Connect with us
iubh
Advertisement
Alpha
Advertisement
Hotflex
Advertisement
Advertisement
Advertisement
UBA
Advertisement
Patricia
Advertisement
app

Energy

Ikeja Electric tops with 10.7% approved meter allocation – NERC

Ikeja Disco (IKEDC) tops the list with the approved meter allocation of 106,701 units(10.7%).

Published

on

Ikeja Electric customers to pay more as IE increases tariff by 50% , Ikeja Electric tops with 10.7% approved meter allocation - NERC

The data recently released by the Nigerian Electricity Regulatory Commission (NERC) shows that one million meter units have been earmarked for the initial phase of the implementation of the National Mass Metering Programme (NMMP). Ikeja Disco (IKEDC) tops the list with the approved meter allocation of 106,701 units(10.7%).

The others are IBEDC with 103,997 units (10.4%), AEDC with 101,186 units (10.1%). PHEDC got the least of 77,070 units(7.7%).

The allocation of the meters to the respective Discos was based on 80% of the one million meters for the take-off of the scheme shared equally amongst all the Discos while the 20% was based on the contracted metering gap of each of the Discos.

The total number of meters contracted based on the metering gap at the commencement of MAP regulation was 6,324,971 units.

  • IKEDC has the highest number of 1,074,411, representing 17%.
  • IBEDC followed with 988,915 units, representing 16%.
  • AEDC 900,000, representing 14%.
  • PHEDC has the least with 134,324 units, representing 2%.

(READ MORE:Electricity: FG approves one year waiver of import levy on meters)

Out of 1 million units of meters earmarked across all the Discos, 347,665 units are available inventories with the pre-qualified Meter Asset Providers (MAPs) in all the Discos, while 652,335 units are to be sourced locally from the same MAPs.

  • IBEDC has the highest available stock of 96,248 units (27.7%).
  • PHEDC followed with 50,100 units (14.4%).
  • AEDC 40,438 units (11.6%).
  • The least inventory comes from JEDC with 4,283 units (1.2%).

What you should know

  • The Central Bank of Nigeria (CBN) recently released its framework for the financing of the National Mass Metering Programme (NMMP), as well as the local meter manufacturers to close the estimated 10 million metering gap.
  • The key objectives of the NMMP include increasing Nigeria’s metering rate, elimination of arbitrary estimated billing, strengthening the local meter value chain by increasing local meter manufacturing, assembly, and deployment capacity.
  • The programme is well intended to support Nigeria’s economic recovery efforts by creating more jobs in the local meter value-chain and reducing collection losses, as well as, increasing financial flows to achieve 100% market remittance obligations of the Discos.
  • The Federal Government’s National Mass Metering Programme (NMMP) obligates all the electricity distribution companies (Discos) to fully meter all their customers
  • Customers who had earlier paid for meters under the MAP Regulations shall be refunded through energy credits over a period not exceeding five years
  • The payment for meters by customers through upfront payments or monthly Meter Service Charge as provided in the subsisting MAP regulation shall cease.

Hotflex
0

Johnson is a risk management professional and banker with unbridled passion for research and writing. He graduated top of the class with B.sc Statistics from the University of Nigeria and an MBA degree with specialization in Finance from Ambrose Alli University Ekpoma, with fellowships from the Association of Enterprise Risk management Professionals(FERP) and Institute of Credit and Collections management of Nigeria (FICCM). He is currently pursuing his PhD in Risk management in one of the top-rated universities in the UK.

2 Comments

2 Comments

    Leave a Reply

    Your email address will not be published.

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

    Business

    NNPC says NO to petrol pump price hike in May

    There would be no increase in the ex-depot price of Premium Motor Spirit in the month of May 2021.

    Published

    on

    Crude oil market remains unpredictable- NNPC Boss

    The Nigerian National Petroleum Corporation (NNPC) has assured Nigerians that there would be no increase in the ex-depot price of Premium Motor Spirit, popularly known as Petrol in May.

    This was disclosed by the Group Managing Director of NNPC, Mele Kyari, on Monday via the Corporation’s Twitter handle.

    It tweeted, “There would be no increase in the ex-depot price of Premium Motor Spirit in the month of May 2021.”

    Ex-depot price is the cost of petrol at depots, from where filling stations purchase the commodity before dispensing to final consumers.

    READ: Nigerian automaker raises $9 million despite protest against electric car in Nigeria

    Kyari also added that Petroleum Tanker Drivers had suspended their proposed strike after the intervention of NNPC in the impasse between the PTD and the National Association of Road Transport Owners.

    “We have given our commitment to both NARTO and PTD that we will resolve the underlining issue between them and come back to the table within a week so that we’ll have a total closure of the dispute,” he added.

    Hotflex

    READ: Oil marketers give conditions to resume fuel importation

    What you should know

    • NNPC has maintained an ex-depot price of N148/litre since February despite the hike in the actual cost of the commodity, hence incurring subsidy of over N120bn monthly.
    • Also in March, the NNPC said it would maintain its ex-depot price for petrol until the conclusion of ongoing engagement with the organised labour and other stakeholders.

