TCN Pledges Support For Lagos Electricity Regulatory Responsibility 

       Mohammed Shosanya

 

The Managing Director/CEO of Transmission Company of Nigeria,Engr. Sule Abdulaziz,has promised to support Lagos as it prepares to take up regulatory responsibilities under the new electricity act.

 

 

 

 

He disclosed this when hosted a delegation from the Lagos State government at its corporate headquarters in Abuja on Tuesday,a statement by Ndidi Mbah, TCN’s General Manager Public Affairs,said.

 

 

 

Welcoming the delegation,led by Biodun Ogunleye, Commissioner for Energy and Mineral Resources,Abdulaziz highlighted TCN’s completed and ongoing projects in Lagos, including the ongoing 300MVA, 330/132kV power transformer, 2 x 60MVA 132/33kV at Lekki substation, 300mva 330/132kV power transformer at Alagbon,  100MVA 132/33kV commissioned power transformer at Alausa, Alagbon, ijora substations as well as 2x 60 MVA, 132/33kv at Apapa road substation.

 

 

 

According to him, Lagos is a critical market, and efforts will continue to be be geared towards improving infrastructure for enhanced power supply.

 

 

 

 

He emphasized the agency’s openness to collaboration with states and stakeholders to improve bulk power supply,adding that the Market Operator is working to create a conducive electricity market between TCN and state governments.

 

 

 

 

In his remarks,the Commissioner,Mr. Abiodun Ogunleye explained that the visit aimed to seek TCN’s support and collaboration as Lagos enters a new phase in the electricity market.

 

 

 

He said:”the bill to create the Lagos State Electricity Commission has been passed and awaits the Governor’s assent. So, in preparation for the full implementation,  we’re here to discuss areas of collaboration, learn from TCN, and understand its constraints to develop our strategic plan.”

 

 

He added that Lagos contributes significantly to TCN’s revenue, stating, “We’re an affiliated state with 1% of Nigeria’s landmass but 30% of the population. We contribute about 50% in terms of consumption and revenue to TCN and will take over regulatory responsibility of 60% of TCN markets”.

 

 

House Seeks N500bn For DisCos’ Recapitalisation

      Mohammed Shosanya

The House of Representatives has directed electricity distribution companies (DisCos) in Nigeria to undergo a recapitalisation exercise to the tune of N500 billion.

The lawmakers explained that the  measure is aimed at strengthening their financial capacity to effectively deliver reliable electricity services to Nigerians.

The resolution of the House was reached on Wednesday following the adoption of a motion titled:“Need to Address the Activities of Distribution Companies in Nigeria”, sponsored by Hon. Ayokunle Isiaka, who represents Ifo/Ewekoro Federal Constituency in Ogun State.

Soliciting support for his motion, Hon. Isiaka stressed the growing concerns over the operations of electricity distribution companies (DISCOs) across the country, noting that their activities have increasingly threatened Nigeria’s economic stability and the welfare of its citizens.

He expressed disgust that despite Nigerians paying for electricity meter installations, DisCks often demand additional payments for meter replacements under questionable circumstances, further compounding the financial burden on consumers.

“The  House expresses concern that consumers, who had previously paid for electricity meter installations, are now being pressured into making additional payments for replacements. This practice imposes undue financial strain on households and businesses already grappling with economic hardships”,he added. 

An All Progressives Congress (APC) lawmaker had raised concerns over what he described as the “sabotage of economic development” by electricity distribution companies (DISCOs).

He accused the companies of exploiting essential services to the detriment of citizens, thereby stifling economic growth and progress.

He further lamented that despite consistent regulatory oversight and demands for accountability by the House Committee on Power, DISCOs have continued to operate with impunity and a blatant disregard for consumer rights.

Sequel to the adoption of the motion,the House presided over by the Speaker, Tajudeen Abbas urged DISCOs to “Undergo recapitalization of not less than N500bn and only those with the required financial muzzles that can provide maximum satisfaction to consumers are allowed the space to continue to operate.”

The House further directed the Federal Ministry of Power to classify Distribution Companies (DISCOs) as non-state actors and to take urgent measures to address their reckless practices, which pose a significant threat to the nation’s economy.

The House has directed its Committee on Power to investigate the activities of electricity distribution companies (DISCOs) in Nigeria. This move is aimed at ensuring accountability and safeguarding consumer rights.

