Nigerians Can Now Sue Power Sector Investors -- Lawyer

Charley Boy leads crusade against vandalization of power lines

 

An entertainment guru and social critic, Charlie Oputa (Charly Boy) is leading a crusade against the vandalization of power line accessories in his home state Imo.

The crusade which is under the aegis of the Federal Ministry of Power is spreading country wide aimed at ensuring that money spent by the federal government to embrace power supply nation wide is actualized.

Speaking to journalists last weekend in Owerri, Charlie Oputa, stated that he came to kick start the sensitization against power lines vandalization for all the people who are engaged in the terrible habit of stealing transformers, cables, cutting down PHCN installation, thereby compounding problems of electricity supply to Nigerians.

The Oguta born entertainer, said that if there is reduction of such practices, the masses would get more light, adding that if they get more light, business activities would flourish, which will make Nigerians comfortable.

He noted that the message is for the grassroot people, motor parks, public places; stating that the message would be taken round the 36 states of the country.

Continuing, he said that the kick off was just an impromptu one, adding that by the time they get into communities with the crusade they would get a bigger forum.

 

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Consumers groan over poor supply, investors pass the buck

 

It is no longer news that the power supply situation across the country has dropped significantly in recent times.

This has given birth to many complaints from commercial and individual consumers, who said that the situation had put more pressure on their electricity budgets.

Many of them believe that there is something that the new power distribution and generation investors are not getting right.

Although they cannot identify what could be amiss, but they think that if the new investors knew what to do, power supply shouldn’t have dropped from what it was but improve.

Several reasons have been adduced to the falling condition of supply such as insufficient gas for generation and obsolete transmission lines among others.

But no excuse appears to be satisfactory for customers who still have to pay their bills in spite of lack of power supply.

At a recent parley with the Nigerian Electricity Regulatory Commission in Abuja, the power investors said that they also have their own cross to carry.

They stated that the challenges they had encountered since taking over the generation and distribution of electricity were enormous.

Power Talkback decided to present comments made by some of the management teams of investors in this column being the platform where consumers converge to see electricity issue as it concerns them, thus making informed decisions.

They attempted to speak on issues that have been in the front burner for some weeks.

 

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NASME faults plans to hike electricity tariff

The Nigerian Association of Small and Medium Enterprises, NASME, has faulted plans by the new owners of Power Holding Company of Nigeria, PHCN,to increase electricity tariff, asserting that it is inappropriate and uncalled for.

“They should not increase tariff just like that without showing some impact or improvement on the electricity and it is wrong to charge people on fixed rates; whether you use the electricity or not, it is very wrong for one to pay for what he/she did not use.

“The electricity tariff should be transparent, there is need for harmonisation of DISCO’s, there is still 75 per cent reduction on fixed charge, the new investors are people like you and I in business,” said NASME.

While briefing the press, Dr. Lizzy Okereke, Chairperson, Conference Organising Committee, said there is still a big problem with electricity supply and distribution, adding that, it is wrong for the new owners to increase tariff now.

Fielding questions on the focus of this year’s edition of NASME international conference and exhibition scheduled to hold in Abuja, she said for Nigerian economy to take its rightful place in Africa and serve as the continent’s hub

 

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What Nigerians want after PHCN take-over

 

AS the new electricity distribution companies take over the asset of the former Power Holding Company of Nigeria (PHCN), one thing is sure — Nigerians will need a breath of fresh air from the pains they have suffered for many years from PHCN.

With nostalgia, Nigerians reminisce the days of yore when our industries were vibrant because there was energy for production.

They were able to make profit and produce products with competitive quality and price. Then, before they could say PHCN, most of these companies had relocated to Ghana.

As the new distribution companies take over, they should know that a big job lies ahead of them. Their mode of employment and organisational realignment will determine their returns.

They will have to urgently place orders for millions of pre-paid metres and node seperation modules.

