This week on this segment, focus is on the eight “Action Steps towards PSRP Intervention Implementation”. Which is, ‘Improve DisCo Performance: This seeks to ensure that long - term sustainability of the country's power sector is highly correlated to the performance of the DisCos; their ability to collect revenue from customers for electricity consumed and aggressively reduce the high ATC & C losses is critical.
The Action steps towards implementation include:
* NERC to ensure that each DisCo commences and updates a complete customer database to identify their customers and commence metering programme.
* NERC reviews and approves the PIP for each DisCo.
* NERC monitors each DisCo's progress in implementation of PIP, and evolution of performance indicators, and enforcing compliance with committed investments.
* NERC to finalize business continuity regulation after consulting with stakeholders including investors and management of DisCos.
* Based on approved targets and baseline in MYTO reset for each Disco, BPE updates performance Agreements with private investor of each DisCo, to incorporate key performance indicators in MYTO reset and clarify each party's obligations and the consequence (s) for failure to perform.
* BPE monitors Performance Agreements based on information provided by NERC and assesses compliance
The Transmission Company of Nigeria (TCN) said it has successfully completed the installation of two 60MVA 132/33kV power transformers in its Benin and Onitsha (GCM) Transmission Substations.
The Benin 60MVA power transformer is already supplying bulk electricity to Benin Electricity Distribution Company’s load centers, while the transformer in Onitsha (GCM) Substation was energized and put on soak at about 19.15hours on Saturday. Gradual loading of the transformer commenced on Sunday the 30th of December, 2018. The projects are an addition to the over thirty-Five power transformers that have been completed and energized across the country mainly by TCN in-house engineers.
In a statement signed by the General Manager, Public Affairs, Ndidi Mbah, TCN said that on the 24th of September, 2018 at about 9:20pm the primary breaker of its oldest 60MVA 132/33kV transformer in Benin tripped, affecting bulk supply to Nekpen, Koko and Ikpoba Dam 33kV feeders. After several tests were carried out on the transformer, results showed that the transformer which had already been earmarked for replacement could not be repaired.
The statement noted that with the failure of the transformer, the company moved an idle 60MVA transformer from its Irrua Transmission Substation to Benin Substation for installation. The Irrua community resisted the move until early in December, 2018. On the 16th December however, the transformer was brought to Benin Substation for installation by TCN in-house engineers who completed the installation and energizing on 24th December, 2018. Since the new transformer was energized, bulk power supply had been restored to Benin Electricity Distribution Company through its Nekpen Nekpen, koko and Ikpoba Dam 33KV feeders, within Benin Metropolis.
Also, in the same substation, work has reached advanced stage in the installation of a second 60MVA 132/33kV power transformer that would replace the 60MVA capacity transformer accidentally damaged by the trace clearing crew of Benin Distribution Company recently. TCN engineers are currently in the substation working assiduously to ensure that the second transformer is completed and energized.
The power transmission capacity in the North-East has increased by 100 per cent, the Transmission Company of Nigeria (TCN) has said. According to the Company, the transmission capacity in the region doubled after the recent installation of two 330kV transmission substations in the North-East.
This came as TCN’s Managing Director, Usman Mohammed Gur, told newsmen in an exclusive interview in Abuja that the firm had established a task force to monitor the frequency control of the grid in order to ensure that power generation companies abide by the grid code on frequency management.
TCN in its bid to avert system collapse declared that electricity generation companies that failed to comply with the stipulated frequency control that ensured the instability of the power grid would be removed from the grid.
When asked during the interview, on Sunday, to state other measures being put in place to further check system collapses caused by frequency abuse, Mohammed replied, “We’ve set up a team to monitor the frequency control and they report to me directly. “The aim is to ensure that we achieve and maintain the desired frequency of the grid. You can see that the grid has stabilized for some period.”
On the transmission capacity in the North-East, he said, “We have concluded and energized two 330kV substations in the North-East, which is a 100 per cent increase on the capacity that was existing in the whole of North-East.“The North-East had only two 330KV substations but we have added two, making it 100 per cent increase. However, are we there? No, we are not yet there but we will get there.”
The TCN boss further stated that the transmission company secured different financial support from multilateral agencies in 2018 and that the funds had helped to improve power supply in various locations across the country.
Mohamed said, “A recent poll was conducted by Channels Television on how people feel about electricity and 73 per cent said that they feel that power supply has improved. Of course, it is not that we don’t have problems here and there, but on the whole, things are not as they used to be. There is an improvement’.