To address concerns over transparency and fairness,the House further mandated the committee to spearhead awareness campaigns to educate consumers about their rights.

Besides,the committee is tasked with examining the implementation of stringent regulations governing the operations of DisCos,with the goal of fostering equitable and transparent practices in their dealings with consumers.

NERC To DisCos:Stop Billing Customers For Replacement Of Faulty Meters

     Mohammed Shosanya

 

 

The Nigerian Electricity Regulatory Commission,says  electricity distribution companies must replace the obsolete and faulty prepaid meters without any charge or cost

 

 

The agency clarified that a situation where the Discos are asking customers to pay for replacement of obsolete and faulty meters breaches Nigerian Electricity Supply Industry Act.

 

 

In a statement on Monday,NERC implores  customers to report cases of DisCos’ non-compliance to the act for requisite prosecution.

 

 

 

NERC,the statement said,is aware that some Distribution Companies (DisCos) have instructed customers to apply and pay for the replacement of faulty and obsolete meters within their franchise areas.

 

 

It explained that this instruction contravenes the Commission’s Order No. NERC/246/2021 on the Structured Replacement of Faulty and Obsolete end-use Customer Meters in the Nigerian Electricity Supply Industry.

 

 

It added:”The order clearly states that no customer with a meter should be forcefully migrated to estimated billing.

 

 

“If any customer’s meter is adjudged by any DisCo to be obsolete or faulty, it is the responsibility of the DisCo to replace the meter free of charge, provided that the fault was not caused by the customer.

 

 

“The Commission restates its commitment to protect customers’ interests and rights by ensuring compliance with established regulatory standards and enforcing regulatory penalties for non-compliance by its licensees.

 

 

 

“We urge customers to report cases of non-compliance to the order by any DisCo through the following channels: 07000 CALL NERC (07000 2255 6372); 0201 344 4331; 0908 899 9244. Email: complaints@nerc.gov.ng”.

 

 

 

Power Minister Considers Sustainable Energy Solutions For Tourism Industry

 

Mohammed Shosanya

 

 

The Minister of Power, Chief Adebayo Adelabu,is considering collaborating with the new tourism and procurement chiefs to grow the industries through sustainable energy solutions in the country.

 

 

 

He said this in a congratulatory statement to Dr. Bisoye Fagade and Adebowale Adedokun on their appointment as Directors-General (DGs) of the National Institute for Hospitality and Tourism and  Bureau of Public Procurement,respectively.

 

 

 

 

He added:“As Minister of Power, I look forward to collaborating with you to explore opportunities for sustainable energy solutions that will enhance the tourism experience, support the growth of the tourism industry as well as the work of the procurement bureau”.

 

 

 

 

He described the appointment of the duo as a testament of their  exceptional leadership, expertise and dedication to the country.

 

 

 

He expressed joy that the two appointees are  indigenes of Oyo State who were  found worthy by President Bola Ahmed Tinubu.

 

 

 

“Those who are yet to be given appointments should therefore not lose hope as the President does not forget to reciprocate good deeds, even though competence and character are overriding factors for the benefit of the nation”, the Minister said.

 

 

 

On the new appointees,he noted,”your vision, wisdom, and commitment will undoubtedly propel the sector to new heights, fostering growth, innovation and excellence in Nigeria’s hospitality and tourism industry”.

 

 

 

Adelabu further described the appointments as well-deserved recognition of  tireless efforts of the duo in their service to the country in their different areas of expertise.

 

 

 

“I have no doubt that the two appointees will inspire and motivate stakeholders to work together towards a common goal of making Nigeria a country we all desire”.

 

 

 

He urged the new DGs to continue to push new boundaries in the industry.

 

 

 

“As you assume this critical role,I urge you to continue pushing the boundaries of innovation and excellence. Your ability to think strategically and creatively will be invaluable in addressing the challenges facing the industry and unlocking its full potential”.

 

 

 

“I am confident that under your leadership, the National Hospitality and tourism sector and the Bureau of Public Procurement will experience unprecedented growth and development.

 

 

Akwa Ibom Blackout Due To Fault On Aba-Itu Transmission Line-Accugas Limited

 

           Mohammed Shosanya

 

 

Accugas Limited, a subsidiary of Savannah Energy,has denied involvement in the current power outage in Akwa Ibom State.

 

 

 

Sacked former Managing Director of Ibom Power Company Limited, Engr. Meyen Etukudoh,had fingered Savannah Energy as reason behind the statewide blackout.