They will need employees who will think outside the box and come out with approaches that will turn things around so that they can grab more markets, deliver reliable power and make their money

 

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Foreign investors seen warming to Nigeria's power sector-official

* Most power assets have so far gone to local oligarchs

* Power task force head says foreign interest growing

* Nigeria selling sector to try to end crippling blackouts

By Tim Cocks

LAGOS, Oct 2 (Reuters) - The initial sell-off of state power assets, designed to end decades of electricity shortages, mostly attracted local oligarchs, while foreign firms with the technical know-how shied away from the risks of doing business in Nigeria.

But that may be changing, the chairman of the presidential task force on power Bekindo Dagogo-Jack told Reuters on Tuesday.

Speaking on the sidelines of a power conference in Lagos, Jack predicted a "second wave" of privatisation as the local tycoons sell assets to foreign players, after showing that this messy sector with massive pent-up demand can be profitable.

A second round of bidding, this time for brand new power plants, had seen a lot more interest from outside than the round concluded this week for old assets, which went to local buyers.

"There's been ... interest in buying these assets from businesses across the world," he said, adding that a group of U.S. investors had lobbied through diplomatic channels to try to extend the deadline for submissions.

He declined to give specific details of bidders, but indicated foreigners were warming to the sector.

A successful privatisation process that improves supply would leave President Goodluck Jonathan with a lasting legacy, and help answer critics who complain about the slow pace of reforms and question his record on graft and security.

 

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LCCI expresses concern over labour issues in power sector

 

The Lagos Chamber of Commerce and Industry (LCCI) on Monday expressed concern over the protracted labour issues in the privatisation of the power sector.

According to the News Agency of Nigeria (NAN), the chamber expressed its con¬cern in a communiqué made available to newsmen in Lagos after a meeting of its council.

The chamber urged the Federal Government to ex¬pedite action in resolving all the labour issues in the power sector.

LCCI appealed to the PHCN authorities to improve its management and commu¬nication process with the staff in order to avert any strike.

 

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Huge investment opportunity exists in Nigeria’s power sector – Experts

 

Mrs Anita Mathews, Director,Informa Energy Group, a Dubai-based organisation, says there is huge opportunity for investment in Nigeria’s power sector.

Mathews made the observation in  Lagos  in an interview with the News Agency of Nigeria (NAN) on the sideline of an exhibition tagged: ‘Power Nigeria’  organised by the group.

According to her, the huge demand for power in the Nigerian manufacturing sector and the ongoing privatisation process in the power sector will create influx of foreign investments to both sectors.

She said that the exhibition was organised for international organisations involved in power generation and distribution to showcase their products and develop sustainable business partnerships with Nigerian entrepreneurs. “ The exhibition will create a platform for foreign Investors to form partnerships with Nigerians in order to improve the power sector of the nation.

“Local entrepreneurs, who want to know about new products and new technologies, will get answers to all their questions at this exhibition,” she said.

Matthews said that technical seminars would run concurrently with the exhibition till Friday.

“International experts in the energy sector will be talking on innovation, energy conservation, energy demands, latest technologies and their usages,“ she said

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New Power tariff: Groups petition UN against Nigeria

The government of President Goodluck Jonathan faces rising pressure to reverse the recently introduced electricity tariff as the Nigerian Guild of Editors and other groups and individuals across the country have endorsed the petition sent by a coalition of civil society to Ms. Magdalena Sepúlveda Carmona, United Nations Special Rapporteur on Extreme Poverty and Human Rights on the matter.

Other groups that have endorsed the petition are the Gender and Constitution Reform Network, a coalition of over 250 women’s groups (GECORN); Human and Environmental Development Agenda (HEDA), and One Voice Nigeria, a coalition of civil society groups. Individuals that have backed the petition include: Femi Falana, SAN; Professor ‘Dejo Olowu of the North West University, South Africa; Victor Oladipupo Momodu; Tope Robert; John Collins; Onyedikachi Orizu; and Gbenro Adeoye.

