Electricity: Nigerians to pay more from July 1

Posted by admin Headlines Friday, June 24th, 2011

Osun State Deputy Governor, Titi Laoye-Tomori (second right); Chief of Staff, Gboyega Oyetola (middle); Ife Council Cnhairman, Taiwo Olaiya (right); Secretary to the State Government, Moshood Adeoti (second left); and others at the flag-off of weekly statewide market environmental sanitation exercise at Odo-Ogbe market, Ile-Ife … on Thursday.

Electricity consumers will pay N1.50 more per kilowatt (pkw) from July 1, a rise of 16.5 per cent, despite unreliable supply which ensures a costly business environment that affects all economic sectors, from the pepper grinder in the market to big manufacturers in industrial hubs.

It emerged on Thursday that Abuja has asked the Power Holding Company of Nigeria (PHCN) to implement the 2008/2013 regime of Multi Year Tariff Order (MYTO) which hikes the rate from N8.50 pkw this year, even with a drop in power supply from 3,700 megawatts (mw) to 2,800 mw.

Abuja is preparing to sell six transmission and 11 generating companies this year, with Dangote Industriesand India’s Tata Group and Essar Group among potential bidders, according to the Bureau of Public Enterprises (BPE).

The Nigerian Electricity Regulatory Commission (NERC) issued a statement on Thursday to announce that it gave the new tariff order to the electricity distribution companies to be implemented from July 1.

The statement, signed by NERC Head of Media and Public Relations, Maryam Abubakar, warned the PHCN to ensure improved service delivery to customers.

It reminded the distribution companies of their responsibilities to customers, particularly as regards handling complaints, connection and disconnection procedures, service standards, and meter reading.

“We will be resolute and uncompromising in ensuring compliance and imposing sanctions on the Chief Executive Officers and Managers of companies that fall short of the required standards,” the statement warned.

NERC Chairman Sam Amadi explained that “marginal increase” had been approved since 2008.

Nigeria has a population nearly four times South Africa’s, but generates a 12th of that country’s electricity output.

The epileptic power supply nationwide worsened on Monday, crashing to 2,800 mw from the 3,100 mw level about two weeks ago, which made the National Union of Electricity Employees (NUEE) to call on Power Ministry to apologise to Nigerians.

PHCN Managing Director, Hussein Labo, had disclosed a fall from 3,700 mw to 3, 100 mw last weekend.

A source in the Power Ministry confirmed that supply “now hovers between 2, 800 mw and 3,000 mw.

Labo blamed this on maintenance at the Utorogun gas plant and the low level of water at hydro power stations.

The NERC introduced the MYTO three years ago to ensure predictable electricity price is and to generate funds by attracting private sector investment through a fair tariff system that also protects consumers.

“But the question remains, who is responsible for the gas supply to these thermal stations, and why is gas not available to them?” the NUEE queried in a statement signed by its Zonal Organising Secretary, Agyake Anthony, and Lagos and Ogun Vice President, B. Ntukubes.

“Nigerians indeed deserve apologies from the Presidential Taskforce on Power led by Barth Nnaji over the power situation in the country. The undesirable power situation is a clear indication of their ineptitude and deficient technical knowledge about the sector.”

Utorogun is part of the main sources of gas supply to the Nigerian Gas Company (NGC), which supplies PHCN’s gas-fired power plants.

Labo’s disclosure of electricity supply drop is countered by the Power Ministry’s Director of Investment and Sector Development, John Ayodele, who insisted that there is sufficient power supply.

Labo attributed the problem to maintenance at Utorogun and low level of water at hydro power stations such as those in Omotosho, Olorungoso, Egbin, Geregu, Shiroro, and Delta.

He said output in Utorogun is expected to return to normal within two weeks.

Power generation is woven around 3,100 mw to 3200 mw as against the 3,700 mw generated in the past months, he added.

He also bemoaned the poor supply at this time when the hydro power plant caused by low water level.

Ayodele noted that the raining season, which caused some damage to PHCN’s facilities around the country, has made thing worse.

“Presently we have enough generation but ongoing maintenance hinders distribution. We hope that it will be address soonest.

“For instance, parts of Ikoyi and Victoria Island in Lagos and other areas of the country are undergoing rehabilitation and maintenance of facilities,” he explained.

-Independentwp_posts