Oil & Energy
NERC’s APMI Scheme And Core Investors
Nigerians have been as sured of an improved power supply, following the privatisation of the Power Holding Company of Nigeria (PHCN).
The director general of the Bureau of Public Enterprises (BPE), Mr. Benjamin Dikki, in a statement signed by the Head of Public Communication, Chigbo Anichebe, said that the introduction of sound maintenance culture when the private investors take over, would ensure that the current installed capacity of 6000 mega watts was exploited and put on the national grid. He said that, that alone would stabilise power supply in the country.
Dikki therefore appealed to Nigerians to give the investors ample time to increase capacity as “they, (the investors) would after take over, retool and bring in new machinery like turbines which are not easily bought off the shelf to put power on proper footing”.
According to the BPE director general, the investors would need time to re-tool after take over, between a period of two to three years to bring in the required machinery after which the country would witness increased and steady power supply.
He also allayed the fears of monopoly by the investors as the necessary frame work and institutional checks had been put in place to regulate their activities and ensure appropriate pricing.
This is just one amidst the numerous assurances for improved power supply given by the authority to Nigerians. But there seems to be a snag somewhere especially in the aspect of the order by the Nigerian Electricity Regulatory Commission (NERC) directing all the Electricity Distribution Companies to commence the implementation of a new metering scheme known as Credited Advance Payment for Metering Implementation (CAPMI).
According to NERC CAPMI’s objectives are reduction of the large number of un-metered customers, the elimination of the abuse of estimated billing, improvement of revenue collection and reduction of commercial losses.
NERC describing the scheme as a new accelerated scheme for electricity meter deployment, said it was necessary because of the high level of complaints from customers and dissatisfaction with the current estimated billing practices.
Under CAPMI scheme willing customers would be required to advance the cost of the meter and associated installation cost approved by the NERC. It assured that within 45 days of advanced payment by customers, the meter of which type is dependent on the amount paid by the customer, would be installed.
NERC’s order for immediate implementation of CAPMI implies that the acquisition and implementation of the CAPMI scheme is to be carried out by the present management of DISCOS. The type, design and features of the meters are to be determined by the present DISCOS. The CAPMI core message by NERC reads partly.
“Under the CAPMI scheme, customers who are willing to participate will be required to advance the cost of the meter and associated costs approved by NERC. Once the money is advanced, the customer will get a meter installed within 45 days of payment.
The amount to be paid by the customer will depend on the type of meter installed. No profit shall be made by the DISCO in the supply of the meters”. These are some of the mandates issued by NERC to be carried out by DISCOS so what happens when the actual investors take over? How can these be reconciled? What if the designs, types and features of the meters do not meet the expectation of the new investors? Who will then bear the brunt? Metering no doubt is fundamental to the collection of revenue and protection. It is to a large extent key to the anticipated stable power supply. But where this is handed over to the same managers whose ineptitude in the management of the distribution facilities leaves much to be desired what happens?
The inability to account for the energy got from the national grid and the losses in the power sector took place under the watch of the same DISCOS that have been asked to implement the CAPMI scheme. So how will the desired change in the power sector come to be?
According to a power expert, the would-be investors should be able to determine what type of technology the meter should be made of and the upgrading cost. The technology choice with existing facilities would create a room for smooth integration.
He argued that it would be in the best interest of the sector if the expected target was to be achieved, to allow the new investors to decide what type and quality of meters to be installed in their respective distribution zones pointing out that this would make them to be more responsible to it thus resulting in efficiency in its management.
He explained further that ordering for immediate implementation of the CAPMI scheme by the present DISCOS was more like making investment decisions for the new investors and this cannot allow for free market operation which privatisation was targeted at.
Allowing the new investors to make decisions as to the types of meter to be installed, the way it should be installed among others, he opined, would not only protect the new investors revenues which is paramount to them but would be favourable to electricity consumption and enhance efficiency thus resulting in improved power supply.
Nigeria’s losses due to crude oil theft has been said to be more significant than those of some other members of the Organisation of Petroleum Exporting Countries(OPEC).
The Chairman, Senate Ad- hoc Committee on Crude Oil Theft, Senator Ned Nwoko, made this known in an interview with newsmen in Abuja.
Nwoko noted with dismay the detrimental impact of the issue, which, he said include economic damage, environmental destruction, and its impact on host communities.
According to him, the theft was not only weakening the Naira, but also depriving the nation of vital revenue needed for infrastructure, healthcare, education and social development.
The Senator representing Delta North Senatorial District described the scale of the theft as staggering, with reports indicating losses of over 200,000 barrels per day.