The petition dated 6 September 2013 called on the UN to send an urgent appeal to the Federal Government to delay the increased fixed rate electricity tariff until the government is able to put in place mechanisms to ensure regular and uninterrupted electricity supply in the country.

 

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Nollywood Actor, Osita Iheme 'Pawpaw' Joins Forces With PHCN

High price of darkness in Nigeria

 

The charge per kilowatt-hour on electricity in Nigeria, which hitherto was N225, has been arbitrarily increased to over N700 with the New Multi-Year Tariff Order of the Nigerian Electricity Regulating Commission (NERC) amidst epileptic power supply for customers of Power Holding Company of Nigeria (PHCN) across the country, reports SENIOR CORRESPONDENT, Adeola Yusuf.

A series of Power Sector Polls conducted by NOI Polls Limited for the second quarter of 2013, last week, showed that 130 million Nigerians generate their own electricity. “A combined average of 69 per cent of Nigerians or 110 million Nigerians, have experienced increase in their spending on alternative power supply compared to a year ago,” the polls’ results released last Wednesday showed.

On the day the poll result was published too, customers of the Power Holding Company of Nigeria (PHCN) in their hundreds besieged the Mushin office of the company while millions of other Nigerians planned protests over the new Multi-Year Tariff Order (MYTO), which was reflected in the June bill that the PHCN served to their customers across Nigeria.

While residents of Satellite Town, who have suffered neglect under Eko Electricity Distribution zone, described the hike as inhuman, the labour union disclosed that less than 10 per cent of consumers would be able to pay the outrageous tariff in the next few years.

A resident of the town, a settlement in Lagos told Daily Independent on condition of anonymity

 

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130m Nigerians generate own electricity – NOI Polls

About 81 per cent or 130 million Nigerians, out of the about 160 million Nigerians, generated their own electricity through alternative sources to compensate for irregular power supply, according to the result of a series of Power Sector Polls conducted by NOI Polls Limited for the second quarter of 2013.

According to the results made available to Vanguard, a combined average of 69 per cent of Nigerians or 110 million Nigerians, have experienced increase in their spending on alternative power supply compared to a year ago.

The result of the poll further showed that an average of 47 per cent of Nigerian adults said that electricity supply was poor or went from bad to worse in the second quarter of 2013.

According to the poll results, the Electric Power Sector Reform Act (EPSRA), passed in 2005, initiated the unbundling of government’s power plants under the Nigerian Electricity Power Authority (NEPA).

“They were formed into business units and regulated by the Nigerian Electricity Regulation Commission (NERC) thus paving the way for public-private partnership and consequently the privatization of the power sector.

“The privatisation process is still underway and is intended to revive the power sector and invariably the Nigerian economy, as homes and industries alike will receive adequate and consistent quality of power supply.

 

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Electrician electrocuted while tampering with PHCN installation in Jos

 

The Igbo community in Apata area of Jos North Local Government Area of Plateau State was thrown into confusion and mourning on Tuesday, as a young man identified as Chukwuebuka Eze was electrocuted while trying to fix a problem on an electric pole close to his shop.

An eyewitness told the Nigerian Tribune that the late Eze, who was an electrician, took advantage of power failure in the area to climb a pole close to his shop at the about 1:00 p.m with the intention of changing to regular supply phase to his shop.

The eyewitness disclosed that while trying to effect the change, the Power Holding Company of Nigeria (PHCN) restored light to the area and the young man was electrocuted instantly.

It was gathered that the people within the vicinity noticed the calamity when there were sporadic sparks and his shirt caught fire in the process while he remained glued to the pole. Those who thronged the scene were initially helpless as they could not do anything to rescue him from the pole.

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RIGHT OF REPLY: Nebo, Demons and the Fabian option

 

By Sunny Igboanugo

Quintus Fabius Maximus Verrucosus was a Roman General. In 217 BC, he was faced with the huge and intimidating task of defeating Hannibal, the Carthaginian General, who had invaded his country. Weighed against the invading army, Fabius’ troops had no chance at all. But fight he must, lest Rome be overrun.

