FG to open talks on power tariff review, execution in Q3



NERC misses votive appraisal six times

By Adeola Yusuf


A fresh review and implementation of electricity tariff in Nigeria is underway.
This move, which, according to investigation by New Telegraph is a result of pressure by power investors, is buoyed by surge in deficit recorded across the power value chain.

For instance, Chairman of biggest thermal plant in sub-Sahara Africa, Egbin Power plant, Mr. Kola Adesina, told this newspaper on the side line of Ikeja Electric (IE) Young Engineers Programme (YEP) inauguration in Lagos, that the fresh review and implementation of the Multi Year Tariff Order (MYTO) is the best way to go for Nigeria Electricity Regulatory Commission (NERC).

Talks on the review and implementation, a source at NERC told this newspaper, is slated to begin in the third quarter of this year.

NERC, Adesina said, had already missed the contractually agreed review six times since the November 1, 2013 privatisation of the power industry.

The inability to effect a major review to bring about a cost-reflective tariff, he said, is one of the major hindrances to efforts by all stakeholders to end epileptic power in the country.

The distribution companies have kept on mounting pressure on government to review the tariff, but Adesina said that the need to mount pressure on government should not be limited to DISCOS.

All Nigerians, he said, should ensure that the review is carried out and implemented by NERC, because DISCOS, GENCOS and gas producers are all in business and without a cost reflective tariff, return in investment (RoI) cannot be guaranteed and without RoI, no meaningful success would be recorded in business.

“Last Wednesday was the first day for meter roll out and I believe by last Thursday most of them (Meter Asset Providers) would begin to see how fast they can roll out the meters. But my own view has always been that when you have a problem of this nature, you need a holistic way,” explained.

“But because the narrative of the power sector has shifted to metering as the supposed key solution here, we want to see if that alone can solve the problem, but I know it won’t solve the problem.”

Commenting on other issues that need to be addressed, Adesina said: “We still have many others within the value chain that needs to be solved, I give you an instance. Recently, we had serious power outage in Nigeria and the reason for that was gas. The gas provider had a leakage on the pipeline and in solving the leakage; every generation company had to run down their turbines because they can’t be supplying gas while they are preparing what needs to be repaired.

“We at Egbin have fixed all the turbines and all are functional to generate 1,320 megawatts today, but there is no gas and the system can’t be powered, gas available to us can probably give at best today 750 megawatts, that’s what we can do by way of gas supply. We have a plant with installed capacity of 1,320 MW, which it had not had since

inception; this is the first time all the units are available and ready to work and there is no gas, so, if gas is the issue, we should ensure gas availability as a nation.

“For us to have a holistic approach to the problem, Nigeria should not have just one pipeline supplying everyone. Nigeria should have multiple pipelines to all the power stations we have, such that if there is a shortage in one, they can divert gas to the other ones, that’s one side.”

He recalled that recently various speakers and president of the African Development Bank (ADfB) had said that without a cost-effective tariff, which is the fundamental in the power sector, Nigeria may not be able to get uninterrupted power supply.

“Once there is cost-reflective tariff and all the critical enablers, investors love profit and would want to make legitimate money,” he explained. “All those things we want to put in place can be put in place if the fundamentals are right.”
He declared that the major reason DISCOS are not doing well is because of lack of cost-reflective tariff.

“We ought to have got six tariff reviews in Nigeria. Six times and a tariff review hasn’t been done and yet high level of service delivery is expected? DISCOS are not doing well because the fundamentals are not right,” he declared.

“DISCOS are supposed to use N305 per dollar to charge consumers for the power they are using, instead they are using N199 to a dollar, so if the equipment got by DISCOS goes for N360 per dollar, which is the open market rate, then there is a big issue, we can’t be using N199 for DISCOS to charge consumers whereas generation charge DISCOS at N305 per dollar, someone is losing money and it’s the DISCOS.

https://www.newtelegraphng.com/2019/05/fresh-electricity-tariff-hike-underway/

After electricity, next one is PMS nigeria Is a country that Rubbing Peter to pay Paul is normal thing

Useless country

Hmmn, this country sef.

Soon zombies will all die of hunger and will not be able to pay for the unstable electricity

Increase what we don't use. I pity for this country. Getting worse everyday

weel power will be hard but hike or no hike...if they can guarantee 5 days power in a week.....i think it will be good.