“The National Bureau of Statistics’ (NBS)recent document stated that power generation, transmission and distribution have improved by 18 per cent and that is a considerable improvement.
“Also in 2018, we were able to get approval for most of our projects under the Transmission Expansion Programme.
“We have the Nigeria Electricity Transmission Project which is $486m and has been approved by the World Bank. We also have the Northern Corridor project which is $275m with €25m grant inside it and this has been approved by the board of AfDB (African Development Bank).
This week on this segment, we would focus on the seventh “Action Steps towards PSRP Intervention Implementation”. Which is ‘Baseline power generation, transmission and distribution”: this is aimed at ensuring minimum baseline power supply of 4,500MWh/Hour to the national grid is distributed daily from 2018 to achieve grid stability and phase out operational shortages.
The Action steps towards implementation include:
* Identification and prioritization of power plans to be supported to achieve the minimum 4,500MWh/Hour baseline.
* TCN prepares transmission expansion plan and submit for approval to NERC as part of the MYTO reset process.
* TCN publishes in its website the approved transmission expansion plan.
* NERC monitors progress in TCN implementation of the transmission investment plan approved in the tariff order, and publishes quarterly/annually in its website.
* Each year the System Operator prepares an annual generation operation plan, including an assessment of expected transmission and system security constraints.
* Each year, TCN updates transmission expansion plan.
The Minister of Power, Works and Housing, Babatunde Raji Fashola SAN, has call for consistency and understanding in the privatized power sector, saying decision to privatize is a matter of policy and policies take time to take effect. “Let’s be consistent here and let us understand that the decision to privatize is a matter of policy. When policy is made, it takes time to take effect. When it begins to take effect, its impact takes time to spread. And that is why we can share here that five years ago nobody could talk about mini-grid, we are talking about it now; five years ago nobody was talking about Meter Asset Provider, we are talking about it today, five years ago who dared to go into the military formation to meter them; the President has directed that all the military formations must be metered”, the Minister said.
Fashola made the call at the December Nextier Power Dialogue while responding to question posed by a participant bordering on whether or not to cancel the privatization policy and hand back power to the government, Fashola, called for caution, saying, “Let’s be careful what we wish for. We wished, many years ago, after 60 years or so of government run power, we wished and decided that private sector should take over this power. That was our decision. No sooner had we decided, five years after, we are now asking Government to take it from them. Is that what we really want?”
Responding to question concerning the supply of transformers, the Minister reiterated that all the assets that the Ministry of Power used to control for power distribution have been sold by the last administration pointing out that the people now operating the generation and distribution segments of power sector are now privately owned companies.
He said, “I am here because I am concerned. If your telephone is not working, it is not the Minister of Communication that you go to; let us be very clear. My role is regulatory, oversight and policy”, adding, however, “I cannot separate myself from the problem; I am trying to get involved to do what the law allows me to do. So the people you should be talking to about transformer is not me; the Ministry does not supply transformer anymore”.
The Minister said Ministries and Agencies of Government now pay their electricity bills regularly adding, “I just signed the letter for this month because our office is the collection warehouse. This wasn’t happening five years ago. So we are making progress and let no one downplay that”.
“Can we move faster, certainly we can”, he said adding, however, that if the consensus was that Government should take it over the power sector from private hands, then there was need to “go back to Parliament and repeal the law, because I asked you, do you want a five-year old to have a mustache?”
Arguing against the reversal of the Privatization Policy, Fashola, who again reiterated the existence of challenges in the sector which, he assured were being dealt with, declared, “But you must decide in this country whether you want to continue to see devils or angels. I like to see angels, my glass is always half full and problems are opportunities for me to show that nothing is wrong with us and to benchmark what I have achieved. There are problems no doubt and we must deal with them”.
According to the NBS Report for Budget 3, the 3rd Quarter GDP result was 1.81 per cent growth, up from 1.50 per cent in Q2 with Electricity as the biggest motivator scoring 18 per cent.“It is not enough”, Fashola said adding, “But it means we are heading in the right direction back up. What is also important to share is that the growth was driven by non-Oil Sector and that is important because the growth came in a quarter when oil prices have not done well and that is what this team set out to achieve; to diversify the economy. We welcome the Oil money, but when the oil money suddenly disappears, our prosperity will not go with it and that is important”.