Nwoko disclosed that the ad hoc committee on Crude Oil Theft, which he chairs, recently had a two-day public hearing on the rampant theft of crude oil through illegal bunkering, pipeline vandalism, and the systemic gaps in the regulation and surveillance of the nation’s petroleum resources.
According to him, the public hearing was a pivotal step in addressing one of the most pressing challenges facing the nation.
‘’Nigeria loses billions of dollars annually to crude oil theft. This is severely undermining our economy, weakening the Naira and depriving the nation of vital revenue needed for infrastructure, healthcare, education, and social development.
‘’The scale of this theft is staggering, with reports indicating losses of over 200,000 barrels per day more than some OPEC member nations produce.
‘’This criminal enterprise fuels corruption, funds illegal activities and devastates our environment through spills and pollution.
‘’The public hearing was not just another talk shop; it was a decisive platform to uncover the root causes of crude oil theft, bunkering and pipeline vandalism.
‘’It was a platform to evaluate the effectiveness of existing surveillance, monitoring, and enforcement mechanisms; Identify regulatory and legislative gaps that enable these crimes to thrive.
‘’It was also to engage stakeholders, security agencies, host communities, oil companies, regulators, and experts to proffer actionable solutions; and strengthen legal frameworks to ensure stricter penalties and more efficient prosecution of offenders”, he said.
Nwoko noted that Nigeria’s survival depended
Shell Nigeria Exploration and Production Company Ltd. (SNEPCo) has called on Nigerian companies to position themselves strategically to take full advantage of the growing opportunities in upcoming offshore and shallow water oil and gas projects.
The Managing Director, SNEPCO, Ronald Adams, made the call at the 5th Nigerian Oil and Gas Opportunity Fair (NOGOF) Conference, held in Yenagoa, Bayelsa State, last Thursday.
Adams highlighted the major projects, including Bonga Southwest Aparo, Bonga North, and the Bonga Main Life Extension, as key areas where Nigerian businesses can grow their capacity and increase their involvement.
“Shell Nigeria Exploration and Production Company Ltd. (SNEPCo) says Nigerian companies have a lot to benefit if they are prepared to take advantage of more opportunities in its offshore and shallow water oil and gas projects.
“Projects such as Bonga Southwest Aparo, Bonga North and Bonga Main Life Extension could grow Nigerian businesses and improve their expertise if they applied themselves seriously to executing higher value contracts”, Adams stated.
Adams noted that SNEPCo pioneered Nigeria’s deepwater oil exploration with the Bonga development and has since played a key role in growing local industry capacity.
He emphasized that Nigerian businesses could expand in key areas like logistics, drilling, and the construction of vital equipment such as subsea systems, mooring units, and gas processing facilities.
The SNEPCO boss explained that since production began at the Bonga field in 2005, SNEPCo has worked closely with Nigerian contractors to build systems and develop a skilled workforce capable of delivering projects safely, on time, and within budget both in Nigeria and across West Africa.
According to him, this long-term support has enabled local firms to take on key roles in managing the Bonga Floating, Production, Storage and Offloading (FPSO) vessel, which reached a major milestone by producing its one-billion barrel of oil on February 3, 2023.
The Emohua Local Government Area Administrator, Franklin Ajinwo, has pledged to improve electricity distribution in Oduoha Ogbakiri and its environs.
Ajinwo made the pledge recently while playing host in a courtesy visit to the Oduoha Ogbakiri Wezina Council of Chiefs, in his office in Rumuakunde.
He stated that arrangements are underway to enhance available power, reduce frequent outages, and promote steady electricity supply.
The move, he said, was aimed at boosting small and medium-scale businesses in the area.
“The essence of power is not just to have light at night. It’s for those who can use it to enhance their businesses”, he said.
The Administrator, who commended the peaceful nature of Ogbakiri people, urged the Chiefs to continue in promoting peace and stability, saying “meaningful development can only thrive in a peaceful environment”.
He also charged the Chiefs to protect existing infrastructure while promising to address the challenges faced by the community.
Earlier, the Oduoha Ogbakiri Wezina Council of Chiefs, led by HRH Eze Goodluck Mekwa Eleni Ekenta XV, expressed gratitude to the Administrator over his appointment and pledged their support to his administration.
The chiefs highlighted challenges facing the community to include incessant power outage, need for new transformers, and the completion of Community Secondary School, Oduoha.
The visit underscored the community’s expectations from the LGA administration.
With Ajinwo’s assurance of enhancing electricity distribution and promoting development, the people of Oduoha Ogbakiri said they look forward to a brighter future.
By: King Onunwor