Power Sector News And Other Related Stories For Monday 22nd August 2022
We Lost N2.5bn to Electricity Workers Strike –Discos
Eleven Electricity Distribution Company (DisCos) in Nigeria said they lost N2.5billion in revenue to the strike embarked upon by electricity workers of Transmission Company of Nigeria (TCN).
The industrial action by the TCN workers was declared by its umbrella union, the National Union of Electricity Employees (NUEE).
Executive Director, Research and Advocacy, Mr. Sunday Oduntan, disclosed the revenue loss during an interview on Arise Television at the weekend.
Oduntan who frowned at the shutdown of the national grid by TCN workers, said such action was uncalled for and capable of further weakening investor’ confidence in the nation’s power sector.
He said if the industrial action had persisted for one week, it would have been capable of bringing the entire power sector value chain to a total collapse.
The ANED Executive Director equally took a swipe at the Federal Government, saying its failure to address some of the concerns of the union which NUEE said it had raised and notified them of same since May this year led to the strike.
FG Concludes Takeover of Four Discos
The Federal Government has completed the takeover of four electricity distribution companies and constituted the board of the Nigeria Electricity Liability Management Company.
Vice President Yemi Osinbajo, on Friday, said the newly constituted board of the Nigeria Electricity Liability Management Company would enhance ongoing efforts to resolve the liabilities relating to tariff shortfalls for power distribution companies nationwide.
According to a statement signed by his Senior Special Assistant on Media and Publicity, Laolu Akande, Osinbajo made the assertion in his remarks delivered virtually at the inauguration of the new 10-member board of NELMCO.
The statement was titled ‘FG moves to resolve tariff shortfalls in power sector as Osinbajo inaugurates Nigeria electricity liability management company’s board.’
Federal Government Concludes Takeover of Four Discos
The Bureau of Public Enterprises (BPE) has concluded the takeover of four electricity distribution companies (DisCos).
The DisCos – Kaduna, Kano, Ibadan and Port Harcourt – were taken over to avoid them folding up under the weight of debts they owe to banks.
The Director-General of the BPE, Alex Okoh, announced the completion of the takeover at a presentation made at a virtual meeting of the National Council on Privatisation (NCP) last week.
This is according to a press release from the office of Vice President Yemi Osinbajo, signed by his Senior Special Assistant to the President on Media & Publicity, Laolu Akande.
The press release noted that Mr. Okoh also said the challenge in the takeover of the Benin DisCo was being addressed.
He added that BPE is fast tracking the concession of the Zungeru Hydroelectric Power Plant.
Experts to Brainstorm on Nigeria’s Power Sector
The crisis bedeviling Nigeria’s power sector may soon be over as experts converge on Lagos to proffer solutions to the various aspect of electricity value chain.
The event, Energy Exhibition and Conference is a gathering of energy professionals, featuring world-renowned, innovative power companies, and is set to make a long-awaited in-person return from September 20 to 22.
Exhibition Manager – Energy portfolio – MEA, Informa Markets, Ade Yesufu, said “Nigeria’s power sector needs technological transformation and digitalization to compete globally and achieve sustainable growth.
The first step to achieving this would be to attract key local and international investors not only to dialogue with other stakeholders but also to discover viable mechanisms to solve the challenges in the energy sector. This is what we will achieve with Nigeria Energy. The 9th edition will further these conversations and offers a platform to reflect some of the changes that are going on in the power sector globally.”
UN, EU, ECOWAS’ Chiefs, Power Minister, Others to Dialogue on Tackling Nigeria’s Electricity Crisis
The Minister of Power, Mr. Abubakar Aliyu would next month in Lagos host representatives of the United Nations (UN), European Union (EU), Economic Community of West African States (ECOWAS) as well as other policymakers, local and international operators and investors to dialogue and proffer solutions to the myriads of problems bedeviling the Nigerian Electricity Supply Industry (NESI).
The dignitaries and sector stakeholders would be gathering for the 9th edition of Nigeria Energy Conference 2022, with the theme: “Affordable Reliable, and Sustainable Energy through Collaboration”, organised by a Dubai-based company, Informa Markets.
