Power has been restored to all the 330kv transmission stations across the entire grid, the Transmission Company of Nigeria (TCN) said on Thursday.
The company disclosed in a statement that electricity was restored to the transmission stations at about 5:54pm on Wednesday.
“The Kainji – Birnin Kebbi line, however, tripped on fault but was restored,” the statement read.
It added, “TCN’s 330kV substations feed 132kV substations, through which distribution companies offtake electricity they deliver to electricity consumers nationwide.”
Power was restored to the transmission stations a day after TCN announced that the nation’s electricity grid had suffered a system collapse, leading to a power outage in various parts of the country.
But the company’s General Manager (Public Affairs), Ndidi Mbah, had noted that experts were already making effort to fully restore electricity on the grid.
According to her, a total system collapse of the grid was recorded at about 11:01am on Tuesday, as a result of voltage collapse at some parts of the grid.
A few minutes later after the collapse, TCN commenced grid recovery from Shiroro Generating Station to Katampe TS, Abuja through the Shiroro – Katampe line, as well as through the Delta Generating Station to Benin Transmission Substation.
Last week, the Federal Government approved about N6.2 billion for the award of contracts for six projects in the power sector at the 44th virtual meeting of the Federal Executive Council (FEC).
The Minister of Power, Mamman Saleh, presented six memos at the FEC meeting which focused on efforts by the government to boost power supply in the country.
The approvals included the award of a contract for the design, manufacture, and supply of critical spare parts for Crompton Greaves 330KV, 132KV, and 33KV circuit breakers at N298,339,887.04; and procurement of 50 sets of 400AH battery banks – 30 to 50 volts, and 30 number of 110 volts battery charges for the substation used by the Transmission Company of Nigeria (TCN) at N644,805,953.10, among others.
The Federal Government has approved about N6.2 billion for the award of contracts for six projects in the power sector.
Mr Mamman Saleh, who is the Minister of Power, disclosed this to State House correspondents on Wednesday at the Presidential Villa in Abuja, the nation’s capital.
He briefed reporters at the end of the 44th virtual meeting of the Federal Executive Council presided by President Muhammadu Buhari.
At the meeting, efforts by the government to boost power supply in the country dominated discussions as the council approved all six memos presented for consideration by Saleh.
The approvals included the award of a contract for the design, manufacture, and supply of critical spare parts for Crompton Greaves 330KV, 132KV, and 33KV circuit breakers at N298,339,887.04; and procurement of 50 sets of 400AH battery banks – 30 to 50 volts, and 30 number of 110 volts battery charges for the substation used by the Transmission Company of Nigeria (TCN) at N644,805,953.10.
Others were award of contract for the design, manufacture, and supply of three 60/66 MVA 132KV power transformers with accessories, and 15 number of 500 kV transformers, 33/0.415KV earthing transformers for the TCN at N1,296,953,044.55 with a delivery period of 12 months.
“All that the government is doing is to make sure that first and foremost, the supply is stable,” the minister said.
He added, “The government also wants to make sure that we upgrade the supply, maybe from 4,000 megawatts to 5,000, to 6,000, to 7,000 megawatts. So, the more we replace some obsolete and outdated equipment, the more we improve the supply of electricity.”
The power minister explained that the procurements were geared towards upgrading the transmission system to the national grid for greater efficiency and to ensure sufficient power supply to the nation in no distant time.
On the promised distribution of 1,000,000 meters, he noted that the first phase of the exercise was close to completion.
Saleh stressed that Nigerians who receive less than 24 hours power supply would be charged a lesser tariff than others.
Nigerians may soon have to pay more for electricity after the Nigerian Electricity Regulatory Commission said it was ready to conclude the “Extraordinary Tariff Review process” for the country’s 11 electricity distribution companies.
In a notice posted to its website on Monday, the Commission expressed its readiness to commence the processes for a minor review of the tariff in July, based on “changes in inflation, foreign exchange, gas prices, and available generation capacity” among other factors.
The NERC is however soliciting comments “from the general public on the proposed reviews.”
NERC is mandated, under the provisions of the Electric Power Sector Reform Act (“EPSRA”) to review electricity tariffs in Nigeria every six months (minor) and five years (major).
