Oil & Energy
PHED Begins Public Consultation On Extraordinary Tariff Review
The Port Harcourt Electricity Distribution Plc has concluded arrangement to host public consultation with its customers in Akwa Ibom, Bayelsa, Cross River and Rivers states ahead of the proposed tariff review that is expected to take off by April 1, 2020.
The Nigerian Electricity Regulatory Commission (NERC) had announced an increment in electricity bills, following complaints by the electricity Distribution Companies (DisCos) that the current tariff do not reflect market realities.
The Manager, Corporate Communications, PHED, John Onyi, in a statement said that various dates have been chosen in the company’s franchise area starting from February 29, 2020 in Calabar; March 6, 2020 in Uyo, March 12, 2020 in Port Harcourt and March 20, 2020 in Yenagoa.
“Public consultation on proposed tariff review with effect from April 1,2020 under the Multi Year Tariff Order, MYTO, in line with the directive of Nigerian Electricity Regulatory Commission, NERC, will be held across PHED’s coverage area,” Onyi said.
A Multi Year Tariff Order, MYTO, is a framework for regulating the licensees [ Discos ] over a period of time by NERC, which was reviewed in 2015 based on exchange rate, gas pricing, inflation rate and generation capacity.
The public consultation will feature presentation on the business life cycle before privatization, achievements and challenges of post privatization and future investments in correlation with the tariff review.
It will also afford customers the opportunity of interacting and eliciting feedback from PHED management team and officials from the NERC.
The planned tariff review, according to the statement, when effected, would aid network expansion and rehabilitation, improved customers’ satisfaction, reduction in complaints, increase in power availability, elimination of estimated bill through proper metering, among others.
He, therefore, urged customers to avail themselves and be part of the success story in driving the electricity industry to greater heights through meaningful insights.
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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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