Connect with us
study in Ukraine

Nigerian Newspapers

NERC, TCN on collision course over electricity allocation

Published

on

• Gas scarcity reduces power supply to 2628 MWs

AN ALLEGED indiscriminate allocation of electricity in flagrant disregard for existing regulations may have set the Nigerian Electricity Regulatory Commission (NERC) and the Transmission Company of Nigeria (TCN) on the warpath. 

  The NERC may have accused the TCN of flouting regulations on load allocation, resulting in poor electricity supply to some consumers. Key areas affected, according to sources, are Yola and Kano.

  A mid-year report from the NERC obtained by The Guardian noted that Abuja Distribution Company got 10.0 megawatts (MWs) instead of 11.5MWs as stipulated by Multi-Year Tariff Order (MYTO). Benin got 10.7MWs instead of 9.0MWs. Eko got 10.8MWs instead of 11.0MWs. Enugu got 10.8MWs instead of 9.0MWs. The zone got higher than what is stipulated for it.    Ibadan also got higher. Ibadan got 13.7MWs instead of 13.0MWs. Ikeja got 14.3MWs instead of 15.0MWs. Jos got 4.6MWs instead of 5.5MWs.  Kaduna got 6.6MWs instead of 8.0MWs.  

  Kano got 3.7MWs instead of 8.0MWs. Port Harcourt got 6.5MWs, the load originally allocated to it. Yola Distribution Company got 1.6MWs instead of 3.5MWs as stipulated by MYTO. 

  The responsibility of the TCN is to provide access for power evacuation to all participants and ensure full evacuation capacity and reliability at minimum technical loss. It is also to ensure equitable load allocation to consumers.

  The Guardian learnt that the Ministry of Power and the regulator, the NERC, are concerned that TCN has also been inconsistent with giving reports about its load allocation, in an apparent move to cover up its ‘recklessness’ in this regard. The last load allocation report TCN gave the regulator was in April, The Guardian was told.

  A source said NERC had about two weeks ago summoned the management of TCN to explain why it should not be sanctioned for its departure from laid down rules.

  An official said: “Actually, it is the lack of reporting on load allocation that worries NERC at the commission. TCN has stopped rendering reports since April.

  “NERC met with the System Operator (SO) at TCN on the load allocation issue. The SO’s excuse is that technical difficulties at the DISCO level prevent him from following the formula. While some discos can take more, some can take less, according to him. In that case, the ‘imbalance procedure’ is implemented. Worst off are Kano and Yola.

  “But I really wonder. The load allocation formula was arrived at after due consultation with all. The SO knew what every disco could take and it was reflected in MYTO 2012. Why all these distortions now? A uniform reduction across board would have made some sense, since one could blame low generation. But this is not the case. And why has the SO been so inconsistent in reporting the statistics?”

  Responding to an inquiry on the issue, the Chairman of NERC, Dr. Sam Amadi, confirmed that the commission was tackling TCN over the development.

  Amadi told The Guardian: “There is an electricity load allocation formula in the MYTO. The formula is based on an equitable allocation of electricity to all the electricity distribution companies. This is a function of the Transmission Company of Nigeria (TCN). You are right that we are investigating the issue. It has come to our notice that this formula is not being followed and this has led to a distortion in the allocation. This means that some areas are enjoying more electricity at the expense of others. This has resulted in unreliability and dissatisfaction among customers. We will address this to restore balance and equity in electricity distribution.”

  Functions of the SO at TCN are grid frequency and voltage control and economic dispatch of generating units, load allocation in times of insufficient generation and co-ordination of all planned outages for the maintenance of system equipment.

  Also resulting from the tariff review is a new formula for allocating centrally-generated electricity among the 11 distribution companies (Discos). 

  NERC is mandated by the Electric Power Sector Reform Act (EPSR Act 2005) to create, promote, and preserve efficient industry and market structures, and to ensure the optimal utilisation of resources for the provision of electricity services.

  The commission developed a methodology for the allocation of the available generation capacities from the stations down to the consumers. The SO implements this methodology.

  “It is important that as regulator, there is enforcement of the Act, codes, regulations and orders on fair resource sharing,” a ministry official said.

