GenCos Fault NERC Over N1.7trn Shortfall Funding Plan
The electricity generation companies (GenCos), yesterday, raised the alarm over the Federal Government’s failure to make plans on how to fund the N1.7trillion shortfall in either the annual budget or in the 2015 Multi-Year Tariff Order (MYTO).
Speaking for the generator firms in a statement, yesterday, under the umbrella of Association of Power Generation Companies (APGC), the Executive Director, Barrister Joy Ogaji, urged the government to mention its funding initiative for the shortfall.
The spokesperson of the GenCos said that, “Generation companies have raised concerns regarding the tariff review, scheduled to be effective on the 1st of April, 2020. The GenCos concerns relates to the fact that NERC has not captured all the ‘changes’ in the relevant macroeconomic variables and available generation capacity in updating the operating MYTO-2015 in line with the provisions of the MYTO Methodology.
“The seeming gaps are shown through the four parameters considered in the minor review namely: inflation, interest rates, exchange rates and generation capacity as it affects or impacts our business.
“Dealing with market shortfall holistically, we are concerned about the financing of the shortfalls, given that there is no provision in the 2019 or 2020 budget. What is the PSRP financing initiative?
“What is not clear is who will take charge of the financing plan. Do these plans and facilities even exist? If so, what are the terms under which they were created, if not in existence, right now, who is working to create them and when would they be ready?”
It would be recalled that the commission had revealed its plans to stop the payment of any form of tariff support except for the less privileged in the sector by 2021.
In its memo titled “Consultation paper on the proposed extra -ordinary tariff review of the MYTO-2015 Tariff Order for the Nigerian Electricity Supply Industry (NESI)”, NERC said that it had intervened in shortfall payment of N701billion in 2017 and 2018 and another N600billion approved between 2019 and 2020, totalling N1.7trillion support for the sector since 2015.
The commission, however, submitted in the memo that, “While the intervention so far represents an unsustainable fiscal burden on the Nigerian treasury, the total tariff-related revenue shortfall for all market participants for the period 2015 – 2019 is in the sum of ¦ 1.72trillion.”
But Mrs. Ogaji, yesterday, asked the NERC to explain how it arrived at the MYTO review that refused to capture the shortfalls in the sector.
She was worried about the inequitable manner of the remittances requirements of the review tariff order.
According to her, whereas the tariff review makes provision for GenCos to receive 36 per cent of their revenue requirement, the DisCos are to receive 100 per cent of theirs.
Ogaji said that “Equitability: DisCos Remittance Water fall for year 2020 of the minor review indicates that GenCos on average will receive 36 per cent of their revenue requirement while DisCos will receive 100 per cent if they fulfil their obligations.
“Why this difference? What’s the justification behind GenCos getting 36 per cent of their revenue requirement, while the DisCos receive a 100 per cent if it just manages to make the minimum remittance which from our investigation DisCos have not adhered to?”
The GenCos also asked the commission to address the issue of previous failed reviews and state how to make a difference in the current review.
She said that “Framework for monitoring and enforcement: The regulator needs to address the issue of previous failed reviews and how this review will be different in terms of effectiveness/implementation. The GenCos will further appreciate if the regulator can critically look into the following:
“The issue of the requirement for DisCo revolving letter of credit to NBET. Is any modality in place to ensure that the DisCos provide the required three months revolving letter of credit? If not, this review is as good as the rest!
“There has to be an effective mechanism for the payment of revenue shortfalls outside the current best endeavour conjecture. Payment delayed is payment denied, and the cost of such delays should serve as an input to the tariff in the form of cost to the GenCos (considering the time value of money).
“Are there back-to-back data from the DisCos, including trend analysis, to support the ability to distribute such levels of energy? Relative to proof of DisCos investments in capacity improvements tied to such levels of energy delivery improvements.”
Wike, Promise Keeper – Eze Gbakagbaka
His Majesty, Eze Oha Evo III, King Leslie Nyebuchi Eke, has described the Rivers State Governor, Nyesom Ezenwo Wike, as an astute leader and a promise keeper.
Eze Eke stated this when he spoke with newsmen at the commissioning of Rumuigbo internal roads in Obio/Akpor Local Government Area, yesterday.
Governor Wike, he said, has so far proven that he has the interest of the state at heart, and expressed satisfaction over the Governor’s continuous project execution even towards the end of his administration.
According to him, the internal roads built by Governor Wike have opened the area to new trench of business and economic activities.
He noted that the community has now become a bee hive of business activities due to the roads.
The Evo King recalled how floods ravaged the area in recent times, but said such now belong to history due to Wike’s intervention.
