Oil & Energy

New Tariff: PH Consumers Speak On Power Supply

Published

14 years ago

August 20, 2012

Mixed reactions have trailed the new electricity tarrif
introduced by the Federal Government on June I. Some residents of Port Harcourt
interviewed last week, expressed their views on the electricity supply by the
Power Holding Company of Nigeria (PHCN) within the past two months.

A high Chief Godswill Emenike said despite the high bills
sent to him at the end of every month, there has been no regular light in the
area he resides for the past five to six months.

According to Chief
Emenike who resides in the Rumuodomanya area of Port Harcourt,
electricity bill has been higher than ever before while the light is not
regular, saying “some days it comes for 3-4 hours and goes off for the next 4-5
days.”

“Like every other building in Port Harcourt, the PHCN staff
do not read meters but only send estimated bills for people to pay exorbitant
charges. In a 2-bedroom flat, they used to charge us between N1,200 to N1,500
according to what their computer tells them but this time, we pay N3,000 and
above and for the past 3-4 days we don’t have light.

He said when the light is regular, consumers would be happy
to pay any charge that is properly assessed.

Sylvester Udoji Mbam, who sells generators said that from
June I, electricity supply has assumed a new dimension as light has been more
regular and steady than before.

“From that June till now, light has been different unlike
before but electricity bill has increased double compared to what we used to
pay. Although we have no meter in our yard, I used to pay N300 per month
because we are many, but now, I pay N600.”

According to him,” the regular electricity supply has
affected my business as I do not sell as before. Before now, I used to sell
about seven to eight generators in a day, but now if I am able to sell I or 2,
I thank God because some days I don’t even sell one.

He, however, expressed joy at the present development in
electricity supply, saying that he would wish to change his business if he had
the capital as he has no other option, adding “people go after generators when
there’s irregular power supply but now that the situation has changed a little,
people don’t care about generators any longer.”

Another resident, Ben Peters said although there is
improvement in electricity supply, the service is not yet up to standard as
PHCN staff do not read meters before billing consumers, noting that in a
building that has three meters, the consumers are charged about N70,000 per
month and N23,000 for each meter.

Calling on the federal government to revisit the new tariff
regime, Peters said because of the hard times and unemployment in the country,
majority of citizens can not afford the bills.

Chief Bethel Dappah in his view said there is improvement in
power supply but people should be provided with pre-paid meters as in other
parts of the country.

A hairdresser, Blessing Okon lamented the high bill she has
been receiving since June, saying they now pay between N40,000 and N50,000 per
month for one meter which she said is too much as she does not realize such an
amount in a month.

She said although electricity supply is better now but she
can not afford the bill, which she described as very outrageous and appealed to
the government to reconsider the new tarrif with a view to reducing it in the
interest of the poor masses.

Shedie Okpara

Oil & Energy

NERC, OYSERC Partner To Strengthen Regulation

Published

5 days ago

February 23, 2026

The Tide

THE Nigerian Electricity Regulatory Commission (NERC) has stressed the need for strict adherence to due process in operationalizing state electricity regulatory bodies.

It, however, pledged institutional and technical support to the Oyo State Electricity Regulatory Commission (OYSERC).

The Chairman, NERC, Dr Musiliu Oseni, who made the position known while receiving the OYSERC delegation, emphasised that the establishment and take-off of state commissions must align fully with the law setting them up.

Oseni said that the NERC remains committed to partnering with State Electricity Regulatory Commissions (SERC) to guarantee their institutional stability, operational effectiveness and long-term success.

He insisted that regulatory coordination between federal and state institutions is critical in the evolving electricity market framework, noting that collaboration would help to build strong institutions capable of delivering sustainable outcomes for the sector.

Also speaking, the Acting Chairman, OYSERC and leader of the delegation, Prof. Dahud Kehinde Shangodoyin, said that the visit was aimed at formally introducing the commission’s acting leadership to the NERC and laying the groundwork for a productive working relationship.

Shangodoyin said , the acting members were appointed to provide direction and lay a solid foundation for the commission during its transitional period, pending the appointment of substantive members.

“We are here to formally introduce the acting leadership of OYSERC and to establish a working relationship with NERC as we commence our regulatory responsibilities,” he said.

He acknowledged NERC’s readiness to provide technical and regulatory support, particularly in the area of capacity development, describing the backing as essential for strengthening the commission’s operations at this formative stage.

“We appreciate NERC’s willingness to support us technically and regulatorily, especially in building our capacity during this transition,” he added.