Reviews can also be carried out whenever “industry parameters have changed from those used in the operating tariffs to such an extent that a review is urgently required to maintain the viability of the industry.”
Earlier in April, the Federal Government had apologised to Nigerians over power outages and shortages in various parts of the country.
According to a statement from the Federal Ministry of Power, the outages were caused by the breakdown of some National Integrated Power Plants (NIPP) supplying electricity to the national grid, the Federal Ministry of Power explained in a statement on Thursday.
Read the NERC’s full notice:
NOTICE OF MINOR AND EXTRAORDINARY REVIEW OF TARIFFS FOR ELECTRICITY TRANSMISSION AND DISTRIBUTION COMPANIES
Pursuant to the provisions of the Electric Power Sector Reform Act (“EPSRA”), the Nigerian Electricity Regulatory Commission (“NERC” or “the Commission”) adopted the Multi-Year Tariff Order (MYTO) Methodology in setting out the basis and procedures for reviewing electricity tariffs in Nigeria. The MYTO provides for Minor Reviews (every 6 Months), Major Reviews (every 5 years), and Extraordinary Tariff Reviews in instances where industry parameters have changed from those used in the operating tariffs to such an extent that a review is urgently required to maintain the viability of the industry.
Further to the above, the Commission held series of Public Hearings and stakeholder consultations in the first quarter of 2020 on the Extraordinary Tariff Review Applications of the eleven (11) electricity distribution companies (“DisCos”) to consider their respective 5-year Performance Improvement Plans (“PIPs”). However, the evaluation of the DisCos’ requests for review of the Capital Expenditure (“CAPEX”) proposed in their PIPs could not be concluded for the consideration of the Commission during the Minor Reviews undertaken in 2020. Specifically, Section 21 of the MYTO – 2020 Order provides for consideration of DisCos’ CAPEX application upon further scrutiny and evaluation of the investment proposals. Accordingly, this notice is issued to inform the general public and industry stakeholders of the Commission’s intention to:
▪ Conclude the Extraordinary Tariff Review process for the eleven DisCos; ▪ Commence the processes for the July 2021 Minor Review of MYTO – 2020 to consider changes in inflation, foreign exchange, gas prices, available generation capacity, and CAPEX required to evacuate and distribute the said available generation capacity in accordance with EPSRA and other extant industry rules;
This notice is hereby issued in compliance with the provisions of EPSRA, the Business Rules of the Commission and the Regulations on Procedures for Electricity Tariff Reviews in the Nigerian Electricity Supply Industry to solicit for comments from the general public on the proposed reviews.
Stakeholders and the general public are invited to send their comments to the Commission within 21 days from the date of this publication. All comments or representations should be addressed to:
The Chairman Nigerian Electricity Regulatory Commission Plot 1387 Cadastral Zone A00 Central Business District Abuja
The Peoples Democratic Party (PDP) has rejected the New Year ‘gift’ of hike in electricity tariff as approved by the Federal Government and urge President Muhammadu Buhari to immediately rescind the increase.
The party in a communique on Tuesday described the 100 per cent hike in electricity tariff from N2 to N4 per kWhr, as announced by the National Electricity Regulatory Commission (NERC), as insensitive, anti-people, and will worsen the economic hardship being faced by Nigerians at this time.
The party contends that the reasons adduced by NERC are not enough to warrant such an increase in electricity tariff, especially at the time Nigerians are looking up to the government for economic recovery programmes and packages.
The PDP urged the APC and the Buhari-led government to note that such an electricity tariff hike, at this critical time, will bear more pressure on homes and businesses, impact negatively on our national productivity and make life more unbearable, particularly at this period of insufferable economic recession.
“What our nation needs at this point are positive policies that will encourage Nigerians in their productive endeavours and cushion the hardship they face on a daily basis instead of wicked policies that will only worsen their situation.
“It is imperative for the Federal Government to note that Nigerians are already weighed down by high costs and weak purchasing powers and as such should not be further burdened with high electricity costs,” the PDP statement reads in part.
The party asked President Buhari to immediately review the hike and make further consultations on more affordable ways to meet the power needs of the nation instead of resorting to a tariff hike.
Consumers in the country will begin to pay more for electricity following an adjustment of tariff by the Nigerian Electricity Regulatory Commission (NERC).
