Oil & Energy
Electricity Consumers To Pay Full Tariff From Mid-2021
Power distributors have received approval to collect an average of 87.9 per cent of the recently increased electricity tariff from consumers across the country in the first six months of 2021.
Latest tariff review documents issued to each of the 11 distribution companies by the Nigerian Electricity Regulatory Commission also showed that the Discos had been empowered to collect 100 per cent of the new tariff from July to December 2021.
The approved new collection rates for the Discos means that consumers would be required to pay higher in the coming year, especially in the second half of the year.
Although the increase in electricity tariff on September 1, 2020 had been kicked against by various groups, some of the power firms had already commenced its implementation, as they explained that not all classes of power users were affected by the hike.
The approval to collect an average of 88 per cent tariff in the first half of 2021 are contained in the NERC’s various orders in the matter of the Extraordinary Review of Multi Year Tariff Order 2015, which were issued to the 11 Discos.
In the orders to the Discos, which are jointly signed by NERC Chairman, James Momoh, and a commissioner, Dafe Akpeneye, the commission stated that the new tariff took effect from September 1.
The NERC explained that the approval was given after it considered the key indices used in evaluating the tariff increase applications of the power firms.
Meanwhile, the registration portal for the N75bn Micro, Small and Medium Enterprises Survival Fund and Guaranteed Off-take schemes of the Federal Government will be opened on Monday, the Minister of State for Industry, Trade and Investment, Mariam Katagum, has said.
According to her, the project, which will run for an initial period of three months, will be opened for 1.7 million entities and individuals across the country.
The minister said this in a statement in Abuja on Saturday by the Assistant Director, Information, Federal Ministry of Industry, Trade and Investment, Oluwakemi Ogunmakinwa.
Katagum explained that the Survival Fund and Guaranteed Off-take schemes were at the core of the N2.3tn stimulus package of the Federal Government.
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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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