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FG says no electricity tariff increase for poor, vulnerable Nigerians, gives conditions for increase

DISCOs have been given conditions under which electricity tariffs can be reviewed and increased.

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FG announce extension of suspension of new electricity tariff by 1 week

The Federal Government has disclosed that poor and vulnerable Nigerians will not be experiencing any electricity tariff increase. The clarification is in response to a media report of an increase in electricity tariffs in Nigeria. It also asked the general public and stakeholders in the power sector to disregard any report of an arbitrary tariff increase.

The disclosure was made by the Nigerian Electricity Regulatory Commission (NERC) through a press statement that was issued on Wednesday, August 27, 2020, and signed by its Executive Chairman, James Momoh.

NERC revealed that electricity tariff reviews, going forward, will only follow service-based principles. Under these principles, Electricity Distribution Companies (DISCOs) will only be able to review tariff rates for customers when they consult with them, and commit to increasing the number of hours of supply per day and quality of service.

NERC stated that in line with these expectations, DISCOs have been directed to engage with their customers on a Serviced Based Tariff structure, where DISCOs can only review tariffs for customers under the following conditions:

  • Customers are consulted and communicated a guaranteed level of electricity service by the DISCOs based on hours of supply.
  • Customers are metered.
  • No estimated billing through the strict enforcement of the capping regulation. This means that unmetered customers will not experience any cost increase beyond what is chargeable to metered customers in the same area.

Going further, NERC disclosed that even under the above stated conditions, there will be no tariff change for the most vulnerable, as tariffs for those consuming 50KW or less remain frozen. Also, customers receiving less than 12 hours of power supply are expected not to experience any change in tariffs.

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The President has also approved a waiver of the import levy on meters so that those who do not have meters can be supplied as early as possible at reasonable costs.

Nairametrics, while quoting a media report, stated that President Muhammadu Buhari had approved electricity tariff increase with effect from September 1, 2020. The report suggested that the President may have finally approved the official implementation of cost-reflective tariffs for the Nigerian Electricity Supply Industry, with the tariff now set to go live on September 1, 2020.

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Chike Olisah is a graduate of accountancy with over 15 years working experience in the financial service sector. He has worked in research and marketing departments of three top commercial banks. Chike is a senior member of the Nairametrics Editorial Team. You may contact him via his email- [email protected]

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Appointments

TCN MD, Sule Abdulaziz appointed Chairman of West Africa Power Pool

The acting Managing Director of TCN, Sule Abdulaziz, has been appointed the new Chairman of WAPP.

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TCN MD Abdulaziz, four other directors receive appointment letters

The acting Managing Director of Transmission Company of Nigeria (TCN), Sule Abdulaziz, has been appointed the new Chairman of the Executive Board of West African Power Pool (WAPP). Abdulaziz was nominated by the former Managing Director of Power Holding Company of Nigeria (PHCN), Joe Makoju, who is an honorary member of WAPP.

READ: NNPC signs gas development and commercialization deal with SEEPCO

This disclosure was made by TCN’s General Manager, Public Affairs, Mrs Ndidi Mbah, through a public statement in Abuja on Thursday, October 22, 2020.

In her statement, Mbah revealed that the West African Power Pool was created by Decision A/DEC.5/12/99 of the 22nd Summit of the ECOWAS Authority of Heads of State and Government, and adopted during the 29th Summit of the ECOWAS Authority of Heads of State and Government held in Niamey, Niger.

READ: Indian firm, Ramco signs partnership deal with Nigerian airline

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The appointment was made during the 46th meeting of the WAPP Executive Board which was chaired by the Secretary-General of ECOWAS, Ki Sengui, and held through video conference on October 21.

The statement from Mba partly reads, “While making the nomination, Makoju noted that Abdulaziz is an expert in engineering with vast experience in the electricity sector and therefore will perform creditably as the new WAPP Executive Board Chairman.

READ: Continental Reinsurance Plc acquires 100% ownership of its Botswana subsidiary

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“His proposal was endorsed by MDs and Director Generals and other members of the board,” she said.

According to the statement, Abdulaziz in his acceptance speech thanked the board members and the honourary members for his nomination as the Chairman of the board and assured them of his total commitment to the overall objective of the regional electricity body.

READ: A bitter family feud has continued to hamper this company’s growth

He also expressed the need to move the pool to the next level of operational efficiency and solicited the support of member utilities, especially members of the executive board in this regard.

Explore Data on the Nairametrics Research Website 

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He urged members to ensure prompt payment of their contributions to the pool and also continue to collaborate actively with the secretariat to ensure effective and efficient coordination and implementation of all WAPP programmes.