Oil & Energy

NLC Faults FG’s 3trn Dept Payment To GenCos

Published

5 days ago

February 23, 2026

The Tide

The Nigeria Labour Congress and the Association of Power Generation Companies have engaged in a showdown over federal government legacy debt.

NLC president Joe Ajaero has faulted the federal government’s move to give GenCos N3 trillion from the Federation account as repayment for a power sector legacy debt, which amounts to N6.5 trillion.

In a statement on Thursday, Ajaero said the Federal Government proposed the N3 trillion payment and the N6 trillion debt as a heist and grand deception to shortchange the Nigerian people.

“Nigerians cannot and should not continue to pay for darkness,” Ajaero stated.

Meanwhile, the Chief Executive Officer of the Association of Power Generation Companies, APGC, Dr. Joy Ogaji, said Ajaero may be ignorant of the true state of things, insisting that the federal government is indebted to GenCos to the tune of N6.5 trillion.

She feared the longstanding conflict could result in the eventual collapse of the country’s power.

According to her, the federal government’s N501 billion issuance of power sector bonds is inadequate to address its accumulated debt.

Oil & Energy

PENGASSAN Rejects Presidential EO On Oil, Gas Revenue Remittance ……… Seeks PIA Review

Published

5 days ago

February 23, 2026

The Tide

The Natural Gas Senior Staff Association of Nigeria(PENGASSAN) Festus Osifo, has faulted the public explanation surrounding the Federal Government’s recent oil revenue Executive Order(EO).

President of the association, Festus Osifo, argued that claims about a 30 per cent deduction from petroleum sharing contract revenue are misleading.

Recall that President Bola Ahmed Tinubu, last Wednesday, February 18, signed the executive order directing that royalty oil, tax oil, profit oil, profit gas, and other revenues due to the Federation under production sharing, profit sharing, and risk service contracts be paid directly into the Federation Account.

The order also scrapped the 30 per cent Frontier Exploration Fund under the PIA and stopped the 30 per cent management fee on profit oil and profit gas retained by the Nigerian National Petroleum Company Limited.

In his reaction, Osifo, while addressing journalists, in Lagos, Thursday, said the figure being referenced does not represent gross revenue accruing to the Nigerian National Petroleum Company Limited.

He explained that revenues from production sharing contracts are subject to several deductions before arriving at what is classified as profit oil or profit gas.

Osifo also urged President Bola Tinubu to withdraw his recently signed Presidential Executive Order to Safeguard Federation Oil and Gas Revenues and Provide Regulatory Clarity, 2026.

He warned that the directive undermines the Petroleum Industry Act and could create uncertainty in the oil and gas industry, insisting that any amendment to the existing legal framework must pass through the National Assembly.

Osifo argued that an executive order cannot override a law enacted by the National Assembly, describing the move as setting a troubling precedent.

“Yes, that is what should be done from the beginning. You can review the laws of a land. There is no law that is perfect,” he said.

He added that the President should constitute a team to review the PIA, identify its strengths and weaknesses, and forward proposed amendments to lawmakers.

“When you get revenue from PSC, you have to make some deductibles. You deduct royalties. You deduct tax. You also deduct the cost of cost recovery. Once you have done that, you will now have what we call profit oil or profit gas. Then that is where you now deduct the 30 per cent,” he stated..

According to him, when the deductions are properly accounted for, the 30 per cent being referenced translates to about two per cent of total revenue from the production sharing contracts.

“In effect, that deduction is about two per cent of the revenue of the PLCs,” he added, maintaining that the explanation presented in the public domain did not accurately reflect the structure of the deductions.

Osifo warned that removing the affected portion of the revenue could have operational implications for NNPC Ltd, noting that the funds are used to meet salary obligations and other internal expenses.

“That two per cent is what NNPC uses to pay salaries and meet some of its obligations.The one you are also removing from the midstream and downstream, it is part of what they use in meeting their internal obligations. So as you are removing this, how are they going to pay salaries?” he queried.

Beyond the immediate impact on the company’s workforce, he cautioned that regulatory uncertainty could affect investor confidence in the sector.

“If the international community and investors lose confidence in Nigeria, it has a way of affecting investment. That should be the direction. You don’t put a cow before the horse,” he added.

According to him, stakeholders, including labour unions and industry operators, should be given the opportunity to make inputs at the National Assembly as part of the amendment process saying “That is how laws are refined,”