  Amadi said NERC had gone tough on operators and utilities on the need to obey existing rules. He said NERC would not spare any organisation that refused to operate by the rules.

  He said: “When operators fail to follow rules, it creates serious problems. The flouting of the load allocation formula is an example. An industry that is weak on rules also sends the wrong signals to investors thereby stalling the development of new projects. To this end, NERC has been meeting with critical stakeholders – generation and distribution companies, the Transmission Company of Nigeria, and the Nigerian Bulk Electricity Trading Plc to ensure that the necessary conditions for the commencement of the rule-based transitional electricity market are met. The commencement of the transitional electricity market will ensure more discipline with all entities adhering to their contractual obligations as well as all rules and regulations thereby translating to improved service delivery to electricity customers.”

  He went on: “We must add that the main work of the regulator in an emergent electricity market like ours is to instill confidence in investors and operators in the market.  It is such confidence that leads to the sort of investment that will ultimately improve the network and ensure reliable supply of electricity in medium to long-term period. Without enforcing rules of competitive electricity market the reform will fail.”

  NERC, he stressed, was committed to ensuring adequacy of electricity. 

  “The commission is mindful of the fact that electricity customers expect better power, better services. We are therefore working, within our ambit, to ensure the attainment of these. Without rules, investors will not come in. Without investment, electricity will not improve. Without a tariff that is cost-reflective, investors cannot sink in the huge amounts of money required to set up. It is the responsibility of NERC to ensure that rules are set and followed.”

  The expatriate Chief Executive Officer of TCN, Mr. Don Priestman, did not respond to an inquiry by The Guardian on the issue. Officials of the public affairs unit of TCN did not also respond to mails and phone messages on the matter. 

  Manitoba Hydro International (MHI) of Canada was awarded a management contract to manage TCN on behalf of the Federal Government.

  The operations of TCN include the key three functions of Market Operator (MO), System Operator (SO) and Transmission Service Provider (TSP). Throughout the term of the contract, one key objective for MHI, according to its officials, would be to reorganise TCN such that the TSP becomes a separate entity from the MO and SO allowing it to become a privatised commercial company. 

  “MHI expects to turn TCN into a technically and financially efficient, stable, and sustainable company; a company that will be market-driven and capable of utilising its maximum generation capacity and then distributing the energy throughout Nigeria 24 hours a day, 365 days a year. To do this, MHI will have to focus on developing the proficiency of local personnel.”

  Last March, a supervisory board was inaugurated by the Federal Government for the TCN. The board is to work with Canadian firm, Manitoba Hydro International, for the realisation of a robust grid with little or no system collapse and to actualise government’s objectives of delivering quality, reliable and efficient electricity to Nigerians.

  Officials said the constitution of a supervisory board for TCN was part of efforts by government to reposition the transmission company towards the attainment of the goals of the electricity reform programme of the Federal Government. The supervisory board of TCN is led by former Chairman of the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC), Hamman Tukur as chairman, with Mr. Akinsola Akinfemiwa as Vice Chairman.

  At the inauguration of the board in March, Power Minister, Prof. Chinedu Nebo, described the TCN as the ‘fulcrum’ of electricity service delivery.

  His words: “The Goodluck Jonathan administration recognised the need to revamp and restructure TCN to make it more efficient, commercially-viable and comparable to global transmission companies. The National Council on Privatisation (NCP) with the BPE adopted management contract strategy in line with the 2010 road-map to inject private sector expertise into the operations of TCN. 

  “Consequently, Manitoba Hydro International of Canada was offered a three-year management contract for TCN in September 2012 after due process, to work with an in-house team and take control of the daily operations of TCN, which will include major functions such as Market Operator ( MO) and System Operator (SO), among others.”

  He had stressed how the expected results for the repositioning of TCN would include the following:

• Reduction of electricity losses in transmission networks and systems;

• Equitable and adequate generation predicated on a fair order;

• Operation of a transmission system consistent with the established regulatory frame-work;

• Improvement of grid security and general performance;

• Provision of micro-grid for captive power nationwide;

• Efficient market settlements between electricity market participants /sellers;

• Transfer of skills and expertise to Nigerian counterparts and personnel;

• Efficient management of government investments;

• Effective monitoring and evaluation frame-work; and 

• Provide yearly company report to Nigerians who are the owners of the company.

