Power Sector And Other Related News Stories For Friday 16th February 2024
Electricity Theft by Wealthy Nigerians Contributing to Illiquidity in Power Sector
The 11 electricity Distribution Companies (Discos) in the country yesterday blamed powerful and wealthy Nigerians for being partly responsible for the current illiquidity in the power sector in Nigeria.
Spokesman of the power distributors under the Association of Nigerian Electricity Distributors (ANED), Sunday Oduntan, argued when he appeared as a guest on Channels Television, that many rich Nigerians bypass their metering devices, even when they have the capacity to pay for the kilowatts they use.
Specifically, Oduntan, who is the executive director, research and advocacy of the umbrella Discos’ body, noted that just like areas occupied by ordinary Nigerians, highbrow places occupied by Nigerians all over the country also steal electricity.
“The value chain is challenged because the issue revolves around liquidity. Unlike in telecoms, the power sector at the point of privatisation required a lot of investment. And when you talk about investment, you also have to talk about cost recovery.
Kaduna Disco Increases Staff Salary Amid N110bn Debt
The Kaduna Electricity Distribution Company has announced a 10 per cent increment in salaries of its employees.
This is coming despite the company’s N110bn debt and other challenges before it at the moment.
The PUNCH recalled that the Nigerian Electricity Regulatory Commission, in January dissolved the board of directors of Kaduna Electric over its inability to pay N110bn debt it owes the Nigeria Electricity Supply Industry.
The NERC then appointed Umar Hashidu as the administrator of the Kaduna DisCo in furtherance to Section 75 of the Electricity Act.
In a statement on Wednesday, Hashidu announced at a meeting with the management team that the 10 per cent salary increase for all staff categories will be effective this month.
“The salary adjustment comes as a strategic response to the imperative of motivating the staff, aimed at elevating the company’s overall performance despite the considerable challenges it currently faces.
https://punchng.com/kaduna-disco-increases-staff-salary-amid-n110bn-debt/
Nigeria Sanctions 11 Electricity Distribution Companies for Overbilling Unmetered Customers, to Deduct N10.5million from Firms’ Income
The Nigerian Electricity Regulatory Commission (NERC) says it has sanctioned 11 electricity distribution companies (DisCos) over non-compliance with the capping of estimated bills for unmetered customers.
NERC noted that in 2020, the Commission issued the order on Capping of Estimated Bills (Order No: NERC/197/2020) and subsequently issued monthly energy caps which aimed to align the estimated bills for unmetered customers with the measured consumption of metered customers on the same supply feeder.
A review of the DisCos billing of unmetered customers for 2023 has revealed non-compliance with the monthly energy caps issued by the Commission.
A statement released by the NERC management on Thursday said, “In response to this and in a bid to safeguard unmetered customers from arbitrary billing by DisCos, the Commission, pursuant to Section 34(1)(d) of the Electricity Act 2023 (“EA 2023”), has issued the Order on Non-Compliance with Capping of Estimated Bills (Order No: NERC/2024/004-014) which stipulates the following:
Nigerians Can’t Afford Removal of Another Subsidy – Accord Party
he Accord Party has urged the Federal Government not to remove subsidy on electricity to avoid more hardship on the citizens.
The Lagos State Chairman of the party, Mr Dele Oladeji, told the News Agency of Nigeria (NAN) on Thursday that removal of another subsidy would be much burden on the masses.
Mr Oladeji said: “Nigerians cannot afford removal of another subsidy.
“Nigerians are already hard-pressed, and should no longer be impoverished by taking electricity beyond their affordability.
“The debt overhead can effectively be cleared if the Federal Government can block leakages and corruption.”
The politician said that most Nigerians would not be able to cope with the cost of electricity without subsidy.
“The planned removal will take electricity access and usage out of the reach and homes of 80 per cent Nigerians,” Mr Oladeji said.
https://dailynigerian.com/electricity-nigerians-afford/
Economic Implications of Nigeria’s Move to Remove Electricity Subsidies While Hiking Customs Exchange Rates
The Nigerian government’s recent decision to reconsider electricity subsidies due to significant debts and the consequent increase in customs exchange rates has sparked a debate among economists and stakeholders.
The Minister of Power, Adebayo Adelabu, recently shed light on the unsustainable nature of electricity subsidies, citing substantial debts owed to generating companies (GenCos) and gas firms. Adelabu highlighted the need for a transition to a cost-effective tariff model to address the mounting financial burden on the government.
However, the issue of electricity subsidies in Nigeria is a longstanding and contentious one, deeply intertwined with the country’s economic challenges and energy sector dynamics. The decision to reconsider these subsidies stems from the significant financial burden they impose on the government, according to the Minister of Power.
Manufacturers Reject IMF Advice on Electricity Subsidy Removal
In response to the International Monetary Fund (IMF) recommendation on electricity subsidy removal, manufacturers, under the auspices of the Manufacturers Association of Nigeria(MAN) urged the federal government to consider the wider implications or spillover effect of the policy on individual manufacturers and the masses.
In a statement by the director-general of MAN, Segun Ajayi-Kadiri said: “No doubt phasing subsidy out can help drive economic reforms and promote fiscal responsibility.
“This is more appropriate where a larger part of the population is living above the poverty line. Of course, the fundamental aim of granting subsidy is to improve and protect the welfare of the consumers or households and businesses alike,” he said.
He noted that, unfortunately, inadequate planning, poor implementation or ineffectiveness among other undesirable circumstances have made subsidy lose its relevance and purpose in the country.
https://leadership.ng/manufacturers-reject-imf-advice-on-electricity-subsidy-removal/
Under Sanctions, Taliban Pay Debts, Seek More Electricity from Neighbors
Afghanistan has cleared its outstanding electricity debts to three Central Asian neighbors and is negotiating for an increase in energy supplies, a move that could signal the Taliban government is moving toward economic stabilization.
Landlocked Afghanistan relies heavily on energy imports, obtaining more than 70 percent of its electricity from Tajikistan, Uzbekistan, and Turkmenistan, as well as some from Iran.
This year, Tajikistan officials say they will export 1.9 billion kilowatt-hours of power to Afghanistan, a 17% boost from last year.
Taliban officials are actively seeking further increases from Turkmenistan and Uzbekistan, according to DABS, the Taliban-run national electricity company of Afghanistan.
In December, Afghanistan renewed electricity purchase agreements with the three Central Asian republics, securing continued energy supply.
Afghanistan’s electricity payments fell into arrears following the collapse of the former government in August 2021. This prompted service cut-off threats from some suppliers.
