Connect with us
SSN
Advertisement
IZIKJON
Advertisement
forex
Advertisement
Stanbic IBTC
Advertisement
Binance
Advertisement
Esetech
Advertisement
Patricia
Advertisement
Fidelity ads
Advertisement
app

Business News

Power Liquidity Crisis: FG to commence disbursements of N600bn intervention fund 

The Federal Government will start disbursing N600 billion to key operators in the power sector very soon.

Published

on

Power Liquidity Crisis: FG to commence disbursements of N600bn intervention fund 

The Federal Government will start disbursing N600 billion to key operators in the power sector very soon. This is according to the Niger Delta Power Holding Company (NDPHC) as reported by Punch.

Since the intervention fund got approved a few months ago, stakeholders in the power sector chain have been anticipating the disbursement in order to address the liquidity crisis in the sector.

According to the Managing Director of NDPHC, Chiedu Ugbo, power generation companies, suppliers, electricity distributors, and others would start getting the money in a few days.

GencosArnergy secures $9 million from investors, Electricity poles, Transmission Company of Nigeria, TCN to ban Ikeja Electric Eko Discos and Enugu Discos, Discos, power supply in Nigeria, Association of Nigerian Electricity Distributors,ANED, PwC proposes possible solutions to the biggest problem facing Nigeria’s electricity sector, GenCos to shut down over NBET's administrative charge  , DisCos fail to distribute 8,848.24 megawatts of electricity - TCN 

Electricity plant

“The NDPHC is very hopeful of the government’s intervention. It’s been very bad this year in terms of liquidity, but since government mentioned the N600bn payment assurance facility, we’ve been very hopeful and we’ve been managing.

 “However, we’ve seen actionable activities on the part of government to realise that and we’ve been told that in a few days from now the payments from that fund will start. So, that hope has kept us alive and we know that government by keeping to its word, as it is doing now, we will be able to bounce back.”

[READ MORE: FG takes over Yola DisCo, investors to get N26.9 billion refund]

While speakinon the sidelines of an award ceremony and appeal fundraising event, Ugbo disclosed the projects the NDPHC was executing in different local government areas in the country. He said the company was trying to connect everyone to the grid while cleaning up networks to improve power supply.

However, Ugbo stated the challenges the company was facing in carrying out its supposed duties. He was optimistic that with the intervention fund, the challenges would be a thing of the past.

He said, “The challenges we face have to do with community issues and funding constraints. We rely on what we generate from the sale of electricity and there is a general revenue shortage in the industry right now. But the Federal Government is rising up to that challenge and we are very hopeful that with the intervention, we will get more funds to serve Nigerians more.”

What you should know: The N600 billion facility for the power sector was approved by the Federal Government in September this year. It was scheduled to be disbursed until June 2020.

The facility, which is contained in the 2020 Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP), is as a result of the failure of the Power Sector Recovery Programme (PSRP).

bitcoin train

Chidinma holds a degree in Mass communication from Caleb University Lagos and a Masters in view in Public Relations. She strongly believes in self development which has made her volunteer with an NGO on girl child development. She loves writing, reading and travelling. You may contact her via - [email protected]

Click to comment

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Tech News

Deezer accepts payment in Naira amid stiff competitions with Spotify, Youtube music, Apple music.

Deezer has gained quite a reputation in Nigeria, as it slashes its subscription fee and now accepts payment in Naira.

Published

on

Deezer slashes subscription fee and now accepts payment in Naira amid stiff competitions with Spotify, Youtube music, Apple music.

Deezer, the French music streaming platform that has gained quite a reputation in Nigeria has slashed its subscription fee and now accepts payment in Naira.

This is coming a few weeks after Spotify launched in Nigeria and 38 other new markets in Africa.

The competition in the Nigerian music streaming space is getting hotter by the day. More music streaming platforms are entering the Nigerian market with better payment methods and cheaper pricing, thereby forcing existing players to slash their prices so as to hold on to their customer base

Launched in 2007, Deezer currently connects over 16 million monthly active users around the world to 73 million tracks.

Before now, Deezer’s subscription was rated at $4.99 (₦1,800) for premium customers and the family plan for ₦2,700.

This number has been slashed in half. The music platform now charges ₦900 ($2.36) for Deezer Premium, ₦1,400 for Deezer HiFi and ₦1,400 ($3.67) for Deezer Family Plan.