The approval was given in a Multi-Year Tariff Order (MYTO) signed by the new NERC Chairman, Sanusi Garba, and obtained by Channels Television on Tuesday.
In the document dated December 31, 2020, the agency stated that the order was effective from January 1, 2021.
The new rate is payable by electricity customers of the 11 Distribution Companies (DISCOs) spread across the country.
The new increment order was issued barely two months after the implementation of the controversial increase proposed in 2020.
Part of the document reads,
This order supersedes ORDER/NERC/202B/2020 and shall take effect from 1 January 2021 and shall cease to have effect on the issuance of a new Minor Review Order or an Extraordinary Tariff Order by the Nigerian Electricity Regulatory Commission (“NERC” or the “Commission”).
The commission, pursuant to sections 32 and 76 of the Electric Power Sector Reform Act (“EPSRA”), issued the Revised MYTO – 2020 Tariff Order within an effective date of 1 November 2020 to address, amongst other objectives, the transition to cost-reflective tariffs (CRT) and introduction of Service-Based Tariffs (SBT) regime with a view to improving customer service experience as well as ensuring financial sustainability of the Nigerian Electricity Supply Industry (“NESI”).
In line with the Regulations on Procedure for Electricity Tariff Review in the Nigerian Electricity Supply Industry and MYTO Methodology (Amended), this Minor Review of the Revised MYTO – 2020 Order considered the impact of inflation rates (Nigeria and USA), foreign exchange rate (NGN/USD), gas prices, available generation capacity and material variances to the accompanying CAPEX and OPEX required for the evacuation and distribution of available generation capacity.
Accordingly, the Order is issued to reflect the impact of changes in the Minor Review variables as indicated in section 7 of this Order and used relevant projections based on best available information in the determination of cost-reflective tariffs (CRT) and relevant tariff shortfalls for the year 2021.
The Order also determines the minimum remittances payable by IBEDC in meeting its market obligations based on the allowed end-user tariffs.
NERC Denies ’50 Per Cent’ Tariff Increase
Five days after the order was issued, there was an outcry over the adjustment by NERC following reports that consumers would pay about 100 per cent more.
In a swift reaction, the regulatory body denied the reports and accused the media outfits that published same of misinforming the public.
NERC, in a series of tweets, insisted that tariff for customers being served less than an average of 12 hours of supply per day over a period of one month would remain frozen and subsidised, in line with the policy direction of the Federal Government.
It, however, admitted that the rates for service bands A, B, C, D, and E have been “adjusted” by N2 to N4 per kilowatt-hour (KWH).
Noting that the adjustment was in compliance with the provisions of the Electric Power Sector Reform (ESPR) Act and Nigeria’s tariff methodology for biannual minor review, the agency explained that it was aimed at reflecting the partial impact of inflation and movement in forex.
Read the statement issued by NERC below:
PUBLIC NOTICE ON PURPORTED 50% INCREASE IN ELECTRICITY TARIFFS
The attention of the Commission has been drawn to publications in the print and electronic media misinforming electricity consumers that the Commission has approved a 50% increase in electricity tariffs.
The Commission hereby states unequivocally that NO approval has been granted for a 50% tariff increase in the Tariff Order for electricity distribution companies which took effect on January 1, 2021.
On the contrary, the tariff for customers on service bands D & E (customers being served less than an average of 12hrs of supply per day over a period of one month) remains frozen and subsidised in line with the policy direction of the FG.
In compliance with the provisions of the EPSR Act and the nation’s tariff methodology for biannual minor review, the rates for service bands A, B, C, D and E have been adjusted by NGN2.00 to NGN4.00 per kWhr to reflect the partial impact of inflation & movement in forex.
In the light of strong public interest on this matter, the media is hereby requested to retract their earlier publications misinforming electricity consumers nationwide about a purported 50% increase in electricity tariffs.
The Commission remains committed to protecting electricity consumers from failure to deliver on committed service levels under the service-based tariff regime.
Any customer that has been impacted by any rate increases beyond the above provision of the tariff Order should report to the Commission at [email protected]
The Federal Government has reconvened the meeting with the organised labour to continue dialogue on the recent increase in the pump price of petrol and electricity tariff.
