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2015: Nigerians Expectations From Power Firms

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As a new year (2015)
sets in, most Nigerians wish to know what the power firms particularly the Generating Companies (GENCOS) and Distribution Companies (DISCOS) have for them. With the low efficiency that sparked off and sustained crises in 2014 rule the day, or will the private dominated sector show some improvements in 2015?
As our correspondent samples the feelings of consumers, government officials and authorities of some power firms, divergent views were expressed in hope of a promising future ahead.
Authorities of Port Harcourt Electricity Distribution Company (PHEDC) last week rekindled the hope of its customers in Port Harcourt when it promised them better power supply to power the socio-economic activities of the residents and companies which constitute the firms major customer.
However, Chief Nicholas Njoku, a Port Harcourt-based businessman said, “such promises have always been made but they have not been able to change the situation.
Njoku, who condemned the poor supply of PHEDC last year expressed strong need for the firm to live up to the expectations of the people.
“What can Nigeria in its totality be without good power supply? It is high time we got the point clear that our dream of industrialisation would remain a mirage until adequate power supply is given to the people,” said Njoku.
“Yes, PHEDC has made a good promise, but the company should not forget that such a promise has raised people’s expectations and I advise that PHEDC should match its promise with action,” he stated.
A senior staff in the office of Diobu Business Manager of PHEDC who pleaded anonymity said the company is ready to improve on power supply particularly of the volume of gas supplied to the company improves.
“You should understand that the new power firms that took over the Power Holding Company of Nigeria (PHCN) were relatively new,” he said appealing that the companies which were more or less studying the industry needed some patience, understanding and high level of co-operation from the public.”
“As the days roll by, there is the natural likelihood that improvement would come and when our customers are happy, the power firms would also feel fulfilled,” he stressed.
But the issue of non-availability of metres was raised by Chidinma Okoroafor, a trader at Mile 1 Market in Port Harcourt.
“My concern is that when I sell my goods to customers, they pay me according to the value of the goods in monetary terms. PHEDC does not apply that principle in their business operations,” she said.
Okoroafor is worried that, “PHEDC chooses the amount of power they supply and also forces you to pay any amount it wishes. What kind of business is that,” she queried and noted that until an acceptable mode of payment which must correspondent with services rendered, is applied the promise of better supply is not enough.
She insisted that electricity meter, which is the universal measurement for power supply must determine supply, condemning the outright fixing of pay by the company.
“What annoys me most is that the government appears unconcerned about the cries of the masses and I begin to wonder who protects the people.”
An official of the Rivers State Ministry of Power who identified himself simply as George expressed strong hope that 2015 would come with better supply.
George said, “if you check round in Rivers State, you will observe that more communities especially in the rural areas now have light. I can tell you that more would have power supply because a good number have their rural electrification projects at various completion stages.”
Also expressing hope of better days ahead, a former staff of PHCN, Ihekoronye Obodo, noted that as PHCN operations transited to the new investors, consumers are yet to change their attitude. “They still think that power supply is in the hands of government but that is wrong because private investors are out to make profit to remain in business.”
Obodo solicited for patience and co-operation and expressed hope that with time, the private firms that are daily upgrading their facilities are prepared to improve supply to their customers.
“They must stop the attitude of power stealing because it is criminal, and let government establish special court to handle the issue of power theft, vandalism of power facilities and irregular payment for services used,” he stressed.
“As far as I am concerned, I have told PHEDC to disconnect me because I am no more interested in its power supply or whatever you call of PHEDC is an embarrassment to me because PHCN which was equally poor in service supply is even better than PHEDC,” said another consumer, Cletus Alaye.
Alaye, who said he returned from Canada two years ago would not see any need for PHEDC’s promises, stressing, what have I to do with promises. May be, the firm will ask people to pay for the promise it made. Let them prove to the people that they know how to do their job and until I see light regularly, I will continue to use my private generator.”
He, however, advised the Federal Government not to rely on the DISCOs and GENCOs but to diversify.
“Nigeria as a growing economy should look at the alternative means of supply to the masses. Solar energy, coal and other areas should be given proper attention,” he said and suggested that since so many rivers are in the country, experts should concert these potentials to provide energy.”
The Minister of Power, Prof Chinedu Nebo, last week disclosed Federal Government’s intention of providing over one million prepaid meters to reduce metering gap nationwide.
The minister, who stated this during a town-hall meeting with stakeholders in Abuja said the intervention was to help electricity distribution companies in which government has 40 per cent equity to reduce the metering gap.
He said the only way to reduce over billing was to provide meters to all consumers in the country.”
“Government still owns 40 per cent of the DISCOs. This is why it is still giving out its own counterpart funding,” Nebo stressed.
On pipeline vandalism, he said plans were underway by the government to digitise the pipelines to forestall vandalism and emphasised the need for a legislation to provide stiffer penalties to punish pipeline vandals.
Several efforts have also been made by the government to upgrade and build new power stations. It is believed that if the incidence of theft for which Nigeria is noted as the highest amongst countries of the world, is checked, meters provided to check the over-billing of power distribution firms to their customers and more dedication to responsible service provision as well as increased improvement on facilities are maintained, 2015 may reduce the so much darkness and provide light for socio-economic advancement of the nation.