 

 

 

He explained that the blackout was triggered by Savannah Energy’s decision to cut off gas supply to the plant.

 

 

 

 

He claimed that Savannah Energy subsidiary’s actions sabotaged their efforts to provide electricity to the state.

 

 

 

In a statement on Saturday,Savannah Energy,attributed the power cut in Akwa Ibom State to the reported fault in the 132-KV Aba-Itu transmission line,which, it said,is preventing power being transmitted from the national grid into the state.

 

 

 

The statement quoted that it’s imperative that the restoration of the Aba-Itu line is completed as soon as possible.

 

 

 

It added:”Ibom Power Company (“IPC”) is one of 23 thermal power generation companies which channel power to the national grid, which in turn disseminates all accumulated power to each State of the Federation through the electricity distribution companies (“Discos”).

 

 

 

“Indeed,Accugas supplies gas to enable c. 20% of Nigeria’s thermal generation capacity and, as such, is a critical enabler of the Nigerian economy”.

 

 

 

The statement also quoted that within Akwa Ibom,Accugas has been the sole supplier of gas to IPC since 2014 and, together with other Savannah subsidiaries, has invested over US$1.5 billion in gas development within the state.

 

 

 

Besides,Savannah has recently invested c. US$45 million in a gas compression project at Accugas’ Uquo central processing facility at Esit Eket. Accugas’ commitments also extend to several social investment projects in the state.

 

 

 

It said:”All the foregoing investments and projects, including other imminent investments Accugas intends to make in the State, demonstrate the company’s long-term commitment to Akwa Ibom State and Nigeria.

 

 

 

“Accugas will continue to partner with, and support, the government of Akwa Ibom State towards achieving the government’s agenda for economic development and prosperity of the state”.

 

Expert Queries N200bn Meter Fund

 

Mohammed Shosanya

 

 

The National President of the Association for Public Policy Analysis (APPA),Chief Princewill Okorie,has queried the disbursement of the N200billion earmarked for National Mass Metering Policy (NMMF ) in the country.

 

 

 

He lamented that the fund is yet to be accounted for since  2020 when sum of N200 billion was earmarked for the meter project.

 

 

 

He spoke at the 4th Edition of the Annual Workshop of the Power Correspondents Association of Nigeria (PCAN) in Abuja.

 

 

 

 

He said: “We were told that it was to be implemented in three phases to improve collection and reduce losses. At the pilot phase, N59 billion was disbursed to the eleven electricity distribution companies under the programme. How many meters were distributed? Who are the beneficiaries? How much revenue has been generated as a result of provision of meters that were meant to reduce losses?

 

 

 

 

“What has happened to the remaining amount after N59 billion was removed from N200 billion? Has the National Mass Metering Program ended? Instead of getting answers to those pertinent questions,we now hear that 1.8 million meters are being procured by the Federal Government.

 

 

 

“Consumers are placed in bands that make them pay exorbitant bills without getting the light. The same consumers are told to buy meter under meter assets provider (MAP) with the promise of getting refunded through energy credit which is not done after consumers pay for meters. They are made to pay meter acquisition fund”.

 

 

 

He also lamented that twelve years after the privatisation,the sector is still struggling to generate about 4,000 megawatts of electricity with high level of corruption, consumer extortion and exploitation through metering and billing policies.

 

 

 

 

Also speaking,a renowned industry expert, Mr Edu Okeke, recommended a $500 million capital base for each of the Distribution Company (DisCo) operating in the country.

 

 

 

 

He emphasized that the capitalisation would ensure the liquidity of the power sector, and stabilise the capital structure of the DisCos.

 

 

 

 

According to him, just as the Central Bank of Nigeria (CBN) has raised the capital requirements for banks to ensure their stability and capacity to serve, the Nigerian Electricity Regulatory Commission (NERC) should mandate similar capitalization standards for DisCos.

 

 

 

He said, no DisCo should operate without at least N250m in shareholder funds.

 

 

 

“As things stand, even with tariff adjustments, many DISCOs struggle to pay their total bills to the entire value chain. This is largely due to their lack of capacity to make the necessary investments to recover costs effectively. To enable meaningful progress, DisCos must be adequately capitalized.

 

 

“Unfortunately, most DISCOs have negative equity, leaving them with little to no financial stake. This situation must change. Ideally, No DisCo should operate without at least N250m in shareholder funds.