Therefore, he had to devise a strategy. He avoided pitched battles and frontal assaults in favour of wearing down his opponent through a war of attrition and indirection. While evading decisive battles, he employed the tactics of harassing the soldiers of Hannibal in small columns by taunting them and causing them to pursue him through the hills until they got tired, without actually fighting.

 

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Experts kick against release of N8.3bn to gencos, discos

 

AN energy solution expert has criticised the release of N8.3 billion to generation and distribution companies of the privatised Power Holding Company of Nigeria (PHCN).

The Federal Government had, last week, released N8.27 billion for Distribution Companies (DISCOs) and power generation companies (GENCOs).

A statement issued in Abuja by Mr Paul Nwabuikwu, spokesman for the Coordinating Minister for the Economy, Dr Ngozi Okonjo-Iweala, said the money was released, following approval by President Goodluck Jonathan.

It said: “N8.27 billion was specifically released to the Federal Ministry of Power for the DISCOs and GENCOs, following approval by President Goodluck Jonathan,” adding that the Ministry of Finance had paid N72.7 billion to the Federal Ministry of Power, so far this year, to cover various items in line with the implementation of the power roadmap.

The amount, Nwabuikwu said, included the N45 billion paid to PHCN workers, as part of the power privatisation programme and includes monies released under the Multi Year Tariff Order (MYTO). But the breakdown of the recently released N8.27 billion was not given.

According to Engr Bello Seriki, “You do not release for already privatised entity except for the settlement of wages. PHCN has been a revenue generation company which has been using the revenue to pay salaries of its casual staffs.

 

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Nigeria: A sleeping giant in darkness

 

Then, I was not born but history has it that by the time of Nigeria’s independence, the colonial masters had high expectations from the country they were leaving. It was predicted that we would become one of the leading economies in a few years and a force to reckon with in Africa after independence.

Perhaps, revelling in its potential to be a great nation, Nigeria prides itself the “Giant of Africa”. I am not a believer in forecasting, but I know most forecasts are as a result of extensive research and analysis. Nevertheless, I would not have expected anything less than fact from scientific forecast.

With such an overwhelming population, Nigeria is blessed with human resource. Then talk about the black gold – petroleum – one of the world’s most widely-used and expensive resources, was found in addition to favourable weather and welcoming temperature; we could not have wished for more blessing from God; we are blessed.

With the reality of today, Nigeria seems to have moved many centuries in backward direction. The promising statistics of the late 50’s and 60’s have all become a myth. But where did we get it all wrong?

In essence, there are so many aspects of our stagnant development in which we have terribly failed. I have chosen to dwell on the problem of electricity ravaging the nation. Since my childhood days, Nigerians have not enjoyed uninterrupted power supply; instead of improving and provide more turbine to generate more megawatts of electricity, the fact is that the nation’s total power output has gone worse. As a student, I am schooling in one of the hottest parts of the country and as a result, I’m not finding it easy to cope with heat. Michael Faraday would be laughing at us, for if the scientist were to be a Nigerian, we would not have built on this excellent invention.

 

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Police arrest five for protesting PHCN ‘outrageous’ bills

 

ABIODUN NEJO May 17, 2013No Comments »

The police have arrested no fewer than five youths in Ikere-Ekiti in Ekiti State following the clash that greeted the protest over outrageous bills by men of the Power Holding Company of Nigeria (PCHN).

The youths, including commercial motorcycle operators, took to the streets on Wednesday and yesterday to protest what they described as “outrageous bills charged house owners by PHCN despite erratic power supply or even total blackout”.

For the two days, the protesters mounted roadblocks on Ikere- Ado and Ikere- Akure roads, disrupted traffic and forced trading and other commercial activities in the ancient town to a lull.

 

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No end in sight to crazy billing, power theft -Investigations

 

There seems no end in sight to incidences of crazy billing and power theft currently rocking the nation’s power sector, findings by **Daily Independent** revealed at the weekend.

