Yemisi Izuora
The chief executive of Eko Disco, Oladele Amoda has appealed to government to urgently consider review of the country’s electricity tariff as current tariff structure is not cost reflective and not investor friendly.
Amoda in his opening comment at the 19th power sector stakeholders meeting in Lagos, said though the company has recorded major improvement in its incremental power initiatives several projects are lying fallow owing to concerns about investment recovery opportunities.
“In a deliberate effort toward improving our services we have embarked on steady incremental power initiatives and have largely reduced load shedding within the network, but there are still challenges that need to be addressed. Finance is a major constraint and we have been raising funds from commercial banks to execute key infrastructure projects” he said.
He informed the meeting that two firms are close to completing power projects in Ijora and Apapa under the embedded power initiative but another 10 of similar projects are stranded because investors are not comfortable with the tariff structure.
“We need to address tariff to entice investors because they have expressed the concern over recovery as the tariff as presently structured is not encouraging” he argued.
He said nevertheless, the company has made progress boosting several substations in Surulere, Orile, Keffi and Akoka to provide supply to its customers in Lagos State.
Amoda also complained about Infrastructure gap in the industry which has largely affected performance, revealing that only one line out of two that evacuates electricity from Egbin power station down to its network is functional and that if any infraction occurs the area will slip into darkness.
The Infrastructure constraints has also forced Discos to reject electricity load as reports indicated that from the 13th to 20th August 2017, the discos rejected an average of 1,000MW of power.
Oriental News Nigeria reports that despite having a national peak demand of 19,100MW, power generation was just about 3,264MW on September 7, 2017, in an information released by the Transmission Company of Nigeria, TCN.
The report explained that although Nigeria has the capacity to generate 11,165.40MW, but the TCN has continued to transmit below its current capability of 7,000MW.
Equally the Nigerian Electricity Supply Industry Statistics (NESI) said the country lost an estimated N1.202 billion ($283,081) on September 5, 2017 due to several constraints inhibiting the power sector.
NESI put the average power sent out on September 5, 2017 at 3,759MW, while the reported gas constraint was put at 450MW.
The agency said that the power sector lost 2,055MW to reported frequency management constraint due to loss of disco feeders.
The power generation companies have continued to note TCN’s inability to transmit available power to the distribution companies, which usually result in idle capacity.
However in its report, at the meeting, TCN, said it has completed rehabilitation works at Omotosho plant in line with planned reconnection of the communities, adding that the transformer replacement in Kombotso is in progress, with a view to completing at the end of December 2017.
The TCN further reported progress of projects in Alagbon, and completion of projects in Akangba (Surulere), Ajah, and Ejigbo
The power minister of power, Babatunde Fashola in his opening remarks urged closer private sector collaboration especially in the distribution chain following improved electricity generation currently put at 6,000 megawatts.
The minister reminded operators that the meeting focuses on identifying, discussing, and finding practical solutions to critical issues facing the Nigerian Electricity Supply Industry.
Fashola also informed them of the Payment Assurance Guarantees to the Generation companies, as well as the verification of the ministries, departments and agencies, MDA debts which have been announced in the meetings and the media, as parts of the Government’s plan to resolve liquidity challenges in the Power Sector.
He commended the Nigerian Electricity Regulatory Commission (NERC) for its new MiniGrid regulation which has yielded new projects already with the commissioning of a new 20KW project in Kwali local government area, LGA in the Federal Capital Territory with a plan to power 145 households and 5 businesses by Haven Hills Synergy Limited and another one to be completed shortly in Kano State.
The Minister encouraged investors and developers to cooperate with NERC to fast track the implementation of the regulation, with the hope that the private sector increase capacity to distribute the over 6000MW currently available for distribution.
At the meeting, the Niger Delta Power Holding Company, NDPHC announced completion of Magboro connection project, and also informed of progress of projects in Ugwuaji, Egbema, Okija, Omotosho and Olorunsogo host communities with expected completion by December this year.
The NDPHC, listed vandalism as a major challenge to the progress of projects in Afam – Ikot Ekpene axis and encouraged the public to end vandalism.
In its report the NERC announced commencement of nationwide stakeholder consultation for sanctions on meter bypass regarding a potential penalty to be determined after consultation with DisCos. Other topics due for consultation include regulations on: eligible customers, metering, review of MYTO methodology, and business continuity regulation.
The meeting was informed that the MDA debts draft recommendation has been completed and will be presented by the Hon. Minister to the Federal Executive Council for approval and payment.