At the last meeting which held two weeks ago, the dialogue was suspended to enable the government do further consultations as the labour leaders insisted on the reversal of the new prices of petrol and electricity tariff.
In his opening remarks at the resumed negotiation on Monday in Abuja, the Minister of Labour and Employment, Chris Ngige, noted that much of the consultations have been made since the last meeting.
He also informed the labour leaders that a lot of work has been done by the Federal Government team on the issue of palliatives.
The Secretary to the Government of the Federation (SGF), Boss Mustapha, on his part, stated that the interests of the country and its citizens have continued to drive the discussions so far and the various positions taken.
He maintained that the government has never seen the organised labour as a nuisance, rather it considered it as a critical partner.
According to the SGF, the organised labour has constantly drawn the attention of the government to the need to improve the welfare of the Nigerian people.
The labour leaders were led to the meeting by the leadership of the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC).
NLC President, Ayuba Wabba, informed the government team that the labour leaders expected that progress should be made, especially on how to reach some of the milestones set during all previous meetings.
For the TUC President, Peter Esele, the meeting would be a successful one as he would be discussing with peace of mind.
The Federal Government on Tuesday met with the organised Labour over the hike in electricity and fuel tariffs.
The meeting called by the Minister of Labour, Chris Ngige with the Trade Union Congress (TUC) and the Nigerian Labour Congress in attendance held at the Banquet Hall of the Presidential Villa in Abuja.
Channels Television learned that the meeting which is at the directives of President Muhammadu Buhari is to discuss solutions to the recurring labour issues with a view to finding an end to incessant industrial actions.
In attendance at the meeting is the Minister of State for Labour and Employment, Festus Keyamo, the Minister of Works, Babatunde Fashola and the Minister of State for Petroleum, Timipre Sylva.
This comes as the labour unions are threatening to down tool over the pump price of petrol and electricity tariff.
They are also complaining of non-implementation of the N30,000 new minimum wage, alleged corruption in government agencies, loss of jobs across the industries, high cost of living and, businesses not booming in the light of the effects of COVID-19.
The labour unions and their civil society allies are meant to commence an indefinite industrial action and national protest from Wednesday, September 23.
On his part, the Minister of State for Petroleum said all is not well with the economy, calling for cooperation to fix the economy
While making a presentation on the topic, “Understanding the importance of fuel subsidy on the Nigerian Economy and the gains of deregulation,” Sylva noted that subsidy payment is a major source of corruption.
According to the minister, oil prices are low, adding that there is also a cut in production to about 1.412 million barrels per day.
Sylva who stressed that the nation’s major source of income which is oil, reduced by over 50 per cent, maintained that Nigeria was losing about N1billion daily to subsidy between 2016-2019.
Prior to this time, the country was losing about 3.7 billion naira daily.
Speaking further, he explained that despite the deregulation, fuel price in the country is the cheapest in the West African region.
He added that subsidy cost the government N2trillion in 2011 and N1.3trillion in 2013.
The Federal Government has concluded plans to provide solar home systems to no fewer than five million households in the next one year.
President Muhammadu Buhari disclosed this on Monday at the first-year Ministerial Performance Review Retreat held at the Presidential Villa in Abuja.
The President, who was represented at the event by the Vice President, Professor Yemi Osinbajo, said, “In addressing the power problems, we must not forget that most Nigerians are not even connected to electricity at all.”
“So, as part of the Economic Sustainability Plan (ESP), we are providing solar home systems to five million Nigerian households (impacting up to 25 million individual Nigerians) in the next 12 months,” he added.
A Path To Full Electrification
According to the President, the government has already begun the process of providing financing support for manufacturers and retailers of Off-Grid Solar Home Systems and Mini-Grids, who are to provide the systems, through the Central Bank of Nigeria (CBN).
He believes the five million systems under the ESP’s Solar Power Strategy will produce 250,000 jobs and impact up to 25 million beneficiaries through the installation.
President Buhari explained that this would translate into more Nigerians having access to electricity via a reliable and sustainable solar system.
He stated that the support to solar home system manufacturers and the bulk procurement of local meters would create over 300,000 local jobs while setting Nigeria on a path to full electrification.
“We are also executing some critical projects through the Transmission Rehabilitation and Expansion Programme, which will result in the transmission and distribution of a total of 11,000 Megawatts by 2023,” the President said.