The Minister added, “So, in a period when oil prices began to flounder Nigeria’s economy did not flounder and that is important. But more importantly, who drove the growth? It means that if we continue with the foundations that are being laid-infrastructure- the jobs that all of us want to see will multiply. That is where we are”.
The Federal Government is working assiduously with various stakeholders in the Power Sector to solve challenges in power supply especially along the Generation and Distribution value chain of the sector.
A statement issued by Special Adviser, Communications, Hakeem Bello, Friday, to set the records straight over remarks of the Minister of Power, Works and Housing, Babatunde Raji Fashola, SAN, at the Nextier Power Dialogue, said government has, through several policy initiatives since inception and, especially in the last few months, demonstrated its commitment to the enhancement of power generation and distribution citing the recent approval of a N72 Billion Distribution Expansion Programme by the Government as a clear demonstration of that commitment.
Fashola said that Government, as a 40 per cent shareholder, had to make the approval in order to enhance the distribution of power across the country pointing out that although operationally there is 7,000 Megawatts of electricity ready for deployment, the operation was still constrained at the distribution end.
The Minister said the concern of Government was to correct the anomaly created by the distribution constraint adding that to ensure that the intervention achieved maximum benefit for the people, Government, working with the Distribution Companies (DisCos), first obtained the data of the priority areas of need within their franchises with which it put together the programme to enable the DisCos maximally evacuate available power for distribution to consumers.
He said although the power sector Operation was now largely in private hands, Government was still playing a leading role in both enhancing the distribution of grid electricity and increasing access to electricity across the country, especially the rural communities adding that it was also ensuring, through the Nigerian Electricity Regulatory Commission (NERC), that power supply gets to consumers at very reasonable costs and without exploitation.
Recalling the policy outline laid by his Ministry at inception which set out a road map to first get incremental power and then go to steady power and then to uninterrupted power, Fashola declared, “I think that if you followed the policy outline that set out that roadmap, we have delivered what we promised in terms of our first leg of incremental power. We have increased the power on all sides”.
According to the Minister, other policies which government has initiated in recent times to drive access to electricity, include the Mini-Grid/Off-Grid policy by which government has decentralized power supply, allowing individuals and organizations to invest in power generation and supply up to a certain limit, Eligible Customer Policy that enables big consumers to buy power directly from Generation Companies (GenCos) and Meter Asset Provider (MAP) policy enabling business men to invest in meter supply, adding, however, that all the policies are subject to the regulation of NERC.
Other measures include the Power Sector Recovery Programme (PSRP), which was articulated to address some post Privatization challenges in the sector and improve power supply. The PSRP was a document that sought to articulate all of the problems that were being reported about the privatization adding that all the problems arising from privatization were documented in the PSRP Document.
Such issues, he said, include those of generation, transmission, energy theft and tariff issues among others. “The PSRP has not gone idle. We are ticking the boxes. There was no Chairman for the NERC, now there is a Chairman, problem solved; there was MDAS Debts owed, I think over N70 Billion, we verified N27 Billion, that was part of the PSRP and it was paid; there was a Transmission Expansion Programme, transmission has gained more than distribution, that is progress”, the Minister said.
The Minister said transmission now has a 10-Year Expansion Plan just as 3,000 Megawatts have since been added to what was on ground when this Administration took over.
The Minister of Power, Works and Housing, Babatunde Raji Fashola, SAN, has described infrastructure as the foundation for national prosperity and unity saying it is the most dependable fortress against tomorrow’s bad weather, bringing people together and laying the foundation for job creation, economic growth and agricultural development among others.
Fashola made this known this while on an inspection of infrastructural project sites, saying that by investing in infrastructure renewal, President Buhari was creating wealth and securing the future of Nigeria as well as building a solid foundation for employment and for prosperity.
The Minister reiterated that infrastructure is the foundation of unity, “It is an unfailing foundation. It is the most dependable fortress against tomorrow’s bad weather, tomorrow’s oil prices going back and forth. Once you invest in what President Buhari is doing, that is what creates wealth, that is what secures the future, that is the foundation for wealth, for employment, for prosperity, infrastructure is the basis for national unity.”
The Transmission Company of Nigeria (TCN) rolled out 116,659.8 megawatts in November due to increase in electricity generation. The daily statistics of TCN operations obtained by the News Agency of Nigeria (NAN) from Nigerian Electricity System Operator (SO), a section of the TCN, indicated that 116,659.8 mw was generated from Nov. 2 to Nov. 30.This was against the 107, 864.8 megawatts generated in October. The statistics indicated that power generation increased by 8,795 megawatts between October and November periods.
