Power Sector And Other Related News Stories For Tuesday May 2nd 2023

Posted by News Room May 2, 2023

Kaduna DisCo Confirms Disconnection from National Grid 

Kaduna Electricity Distribution Company, KEDCO, has confirmed that the Transmission Company of Nigeria, TCN, has disconnected major feeders that supply electricity to its franchise areas. 

TCN had last week disclosed that it has disconnected the Kano Electricity Distribution Company, Kaduna Electricity Distribution Company and Aba Power Limited Electric, APLE, for failing to adhere to rules governing the Nigerian Electricity Supply Industry, NESI, and for failing to meet up with their financial obligations. 

TCN said the three companies failed to produce their Bank Guarantees when it was demanded for by the Market Operator, an arm of the TCN. 

TCN stated “Recently the Market Operator suspended APLE Electric Limited, Kano and Kaduna Electricity Distribution Companies for breach of the Market Rules, which governs and sanitizes the Nigerian Electricity Supply Industry. 

“Due diligence was observed by the Market Operator before issuing the suspension/disconnection order which is in accordance with procedures of the rules guiding the market. This is to ensure the preservation of the Market and that non-compliant Participants are held accountable for their actions”. 


TCN Restores Supply Kaduna, Kano, Aba After FG’s Intervention 

The Transmission Company of Nigeria, TCN, on Sunday disclosed that it will reconnect Kaduna Electricity Distribution Company, Kano Electricity and Aba Power Limited Electric to the national grid following the intervention of the Minister of Power. 

The Market Operator, an arm of TCN had a few days ago disconnected the three utilities from the grid for failing to adhere to rules governing the Nigerian Electricity Supply Industry, NESI, and for failing to meet up with their financial obligations. 

TCN said the companies failed to produce their Bank Guarantees when it was demanded for by the Market Operator, an arm of the TCN. 

But the Market Operator, Dr. Edmund Eje in a statement in Abuja said the companies will be reconnected at midnight May 1st, 2023. 

“This is coming at the intervention of the Minister of Power, Engr. Abubakar Aliyu, who has considered the collateral consequences on the paying Disco Customers.  

“These suspended and disconnected defaulting Market Participants will be reconnected to the National Grid at the instance of the Minister of Power”, he stated. 

Dr. Eje added: “The intervention by the Minister of Power has automatically prolonged the grace period to 60 days from this publication. 


Nigerians Eagerly Expect Improved Power Supply from Incoming Government 

Proton Energy Limited last week formally announced the signing of a deal with several partners in the country for the long-term supply of gas for the production of 500mw of power valued at over $250 million. The partners include: Nigerian National Petroleum Company Limited (NNPC), Shell Petroleum Development Company (SPDC), TotalEnergies, the Nigerian Agip Oil Company Limited and the Gas Aggregation Company Nigeria Limited. The agreement was for the supply of natural gas for the 150 MW first phase of the Proton Delta Sunrise project located in Sapele, Delta State.  


Despite N120million Payment by Aba Power, Threats by 22,000 Landlords, Transmission Company of Nigeria Fails to Restore Electricity to Aba 

The hope of individuals and organisations in Abia State that electricity would be restored at the weekend was dashed at the weekend. 

There were expectations that the Market Operating Unit of the Transmission Company of Nigeria (TCN) would reconnect Aba Power Electric Company to the national grid after more than one week of total blackout in the Aba Ring-fenced Area but this did not happen. 

The hope heightened after Nigeria’s newest electricity distribution company which commenced operations in 2022, Aba Power on Friday paid N120 million to the market operator, as part of the N896 million that the distribution firm owes government agencies in the power sector. 

According to sources close to both the TCN and Aba Power, who spoke on condition of anonymity because they are not allowed to speak to journalists, top officials of the organisations held a series of meetings in Abuja last week in which they discussed the reconnection of the distribution company and reached a payment schedule agreement. 


Why APLE Electric, Kano, Kaduna DisCos Were Suspended- TCN 

The Transmission Company of Nigeria (TCN), says the suspension of three electricity distribution companies, APLE Electric Limited, Kano and Kaduna Electricity Distribution Companies, was by the Market Operator (MO). 

The action according to a statement by TCN‘s General Manager, Public Affairs, Ndidi Mbah, was following breach of market rules, which govern and sanitise the Nigerian electricity supply industry. 

According to her, the Market Operator is mindful of the need to ensure the continued sustenance of the Nigerian Electricity Supply Industry (NESI), which requires strict adherence to market rules and the application of sanctions where necessary. 

She said due diligence was observed by the MO before issuing the suspension/disconnection order, which is in accordance with procedures of the rules guiding the market. 


How to Rescue Nigeria’s Power Sector 

To simplify the policy complexities inherent in Nigeria’s power sector, I have chosen to categorise Nigeria’s power sector into two branches, the technical branch and the value chain branch. Technical branch consists of generation, transmission and distribution, while the value chain branch includes power trading, metering, mini-grids, off-grids, on-grids, IPPs etc. 

According to the International Energy Agency (IEA), Nigeria’s electricity access was at 61.6% as of 2019, with 77 million people without power supply. The country has a total population estimated at 195 million. Of this number, 51% live in urban areas while 49% live in rural areas. Also, Nigeria has a total installed power generation capacity of 16,384MW, a poor feat when compared with Egypt and Morocco with 100% electricity accessibility. Power generation in Nigeria is mainly from hydro and gas-fired thermal power plants, with the hydro plants providing 2,062MW and the gas-fired 11,972MW. 

Nigeria’s power sector was largely privatised in 2013 coupled with several market liberalisations and policy liberalisation unbundling the government-owned inefficient utility management. The sectoral reformations ushered in 11 Electricity Distribution Companies (DisCos) in Nigeria, and about over 20 GenCos (Power Generation companies); most of these GenCos have an agreement, called the Power Purchase Agreement (PPA), with the Nigerian Bulk Electricity Trading Plc (NBET). This agreement allows the NBET to offtake the electricity and sell it to the DisCos. 


Darkness Pervades Cities Despite Buhari’s Huge Electricity Investment Claim 

The quality of life of many Nigerians could be improved through enhanced power infrastructure. Past failures in the sector proved to be the basis on which the President, Major General Muhammadu Buhari (retd.), campaigned in 2014 and 2019. DAMILOLA AINA examines what the regime has done in the sector 

From the days of the sudden shout of “Up Nepa” to an outage 30 seconds later, Nigerians have not enjoyed the optimum benefit of electricity as a stable power supply still remains a luxury despite promises and investments. 

The President, Major General Muhammadu Buhari (retd.), upon assumption of power, vowed to ramp up the electricity supply. However, it is saddening to write that Nigerians continue to rely heavily on generators and other power sources, which consume vast amounts of resources due to the high cost of diesel and petrol. 

Current data from the World Bank shows that only 55.4 per cent of the Nigerian population has access to electricity. Only 24.6 per cent of the rural population has access to electricity while 90 million citizens lack access to the national grid. 


Manufacturers Spend N76.7bn on Alternative Power in 6 Months 

Manufacturers under the auspices of the Manufacturers Association of Nigeria (MAN) have lamented the effect of Nigeria’s energy crisis on its activities, as it disclosed spending N76.7 billion to source alternative power from July to December, 2022. 

The sector was negatively affected as the electricity industry wobbled following the inability of Electricity Distribution Companies (DisCos) to sustain steady supply. 

MAN, in its latest report obtained by our correspondent, indicated that electricity supply to the industries from the national grid during the second half of year 2022 declined marginally to 11 hours per day from 12 hours recorded in the preceding half. 


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