Oil & Energy
Reps Reject Move To Increase Electricity Tariff
The House of Representatives has rejected a move by the Nigerian Electricity Regulatory Commission (NERC) to approve any increase in electricity tariff.
The resolution followed a motion by the Deputy Minority Whip, Aliyu Madaki, at the plenary in Abuja, Thursday.
Madaki, in his motion, expressed concern over the suspense created by the planned increase in electricity tariff by Distribution Companies (DISCOs).
The lawmaker recalled that DISCOs recently alerted customers of a planned electricity tariff hike, hinging it on the Multi-Year Tariff Oder (MYTO).
He cited a circular issued to that effect by the distribution firms, adding that effective 1 July, there would be an upward review of the electricity tariff influenced by fluctuating rates.
Madaki said under the MYTO, 2022 guidelines, the previous exchange rate of N 441/$1 might be revised to approximately N750/$1 which would have an impact on the tariff associated with electricity.
According to him, under the planned hike, consumers within bands ‘B’ and ‘C’ with supply hours ranging from 12–16 hours per day would pay N100 per KWh.
He said consumers within band ‘B’ with 16–20 hours, would experience comparatively higher tariff, for customers with prepaid meters, whereas, for those on estimated billing, a significant increment was expected.
While stating that the recent statement by the Abuja Electricity Distribution Company (AEDC) directing its consumers to disregard the earlier notice of the increase was confusing, the lawmaker insisted that members of the public were confused as to what to believe.
He said the proposed increase was coming inspite of the inability of the operators to meet the threshold of supplying at least 5,000 megawatts per year.
This, he said, was after signing the contract with NERC, adding that it was insensitive to come up with price increase of such magnitude at this time when many Nigerians were yet to come to terms with the fuel increase.
Contributing to the motion, Babajimi Benson (APC-Lagos) and Olumide Osoba (APC-Ogun) called for caution in view of the pains Nigerians are going through occasioned by the removal of fuel subsidy.
Benson noted the increased cost of infrastructure, which companies must strive to cover.
Osoba, however, said it was impossible to control prices for a deregulated market.
Satomi Ahmed (APC-Borno) and Ali Isa (PDP-Gombe) insisted that the burden of the subsidy removal on Nigerians was still huge to bear in addition to any tariff hike for electricity.
Ahmed said there had been virtually no investment in infrastructure since the DISCOs took over distribution of power, as communities are still procuring transformers in order to be connected.
Adopting the motion, the House mandated its committee on power when constituted to interface with NERC with a view to addressing the proposed hike in the interest of Nigerians.
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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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