Meanwhile, it will be good to have a backup plan by having a Romoss Powerbank

These current crop of leaders
are simply brain dead....... God!!!


Make God in his infinite mercy no
allow person born dunce like the lifeless one.


Tufiakwa!!

There was a country called..........

....because of small minimum wage make dem increase now everything must increase las las. This government too much sense will not kill U.

This calls for a revolution

Rubbish. They should come and carry their electricity. I dont need it.

Next level

SarkinYarki:
Soon zombies will all die of hunger and will not be able to pay for the unstable electricity

Lolz.................u are strong man

Since this APC government electricity tariffs have been in increasing in arithmetic progression without the corresponding geometric progression in stable and uninterrupted electricity No electricity, no industrialization, small scallers cannot survive, there if high unemployment, there is poverty everywhere. The woeful lists goes on and on. Na wao for #iger.

Kindly make plans to generate your own electricity
#solar energy

Next level.
Fuel will inevitably follow soon,then VAT or VAT before fuel.
Kerosene and gas will automatically follow fuel increase,then we will fully be in the next level.
Then as importers rush for funds to import more fuel and kero with the added price incentive,dollar rate will go up,market prices will go up to meet up with the inflationary trend and insecurity worsens as more not so resilient people are pushed into crime,as poverty levels grow exponentially.
Sai Baba.

Most of y'all need to be schooled Buhari, Nigeria is a scam, you signed new minimum wage in to Bill and the following moment, prices of goods and services start to climb ... What's the efficiency of the increment? Collect increment to pay increment.

Abeg, IBEDC should increase tarrif ooo, make them increase my own salary too.

HBD my brother ..... Happney65

Pay 30K with salary hand collect am back with tariff hand.

is okay, hope they are thinking of the people carrying the ladder Sha, because when people start bouncing on them , even the light will be forced to turn on by it self

GAZZUZZ:
Theres a limit to which you can hike, once nepa cost pass fueling gen, all man go use Generator.

at this point in time, I will expand by solar panels, and batteries to warm up for full time independence from Nepa.

ironing will be done with Gen.

Reminds me of Waterboard and Nitel

Where are they today

Good one from minister of darkness

minimum wage was increased and all avenues to make the lives of the people more difficult are being deviced. next level crooners , I hope you folks are spared from these ooo. 4+4 fellas smh

Nigeria can make you mute sometimes, you just shake your head, sigh and scroll to the next topic....

Dont know if something spoilt oo, but for 48hrs straight, not a single light.

Everybody is complaining the country is getting worse but yet THEY DON'T WANT IT TO BREAK UP

Then I begin to wonder WHAT TYPE OF HUMAN SPECIES ARE THESE?

Hike in tarrif amidst epileptic power supply...things in this country just seem to be getting from bad to worse.

I doubt if we get up to 3 hours of electricity daily since the turn of this year....as for dstv subscription I don't even look their way let alone take their calls , I can't come and be wasting money subscribing when there's no electricity to watch it.

It is well my fellow country men...a popular adage in my place goes thus; No amount of provocation or anguish can make the eyes shed blood.

Time. To stop...

GAZZUZZ:
Theres a limit to which you can hike, once nepa cost pass fueling gen, all man go use Generator.

at this point in time, I will expand by solar panels, and batteries to warm up for full time independence from Nepa.

ironing will be done with Gen.

Then you will be buying generator every 2 years if you use it for ironing on a regular basis.
Solar electricity in homes is a scam.
There is very limited things solar can power,even with the ones that you install for up to N1million.
The thing is incompetence has bedeviled us for long, particularly these past 4 years

Please, don't blame the government. They have promised to take all your bitterness, hunger, anger, unemployment, hardships etc, to the next level. Among all the promises made by the APC, I am 100% sure they will keep this one.

Contact me for genuine Powerbanks romoss-sense-8-30000mahromoss-lt20 etc contact me for more information on 08179801339

seborrhic:

Then you will be buying generator every 2 years if you use it for ironing on a regular basis.
Solar electricity in homes is a scam.
There is very limited things solar can power,even with the ones that you install for up to N1million.
The thing is incompetence has bedeviled us for long, particularly these past 4 years

This government na one chance government. Let's pray that one day Nigeria will get good leaders with human face.