He noted that the government has developed N2.3 trillion ESP (which consists of fiscal, monetary, and sectoral measures to enhance local production, support businesses, retain and create jobs, and provide succour to Nigerians, especially the most vulnerable) as part of its response to the challenges posed by the COVID-19 pandemic.
The Transmission Company of Nigeria has said that a total of 5,420.30 megawatts of power was transmitted through the national grid as of August 19, 2020, as the country currently seeks to overhaul its power industry.
A statement by the power firm stated that the figure is the highest ever recorded in the nation’s power sector, surpassing the 5,377.80 megawatts peak reached on August 1.
It attributed the newest feat to the keen interest of the federal government and the several programmes and projects aimed at growing the power sector.
The TCN maintained that it is working to stabilise, rehabilitate and expand the country’s grid, while urging Nigerians to support the efforts of the government by ensuring that electricity installations nationwide are secure.
Meanwhile, the power deal between the Federal Government, its German counterpart, and Siemens AG, will see to the upgrading of 105 power substations, the construction of 70 new ones, the manufacture of 3,765 new power transformers.
The deal under the Presidential Power Initiative has been endorsed by the Federal Executive Council and will see to the upgrade from the current transmission to 7,000mw, 11,000mw and 25,000mw before 2023, with another scale-up tp 25,000mw.
The Presidency on Tuesday said Nigeria exports power to neighbouring countries in order to prevent the damming of water that feeds the nation’s major power plants.
On Monday, a Nigerian newspaper, Punch, had published a report describing how Nigeria has continued to export electricity to other countries on credit while blackouts persist within its borders.
As a response to the report, the Presidency, via a statement signed by President Muhammadu Buhari’s spokesman Garba Shehu, described the report as “hyperbolic and terribly misleading.”
The Presidency said the newspaper’s credit figures were “far from accurate, out-dated and therefore not reflective of the current reality.”
It also added that over 90 percent of the electricity generated in the country was distributed and consumed by Nigerians.
The Presidency revealed that as of the last review in 2019, the amount of credit extended to Niger, Benin, and Togo stood at $69 million.
According to it, Niger owes $16 million and Benin, $4 million as of today, adding up to the naira equivalent of about N1.2 billion.
Read the full statement below:
STATE HOUSE PRESS RELEASE
PUNCH’S INACCURATE REPORTING ON THE SALE OF POWER TO NEIGHBORING NATIONS NEEDS TO BE CORRECTED
It is most disappointing that sensationalism has dominated the thinking and ethos of institutions that citizens look up to with trust, confidence and reliability. Monday edition of the Punch checks all the boxes in terms of an abject failure to honour these time-tested traditions with its news piece: “NIGERIA EXPORTS USD81.48bn ELECTRICITY ON CREDIT AS COUNTRY’S BLACKOUT PERSISTS,” is, to say the least, hyperbolic and terribly misleading.
Apart from the fact that the figure quoted is far from accurate, out-dated and therefore not reflective of the current reality, the overall cost of power generated and sold by Nigeria in the period covered by the report is not anywhere close to what was mentioned by the paper.
The actual cost of electricity generated within the said timeframe (2018-2019) by all the electricity generation companies in Nigeria was about N1.2 trillion ($4 billion).
Over 90% of the electricity generated was distributed and consumed by consumers across the 11 electricity distribution companies in the country.
Power exported to Niger, Benin and Togo based on Multilateral Energy Sales Agreement with the Government of Nigeria is on the basis that they would not dam the waters that feed our major power plants in Kainji, Shiroro and Jebba.
As of the last review in 2019, the amount of indebtedness to all three customers stood at $69 million, subsequent upon which several payments were made to NBET. Much of this has been repaid by the debtor nations.
As of today, Niger owes only USD 16 million and Benin, USD 4 million, adding up to the Naira equivalent of about N1.2bn.
The essence of said bilateral agreements, by which we give them power and they do not build dams on the River Niger means that Nigeria and her brotherly neighbours had avoided the unfolding situation of the Nile River between the sovereign states of Ethiopia, Sudan and Egypt.
In the future, we advise the newspaper to seek clarity from the market operator which is the Transmission Company of Nigeria, TCN. This process of fact-checking only improves your standing in the public arena.