  Besides, gas shortage which has plagued the nation’s electricity sector for decades has posed a fresh threat to the industry.

  This time, it has reduced the government’s alleged improvement in electricity generation to 2626.6MW by Saturday morning.

  The Ministry of Power has urged consumers to be patient with government in its efforts to stabilise the system.

  The ministry said it had “moved in to arrest another crisis in the gas sector, which is affecting the power generation in parts of the country negatively.”

  A ministry statement said low gas supply to the generation plants had affected electricity generation and led to a major drop in supply.

  Nebo was quoted by the statement as saying: “As a result of this, three power stations in the East, Afam IV, Afam VI and Rivers Independent Power Plant (IPP), were shut down again on Friday night as a result of gas constraints arising from condensate issue on TransNational Pipeline (TNP), putting total generation lost from the stations at 624MW.

  “Olorunsogo power station is also down due to low gas pressure as a result of which 89 megawatts of power is lost, while low head water elevation is also limiting generation at Kainji and Jebba hydro stations to one unit each.”

  The ministry put the total grid generation as at 6.00 a.m. on Saturday at 2628.6 megawatts.

  “With this low level generation, management of the grid is currently a big task, necessitating a nationwide load,” officials said.

  Nebo said the ministry was assembling a crack team of experts across the oil industry to investigate in particular the cause of the severe leaks in the gas supply channels in the eastern part of the country and determine measures to be taken to ameliorate the situation.

   But at a recent briefing, Petroleum Resources Minister, Mrs. Diezani Alison-Madueke, said that the volume of gas available for domestic use had increased.

  She disclosed that the quantity available for domestic consumption had increased to about 1.6 billion standard cubic feet (SCF), saying that the development was attributable to the fact that gas pricing was almost at par with international market price put at $ 1.50/1000 British Thermal Unit (BTU.)

 According to her, while the electricity sector is paying $ 1/1,000BTU, the non-electricity sector is paying $ 2/1000BTU, adding that by next year, the average domestic price of gas would be over $ 2/1000 BTU.

  She added that the issue with the Nigeria’s electricity sector was not really that of  gas supply shortages, but  that of transmission and distribution occasioned  by systems collapse, stressing how an Emergency Gas Supply Plan introduced by government in April 2012 yielded significant results. 

————————————————————————————————————————-
Posted in Nigerian Newspapers. A DisNaija.Com network.

Source: Guardian Newspaper

DisNaija.Com publishes regular posts on Nigeria News, Nigerian Newspapers, Online Nigeria Gist.

Follow us on Twitter and Facebook.

Nigerian Newspapers


Your Opinion Counts. Be sure To Leave A Comment, If You Have Any.

Please Like, Share or Tweet. Your Support Is Appreciated.

Tribune

Nigeria records 55 new COVID-19 infections, total now 165,110

Published

on

By

Tribune Online
Nigeria records 55 new COVID-19 infections, total now 165,110

The Nigeria Centre for Disease Control (NCDC) has recorded 62 new cases of COVID-19, bringing the total number of infections in the country to 165,110. The NCDC disclosed this on its official Twitter handle on Friday. “55 new cases of #COVID19Nigeria; Lagos-21, Yobe-19, Ogun-6, Akwa Ibom-3, Kaduna-2, Plateau-2, FCT-1, Rivers-1.” YOU SHOULD NOT MISS THESE HEADLINES FROM NIGERIAN TRIBUNE COVID-19: Nigeria Recorded […]

Nigeria records 55 new COVID-19 infections, total now 165,110
Tribune Online

Sourced From: Tribune Online

Continue Reading

This Day

Military, Police Ring Abuja to Forestall Boko Haram Attack

Published

on

By

•Deploy more personnel as army chief vows to wipe out terror group
•Security beefed up at N’Assembly

Deji Elumoye and Kingsley Nwezeh in Abuja

Abuja, Nigeria’s seat of power, is under a massive security cordon following threats of attacks by insurgents and the increasing wave of banditry in the contiguous states of Kaduna, Kogi, Nasarawa and Niger States, THISDAY’s investigation has revealed.

There has been a wave of kidnappings in the outskirts of the federal capital, notably Pegi, Tuganmaje and Kuje among others, which the police have battled in recent times.

