Government Woos Investors On Solar Power Project

NERCThe Federal Government of Nigeria says it is wooing investors to fund the solar power projects to boost electricity supply in the nation.

While addressing a meeting which focused on how to finance Africa’s power sector held in Abuja on Monday, the Permanent Secretary of the Ministry of Power, Ambassador Godknows Ighali, said ‎the generation of solar power across the country would ensure that rural communities access power at affordable rates.

The Chairman of the Nigerian Electricity Regulatory Commission, Sam Amadi, expressed delight over the improvement of power supply, but appealed to distribution companies to improve their efficiency.

While some level of achievement could be said to have been attained in the past month, government officials believe investing in alternative energy sources would ensure that all parts of the country had steady electricity supply.

FG Slashes Electricity Tariff By 50 Per cent

NERCThe Nigerian Electricity Regulatory Commission (NERC) has announced the immediate review of electricity tariffs by about 50 per cent.

The Chairman of the Commission, Dr. Sam Amadi, said the reduction, which takes effect from the end of March, follows the regulatory agency’s decision to remove collection losses from customer tariff under the multi-year tariff order.

“It is clear that removing the collection losses will lead to lower tariffs for consumers. The removal of collection losses from customer tariff has reduced tariff by more than 50 per cent in some places. Please note that the reduction does not affect the CBN facility and its repayment.

“Industrial and commercial consumers under the auspices of the Manufacturers Association of Nigeria (MAN) petitioned the commission, asking for a review of the MYTO 2.1 and requested drastic reduction of their tariff. They claimed that such astronomical increase in tariff would kill their business and lead to massive job losses.”, he said

Amadi argued that the Electric Power Sector Reform (EPSR) Act and the Business Rules of the Commission mandated the commission to review its decision.

He further noted that this new direction comes as part of the commencement of the Transitional Electricity Market (TEM). The TEM is built on bilateral trading between parties and is geared towards ensuring an efficient market where cost reflectivity will lead to more affordable electric services for consumers.

He said the new order now amended the MYTO 2.1 and had reduced the tariff to be paid by all class of consumers.

In the review of MYTO 2.1, he said the commission followed due process and the regulatory principles.
“NERC remains committed to the principle of cost-reflective pricing and to the development of an efficient and financially viable electricity market. These are important to support the investment that is needed to ensure the electricity supply industry meets the needs of the Nigerian economy.

“The decision to review tariff is completely compatible with the terms of the privatisation and has been reviewed with the Bureau for Public Enterprises (BPE). NERC and BPE are working together to advocate for series of fiscal policies that will foster easier access to investible capital to further increase capacity and enhance reliability in the sector,” it concluded.

The Commission further adds that from its consultation with various electricity consumer groups across the country, it established that the skyrocketing increase in the tariff was informed by huge aggregate technical, commercial and collection losses which are incurred by the electricity Distribution Companies (DISCOs) and are subsequently passed on to consumers.

NERC Extends Residential Tariff Increase Till June

Sam_Amadi_NERDC
Chairman, Nigerian Electricity Regulatory Commission (NERC), Dr Sam Amadi.

The Nigerian Electricity Regulatory Commission (NERC) has extended increase in tariff for residential consumers to June 2015 while charges for other classes of consumers took effect from January 1, 2015.

Addressing a news conference in Abuja, Chairman of NERC, Dr Sam Amadi, said that the freeze in charges for residential consumers who constitute about 80 per cent of the electricity consumers is aimed at promoting the interest of consumers as well as stimulate operators to serve consumers better.

Dr Amadi also expressed worries over the rate of meter deployment by electricity distribution companies in spite of the credited advancement payment initiatives.

Gas To Power Cost Needs To Be Competitive – Sam Amadi

Power costThe Chairman of the Nigerian Electricity Regulatory Commission, Dr Sam Amadi, has said that the lasting solution to the power situation in the country is for the cost of gas to power to be competitive.

He said this during a conversation on the Friday edition of Sunrise Daily on Channels Television.

The Chairman explained that the power supply in the country has been low because the National Integrated Power Project (NIPP), which was expected to generate 2500 megawatts of power, can only generate 600 megawatts.

He assured that by the end of the year, about 500million scf. of gas would be gathered from different gas projects which could add close to 6000 megawatts of power at the end of the year.

Mr Amadi, who had earlier said that a better power situation is primarily based on the generation of more gas, admitted that there were two weak links in the sector, one was capacity and the other was distribution, which is due to failure of network.

He suggested that if the distribution companies strengthen their network, improve capacity and change damaged installation, it would bring about more power, more revenue and therefore more investment in the system.

He disclosed that a lot was being done to achieve a better power situation in the country, as the plan of Federal Government is to offset 25billion Naira to old companies that supply gas to the private independent power plants and to also ensure more supply of gas to power.

He added that the debt being paid are both legacy owned by the power sector before the handover and debts accumulated since November, after handover.

He, however, added that only debt for gas would be payed, “debts of contracts, legal cases are not going to be payed but debts for gas used will be payed by CBN.”

He disclosed that the DISCOs would pay back the CBN based on tariff.

Hike In Electricity Tariff, Issues And Challenges

Biz MorningThe Nigerian Electricity Regulatory Commission has assured Nigerians that better days are just around the corner as all hands are on deck to improve power supply in the country.

Chairman and Chief Executive Officer of the Nigerian Electricity Regulatory Commission, NERC, Dr Sam Amadi, gave the assurance on Business Morning on Friday, where he defended the implementation of a new electricity tariff in the multi-year tariff order (MYTO).

Meanwhile, an entrepreneur, Mr Christian Tom-West and a consultant in the power sector, Mr Daniel Mueller, argued that they cannot be paying more when they are not getting value for their money.

