. He told Power Talkback that he observed that the PHCN officer appeared demoralised. He said he told him that all PHCN members of staff had been asked to complete a form.

He said the form was part of the final documentation before the full implementation of the privatisation arrangement.

The customer said he was particularly worried by the demoralised mien of the PHCN man, wondering if his mindset would not affect the way he did his jobs.

 

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FG To Leverage On Turkish Expertise In Thermal, Hydro Power

 

The Minister of Power, Professor Chinedu Nebo has said that Nigeria, in its quest for new energy mix strategy would leverage on Turkish expertise in thermal and hydro power sources. Speaking while receiving the Bereket energi Group led by its Deputy Chairman, Ali Yagli and the Nigerian partner , Oral energy Limited, the core investor of Jos Distribution Company, Nebo stated that Nigeria offers the best environment for business not only in power but also heavy equipment, machineries and construction. Nebo, who was represented by the Permanent Secretary in the Ministry of Power, Amb. Godknows Igali, commended the Group for its confidence in the Nigerian economy assuring that there are unequal potentials in terms of returns on investment.

 

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NERC inaugurates Port Harcourt forum office

The Nigerian Electricity Regulatory Commission has inaugurated an electricity complaints forum office in Port Harcourt, Rivers State.

NERC said the forum would sit and resolve disputes, as well as listen to complaints of electricity consumers in and around the Port Harcourt electricity distribution zone.

The Commissioner, Government and Consumer Affairs, NERC, Mr. Abba Ibrahim, said the zone covers Rivers, Cross Rivers, Delta, Akwa Ibom and Bayelsa states.

He described the initiative as a very significant exercise in the transformation agenda of the President as well as in the power sector reform in Nigeria.

Ibrahim said, “We are witnessing a very important milestone in electricity service in Nigeria that we have never witnessed before. Our priority is to have disputes and complaints addressed at the customer care units of the electricity distribution companies across the nation.

 

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Nigeria brings electricity privatisation to Hong Kong

 

Nigerian government officials and power-sector executives visited Hong Kong yesterday as part of an investor roadshow to sell 10 gas-fired power stations.

Despite extensive oil deposits, Nigeria’s political leaders have struggled for years to improve access to electricity. The privatisations are part of a plan to transform the sector. One of the main goals of the strategy is to increase generating capacity to as much as 40 gigawatts by 2020, from today’s level of about five.

“To provide you some background as to how we got here, two important tools that led to the reforms of the sector — the Nigerian Electric Power Policy (2001) and the subsequent Electric Power Sector Reform Act 2005 — were products of about five years’ work by sterling experts in the field of electricity and utility reforms,” said Hajiya Zainab Kuchi, the minister for power, who was speaking at the InterContinental hotel in Hong Kong. “The ...

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PHCN Restores Electricity Supply To 2 States, Niger Republic

 

The Power Holding Company of Nigeria (PHCN) on Thursday restored electricity supply to Kebbi and Sokoto states after successfully rectifying the collapsed 330 KVA towers.
Similarly, the electricity supply was restored to parts of Niger Republic after the repair of the damaged facility.

The line was destroyed by rainstorm in Maiyama Local Government Area three weeks ago.

The Head of the PHCN Transmission Unit, Alhaji Atiku Tambuwal, inaugurated the rehabilitated towers in Maiyama but said the communities would continue to get supplies five hours per day.

He commended the state government and technicians from Niger Republic for their contributions toward the restoration of power supply to the communities

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PHCN privatisation proceeds hit $2.8bn

 

… Preferred bidders for 10 NIPP know fate August 8

By ADEWALE SANYAOLU and ISAAC ANUMIHE, Abuja

The three tiers of government have, so far, invested well over $8 billion in the building of 10 power plants in the country, while the total privatisation proceeds for Power Holding Company of Nigeria (PHCN) is over $2.6 billion.

Speaking during a presentation to prospective investors in Hong Kong at a roadshow, jointly organized by the Niger Delta Power Holding Company (NDPHC) and the Bureau of Public Enterprises (BPE), Governor Gabriel Suswan of Benue State, who is also chairman of the Joint Technical Committee for the transaction, noted that with a population of over 160 million, Nigeria is the largest market for investors in Africa and the atmosphere is conducive for investments.

