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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

Price of 5kg cooking gas increased by 42.97% in one year — NBS

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The average retail price to refill a 5kg cylinder of Liquefied Petroleum Gas (Cooking Gas) rose by 42.97 percent, from N4,610.48 in March 2023 to N6,591.62 in March 2024, according to the National Bureau of Statistics (NBS).

Comparatively, the price saw a monthly increase of 7.10 percent from N6,154.50 in February 2024.

A state-level analysis shows that Kano had the highest average price at N7,609.00, followed by Ogun with N7,363.64, and Akwa Ibom at N7,162.50.

In contrast, the lowest price was in Adamawa where the price was N5,312.50, with Taraba and Zamfara following at N5,375.00 and N5,550.00, respectively.

Regionally, the South-South had the highest average price at N7,003.08, followed by the South-West where it sold at N6,723.22, and the North-East which had the lowest at N6,221.30.

Additionally, the average price to refill a 12.5kg cylinder of LPG increased by 5.77% month-on-month from N15,060.38 in February 2024 to N15,929.04 in March 2024, and by 55.22 percent year-on-year from N10,262.56 in March 2023.

State-level data indicate Sokoto as having the highest average price at N17,833.33, followed by Osun at N17,588.46, and Anambra at N17,417.65. The lowest prices were recorded in Katsina (N12,400.00), Kebbi (N13,137.50), and Bauchi (N14,484.25).

By zone, the South-South again recorded the highest average price at N16,859.85, with the South-East close behind at N16,734.87, while the North-East recorded the lowest at N14,943.48.

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NNPC Ltd, First E&P commence 20,000bpd local production at OML 85

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The Nigerian National Petroleum Company Limited (NNPC Ltd.) and its Joint Venture partner in OML 85, First Exploration and Petroleum Development Company Limited (First E&P), have commenced oil production from the asset, also known as Madu Field.

Production from the field which is located in shallow waters offshore Bayelsa State and operated by First E&P is expected to be at an average of 20,000 barrels per day.

According to a statement from Olufemi Soneye, Chief Corporate Communications Officer NNPC Ltd, Abuja, the achievement is a testament to the commitment of the President Bola Tinubu administration to optimise production from the nation’s oil and gas assets through the provision of an enabling environment for existing and prospective investors.

Speaking on the development, the Group Chief Executive Officer of NNPC Ltd., Mr. Mele Kyari, described the commencement of oil production at the Madu Field as a significant milestone that will contribute to the larger goal of meeting the production required to drive revenue growth and boost the nation’s economy.

Kyari, who commended stakeholders for their support, also explained that the addition of 20,000 barrels per day by an indigenous oil player signals the commitment of stakeholders to achieving economic development for Nigeria.

It would be recalled that the Final Investment Decision (FID) on the development of the Madu Field and a sister field, Anyala, was taken by the NNPC Ltd./First E&P JV in 2018.

Production from the Madu Field will be processed at the JV’s Abigail-Joseph Floating Production Storage and Offloading (FPSO) Unit, which has a crude oil storage capacity of up to 800,000 bbls.

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Mele Kyari bags Energy Times’ GCEO of the Year award

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The Group Chief Executive Officer, NNPC Ltd, Mr. Mele Kyari has been honoured with the Energy Times’ GCEO of the Year Award in recognition of his commitment to accountability, transparency, and performance excellence.

Chief Corporate Communications Officer of the Company, Mr. Olufemi Soneye received the award on behalf of the NNPC boss, in a ceremony held at the Eko Hotel & Suites in Lagos on Friday.

According to the Governing Council of Energy Times Award Committee, Kyari’s hardwork has played a significant role in the company’s success and has contributed significantly to the growth of the energy sector in Nigeria.

Speaking at the occasion, Kyari said the NNPC Ltd, which has been on transition since the passage of the Petroleum Industry Act (PIA) has been championing the push to transform Nigeria into a gas-powered nation in keeping with its enormous natural endowment with over 209 trillion cubic feet proven natural gas reserves.

“We are building gas infrastructure such as the OB-3 Gas Pipeline, AKK Gas Pipeline to deepen the use of gas in the domestic market, while we are also promoting the West Africa Gas Pipeline and the Nigeria-Morocco Gas Pipeline, as well as the Train 7 of the NLNG and number of Floating LNG Projects to deliver gas the global market,” Kyari stated.

The GCEO further noted that the NNPC Ltd is also aggressively expanding its portfolio in the power sector to make the company a truly rounded energy company.

“Apart from our stakes in a number of Independent Power Plants such as Afam VI, Okpai Phases 1 and 2 with a combined installed capacity of 1,420MW, there are plans to build three new power plants in the AKK Pipeline corridor Abuja, Kaduna, and Kano. The ground-breaking ceremony of the 1,350MW wholly owned Gwagwalada Power Plant was performed by President Bola Ahmed Tinubu in August last year,” he added.

Kyari, who dedicated the award to all NNPC Ltd staff, thanked the Energy Times editorial board for finding him worthy of the recognition, adding that it would spur him to work harder towards achieving more for both the NNPC Ltd and the Nigerian Oil & Gas Industry.

 

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