They urged the regulator to make these charges affordable for consumers and ensure that they get value for their money.

NERC Moves to Finalize Regulations for Increased Power Generation

The Nigerian Electricity Regulatory Commission (NERC) has put in place plans to ensure  micro entrepreneurs are brought on board for power generation.

The commission believes that pockets of small megawatts can be generated by smaller companies particularly in large cities and the northern part of the country.

The Chairman of the Commission Sam Amadi who was in London at the weekend to make a presentation to the International Community on Nigeria’s power reforms, told Channels Television in an interview that NERC is working on finalizing some of the basic regulations that are not in place like the embedded generation regulation that can aid generation although in small but functional bits.

Power Sector: New Tariffs Would Be Justifiable – NERC

The Chief Executive Officer of the Nigerian Electricity Regulatory Commission, Sam Amadi has explained that the new tariffs which Nigerians will pay for improved power supply is not a means to rip them off, but will be justifiable.

He said this while speaking on Channels Television’s Business programme, Business Morning.

The handover to successor companies, which he described as significant will not deviate from the thrust of the power sector reform which is geared towards a creation of an efficient, competitive electricity market.

He stated that the process of creating that market is on-going, so Nigerian consumers should expect that there would be improvement in customer service.

The structure of the market created by the government is to ensure sustainability of a gradual and continuous increase in capacity, both in generation, distribution and transmission of power.

Power Sector: New Tariffs Would Be Justifiable – NERC

The Chairman of the Nigerian Electricity Regulatory Commission, (NERC), Sam Amadi, has said that the new tariffs consumers are expected to pay for improved power supply will be justifiable as investors will not be allowed to rip them off.

He said this on Channels Television’s business programme, Business Morning.

The handover to successor companies, which he described, as significant, will not deviate from the thrust of the power sector reform which is geared towards a creation of an efficient competitive electricity market.

“The process of that market is still on-going, so Nigerian consumers should expect that there would be improvement in customer service,” he explained.

The structure of the market created by the government is to ensure sustainability of a gradual and continuous increase in capacity, both in generation, distribution and transmission of power.

Although the new system is expected to result in higher tariffs, Mr Amadi, assured Nigerians that they would not be ripped off as investors would only be allowed to recover costs in a justifiable manner which would not overburden the consumers.

“The tariffs will not be increased until consultations with relevant stake holders, to ascertain a seamless system of operation and payment, are concluded,” he added.

Power Sector Reforms: Nigeria Has Not Gotten To The Point Of Reliability – Amadi

Sam Amadi. The chairman of the Nigerian Electricity Regulatory Commission (NERC), Mr. Sam Amadi, says Nigeria has not gotten to the point of reliability that is expected in the power sector.

Mr Amadi made the observation while commenting on the power sector reforms.

He pointed out that the people running the system were uncertain about what will happen after the handover.

He said that in some parts of the country, the light situation has not been totally stable but above average.

“The idea of stability is very technical and managerial and this has a lot to do with how stable the light will be,” he said.

Speaking on Channels Television breakfast programme, Sunrise Daily, Mr. Amadi assured Nigerians of a more stable supply of electricity once the new owners commence work.

He explained that the operations from PHCN to the new owners would be the same but pointed out that there would be likely changes in management.

“The excessive blackout witnessed is caused by changes in configuration of network which is ignored instead of checked,” he explained.

Speaking on the pre-paid metre, Mr. Amadi stated that some areas such as Eko and Ikeja in Lagos State were carrying out their sensitisation programme properly while others are yet to carry out theirs.

NERC threatens to revoke licences of Independent power producers

The Nigerian Electricity Regulatory Commission (NERC) has threatened to revoke the licences of Independent Power Producer found to have breached conditions of contract to sanitize the sector.

The erratic power supply in the country has for many decades become Nigeria’s greatest handicap. Huge fund set-aside over the years to address the situation has apparently not yielded positive results, but the NERC have now come up with a renewed drive.

The commission hopes to address the gaps created seven years ago when licences were issued to about 40 independent power producers overtime without any results so far with the potential to generate electricity of 20,000 megawatts.

The Chairman of the NERC, Sam Amadi, who made the threat at a forum on the bulk procurement regulation in Abuja, said the commission has designed new sets of guidelines to avoid confiscation of already generated plans.

According to Mr Amadi, all the proposals were unsolicited and the resulting cost to the Nigerian power system and the consumer could be huge and unacceptable if the disorderly approach continues.

“We have set up some guidelines that clearly state how each of the actors, the bulk traders, system operators, market operators, the generating companies, the Discos will now be able to interface in procuring power,” Mr Amadi said.

He further said: “What this act does is that it dispenses the old form. In the past people just come to us and say we want to put 500 megawatts of power plant in Ajeokuta or in Imo State; they negotiate with different actors but that has proved ineffective.

“We have today about 40 to 50 licensees with a capacity to generate 20, 000 megawatts, we don’t have it, and it’s on paper.”

The NERC Chairman said that the new guidelines will change the game plan, saying any operator found wanting or breaching the rules will be shown the way out.

“If an operator is serially in breach of his covenants, we can revoke his licence through due process and dispose of those assets,” he said.

Only recently, another major step was taken in the battle towards stable electricity in the country as successful bidders for the unbundled Power Holding Company of Nigeria (PHCN) generation firms were named, but Mr Amadi said the solution goes beyond successful biddings.

“We are not just concerning about the bidding but also on the quality and technical capacity of whoever wins because they are going to come and face the regulatory rigour in this market,” he said.

The big question now is, will these new developments in the sector finally resolve the protracted power problem of the country?