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Expert calls for suspension of electricity tariff increase

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An electricity expert, Mr Adetayo Adegbenle, has advised Distribution Companies(Discos) to meet up to 70 per cent metering gap within their network before increasing tariff on electricity consumption.

Adegbenle, Convener, PowerUp Nigeria, gave advice in an interview with the News Agency of Nigeria (NAN) on Monday in Lagos.

NAN reports that 11 electricity Distribution Companies (DisCos) on July 14 sought the approval from government to review tariffs.

He advised that all electricity tariff review should be suspended pending when electricity customers are fully metered.

According to him, all previous tariff reviews have never met its expectations despite all the promises on paper, made by the Discos and Nigerian Electricity Regulatory Commission (NERC).

“Therefore, all tariff reviews should be suspended until all DisCos meets up to 70 per cent metering, and DisCos can increase collections by 50 per cent of their present ability.

“They also need to meet up with practical target of reducing their Aggregate Technical and Commercial Losses (ATC&C) by up to 60 per cent.

“We must note that this is the first time the Multi Year Tariff Order (MYTO) regulation is being followed by the Discos, by first applying for the tariff review.

“They will then have to follow the process by actually calling for customer engagement,” he said.

Adegbenle said, “Let the condition triggering tariff review be performance based. If you meet metering gap by a percentage, you can then qualify for tariff review.

“There is money to be made from the humongous debt DisCos are being owed.

“But there is no incentive for them to after these debts as they are able to carry these debts over.

“Let DisCos performance trigger the review process.

“Tariff reviews should be performance based, and should be DisCos dependent.”

The expert urged NERC to call up other conditions for tariff review, considering the present economic situation.

He said that the recent removal of fuel subsidy and floating of Naira has also impacted on Nigerians.

On Federal Government intention to commence importation of pre-paid, Adegbenle condemned the proposed impending displacement of local meter manufacturers.

According to him, its process was anti-local industry; it will not help our economy and would only help other nations build theirs at the expense of Nigerians, for a loan we will still have to pay.

“This FG’s intention is against the backward integration policy that we have been pursuing as a nation.

“Well, I we will not call it “impending displacement” per se, but the move would not help local meter manufacturers.

“There is no way they will be able to compete with that bidding condition.

“They will have to come up with bid security of $500,000, and cashflow of over $5 million.

“We have not patronised them enough to expect that volume of transaction with them,” he advised.

He said that one of the manufacturers was complaining of owing over $20million to setup his factory, this manufacturer already even said he was ready to supply meters, all he needs is payment guarantee from CBN.

“Why are we not encouraging these people?.

On the alleged N37 billion  investment project in free meter procurement and installation, the expert advised President Bola Tinubu to set up a committee to look into the allegation.

He said, “You can imagine we have N37 billion somewhere and we are still taking World Bank loan.

“This is another deep issue. But you see, we live in a country where corrupt people gets away without consequence.

“I would have expected that these people are made to cough out this money.

“I think these people involved should be named and be made to answer to these things,” he said.

Energy

Over 500mmscf/d gas supply projects to be commissioned — Presidency

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The Presidency has disclosed plans to commission over 500mmscf/d gas supply projects across the country.

This is in line with the country’s move to transition from fossil fuels to gas according to its Decade of Gas initiative.

In a press statement on Friday, the spokesperson to the President, Ajuri Ngelale outlined three projects the President is billed to commission.

The statement reads: “In line with his commitment to significantly leverage gas to grow the economy, President Bola Tinubu will commission three critical gas infrastructure projects being undertaken by the Nigerian National Petroleum Company Limited (NNPCL) and partners.

“The projects support the federal government’s effort to grow value from the nation’s gas assets while eliminating gas flaring.

“The delivery of the projects was accelerated from the inception of the administration in keeping with the overall objective of deepening domestic gas supply as a critical enabler for economic prosperity.

“The projects lined up for commissioning include: (1) AHL Gas Processing Plant 2 (GPP – 2) – 200mmscf/d. This project is an expansion to the Kwale Gas Processing Plant (GPP – 1), which currently supplies about 130MMscf/d of gas to the domestic market. The processing plant is designed to process 200MMscf/d of rich gas and deliver lean gas through the OB3 Gas Pipeline. This additional gas supply will support further rapid industrialization of Nigeria. ”The plant will also produce about 160,000 MTPA of Propane and 100,000 MTPA of Butane, which will reduce the dependency on LPG Imports. The AHL Gas Plant is being developed by AHL Limited, an incorporated Joint Venture owned by NNPC Limited and SEEPCO.”

