Oil & Energy
PHCN: Sumonu Urges Payment Of Gratuity
The government negotiator in the face off between the workers of the Power Holding Company of Nigeria (PHCN), Comrade Hassan Sumonu, has recommended the payment of workers’ gratuity in line with company’s conditions of service.
Dismissing the argument that the Pension Reform Act (PRA) of 2004 abolished gratuity in PHCN or any other sector, Sumonu said there was no reference to gratuity in the Act therefore the company’s conditions of service on the payment of gratuity should be applied ahead of privatization.
He urged the authorities to look into the unions’ demand because the PRA 2004 did not abolish the payment of gratuity as a separate component of retirement benefit noting that the Act never abrogated the conditions of service of PHCN which was signed in March, 2010.
On the computation of severance package and benefits accruable to workers, the report recommended “five weeks salary for every completed year of service on Basic salary, subject to a maximum of 18 months.
Meanwhile the unions demanded five weeks salary for every completed year of service, computed on total emolument and not subject to any ceiling.
There has been a faceoff between government and the three unions in the power sector on the modality for the payment of workers’ pension and gratuity.
Government’s agents have argued that workers were entitled to pension and gratuity up to June 2004 and thereafter the provisions of the PRA 2004 should he maintained. The unions, on the other hand, have said that gratuity should be paid in line with the extant PHCN conditions of service as contrary to government’s stand, adding that the Act was not against payment of gratuity.
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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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