 

Chris Oluoh

Some Transformers Donated by the lawmaker representing Oyigbo in the RSHA Hon. Okechukwu .A. Nwaogu

Some Transformers Donated by the lawmaker representing Oyigbo in the RSHA Hon. Okechukwu .A. Nwaogu

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FG Explains Sulphur Content Review In Diesel Production 

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The Federal Government has offered explanation with regard to recent changes to fuel sulphur content standards for diesel.
The Government said the change was part of a regional harmonisation effort, not a relaxation of regulations for local refineries.
The Chief Executive, Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed, told newsmen that the move was only adhering to a 2020 decision by the Economic Community of West African States (ECOWAS) which mandated a gradual shift to cleaner fuels across the region.
Ahmed said the new limits comply with the decision by ECOWAS that mandated stricter fuel specifications, with enforcement starting in January 2021 for non-ECOWAS imports and January 2025 for ECOWAS refineries.
“We are merely implementing the ECOWAS decision adopted in 2020. So, a local refinery with a 650 ppm sulphur in its product is permissible and safe under the ECOWAS rule until January next year where a uniform standard would apply to both the locally refined and imported products outside West Africa”, Ahmed said.
He said importers were notified of the progressive reduction in allowable sulphur content, reaching 200 ppm this month from 300 ppm in February, well before the giant Dangote refinery began supplying diesel.
Recall that an S&P Global report, last week, noted a significant shift in the West African fuel market after Nigeria altered its maximum diesel sulphur content from 200 parts per million (ppm) to around 650 ppm, sparking concerns it might be lowering its standards to accommodate domestically produced diesel which exceeds the 200 ppm cap.
High sulphur content in fuels can damage engines and contribute to air pollution. Nevertheless, the ECOWAS rule currently allows locally produced fuel to have a higher sulphur content until January 2025.
At that point, a uniform standard of below 5 ppm will apply to both domestic refining and imports from outside West Africa.
Importers were previously permitted to bring in diesel with a sulphur content between 1,500 ppm and 3,000 ppm.
It would be noted that the shift to cleaner fuels aligns with global environmental efforts and ensures a level playing field for regional refiners.

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Oil & Energy

PHED Implements April 2024 Supplementary Order To MYTO

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The Port Harcourt Electricity Distribution (PHED) plc says it has commenced implementation of the April 2024 Supplementary Order to the MYTO in its franchise area while assuring customers of improved service delivery.
The Supplementary order, which took effect on April 3, 2024, emphasizes provisions of the MYTO applicable to customers on the Band A segment taking into consideration other favorable obligations by the service provider to Band A customers.
The Head, Corporate Communications of the company, Olubukola Ilvebare, revealed that under the new tariff regime, customers on Band A Feeders who typically receive a minimum supply of power for 20hours per day, would now be obliged to pay N225/kwh.
“According to the Order, this new tariff is modeled to cushion the effects of recent shifts in key economic indices such as inflation rates, foreign exchange rates, gas prices, as well as enable improved delivery of other responsibilities across the value chain which impact operational efficiencies and ability to reliably supply power to esteemed customers.
“PHED assures Band A customers of full compliance with the objectives of the new tariff order”, he stated.
Ilvebare also said the management team was committed to delivering of optimal and quality services in this cost reflective dispensation.
The PHED further informed its esteemed customers on the other service Bands of B, C D & E, that their tariff remains unchanged, adding that the recently implemented supplementary order was only APPLICABLE to customers on Band A Feeders.

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PH Refinery: NNPCL Signs Agreement For 100,000bpd-Capacity Facility Construction 

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The Nigerian National Petroleum Company Ltd (NNPCL) has announced the signing of an agreement with African Refinery for a share subscription agreement with Port-Harcourt Refinery.
The agreement would see the co-location of a 100,000bpd refinery within the Port-Harcourt Refinery complex.
This was disclosed in a press statement on the company’s official X handle detailing the nitty-gritty of the deal.
According to the NNPCL, the new refinery, when operational, would produce PMS, AGO, ATK, LPG for both the local and international markets.
It stated, “NNPC Limited’s moves to boost local refining capacity witnessed a boost today with the signing of share subscription agreement between NNPC Limited and African Refinery Port Harcourt Limited for the co-location of a 100,000bpd capacity refinery within the PHRC complex.
“The signing of the agreement is a significant step towards setting in motion the process of building a new refinery which, when fully operational, will supply PMS, AGO, ATK, LPG, and other petroleum products to the local and international markets and provide employment opportunities for Nigerians.

By: Lady Godknows Ogbulu

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