The security situation in and around the Federal Capital Territory (FCT) was heightened by the pronouncement of the Niger State Governor, Mr. Sani Bello, that Boko Haram fighters who he said sacked 50 villages in the state and hoisted the terror group’s flag, were about two hours drive away from the FCT.

Security has also been beefed up at the National Assembly as operatives, yesterday, thoroughly screened every vehicle approaching the National Assembly complex in Abuja.

The deteriorating security situation nationwide prompted the National Chairman of the Peoples Democratic Party (PDP), Prince Uche Secondus, to warn that the 2023 general election may not hold, demanding the declaration of a state of emergency as well as the convocation of a national conference.
However, the Chief of Army Staff, Lt. Gen. Ibrahim Attahiru, yesterday restated the Nigerian Army’s determination to annihilate Boko Haram.

But the Governor of Katsina State, Hon. Bello Masari, cautioned against declaring a state of emergency, saying doing so isn’t the solution to combat the security challenges facing the country.
The security of the nation’s airports was also in focus yesterday as the Office of the National Security Adviser (ONSA) said there was no threat to them.

THISDAY’s investigations showed increased presence of troops, police, Nigerian Security and Civil Defence Corps (NSCDC) personnel and intelligence operatives at the three strategic entrances to the city notably, Keffi, Zuba and Gwagwalada.

More checkpoints were also mounted around Gwagwalada and Keffi.
THISDAY also observed increased intelligence deployment at the entrance and the borders of FCT with contiguous states.

Beyond the borders, there were more deployments and police patrols inside the city and increased intelligence deployments as well.
Security sources told THISDAY: “There are deployments here and there but they are routine. Alertness is key to a secure environment.”

It was also learnt that security agencies were involved in frenzied meetings throughout yesterday.
The meetings, coordinated by the office of the Chief of Defence Staff under the new joint operational strategy of the armed forces, were aimed at coordinating a joint response to possible threats of attack to the FCT.

“I understand the security teams have been meeting for some days now and if you look around you, you will notice that there are increasing patrols and numbers of security personnel. The threats are not been taken lightly,” a source said.

National Assembly workers, lawmakers and visitors also had a harrowing experience accessing the legislative complex due to heightened security in the area.
Security operatives thoroughly screened every vehicle approaching the National Assembly complex in Abuja, impeding both human and vehicular traffic.

The Sergeant-at-arm of the National Assembly and other security agencies supervised the operations, leading to huge traffic build-up inside the complex.

Legislative staff, visitors and lawmakers were seen patiently waiting for their cars to be searched so that they could go ahead with the business of the day.
Some staff and visitors at some point got tired of waiting and were seen alighting from their cars to trek from the gate to the complex.

Meanwhile, the ONSA has said there is no threat to the nation’s airports.
A statement by the Head of Strategic Communication, Mr. Zachari Usman, said the reports of threats to the airports were an internal correspondence of security threat assessment misconstrued as security threat to the airports.

PDP Demands State of Emergency

In a related development, the PDP National Chairman, Prince Uche Secondus, yesterday demanded the declaration of a state of emergency, warning that the 2023 general election might not hold if the federal government failed to tackle insecurity.

He called on the federal government to summon a national conference to address the spike in insecurity.
Secondus added that the national caucus of the party will meet today to discuss the state of the nation.

Addressing members of the National Executive Committee (NEC) in Abuja, Secondus said: “We are worried Abuja is not even safe. It is no longer politics. We got alert of plots to bomb and burn down our airports.

“We urge the federal government to declare a national state of emergency in security. There is the need to call a national conference to discuss the insecurity in the country.

“There may not be any election in 2023 in Nigeria due to insecurity. This government must listen to the people. The Buhari government should call a national confab to discuss security and state of the nation. It is no longer politics. This time we are not playing politics. Let’s keep politics aside and move the nation forward.”
He said the country had been grounded, regretting that there had been no matching response from the federal government.

Secondus said in the past, terrorism in the North was confined to the North-east, but with the report of Boko Haram occupying villages in Niger State, terrorism had spread to the North-central
“Herdsmen are also menacing in the West; gunmen causing havoc in the East; and the militants in the South; all killing, looting, raping, maiming and burning down homes. The situation is bad; Nigerians all over are living in fear,” he said.