The report also indicated that the daily power generated from Nov. 1 to Nov. 15 were: 3,681.7mw, 3,776.1mw, 3,703mw, 3652.5mw, 3,810.5mw, 4,204mw, 3,913.6mw, 3,762mw and 3,712.6mw. Others are: 3,493.6mw, 3,903.50mw, 4,998.8mw, 4,229.7mw and 4271.8mw.
It also showed that daily power generated from Nov. 16 to Nov. 30 were: 4,168.2 mw, 4,125.5mw, 3,891.5mw, 4,067.5mw, 3,880mw, 4,523.4mw, 4,302mw and 4,089.2mw.Others are: 3,883.6mw, 3,846.5mw, 4,137.7mw, 4,229.3mw, 4,043.8mw, 4,141.6mw and 4,216mw.
The energy generated was transmitted to 11 distribution companies (Discos). TCN said the national peak demand forecast stood at 19,100.00mw, while the installed available capacity was 11,165.40mw.The current transmission capacity and network operational capacity were 7,000mw and 5,500.00mw respectively
This week on this segment, focus is on the fifth “Action Steps towards PSRP Intervention Implementation”. Which is ‘Clear historic MDA debts and automate future payments: This seeks to ensure MDA historical debts are paid and implement a payment mechanism for future electricity bills.
The Action steps towards implementation include:
(a) Historical debts of MDAs is cleared.
(b) Government issues a directive specifying the mechanism to ensure timely payment of electricity bills by all MDAs and its Implementation timetable.
(c) Implantation of Government directive to ensure regular payment for power consumed and encourage energy efficiency at all MDAs.
(d) On a monthly basis, DisCos inform NERC about any late or non – payment by each customer that is an MDA, and the accumulated debt.
(e) NERC informs the Government, and reports in its website progress in payment by MDAs and in implementation of the mechanism in the directive.
The Minister of Power, Works and Housing, Babatunde Raji Fashola SAN, Wednesday reiterated Federal Government’s commitment to enhancing the distribution segment of the Power value chain saying the approval of a N72 Billion Distribution Expansion Programme by the government was a clear demonstration of that commitment.
Speaking at the December 2018 Nextier Power Dialogue in Abuja, Fashola said Government, as a 40 per cent shareholder, had to make the approval in order to enhance the distribution of power across the country, pointing out that although operationally there is 7,000 Megawatts of electricity ready for deployment, the operation was still constrained at the distribution end.
Reiterating the concern of government towards correcting the anomaly, the Minister, explained that the decision to intervene was done after asking the DisCos where they would want to spend their money within their franchise, if they have it, that could evacuate “some of the power that is available and that can yield a maximum collection report” adding that it was with that data that Government put the amount together that it would inject into the Distribution sector.
The Minister, who quoted the 3rd Quarter Report of the National Bureau of Statistics as revealing that Electricity made the highest contribution of 18 per cent to the 1.8 per cent growth in the nation’s Gross Domestic Product (GDP) recalled the “Thank You” visit of the Gora Community of Nasarawa State to his office early in the week to express their gratitude to the Federal Government over the provision of Solar Power to their Community saying it was a testimony to the growth in electricity supply and increasing accessibility to the rural communities.
The Community delegation, led by its Traditional Head, Alhaji Jafaru Adamu, thanked the government of President Muhammadu Buhari for initiating the rural electrification programme and the Minister for driving it adding that since the installation of the Solar electricity, the Community has consistently enjoyed several benefits hitherto not known to them, especially in the areas of social life, Education and Health
PARTICIPANTS AT THE 24TH MEETING OF THE NATIONAL COUNCIL ON WORKS WITH THEME ENSURING VALUEFORMONEY IN NIGERIA HIGHWAYS DEVELOPMENT
Directors in the Ministry Permanent Secretary Ministry of Works and Transport Kebbi State and Participants at the 24th Meeting of the National Council on Works with theme Ensuring ValueForMoney in Nigeria Highways Development holding at the Conference Centre of the Kebbi State Government Presidential Lodge Kebbi State
7TH NATIONAL COUNCIL ON LANDS HOUSING AND URBAN DEVELOPMENT HELD AT GOMBE STATE
Alh Ibrahim Hassan Dankwambo Governor of Gombe State Center Minister of Power Works and Housing HM Babatunde Fashola SAN right and the Deputy Gvernor Gombe State Hon Charles Iliya