Power Sector News And Other Related Stories For Monday 18th July 2022
BEDC Commences Contempt Proceedings Against Its Takeover.
Legal advisers to Vigeo Power Limited, majority shareholder of Benin Electricity Distribution Company Plc (BEDC), have commenced contempt proceedings against alleged illegal takeover of the company.
The law firm of Kunle Adegoke (SAN), lawyers to Vigeo Power Ltd, said the contempt proceedings became imperative because the attention of its client was drawn to a publication by Bureau of Public Enterprises (BPE) on July 13, in which it tried to justify its attempts to take over BEDC, despite injunction issued by Federal High Court, Abuja on July 8, in Suit No. FHC/ABJ/CS/1113/2022 between Vigeo Power Limited and Fidelity Bank Plc & 7 Ors.
A statement issued by the law firm reads: “It is on record that the total shareholding of the Bureau of Public Enterprises and the Ministry of Finance in BEDC is just 40 per cent, making two of them minority shareholders which pales into insignificance in the face of 60 per cent shareholding held by Vigeo Power Limited, our client.
Ikeja Electric Shuts Customers’ Vending, Billing Channels for Upgrade
Ikeja Electric shut its customers’ billing and vending channels and infrastructures for 48 hours, between 15th to 17th July 2022, to enable it carry out an upgrade.
A statement by the management yesterday said customers of the Disco should buy energy ahead the shut down as they might not be able to access necessary information , vending and data.
A Public Notice issued by the organisation reads: “Ikeja Electric wishes to notify its customers that in a bid to improve on our billing and other integrated platforms, we will be carrying out a 48-hour Customer Information System ,CIS, 2.0 system upgrade between 15th and 17th July,2022.”
“Customers ability to perform the following underlisted on our platforms may be impeded during this period of upgrade. However, our Engineers will endeavour to complete the upgrade within the scheduled time,as well as minimise the impact on customer experience.”
BEDC Sues FG Over Restructuring
THE legal adviser to Vigeo Power Limited, majority shareholders in Benin Electricity Distribution Company Plc (BEDC), has commenced contempt proceedings against the Federal Government’s Bureau of Public Enterprise (BPE) over what it considered was an illegal take-over of the power distribution company (DisCo).
BEDC disclosed in a statement that the law firm of Kunle Adegoke, lawyer to Vigeo Power Ltd, said the contempt proceedings had become imperative.
The law firm said this was because the attention of its client was drawn to a publication issued by the BPE on July 13, 2022, in which the Bureau strove to justify its take-over of BEDC.
The lawyer said the take-over was despite an order issued by the Federal High Court, Abuja, on July 8, 2022 in Suit No. FHC/ABJ/CS/1113/2022 between Vigeo Power Limited v. Fidelity Bank Plc and others.
Ikeja Electric Announces Shutdown of Customers Billing, Vending Channels
Ikeja Electric has announced the shutdown of its customers’ billing and vending channels and infrastructures for 48 hours between July 15 and July 17, 2022, to enable it to carry out a system upgrade.
This disclosure is contained in a statement issued by the management of Ikeja Electric, where it advised its customers to buy energy ahead of the shutdown as they might not be able to access necessary information, vending and data.
Ikeja Electric in the statement noted that this is because the ability of customers to perform these functions on its platforms may be impeded during this period of upgrade, adding that their engineers will ensure the completion of the upgrade within the scheduled time as well as minimize the impact on customer experience.
The public notice by Ikeja Electric reads, ”Ikeja Electric wishes to notify its customers that in a bid to improve on our billing and other integrated platforms, we will be carrying out a 48 hours Customer Information System, CIS, 2.0 system upgrade between 15th and 17th July 2022.
Eko Disco Moves to Improve Services in Ajah, Ibeju
The Eko Electricity Distribution Company (EKEDC) has pledged to address the situation of electricity supply in its network, while its customers lament inadequate power supply and estimated billings.
Managing Director and Chief Executive Officer of Eko Disco, Dr. Tinuade Sanda, during a customer forum held in Ajah and Ibeju, assured customers that the management was aware of the issues affecting power supply in the areas and has thus organised the platform to address the situation.
Sanda, who was represented at the meeting by the Chief Finance Officer, Mr. Joseph Esenwa said, “on behalf of the MD/CEO of Eko Disco, I would like to appreciate your support for our company as we cannot be in business without you, our esteemed customers. We have come here today to listen to your challenges, resolve them as our customer service team is on the ground, and the one we cannot resolve here today will be surely addressed by our management team at your districts or the head office.”
DisCo Begins Contempt Proceedings Against FG
A Distribution Company of Nigeria (Disco), the Benin Electricity Distribution Company(BEDC) Plc, has commenced contempt proceedings against the Federal Government’s Bureau of Public Enterprise (BPE) in court.
The legal advisers to Vigeo Power Limited, Majority Stakeholders of BEDC, have described the BPE as defaulters involved in the illegal takeover of BEDC.
The company in a statement made available to newsmen on Friday said the law firm of Kunle Adegoke (SAN), lawyers to Vigeo Power Ltd, said the contempt proceedings had become imperative.
The law firm said this was because the attention of its client was drawn to a publication issued by the BPE on July 13, 2022, in which the bureau laboured to justify its attempts at illegally taking over the BEDC Plc.
This, it said, was despite the orders of an injunction issued by the Federal High Court, Abuja on July 8, 2022 in Suit No. FHC/ABJ/CS/1113/2022 between Vigeo Power Limited v. Fidelity Bank Plc and 7 Ors.