“(2) ANOH Gas Processing Plant (AGPC) – 300MMscf/d. The ANOH gas plant is an integrated 300MMscf/d capacity gas processing plant designed to process non-associated gas from the Assa North-Ohaji South field in Imo State. The plant will produce dry gas, condensate, and LPG. The gas from ANOH gas plant will significantly increase domestic gas supply, leading to increased power generation and accelerated industrialisation. The ANOH Gas Plant is being developed by ANOH Gas Processing Company, an incorporated Joint Venture owned by NNPC Limited and Seplat Energy Plc on a 50-50 basis.

“(3)ANOH-OB3 CTMS Gas Pipeline Project. The project involves the engineering, procurement, and construction of 36”x23.3km ANOH-OB3 Project. The Transmission Gas Pipeline will evacuate dry gas from the Assa North-Ohaji South (ANOH) primary treatment facility (PTF) to OB3 Custody Transfer Metering Station (CTMS) for delivery into the OB3 pipeline system. About 600MMscf/d is estimated to be available from two separate 2 x 300MMscf/d capacity gas processing production trains from AGPC & SPDC JV.”

“When commissioned, the projects will increase gas supply to the domestic market by approximately 500mmscf/d, creating a better investment climate and promoting balanced economic growth cumulatively.”

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Energy

Shell signs agreement to build gas pipelines in Oyo State

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Shell Nigeria Gas, SNG, and the Oyo State Government have signed an agreement to develop a gas supply and distribution infrastructure that will deliver gas to industrial and commercial users in the state.

A statement released on Friday by Shell Nigeria’s Media Relations Manager, Abimbola Essien-Nelson, disclosed that SNG will build and operate the gas distribution network, which will serve customers across Oyo State for 20 years.

According to the statement, the project will start with the construction of gas distribution infrastructure along a 15km pipeline route, adding that it will grow to deliver up to 60 million standard cubic feet of gas per day across the state.

Speaking at the signing ceremony, the Oyo State Governor Seyi Makinde, described the project as a catalyst for development in the state.

The Managing Director of SNG, Ralph Gbobo, noted that the agreement was “a significant milestone for SNG and Oyo State to boost economic activities in Nigeria by supplying industries and manufacturers with natural gas, a more reliable, cost-efficient and environmentally friendly source of energy.”.

He explained that the project would boost Oyo State’s internal revenue and create Job opportunities for indigenes.“

“The Managing Director of The Shell Petroleum Development Company of Nigeria Limited and Chairman, Shell Companies in Nigeria, Osagie Okunbor, remarked that the event pointed to the value of partnership as “Shell continues to power progress” in Nigeria through more and cleaner energy solutions for commercial and industrial customers.

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Nigeria ripe for nuclear power to boost electricity generation – NAEC 

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The Nigeria Atomic Energy Commission (NAEC) in collaboration with Centre for Energy Research and Training (CERT), Ahmadu Bello University (ABU), Zaria would deploy nuclear science and technology to strengthen electric power generation in Nigeria.

Prof. Yusuf-Aminu Ahmed, Chairman NAEC disclosed this during the 20th Anniversary Symposium of the Nigeria’s first Nuclear Research Reactor-1 (NNR-1) in Zaria on Thursday.

Ahmed said the experience developed over the years on nuclear power at the centre makes Nigeria ripe and ready to go into the next level of power generation through the nuclear reactor.

“We have used the reactor for research and development over the years and now we are going to use the reactor for the purpose of generating electricity.

“President Bola Tinubu has already given the commission a mandate to see how it contributes in the clean energy sphere of Nigeria and the nuclear energy programme of Nigeria would participate,’’ Ahmed said.

He explained that the time for the project would not be open for the public; however, Ahmed added that international partners and vendors were working closely with the commission over the project.

He also said that intergovernmental agreements were signed with some of the vendors on the nuclear power in Nigeria and very soon President Tinubu would make an announcement on the issue.

Earlier, Sen. George Akume, Secretary to the Government of the Federation said the 20 years of safe operation of the nuclear research reactor was an indication that Nigeria has joined the campaign for safe application of nuclear energy.

Akume, represented by his Special Assistant on Technical Issues, Prof. Bolaji Babatunde, added that since the centre had safely operated the nuclear research reactor for 20 years, it can also obtain a nuclear reactor for electricity generation.

According to him, the process of having a reactor that would generate electricity is similar to operating a nuclear research reactor.

“President Tinubu has re-echoed the need for having nuclear energy into the sources of electric power generation in Nigeria and Nigerians should look forward to this power.

“Electricity generated through nuclear energy is clean and safe except for human errors or natural causes such as the one that happened in Hiroshima,’’ he said.

Earlier, Prof. Sunday Jonah, Director of the center said the event was to celebrate 20 years of safe operation, maintenance and utilisation of the first Nuclear Research Reactor code named NNR-1.

However, in spite of the numerous gains at the centre over the years, the Director lamented over a plot by NAEC to wrestle the centre from the university through the proposed NAEC Bill 2022.

He explained that such a move would negate the dreams of the founding fathers that established the centre in universities because of the culture of research and development being promoted at designated universities.

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