 

 

 

“Just as the Central Bank of Nigeria has raised capital requirements for banks to ensure their stability and capacity to serve, the Nigerian Electricity Regulatory Commission (NERC) should mandate similar capitalization standards for DisCos.

 

 

 

 

“Many DisCos also carry a heavy burden of debt, accumulated over time through a mix of operational challenges and systemic issues. To truly address this problem, the Government needs to come clean and take a decisive step.

 

 

 

“My recommendation is a two-pronged approach: to consider removing these debts from the DISCOs’ books and mandating them to increase their capital by at least USD 500 million each.

 

 

 

“This will require existing shareholders to dilute their holdings to attract new investors with real capital to invest in infrastructure — not just on paper, but in transformers, cables, and equipment to serve customers reliably,” Okeke said.

 

 

 

He expressed the critical need for stable power supply in Nigeria, if the country must make any meaningful progress.

 

 

 

“Without stable power, our industries are bound to the cost and inefficiency of diesel generators, which ultimately makes our locally-produced goods more expensive than imported alternatives.

 

 

 

“This imbalance discourages local production and contributes to a widening trade deficit, depreciating currency, and persistent inflation. Stable power is not merely a convenience but the engine that drives our economy,” he said.

 

 

 

 

A’Ibom Governor Fires Ibom Power Boss 

 

Mohammed Shosanya

 

 

Akwa Ibom State Governor, Pastor Umo Bassey,has sacked  Engr. Meyen Etukudoh as the Managing Director of Ibom Power Company Limited.

 

 

 

 

The letter announcing the Ibom Power boss’ sack emerged four hours after Etukudoh’s public declaration of Savannah Energy as reason behind the statewide blackout.

 

 

 

The statement by Ibom Power, dated November 14, 2024 had explained that the blackout was triggered by Savannah Energy’s decision to cut off gas supply to the plant.

 

 

 

The company claimed that Savannah Energy’s actions sabotaged their efforts to provide electricity to the state.

 

 

 

“It is noteworthy that during incidents of national grid collapses that have caused nationwide outages more than twelve (12) times this year alone, Akwa Ibom State was exempted from the nationwide outages because Ibom power plant continued to supply the state on Island mode.

 

 

 

“Regrettably, our gas supplier, Savannah Energy recently sabotaged the laudable efforts of lbom Power by cutting off gas supply to the Ibom power plant. This loss of gas supply coincided with a reported fault on the 132V Itu-Aba Transmission Line, which transports power from the national grid in and out of the state, hence the state-wide outage”,the statement added

 

 

 

But in a swift reaction,Akwa Ibom State Governor, Pastor Umo Eno,  in a letter signed by the Secretary to State Government and dated. November 14, 2024  announced a relieve of the Managing Director of Ibom Power Company Limited, Engr. Meyen Etukudoh of his appointment with immediate effect.

 

 

 

The letter based the governor’s decision “as part of the ongoing restructuring exercise of this administration, to align with the machinery of government in the power sector to the ARISE agenda.

 

 

 

The letter directed Engr. Etukudoh to handover to the Hon. Commissioner, Ministry of Power, who will oversee the company till further notice.

 

 

The Ibom Power boss, Engr Meyen Etukudo had recently appeared before the Akwa Ibom State House of Assembly Committee on Power, where he made case for a turnaround upgrade of the state power plant for optimal performance.

 

 

 

The legislature had during the meeting, raised concerns over the power company’s inability to contribute to internally generated revenue of the state, and for taking foreign loans without the approval of the legislature.

 

 

Oyebanji Approves N1.3bn For Expansion Of Electricity Projects 

Oyebanji Approves N1.3bn For Expansion Of Electricity Projects

Mohammed Shosanya

 

 

Ekiti State Government has approved another sum of about N1.3 billion for electricity projects .

 

 

 

The projects will include purchase of transformers, installation of solar streetlights to extension of current to communities that had hitherto been without electricity across the state.

 

 

 

 

The State Commissioner of Information, Rt. Hon Taiwo Olatunbosun who made this known in Ado Ekiti,said the State Executive Council’s approval was part of the efforts to boost the supply of electricity in the state.