On the recently commissioned phase one of the Trans-Kalabari Road, he said it has exposed the riverine communities to business activities as well.
He noted that the prices of commodities in the area will now stabilise as more business operators will be trooping into the place.
“The jinx of monopolistic operation is now broken. Everyone in the area will now be moved to do one business or the order. I think the Trans-Kalabari Road is one in million. Kudos to Governor Nyesom Ezenwo Wike”, he said.
He also called on the people to jettison all forms of rancour and acrimony and give the in-coming administration under the leadership of Sir Siminialayi Fubara the needed support in order to enable him execute more people-oriented projects like the out going governor.
The monarch, who supported the idea of ‘Consolidated Government’, revealed that it would bring about rapid development in the state.
“My thinking is that Consolidation is necessary. For instance, the beauty of governance in Lagos State is that they maintained one party over the years, which has addressed the issue of abandoned projects”, he said.
The Governor Nyesom Wike-led administration has executed more projects in the state than any other government with no record of abandoned project.
By: King Onunwor
Pensioners Demand Separate Ministry Under Tinubu’s Govt
Nigeria Union of Pensioners (NUP) has called on the President-elect, Sen. Bola Tinubu, to create a ministry that will be saddled solely with the responsibility of addressing the plights of retirees in the country.
The South-West zone of NUP made the call after its quarterly meeting in Abeokuta, yesterday.
The Tide source reports that the meeting was attended by chairmen and secretaries of NUP from Ogun, Oyo, Ondo, Osun, Lagos and Ekiti states.
Speaking with newsmen after the meeting, the Zonal Public Relations Officer of NUP in the zone, Olusegun Abatan, said that the creation of the ministry would turn the fortunes of pensioners around in the country.
Abatan called on Tinubu to do more for pensioners when he assumed office as president.
“President Muhammadu Buhari has done quite a lot for pensioners. He really helped them and so we are appealing to Tinubu to please give the matter of pensioners serious attention.
“We want a separate ministry that will be solely addressing matters that have to do with pensioners under the administration of Tinubu,” he said.
Abatan alleged that governors of South-West states were owing pensioners in the zone huge sums as gratuities and pensions.
He urged all the governors in the zone to implement the consequential adjustment and the 35 per cent increment in pensions without further delay.
Abatan particularly cited Ogun, Ekiti and Osun states where he claimed that the gratuities of pensioners were paid last in 2012.
“They are owing arrears of pensions, gratuities and other entitlements, including gratuities and entitlements to the next of kin of some deceased pensioners.
“We want to appeal to our governors to step up their interests in the affairs of pensioners,” he said.
We’ll Defend PDP’s Mandate Secured During The Election In Rivers -Wike
Rivers State governor, Chief Nyesom Wike, says the Peoples Democratic Party (PDP) in the State will defend the mandate that was been given to all of its candidates in the 2023 general election.
The governor noted that soon the various election tribunals will commence sitting where the mandate will be challenged, but the PDP will stand in defence of its candidates to ensure that the mandate is not stolen.
Governor Wike gave the assurance when he spoke at a luncheon organised to celebrate the PDP candidates who won their election and have been presented with their Certificates of Return by the Independent National Electoral Commission.
Those honoured with the luncheon at the Banquet Hall of Government House in Port Harcourt on Wednesday were the Governor-elect, Sir Siminialayi Fubara, Deputy Governor-elect, Prof. Ngozi Odu and other elected Representatives of Rivers State to the National and Rivers State House of Assembly.
Governor Wike pointed to the fierce political battle that was experienced during the general election and that if not for God, the victory that PDP is celebrating today would have eluded it.
The Rivers State governor told those who have been elected to the National Assembly to support every cause that promotes national unity, while placing the interest of the State paramount at all times.
He explained the importance of working in tandem with the State on any cause, whether it is suiting to them or not, but because it is expedient in advancing the interest of the State.
Governor Wike pointed to some Rivers leaders who went to Abuja and betrayed the interest of the state. He said they have become the greatest losers and fallen out of relevance in the State.
The governor also urged the elected representatives to trend with caution and never use their elevated positions to undermine or antagonise existing leadership structure in their various local government areas.
He told them not to abandon those who have contributed sundry efforts to ensure that their emergence at the polls was successful.
Governor Wike scolded Hon. Nwanaka Okpokiri, the member representing Ahoada West State constituency, for working against the success of the PDP in the last general election, but failed.
In his speech, Rivers State Chairman of PDP, Ambassador Desmond Akawor, said there is massive celebration across the State over the victory of the party in the last general election.
He noted as astute the leadership governor Wike provided in leading the party in a fierce electoral battle that has produced youngest governor-elect in Nigeria, Sir Siminalayi Fubara.
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