In his remarks, the Deputy Chairman of the Senate Committee on Power, Senator Chris Ngige, disclosed that the proceeds of over $2.6 billion raised by the BPE in the privatization of PHCN Successor Companies, is the largest privatization transaction ever in Nigeria and one of the largest in the African continent.

 

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Nigeria: Law and the Power Sector Reform

 

There is one effective bullet against what is known as 'agency problem' and for effective regulation of corporate governance rules the law must take the central role.

Since 2000 Nigeria commenced a reform of its electricity industry. The context and policy thrusts of that reform are captured in the National Electric Power Policy (NEPP) issued by the National Council on Privatization (NCP). The policy unbundled sectors and establishes a regulator with mandate to create and nurture a competitive electricity market. The provisions of the NEPP have been legalized by the Electric Power Sector Reform Act 2005. The Roadmap on power attempts to achieve the policy thrusts of the EPSR Act.

The Case for Transformation:

The need for transformation of the electricity industry is evident. By the late 1980s the system collapsed. Resuscitating the sector required a complete and radical reengineering of the entire industry. The character of the reengineering should match the diagnosis of the crisis. The architects of the 2000 NEPP seem to fully understand that the crisis of the electricity industry in Nigeria was not a result of a technical failure. It was much more than technical failure. The crisis was a result of governance failure hence the prescriptions zeroed on restructuring the governance architecture of the electricity industry.

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Power Sector Tussle

 

Two power companies owned by Professor Barth Nnaji, former Minister of Power, take on the Bureau of Public Enterprises in a tussle that threatens the ongoing privatisation of the power sector

 

 

In what is yet the strongest indication of his administration’s determination to see the ongoing privatisation of the power industry through, President Goodluck Jonathan, in April, signed agreements with successful bidders for 11 distribution and six generation companies unbundled from Power Holding Company of Nigeria, PHCN. At the landmark event, Interstate Electrics Consortium, one of the companies that submitted bids, emerged as the successful bidder for the Enugu Distribution Company. Distribution companies, DISCOs, are responsible for delivering electricity to end-users and collecting payment.

If eventually, Enugu DISCO is handed over to it, Interstate will be responsible for distributing electricity in the 14 business units across the five South-East states of Enugu, Abia, Anambra, Ebonyi and Imo. This was expressly stated in the information Memorandum on Enugu DISCO issued by the Bureau of Public Enterprises, BPE, to all pre-qualified investors on 1 November 2012. But even before it formally takes over the company, Interstate is locked in a battle over the extent of the control it will have in Enugu DISCO. The investor has applied to be joined as a party in the suit filed against BPE by Geometric Power Aba Limited to contest the complete sale of Enugu DISCO in a move that threatens to take the wheels off the entire privatisation programme.

 

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Dangers of not meeting electricity target, by stakeholders

 

THE inability of the Federal Government to meet the target of 10,000 megawatts (mw) for 2013 has been described as a move that would further reduce investors’ confidence and increase the cost of business operations in the country.

Though the government has shifted the target date, which it earlier set to generate 10,000 mega-watts from December this year, to the first quarter of 2014, the Lagos Chamber of Commerce and Industry (LCCI) doubted government’s ability to meet the target.

The chamber believed that the target set by the government is not feasible given the current progression on the reform and the sustainability of the underlying assumptions.

Besides, the new electricity tariff introduced by the Nigerian Electricity Regulatory Commission (NERC) has increased industrial cost across the country by 440 per cent.

The Nigerian Association of Small and Medium Enterprises (NASME), in a survey made available to The Guardian, discovered that operational cost of industries has increased by over 440 per cent since the introduction of the metering scheme.

Minister of Power, Prof. Chinedu Nebo, alongside the Minister of State, Zainab Ibrahim Kuchi, described the power outage being experienced in the country as a national embarrassment, saying that over 120 million Nigerians are currently without electricity supply, leaving only an estimated 40 million Nigerians with electricity.

A survey of 138 companies from the six geopolitical zones (Abuja, Bauchi, Calabar, Kaduna, Lagos and Owerri) conducted by NOI Polls Limited for the Nigerian Association of Small and Medium Enterprises, showed that the new tariff has been having negative effect on their businesses.