Other streaming players in Nigeria like Apple Music, Spotify, Youtube music, Boom Play, Audiomack and Soundcloud have also slashed their prices.

For YouTube Music, the monthly individual subscription costs ₦900 while a family plan costs ₦1400 ($3.67).

Spotify Premium cost ₦900 per month in Nigeria. The Premium Family plan goes for ₦1,400 for up to 6 family members.

Apple music charges ₦450 per month for students, ₦900 per month for Individual plan while the Family plan goes for ₦1,400 for up to 6 family members.

Continue Reading

Energy

NERC issues order to DisCos on replacement of faulty, obsolete meters

NERC has issued a directive to DisCos on the structured replacement of faulty and obsolete meters for their customers.

Published

on

Electricity, Buhari moves against Discos and agents that collect money for prepaid meters

The Nigerian Electricity Regulatory Commission (NERC) has issued a directive to the electricity distribution companies (DisCos) on the structured replacement of faulty and obsolete meters for their customers with effect from March 4, 2021.

This is to remove the bottlenecks that had previously impeded the rapid deployment of meters to unmetered customers and the receipt of complaints from metered customers in fourth-quarter 2020, that they had been served meter replacement notices by DisCos when all stakeholders were preparing for the National Mass Metering Programme (NMMP).

The directive from NERC is contained in Order No. NERC/246/2021, Titled, “In the matter of the order on structured replacement of faulty and obsolete end-user customer meter in Nigerian Electricity Supply Industry (NESI),” issued on March 4, 2021.

The commission noted that over 7 million customers are currently unmetered as indicated by the customer enumeration data. It also estimates that an additional 3 million meters are currently obsolete and due for replacement.

NERC pointed out that the existence of unmetered customers contributes to the threat affecting the financial viability of the NESI as unmetered customers expressed their displeasure with the estimated billing methodology.

The statement from NERC partly reads, “The Commission notes that over 7 million customers are currently unmetered as indicated by customer enumeration data. It is also estimated that an additional 3 million meters are currently obsolete and due for replacement.

“The existence of a large population of unmetered customers contributed to threats affecting the financial viability of NESI as unmetered end-use customers expressed deep dissatisfaction with the estimated billing methodology.

“The revenue assurance objectives of DisCos have also been challenged by being unable to properly account for the utilisation of electricity by end-use customers”.

Following the review from both the metered and unmetered customers, NERC issued the following order;

  1. DisCos shall grant priority to the metering of unmetered customers under the National Mass Metering Program.
  2. DisCos may replace faulty/obsolete meters under the National Mass Metering Program but these replacements must be done in strict compliance with the Metering Code and other regulatory instruments of the Commission.
  3. DisCos shall inspect meters of metered end-use customers and the replacement notice shall contain the following –
  • The date of the inspection
  • Name, designation and signature of the officer that inspected the meter.
  • The fault identified in the meter.
  • The date for the installation of the replacement meter
  1. The Commission shall be copied on all replacement notices issued to end-use customers for the purpose of conducting random reviews of the replacement
  2. New meters must be installed upon the removal of the faulty/obsolete meter and under no circumstances shall the customer be placed on estimated billing on account of the DisCo’s failure to install a replacement meter after the removal of the faulty/obsolete meter.
  3. The customer and DisCo representative shall jointly note the units on the meter being replaced and the customer must be credited with these units within 48 hours after the installation of the meter.
  4. Customers shall only be billed for loss of revenue where the DisCo establishes meter tampering, by-pass or unauthorised access as contained in NERC Order/REG/ 41/2017 on Unauthorised Access, Meter Tampering and Bypass.
  5. Activation tokens shall be issued to customers immediately after replacement of the faulty/obsolete meter.
  6. DisCos shall file monthly returns with the Commission on the replacement of faulty/obsolete meters along with their proposal for the decommissioned meters.

This Order may be cited as the Order on the Structured Replacement of Faulty/Obsolete Meters of End-Use Customers.”

What you should know

  • NERC was mandated in the Electricity Power Sector Reform Act to maximize access to electricity services, by promoting and facilitating customer connections to distribution systems in both rural and urban areas and establish appropriate consumer rights and obligations regarding the provision and use of electricity services.
  • Meters serve as a revenue assurance tool for NESI service providers and a resource management tool for consumers that receive services with the Meter Asset Provider (MAP) Regulations coming into force on April 3, 2018.

Continue Reading



Advertisement





Nairametrics | Company Earnings