The Senate Minority Leader, Senator Enyinnaya Abaribe, said the problem of Nigeria was outside of the PDP headquarters, while pledging the support of the Senate to the declaration of state of emergency in security.

Abaribe said he deliberately decided not to speak on the floor of the Senate but to allow the APC senators to speak so as to avoid being accused of giving a partisan colouration to the issue of insecurity.

He stated that only electoral reforms would give victory to the opposition party in the 2023 general election and ensure a democratic defeat of the APC-led federal government.
Also, the Minority Leader of the House of Representatives, Hon. Ndudi Elumelu, commended the NEC and the PDP leadership for their collective efforts at resolving the House leadership crisis.

The NEC meeting adopted the position of Secondus, calling on the federal government to convoke a national conference to discuss the state of insecurity in the country, according to a communiqué read by the National Publicity Secretary, Mr. Kola Ologbondiyan.

Army Chief Vows to Wipe Out Boko Haram

The army yesterday reiterated its commitment to wipe out Boko Haram.
Chief of Army Staff (COAS), Lt. Gen. Ibrahim Attahiru, told reporters in Maiduguri, Borno State that Boko Haram had been defeated in many encounters and would continue to be defeated until it’s annihilated from Nigeria.

“We will take on Boko Haram decisively, and we are committed to the focus of the operations, which is the total annihilation of Boko Haram from Nigeria,” he said.

The COAS, who was visiting the headquarters of Operation Lafiya Dole in Maiduguri for the fifth time since his appointment four months ago, said the visit was to boost the morale of the troops, reassure them and listen to any issues affecting them.

Earlier, the Theatre Commander of Operation Lafiya Dole, Maj. Gen. Farouq Yahaya, lauded the visit, which he said had continued to boost the morale of the troops.
“We are honoured, we are grateful, we are encouraged by those visits. You provided us guidance, logistics and other things we required. We are most grateful for those visits,” Yahaya said.

State of Emergency Won’t Solve Security Challenges, Says Masari

Katsina State Governor, Hon. Aminu Masari, has, however, said declaration of a state of emergency won’t solve the security challenges facing the nation.
Masari, who spoke yesterday with journalists after meeting with the Chief of Staff to the President, Prof. Ibrahim Gambari at the State House, Abuja stated that he was against the recent call by the House of Representatives for the declaration of a state of emergency in the security sector as it would not solve the problem.
According to him, declaring a state of emergency will not achieve the desired effect as the security structure and personnel to be used to execute the emergency are already overstretched in a bid to safeguard lives and property.

Sourced From: THISDAYLIVE

Continue Reading

The Nation

UFC: Usman gets N584m after beating Masvidal

Published

on

By

Kamaru Usman has raked in a mammoth £1.1million, about N584.2 million after his impressive knockout victory over Jorge Masvidal on Saturday night, Sportivation.com.ng reports.

The Nigerian Nightmare has been handsomely rewarded for his stunning performance and he was the best-paid fighter on the card which was witnessed by 15, 000 fans in Florida.

According to Daily Mail, Usman earned £538,000 to show up, £459,000 pay-per-view bonus, a £43,000 sponsorship bonus and a well deserved £35,000 Performance of the Night bonus.

Jorge Masvidal also earned £358,000 to show, £186,000 in pay-per-view money and a £28,000 sponsorship bonus.

This is the biggest payday of Usman’s career so far and the Welterweight champion also benefited from the fact that Masvidal is also a top draw for the fans.

Kamaru Usman is a Nigerian-American professional mixed martial artist, former freestyle wrestler and graduated folkstyle wrestler.

Sourced From: Latest Nigeria News, Nigerian Newspapers, Politics

Continue Reading

Premium Times

Insecurity: Lagos bans occupation of abandoned buildings

Published

on

By

The government said that no worker should stay back beyond 6:00 p.m. within premises of buildings undergoing construction.

The post Insecurity: Lagos bans occupation of abandoned buildings appeared first on Premium Times Nigeria.

Sourced From: Premium Times Nigeria

Continue Reading
Advertisement study in Ukraine

Politics

Popular Posts