EKEDC to Curb Estimated Billings as Grid Allocation Shrinks
Eko Electricity Distribution Company (EKEDC) has raised concerns over continuous drop in electricity allocation to the DisCo which it said has negatively impacted service delivery in its franchise areas.
It, however, promised to curb estimated billings faced by some of its unmetered customers.
The DisCo offered explanations as to dwindling service delivery when its officials met customers under its Ajah and Ibeju business districts in a forum to address the situation of electricity supply in the areas.
This, according to the firm, was in furtherance of the DisCos continuous engagement with customers and other stakeholders under its distribution network in Lagos and Ogun States.
The managing director and chief executive officer (MD/CEO) of Eko DisCo, Dr. Tinuade Sanda assured the customers that the management of the company is aware of the issues affecting power supply in the areas and has thus organised the platform to address the situation.
We Need Total Overhaul of Power Sector
A recent policy shift in the electricity sector, called contract-based electricity administration, announced by the Minister of Power, Engineer Abubakar D. Aliyu, has brought a new lease of life to the sector, as it has shored-up electricity generation and distribution since July 1, 2022.
However, the measure is too cosmetic, too interim, and too narrow to address the shameful and perennial power shortage in Nigeria. The core problems in the sector are shortage of gas supply for thermal plants, high levels of unpaid electricity bills, and the outdated and poorly maintained transmission network, still under government control though it is under private management since in 2012.
Therefore, bold measures are needed to redeem the sector from narrow-minded and technically incapable investors who acquired power generation and distribution companies during the last administration.
The recent changes were compelled by the chaos in the sector, with the frequent collapse of the national grid, and the takeover of several Discos for defaulting in loans repayment to banks, a glaring evidence that they had become insolvent.
Why Are Nigerian Electricity Companies so Unprofitable?
The past few months have been eventful for electricity distribution companies (discos).
It started in December last year when UBA bank took over Abuja disco for defaulting on its loans. Fast-forward to July 2022, and five discos have also been restructured.
Fidelity Bank took over Kano, Benin, and Kaduna for the same reasons as Abuja—failure to service loans. Similarly, Ibadan disco was taken over by the Assets Management Corporation of Nigeria (AMCON) for defaulting on its loan from Skye bank (now Polaris Bank). Even though Port Harcourt (PH) hasn’t defaulted yet, the Bureau of Public Enterprises (which owns 30% of all the discos) dismantled the board because a default was imminent.
In any case, it all boils down to the poor financial performances of the discos.
If you live in Nigeria, it’s no secret that the power sector is in a shabby state. According to a World Bank survey, 78% of Nigerians connected to the grid receive less than 12 hours of electricity daily.
Youngsters Who Stole Electric Facilities Captured in Aba This Morning
The two persons who last night attacked facilities at the premises of Geometric Power and Aba Power Ltd in the Osisioma Industrial Layout, Aba, Abia’s manufacturing hub, and carted away materials worth millions of naira have been nabbed.
They were captured this morning in Aba by police officers following an intelligence report from Geometric Security Services Ltd.
These facts were made known this morning by the Geometric chief security officer, Air Commodore Nicholas Orjiude, a retired one-star general from the Nigerian Air Force, while speaking to journalists in Aba.
The culprits are Ikechukwu Umeh, 20 years, from Amaekwuru in Ezinifite Local Government Area in Anambra State and Samuel Sunday Enogwe, 18, from Umuika in Isiala Ngwa Local Government Area of Abia State.
Also arrested is Chibueze Gideon Onyesoh, a 40-year old dealer in metal scraps from Okpuala Avu, Osisioma, Abia State.
Nigeria Energy Forum Seeks to Boost Investments in Smart Energy
The Chairman, Nigeria Energy Forum (NEF) Dr. Daniel Adeuyi, says its forthcoming conference will focus on boosting investments in climate-smart energy infrastructure and capacity building on modern energy technologies to boost the power sector.
Disclosing this on Sunday, Adeuyi said the theme of NEF2022 Conference and Exhibition is titled: ”Energising Economic Growth and Sustainability.”
He said that the event would be held physically in Lagos on July 21 and virtually on Nov. 24.
The chairman said that organisers would utilise the opportunity of the forum to gather insights from key stakeholders, identify pragmatic recommendations and highlight practical solutions for powering economic growth and financing a sustainable energy transition.
Adeuyi also named Engr Adekunle Makinde, as Co-chairman of the forum.
He quoted Makinde as saying that the conference organisers had adopted a gradual return to in-person engagement post-COVID-19.
Huawei, TD Africa Launch Digital Power Solutions for Nigerian Market
Huawei Technologies, a global provider of Information and Communications Technology (ICT) infrastructure and smart devices has partnered with TD Africa, sub-Saharan Africa’s foremost distributor of tech, services and lifestyle products to launch a suite of revolutionary digital power solutions targeted at various categories of users for the Nigerian market.
Speaking at the event, Chief Executive Officer (CEO), TD Africa, Mrs. Chioma Ekeh identified the perennial public power supply challenge in Nigeria as an opportunity for Huawei’s Digital Power solutions.
Mrs. Ekeh referenced the instability in the global crude oil market, which has been worsened by the ongoing war in Ukraine, while also citing environmental concerns and issues as factors necessitating a shift away from fossil fuels to clean energy.