Oil & Energy
SURE Vows To Implement Programme
The Chairman, Subsidy Reinvestment and Empowerment (SURE) Committee, Dr Christopher Kolade, has said that the on-going subsidy probe by the National Assembly would not impede the coommittee’s work.
Kolade stated this in an interview with the State House Correspondents after a closed-door meeting of members of the committee with President Goodluck Jonathan at the State House, Abuja.
He said the mandate of the committee was to manage the funds saved from subsidy removal and use it to prosecute certain projects.
Kolade said its mandate was distinct from the allegation of mismanagement of the subsidy regime.
The SURE chairman noted that members of the committee were at the State House to present their first report to the president and brief him on how far they had gone.
“All we’ve done today is to tell the President how we are organising the work, how we are working with the other parts of the public service which are handling the projects.
“And we’ve done that so that he knows what is going on and as you could see, not just ourselves, some ministers were also there.
“So everybody now knows how far we’ve gone and they have been able to tell us what they think about what we have done so far.
“So, we are going back to build on that and to try to implement going forward.’’
Kolade added that the committee had redesigned its programme based on the funds made available to it and that it was receiving maximum support from relevant government agencies, pointing out that the committee had completed all the needed preliminary work and ready to go to implementation stage to speed up its job.
It would be recalled that the president inaugurated the committee in February to ensure the effective and timely implementation of projects to be funded with the savings accruing to the Federal Government from subsidy removal.
The committee was originally mandated to utilise at least N480 billion Federal Government’s shares of the accruals from the total deregulation of the petroleum downstream sector, and with the partial deregulation regime, however, the Federal Government share of the subsidy fund was reduced to N180 billion.
The N180 billion was separately captured in the 2012 budget as assented to by the President on April 13 for implementation of projects captured under the SURE programme.
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Delta Targets 120MW Power Boost, Moves To Cut Reliance On National Grid
The State Commissioner for Works (Rural Roads) and Public Information, Charles Aniagwu, disclosed this at a press conference in Asaba, weekend, noting that the initiative was part of wider reforms aimed at opening up the power sector to private investors.
Aniagwu, who was accompanied by the Executive Assistant to the Governor on New Media, Felix Ofou, said the state was exploring alternative sources of electricity to support businesses, households and communities while reducing pressure on the national grid.
He said the government was particularly interested in exploiting Delta’s abundant natural gas resources for power generation, pointing to the Kwale Free Trade Zone, which is part of the state’s special economic zone, as a major opportunity for investors.
According to him, prospective investors were taken to the zone during the state’s recent economic summit to enable them to assess the availability of gas as a key raw material for electricity generation. ComparePower Rates
The commissioner explained that generating more electricity locally would not only increase supply in Delta but also free up power on the national grid for use by other consumers.
Aniagwu cited the 8.5MW Independent Power Plant located behind the state secretariat in Asaba as an example of what could be achieved through alternative power sources.
He said the facility had enabled the secretariat complex to operate independently of the national grid, thereby making the electricity that would otherwise have been consumed there available to other users.
He added that the planned 120MW partnership with Supply Power would further strengthen the state’s electricity supply capacity and provide a more reliable power base for small and medium-sized enterprises.
Aniagwu said the state government was also intervening in areas traditionally regarded as the responsibility of electricity distribution companies because inadequate power supply could no longer be allowed to constrain economic development. LearnQuantum Physics
He identified the extension of the electricity grid from Abraka towards the Ndokwa axis as one of the interventions being undertaken to connect more communities to electricity.
The commissioner, however, raised concerns over the burden placed on communities that are often required to provide transformers and other electricity infrastructure, only for distribution companies to take over the facilities and subsequently collect electricity bills without adequately accounting for the investments made by the communities.
He said the state would continue to support efforts aimed at energising communities, noting that improved electricity supply would stimulate businesses, create jobs and help tackle social problems associated with unemployment and idleness.
On regulation, Aniagwu said the government was working with the Ministry of Energy and a committee set up to develop an appropriate regulatory framework for the state’s emerging power sector. SwitchEnergy Plans
He said the proposed energy commission would be responsible for regulating new electricity producers, determining appropriate tariffs and overseeing distribution networks.
The commissioner stressed that liberalising the sector required effective regulation to protect consumers and investors, adding that decisions on power distribution infrastructure, including the use of overhead or underground lines, must take into account the peculiarities and safety requirements of each location.
He warned that power expansion without adequate regulation could expose residents to electrocution and other hazards, stressing the need to protect electricity infrastructure while ensuring consumers were not subjected to unfair pricing.
Aniagwu said the state government’s broader objective was to build an efficient and sustainable electricity market driven by private investment and capable of powering businesses, households and communities across Delta State.
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