 

 

 

 

The projects will include the extension of electricity and installation of transformers in the Osekita community, Iworoko Ekiti and Idi-Aagba community off Ilawe Rd, Ado Ekiti, the Efon Alaaye Water Treatment Plant (WTP) of the Ekiti State Water Corporation (EKSWC) and the installation of solar streetlights at GRA 3rd Extension Off NTA Road, DE Head area at EKSU Road to Olorunsogo zone and Faglo area at Old Iyin road to Ijadu Junction in Ado Ekiti.

 

 

 

 

He explained that the state government has a new policy initiative of using solar lamps for road illumination instead of the traditional diesel generator-powered lamps for sustainability.

 

 

 

He added that the move was also to ensure a safe, healthy and steady supply of water since the Water Treatment Plants (WTP) in the state need reliable power supply to function properly.

 

 

 

 

According to him, some of the benefiting areas were rapidly developing but unserved communities that despite being heavily populated and have many Small and Medium-sized Enterprises (SMEs), have been without electricity for several years.

 

 

 

He said the state government was also embarking on a proactive, cost-saving, and anticipatory-buying approach to deflect the impact of the prevalence of price instability induced by galloping inflation in the country.

 

 

 

 

 

 

 

Don’t Flout Directive On Meter Replacement,FCCPC Warns DisCos

 

Mohammed Shosanya

 

The Federal Competition and Consumer Protection Commission (FCCPC) has expressed concern over recent rumours that its directive to Ikeja and Eko Electricity Distribution Companies (IKEDC and EKEDC) to immediately cease all activities related to the planned replacement of Unistar meters may be flouted.

 

 

 

Mr.Ondaje Ijagwu,Director, Corporate Affairs,who conveyed this in a statement said the directive remains in full force, and any attempt by these DisCos to proceed in contravention of it will attract severe consequences.

 

 

 

It said,contrary to recent rumours, the approval of new meter prices by the Nigerian Electricity Regulatory Commission (NERC) has no connection with the proposed replacement of Unistar meters by IKEDC and EKEDC.

 

 

 

According to the agency,the planned replacement has been invalidated by both the FCCPC and NERC, and there is no indication that the affected DisCos have breached its directives.

 

 

 

 

It added:”It is essential to clarify that Ikeja and Eko DisCos cannot proceed with the withdrawal or replacement of the Unistar meters unless they fully comply with NERC’s Order on Structured Replacement of Faulty and Obsolete End-user Customer Meters in the Nigerian Electricity Supply Industry (Order No. NERC/246/2021).

 

 

 

 

“The order mandates that meter replacements must be prompt, without disrupting service and at no cost to the consumer; and ensuring that consumers are not subjected to estimated billing due to delayed installations.

 

 

 

“The FCCPC’s position remains clear: non-compliance with these directives by Ikeja and Eko DisCos will not be tolerated. Any breach of this directive will attract stiff penalties in line with the provisions of existing consumer protection laws.”

 

 

The FCCPC advised consumers  to contact the FCCPC on the Commission’s line, 08119877785, dedicated to electricity issues, should they encounter any attempts by Ikeja or Eko DisCos to disobey this directive.

 

 

 

The FCCPC, said it remains unwavering in its commitment to safeguarding the rights of Nigerian consumers against unfair practices by service providers.

 

 

 

 

Disconnection:IBEDC Insists UCH Must Settle N400m Outstanding Debt

     Mohammed Shosanya

 

 

Ibadan Electricity Distribution Company (IBEDC) has implored the University of Ibadan Teaching Hospital,UCH to settle its  outstanding debt to enable it to enjoy uninterrupted power supply.

 

 

 

 

The power company had disconnected the teaching hospital on account of its N400million unpaid electricity debt.

 

 

 

 

 

The power company said in a statement on Wednesday that it’s expected to meet 100% of its market obligations, and the outstanding debt from major customers like UCH directly contributes to the liquidity crisis within Nigeria’s power sector.

 

 

 

Expressing sympathy for the hospital’s situation but confirmed that the disconnection was due to UCH’s significant outstanding debt,the company said it was compelled to take this course of action as it faced  increasing pressure to meet our financial obligations to the market.

 

 

 

 

It reiterated its commitment to working with UCH and remains open to discussions on a flexible payment arrangement that could be mutually agreed upon by both parties.

 

 

 

It added:”IBEDC continues to advocate for timely payments from all customers, stressing that a stable and reliable power supply is dependent on the financial health of the sector. The company called on UCH and all other customers to settle their arrears to help resolve the ongoing challenges facing Nigeria’s electricity distribution system”.