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Senate urges FG to stop planned increase in electricity tariff via subsidy withdrawal

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The Senate has urged the Federal Government to stop its planned increase of electricity tariff via the planned withdrawal of electricity subsidy.

The upper legislative chamber made the call through a motion it adopted at plenary on Wednesday in Abuja.

The motion was captioned, “Planned Increase in Electricity Tariff and Arbitrary Billing of Unmetered Customers by Distribution Companies (DisCos)” and brought under matters of urgent public importance, sponsored by Sen. Aminu Abbas (PDP Adamawa) and 10 co-sponsors.

Abbas said it was worrisome to hear of the plan to increase electricity tariff by the relevant statutory authority in spite of increased economic challenges with attendant widespread poverty and high cost of living in Nigeria.

He claimed that the Minister of Power was reported to have said that “The nation must begin to move towards a cost-effective tariff model, as the country was currently indebted with N1.3  trillion to Generating Companies (GenCos) and $1.3 billion owed to gas companies.”

According to Abass, the minister had said that more than N2 trillion was needed for subsidy, but only N450 billion was budgeted in 2024.

“The Senate may further note that the same electricity businesses are collecting money from customers for services not rendered.

“When they have not added anything to the equipment, they inherited it from Power Holding Company of Nigeria.

“Communities buy transformers to replace damaged ones in addition to over-burden bills and arbitrary estimates for unmetered customers.

“This is taking place in a country where the greater number of the population is living below the poverty level, with stagnant wages.

“Rising inflation and depreciating currency, the prospect of higher electricity bill is unattainable,” Abbas said.

He said that arbitrary energy charges on unmetered customers had become worrisome given Feb. 2024 report of the Nigerian Electricity Regulatory Commission (NERC) on non-compliance with energy billing caps by DisCos and penalty of N10.5 billion imposed on DisCos that over-billed its unmetered customers.

Abbas said in 2020 the President of Nigeria then, ordered NERC to commence mass pre-paid metering to end estimated billing, saying that funds were released to that effect.

He said it was worrisome that the multiple sanctions declared to be imposed by NERC against DisCos for failing to comply with eradication of estimated billing for unmetered customers which included credit adjustments to over-billed unmetered customers for the period Jan– Sept, 2023.

He said March 2024 billing cycle, publication of the list of credit adjustment beneficiaries in two national dailies, indicates a deduction of N10.5 billion from annual allowed revenues of the eleven DisCos during the next tariff review.

This, he said, seemed to have been in futility, given the continued violations by DISCOs.

He expressed reservation that in addition to the high cost of living being experienced in the country, the unmetered customers who are owners of small and medium enterprises were adversely impacted by the level of exorbitant electricity charges and by implication have their businesses affected.

The Senate in its further resolution mandated the Committee on Power to investigate the over N2 trillion subsidy requirements as stated by the Minister of Power to avoid the repeat of the fuel subsidy scenario.

It also mandated the committee to investigate the statement made by the minister with regards to the N1.3 trillion the ministry was said to owe the GenCos and N1.3 billion dollars owed to gas companies.

It also urged the committee to investigate the role of the Ministry of Power, NERC and Ziglaks Company on their roles in the failed agreement to provide prepaid meters and ensure Nigeria is not shortchanged.

It also urged the committee to engage the NERC to come up with a lasting solution to the energy billing system in the country and other related issues.

The senate urged the committee to find out the truth of the matter on issue of Federal Government directive and release of funds for mass pre-paid metering and report findings to it.

It also urged the committee to enforce and ensure the judicious utilisation of the N10.5 billion naira penalty imposed on DISCOs

It further called for investigation of the operations of DisCos to ascertain the current status of metering and their extent of compliance with relevant legal and regulatory frameworks in service delivery.

The Senate directed NERC to furnish the committee with any relevant documents on metering of electricity consumers, post privatisation requirements for operation of DisCos and evidence of regulatory actions taken to ensure statutory compliance by DisCos.

Senate also directed NERC to ensure implementation of energy caps by all DisCos to unmetered customers in the country;

It further directed its committee to submit a comprehensive report for further legislative action.

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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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