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ENDSARS

#EndSARS: IPMAN warns of looming fuel scarcity across the country

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#EndSARS: IPMAN warns of looming fuel scarcity across the country, Update: Fuel scarcity looms as NUPENG directs Tanker drivers to withdraw services in Lagos

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has warned of a looming petroleum scarcity in the country, following attacks on fuel tankers and the disruption of depot operations across the country by hoodlums who had hijacked the #EndSARS protests.

READ: #EndSARS: Access Bank announces N50 billion interest-free facility for businesses

This disclosure was made by the Chairman of IPMAN in Rivers State, Dr. Joseph Obele, while speaking on a live radio program in Port Harcourt on Friday, October 23, 2020.

Obele disclosed that about 10 petroleum tankers belonging to its members were attacked and destroyed across the country by these hoodlums during the protests, although he noted that there had been no fatalities.

READ: DPR cautions IPMAN against PMS diversion  

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He said the scarcity of petroleum products could be inevitable if the situation failed to improve before filling stations exhausted their stocks.

Obele said, “About 10 of our trucks have been attacked nationwide by protesting youths, although there have not been casualties.

READ: #EndSARS: Feminist Coalition raise Cryptos worth $126,000

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“Supply and distribution of petroleum products haven’t really been smooth, reason arising from the fact that 90% of our supply came from Lagos and there has been a skeletal supply schedule in Lagos for the past one week.

“Thursday’s case was worse, [as] all the depots in Nigeria were shut down. We don’t produce these products; we buy from depots and tank farms, and if these depots do not give us products, we fear that when we run out of stock, petroleum scarcity will happen.”

READ: #EndSARS: Coca-Cola donates N20 million to cover medical bills of victims

Backstory

Recall that the #EndSARS protest against police brutality and extra-judicial killings, which started peacefully about 2 weeks ago, was taken over by hoodlums who meted out violence with the looting and destruction of public and private properties across the country. This has also led to the loss of lives and disruption to socio-economic activities.

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Explore Data on the Nairametrics Research Website 

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Energy

FG hires litigation firm, Franklin Wyatt, in legal battle with Eni S.p.A

The Ministry of Petroleum Resources has hired a litigation firm to assist in its dispute with Eni S.p.A over oil rights and bribery allegations.

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FG estimates that alternative petrol, CNG would cost N97 per litre, New PIB amends royalties by oil firms as Sylva clarifies position on scrapping of NNPC, autogas, FG to establish petroleum depot, oil and gas logistic centre in Akwa Ibom

The Federal Ministry of Petroleum Resources has employed the services of Franklin Wyatt, a litigation settlement specialist, to take part in the talks with Eni S.p.A in a long-running dispute over oil rights and bribery allegations.

According to Bloomberg, the London-based consultancy, Franklin Wyatt, was contracted by the Minister of State for Petroleum Resources, Timipre Sylva, to represent and advise the Federal Government on outstanding commercial and legal issues over Oil Prospecting License 245 (OPL 245), through a letter dated June 29 and addressed to Matthew Carey, the Managing Partner of the firm.

This disclosure was made by the spokesman for the Minister of State for Petroleum, Garba Deen Muhammad.

The letter to the firm partly reads, “This serves as confirmation that Franklin Wyatt’s recruitment was approved by Nigeria’s president, Muhammadu Buhari, and may be produced as evidence of the firm’s authority to represent the ministry in discussions with relevant counterparties.”

Backstory

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Nairametrics earlier reported that the Nigerian government, at a hearing into the alleged corruption linked to Eni and Shell’s acquisition of OPL 245, called for a guilty verdict and an advance payment of about $1.1 billion for damages, in one of the oil industry’s biggest-ever corruption trials.

Eni has also accused both Nigeria and US investment firm for assisting the country with its litigation against the Italian oil firm and accused Royal Dutch Shell of a lack of transparency in the $1.1 billion energy deal.

What you should know

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  • The 2011 purchase of OPL 245 by Eni and Royal Dutch Shell Plc has been subject to years of legal wrangling. The two companies, as well as some current and former executives, are on trial in Milan for allegedly making corrupt payments during the deal.
  • Italian prosecutors have accused the companies of moving $1.1 billion into a Nigerian government escrow account to obtain the license in 2011, about $800 million of which was then used to pay bribes into private pockets.
  • The current Nigerian government, which came to power five years ago, joined the case in 2018 as a civil party and asked for at least $1.1 billion in damages, while prosecutors are seeking a jail term of eight years for Eni Chief Executive Officer Claudio Descalzi. The tribunal is expected to rule early next year.

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