According to the organisers, Aliyu would deliver the opening address on the first day, while the Chief Executive Officer/Special Representative of the UN Secretary-General for Sustainable Energy for All and Co-Chair of UN-Energy, Mrs. Damilola Ogunbiyi, would present a keynote address on the day two.
Osinbajo Inaugurates New Electricity Liability Board
Vice President Yemi Osinbajo, has said the newly constituted board of the Nigeria Electricity Liability Management Company would enhance ongoing efforts to resolve the liabilities relating to tariff shortfalls for power distribution companies nationwide.
According to a statement on Sunday signed by his Senior Special Assistant on Media and Publicity, Laolu Akande, Osinbajo made the assertion in his remarks delivered virtually at the inauguration of the new 10-member board of NELMCO.
The statement is titled ‘FG moves to resolve tariff shortfalls in power sector as Osinbajo inaugurates Nigeria electricity liability management company’s board.’
The vice president also mandated the board composed of Ministers of Finance, Power, others to protect the interests of the society, particularly ordinary citizens.
Before Friday’s inauguration, NELMCO has been running without a duly constituted board since the first board was inaugurated in 2013 and dissolved shortly after.
Anxiety in Banks as Loans to Power Sector Hit Over N800bn
There appears to be no end sight to the woes of the power sector with economic experts expressing concerns over a whopping N836.08 billion owed to Deposit Money Banks (DMBs) by power generation and distribution companies.
According to a report by CSL Stockbrokers Limited, Lagos (CSLS) titled; “The continued rise of bank loans to power sector”, obtained by Daily Sun over the weekend, power generation firms and independent power producers owed banks an estimated N562.19 billion while power transmission and distribution firms are indebted to the tune of N273.89 billion.
This means that power sector loans to banks stood at about N836.08 billion as at the end of June 2022.
Privatised in 2013, the Nigerian electricity sector has failed to live up to consumers’ initial optimism that the country would build nothing less than 40,000 megawatts of electricity.
But rather than achieve the ambitious milestone, official bottlenecks have continued to leave the sector stunted at about 3,000 megawatts, on the average, hobbled by incessant system collapse.
Osinbajo Inaugurates Electricity Board as FG Moves to Resolve Tariff Shortfalls in Power Sector
The inauguration of a board for the Nigeria Electricity Liability Management Company (NELMCO) will enhance ongoing efforts to resolve liabilities relating to tariff shortfalls for distribution companies, among other challenges plaguing Nigeria’s power sector, according to Vice President Yemi Osinbajo, SAN.
Prof. Osinbajo gave the assurance in his remarks delivered virtually at the inauguration of the new board of NELMCO.
The company has been running without a duly constituted board since the first one was inaugurated in 2013 and dissolved shortly after.
According to the Vice President, “today’s inauguration marks an important milestone in the bid to resolve the liabilities relating to tariff shortfalls in the power sector (specifically for Distribution Companies), and to provide a veritable mechanism for managing the very dynamic nature of the liquidity challenges of the power sector in Nigeria.”
Consumers Protest Highly Inflated Electricity Bills
Consumers have castigated power utility over issuance of highly-inflated electricity bills.
Residents of different localities of the City staged a protest demonstration against inflated electricity bills on Wahdat Road here on Sunday. The protesters blocked the main road, burnt the electricity bills and demanded the government abolish all cruel taxes on the electricity bill.
Besides holding several demonstrations outside the offices of Lahore Electric Supply Company (Lesco), people belonging to different walks of life have expressed their anger on social media platforms. Hamza Sheikh, in his post on microblogging site stated that against last year’s bill of Rs4,000 for month of July, it is cruel act of power utility that Rs24,000 bill has been issued in July. He claimed that Lesco ruthlessly restoring to disconnecting connection of customers who have not been able to pay bills.
Khadija Bibi was of the view that present government has made life miserable. Last year in August, power bill was around Rs10,000 and now it is more than Rs22,000. What will be left for the family after paying excessive amount of power bills, she posed. Ihsan Rana claimed that he received Rs12,830 electricity bill for using only 175 units. He commented that it was injustice to poor people by the government.