This came as the Federal Government said it would require N77 billion to close the metering gap of 2.5 million in the country.

Minister of Power, Professor Chinedu Nebo disclosed this at the weekend, said until the amount is sourced, power theft and excess billings from distribution companies may persist.

A source at the Nigerian Electricity Regulating Commission (NERC) queried our correspondent in a chat on Saturday: How do we get this exorbitant amount when the government is neck-deep into how to raise money to compliment the revenue for the privatisation of Power Holding Company of Nigeria (PHCN) to settle the labourt force?”

Meanwhile, Prof Nebo says it was no longer possible for the government to attain 10,000 megawatts electricity generating capacity this year, as initially planned for December.

Addressing a press conference in Abuja, he blamed this on delays in some of the engineering works by contractors handling national independent power projects (NIPPs).

The Minister announced a shift in target date for achieving the 10,000mw to first quarter of 2014, adding that addressing the metering gap is the solution to incidences of power theft and excess billings from distribution companies.

He urged Nigerians to be patient with the government to see ongoing recovery works at the Kainji and Jebba dams, and NIPPs come to fruition, assuring that the NIPPs would add fresh capacity to the national power grid.

He maintained that Nigeria needed a smart grid to transmit all power generated to the distribution companies, which was why the Federal Government has contracted Manitoba Hydro International to manage the Transmission Company of Nigeria, TCN.

Nebo disclosed plans to build more dams for hydro power uses, to complement the existing hydro power stations in the country.

“Now, more than ever before Nigeria needs a robust super grid network which is estimated to cost $3.4 billion,” he said, noting that the facility is required to meet international standard in power transmission and distribution chain. Other renewable energy sources like solar, bio-mass which are off the super grid, he assured, will continuously be available for domestic uses.

 

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Different strokes for NERC, consumers

 

Crazy bills, non-availability of prepaid meters and poor power are perhaps the three worse nightmares faced by electricity consumers in Nigeria.

For many, a resolution of some or all of these issues could be described as fulfillment in the sector, largely considered to be the key driver of the economy.

But while the clamour for relief in these areas continues to grow, the Chairman of Nigerian Electricity Regulatory Commission, Dr. Sam Amadi, is calling on the Nigerian public and other stakeholders to take part in a bi-annual review of MYTO 2.

However, feelers from consumers show that they would rather participate in a forum to genuinely address and resolve these pressing issues.

This is particularly so as NERC boasts of having the responsibility of protecting the rights of electricity consumers in Nigeria.

It would be recalled that the Multi Year Tariff Order 2 was introduced in June, 2012 as the basis for pricing principles and procedures.

In a notice posted on its website, NERC said that the methodology would be done twice every year for the determination of charges and tariff for electricity generation, transmission and retail tariff.

It added, “The MYTO provides a 15- year tariff path for the electricity industry, with limited minor reviews bi-annually in the light of changes in a limited number of parameters (such as inflation, US dollar exchange rate to naira, gas price and generation capacity) and major reviews every five years, when all of the inputs are reviewed with stakeholders.

“Pursuant to Sections 7 of the three separate Tariff Orders (Generation, Transmission, and Distribution), the commission has commenced the process of bi-annual minor review of the tariff.

 

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Mob attacks PHCN Office Over Crazy Bill

An angry mob in Abaranje, Ikotun area Lagos State, southwest Nigeria, went on the rampage and attacked the staff of Power Holding Company of Nigeria, PHCN, and destroyed their property.

The attack which took place at the weekend followed what electricity consumers in the area described as the crazy electricity bills slammed on them by the PHCN workers.

P.M.NEWS learnt that the mob, mainly residents of the area, vent their anger when they stormed the administrative branch office of PHCN at Customs bus stop, Abaranje, Ikotun and attacked the PHCN staff and destroyed their property.

Items damaged include chairs, tables, electrical appliances, fridge, television, glass doors and windows and other administrative materials such as files and book records kept in the office.

The police at Ikotun division intervened and brought the situation under control before they could set the office ablaze.

 

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