    +1
    Continue Reading

    Energy

    NCDMB’s Oil and Gas Parks and their many adversaries

    New businesses within the NOGAPS will face intense competition from foreign OEMs that do not have to battle with tariffs, a harsh business terrain and different tax treatment.

    Published

    on

    In 2018 the Nigerian Content Development and Monitoring Board (NCDMB), the body saddled with driving the development of Nigerian content in the Nigerian oil and gas sector, did a groundbreaking of the Nigerian Oil and Gas Park Scheme (NOGAPS), a scheme that involves the construction of sprawling oil and gas parks in Bayelsa, Imo and Cross Rivers State.

    In a visit last week to one of the parks currently under construction in Emeya 1, Ogbia, Bayelsa State, the Minister of Petroleum for State, Chief Timipre Sylva, expressed delight at how the project was quickly progressing and was now at 70% completion. Mr Simbi Wabote, Executive Secretary of the NCDMB, during the visit also noted that the Oil and Gas Park project “is in line with the Federal Government’s mandate to develop indigenous capacities for the oil and gas industry.”

    READ: NCDMB, BOI, won’t relax conditions to access $200 million NCI Fund despite complaint 

    While this is highly commendable, as the project will indeed reduce Nigeria’s dependence on import of oil and gas equipment and provide jobs for local indigenes -which would likely reduce restiveness in the area-, there exist significant challenges to this project achieving its goals.

    Perhaps one of the biggest of them is the African Continental Free Trade Area (AfCFTA) regime which is expected to open Nigeria’s borders to an influx of imports from other countries within Africa. Beyond opening the borders, however, the tax treatment given to domestically produced items will be no different from similar products imported, and the typical tariffs for imported items will be removed.

    READ: Aiteo accuses Shell of theft of 16 million barrel of crude oil

    This essentially means that large and established original equipment manufacturers (OEMs) from other African countries may on the basis of their economies of scale be able to supply the same products produced in the oil and gas parks at lower rates. A report by Dun & Bradstreet reveals that in Africa, countries like Guinea, Gabon, Burkina Faso and Ghana that flank Nigeria play host to various oil and gas OEMs.

    With the large oil and gas market Nigeria has, these companies will seek to make inroads into Nigeria under the AfCFTA regime. This will mean that the new businesses within the NOGAPS will face intense competition from foreign players that do not have to battle with tariffs and different tax treatment. Additionally, the Nigerian culture of preferring imported products over domestically manufactured ones might play a role in this, particularly if the prices of the imported ones even up with domestically produced ones or only have a slim margin.

    Hotflex

    READ: NNPC says local operators must improve capacity to achieve low cost of oil production

    If the patronage for Innoson vehicles is anything to go by, in a market where there is no real difference in price between that and the domestically produced ones, we will see a preference for imported products.

    All of this will be further aggravated by Nigeria’s doing business difficulties. Things like delays in obtaining permits, approvals and licenses, the corruption that accompanies these processes, weak currency and dual exchange rates, poor infrastructure and lack of power supply abound. While the Nigerian businesses struggle with this, their foreign counterparts get to produce under more convenient conditions and are thus able to deliver within time and without the additional costs passed to consumers through these poor doing business practices.

    While Mr Wabote has promised that the park in Ogbia will have dedicated power supply, it is hard to imagine that this power will not significantly cost the businesses if they are served at maximum capacity. At number 131 on the World Bank’s Ease of Doing Business Ranking, a park would not solve Nigeria’s problems, only a positive commitment to fix these doing business issues will.

    READ: Seplat incurs N41.1 billion loss from OML 55, blames fall in oil prices

    Stanbic 728 x 90

    The christening of a park as an “oil and gas park” in the 21st century, where countries of the world –and indeed private companies- are working towards achieving increased use of cleaner energy sources, is counterintuitive. The park should be an energy park that integrates significant research and development in its function as well as innovation and production of renewable energy equipment, both adapted to benefit from local conditions and standardized for export purposes.

    It seems too, that not much consideration has been given to export of these equipment, as the parks earmarked so far are in landlocked Imo, port-less Bayelsa and Cross River that feeds into Cameroon, which is not a very prime market, although the DRC on the other end could attempt to compensate for this. It might be worth considering, the setting up of a park in Lagos – perhaps in the same vicinity as the Dangote refinery.

    The park would benefit from being able to supply equipment to the refinery (especially as the refinery starts production in early 2023). It will also be able to tap into the global market through export via the Lekki port. This might also be a good time for the Agge deep sea port mulled by the Bayelsa State government to come onstream to open up the Ogbia park to a global market.

    +2
    Continue Reading

      





    Nairametrics | Company Earnings

    Access our Live Feed portal for the latest company earnings as they drop.