Oil & Energy
Electricity Consumers Owe PHED N128bn -CEO
The Port Harcourt Electricity Distribution Company (PHED) has cried out over nonpayment of electricity bills by consumers as it is being owed over N28 billion and suffers loss of N3 billion annually to energy theft.
The Chief Executive Officer of the distribution firm, Syed Taha, who stated this while welcoming members of House of Representatives Committee on Privatisation and Commercialisation to its corporate headquarter in Port Harcourt last week, said it is worrisome that the outstanding debt, including pre-privatisation period owed PHED as at March this year, clocked N128billion.
Taha who was represented by the Chief People Officer, Mobolaji Ajani, stated that one of the major challenges facing the electricity industry is energy theft, describing it as a time bomb waiting to explode in destruction of properties, buildings and lives from fire outbreaks.
The Chief Executive revealed that the firm suffers a loss of over N3billion annually to energy theft as he said many of the company’s high and low tension poles have been destroyed by lorries,tippers and other vehicles arising from reckless driving and over speeding.
According to him, ”these incidents if not checked by the relevant regulatory agencies, may result into our customers being thrown into unwarranted darkness and loss of critical national assets in the country.
” We have lost over 300 transformers of various sizes to vandalism irrespective of the ones we have replaced. This act of vandalism extends to poles and cables which is further aggravated by agitation by affected communities, including the military”, he said.
On corporate social responsibility, Taha stated that PHED has demonstrated high level of responsiveness by embarking on ”Power Clinic” an initiative that affords her customers especially the aged to have access to basic free medical checks on their sugar level, blood pressure, eye test, among others.
According to him,” Aside the free medical checks, over 5000 school bags and writing materials have been distributed to school children in our coverage area”.
He explained further that the firm had donated football jerseys in a bid to encourage youths who have shown interest in sporting activities, adding that drugs have also been shared in rural communities.
Taha said the distribution of drugs to rural communities was done in partnership with the National Youth Service Corps, adding that the firm has other plans which focus on empowering the youth through small and medium entrepreneurship while leveraging on her model, yet budding energy efficiency programme.
The Chairman of the House of Reps Committee, Hon.Ahmed Yarima, said the National Assembly may present a motion to amend some of the clauses in the share purchase agreement in the privatisation and commercialisation of Public Enterprises of the Federal Government and PHED.
Yarima said the committee is determined to ensure that the right steps are taken towards resolving all challenges faced by PHED and other distribution firms.
He reminded that the committee is saddled with mandate, with all matters concerning privatisation and commercialisation of public enterprises under the Act and would send all findings to the National Council on Privatization (NCP) to ensure that the right steps are taken and challenges resolved.
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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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