The survey-covered companies operating in the Micro, Small and Medium Enterprises (MSMEs) within various sectors such as manufacturing, construction, computer sciences and technology, engineering services, hospitality, among others. Sectors surveyed showed that the new electricity tariff is hitting them hard as their operating cost have increased by 440 per cent since the inception of multi-year tariff II (MYTO II)

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NIPPs’ll double power generation by 2014 – NERC

 

Power generation in the country will double by the first quarter of 2014 when the 10 National Integrated Power Projects become operational, the Nigerian Electricity Regulatory Commission has said.

NERC said all NIPP stations would soon be connected to the national grid to boost power generation in the country from just above 4,000 megawatts to about 8,000MW.

The Commissioner, Government and Consumer Affairs, NERC, Mr. Abba Ibrahim, said this during the inauguration of the commission’s Port Harcourt Forum Office for Electricity Complaints.

He said, “In terms of megawatts of electricity, we are generating far less than what is required in Nigeria today. We are generating just over 4,000MW, but there are 10 new NIPP stations that will soon be connected to the grid, which will double the capacity in the no distant future.

“We are looking at, latest the first quarter of 2014, when all these plants will be connected and synchronised to the grid. Already, some of them have been connected and synchronised. So, we are conservatively estimating that by the first quarter of 2014, we will have more than double the capacity of what we have today.”

 

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BPE to announce shortlisted bidders for power plants

 

THE Bureau of Public Enterprise (BPE) has said that shortlisted bidders for the Niger Delta Power Holding Company (NDPHC) 10 national integrated power plants would be announced on August 8, 2013.

The Director General of BPE, Benjamin Ezra Dikki, disclosed this in a presentation to prospective investors in Hong Kong during a road show jointly organised by the NDPHC and BPE.

According to a statement by BPE’s Head, Communication, Chigbo Anichebe, Dikki stated that the sale of the power plants falls within the context of President Goodluck Jonathan’s Transformation Agenda which, he said, seeks to, among others, create a conducive atmosphere for private capital inflows.

Dikki noted that besides power, the transport and housing sectors, development finance institutions and the Abuja Commodities and Stock Exchange that will introduce the warehouse receipt trading system, there are also great investment opportunities awaiting interested local and international investors.

He said BPE and NDPHC are partners in the transaction for the sale of the 10 power plants, adding that BPE is legally authorised to sell Federal Government’s 47 per cent shares, while NDPHC has the authorisation of the states and local governments to sell 53 per cent of the 80 per cent shares on offer.

Dikki extolled that the BPE will add significant value to the process, using its vast experience in privatisation of assets in Nigeria, spanning nearly 500 transactions in its 25-year history. The most recent, he noted, was the sale of the 15 Power Holding Company of Nigeria (PHCN) successor companies.

He advised prospective bidders to learn from the lapses of those who participated in the previous bid processes. According to him, the lapses include failure of some bids to substantially comply with the Requests for Proposal (RFP), failure to meet the threshold of required tangible net worth, failure to submit bid bonds, failure to submit audited accounts and failure to submit bids on time.

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On PHCN’s Fraudulent Tariff Regime

 

By Tayo Ogunbiyi

Nigerians bear a lot of burden. Perhaps, they could, at best, be referred to as ‘beasts of burden’. In various parts of the country, major highways are becoming impassable. Some Nigerians live in places that do not dignify the human race as recently reflected in a documentary which a major news-based TV station in the country did on some of the satellite settlements in Abuja. Many die avoidable deaths in painful but preventable circumstances. Often, security agents that are paid to protect them inexplicably turn against them. Poor Nigerians! They are virtually short changed on all fronts. Even GSM service providers are not left out in this grand conspiracy to add to their already heavy yoke as they are usually charged for calls they don’t make in a service that has become quite disruptive.

Currently, the Power Holding Company of Nigeria, PHCN, saddled with the responsibility of providing electricity to homes across the country, is taking undue advantage of the burden bearing capacity of the average Nigerian through its indiscriminately high tariff. In recent time, Nigerians have had to grapple with the weight of PHCN unbelievably soaring bills. Ironically, the current state of power supply across the country remains unsatisfactory. In the particular part of the country where I reside, popularly referred to as ‘New Lagos’, the current position of public electricity leaves much to desire. Yet, officials of PHCN regularly come around with crazy bills and with sheer impunity and arrogance threatening fire and brimstone if you dare argue with them.

 

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