A few days ago, power generation had surged to excess of 5,000 megawatts, thus raising hope for sustainable power supply, at least on a medium term basis. UDEME AKPAN however reports that the capacity has not been sustained, with total power generation dropping to 4,150.64mw, thereby negatively affecting productive activities in many sectors of the economy.
There are indications that electricity supply has worsened in many parts of the nation as generation drops from over 5,000 megawatts, mw to 4,150.64mw. The Presidential Task Force on Power, PTFP which confirmed this in its report over the weekend indicated that of the 4,150.64mw generated, 4,068.51mw was supplied while the balance was conserved to stabilise the system. Investigations showed that the supply is grossly inadequate, considering the nation’s over 10,000mw estimated daily demand. In other words, the Electricity Distribution Companies, DISCOs have not been able to meet the expectations of consumers. The reasons are not farfetched. First, the low generation is attributed to low rainfall, meaning a drop in water supply for hydro-power generation. Second, the development is also attributed to a reduction in gas supply thermal power stations, including Egbin station which is the nation’s biggest plant.
A few days ago, the Nigerian Electricity Regulatory Commission, NERC had indicated that it noticed with concern the acute shortage in power supply and the attendant hardship Nigerians experienced. It maintained that in the last couple of months, electricity supply had been generally poor on account of increase in pipeline vandalism. “At present, 18 out of the 23 power plants in the country are unable to generate electricity due shortage of gas supply to the thermal plants with one of the hydro stations faced with water management issue. This has led to loss of over 2,000megawatts in the national grid. This situation is further compounded by the recent industrial actions embarked upon by workers in the oil and gas industry, a development which is taking toll on other sectors of the economy. Gas supplies to the thermal plants have been further constrained by the industrial actions of workers in the oil and gas industry.”
“The Commission had proactively engaged the gas supply companies and its licencees when two weeks ago discussion was held on how to firm up gas supply in order to increase power supply. Unfortunately, not much progress was made through this meeting as the Nigerian National Petroleum Corporation (NNPC) and its subsidiary Nigeria Gas Company, disclosed of high incidence of vandalism in some areas that were relatively peaceful along its pipeline networks.” “The situation was worsened by the damaged done to Trans-Forcados pipeline in the western axis and ELPS gas pipeline in the eastern axis. NNPC had explained at the meeting that repair works are being intensified even as it expressed worry on the integrity of the pipelines on account of incessant damage it has sustained.
In essence, what has brought about this development is the increased incidence of vandalism which is beyond the control of the regulator and the industry operators. This situation is further compounded by the industrial actions declared by the oil and gas workers,” it had noted. It maintained that the Commission would continue to engage with relevant authorities on how fast we can address shortage of gas supply to the thermal plants. The Commission said it would continue to engage with industry operators on how to improve electricity supply. The Commission promised to ensure that consumers are protected from undue exploitation. Already, NERC that had ordered the Abuja Electricity Distribution Company, AEDC to make refunds to consumers who were over-billed added: “AEDC shall with immediate effect from the date of this Order commence refund through energy credit of all excess charges billed its customers as a direct consequence of the adjustments.” These and others have attracted the comments of stakeholders in the sector.
For instance, the Director General of Lagos Chamber of Commerce and Industry, LCCI, Mr. Muda Yusuf has tasked President Muhammadu Buhari to carry out a proper audit of the sector in order to understand its major challenges before initiating various initiatives targeted at taking it to another level. He called on the government to focus on the real issues that affect the sector in order to ensure adequate power is generated, transmitted and distributed nationwide. The National President of Oil and Gas Service Providers Association of Nigeria, Mr. Colman Obasi also called on the International Oil Companies, IOCs and indigenous operators to boost their investments in the gas sector in order to ensure that adequate gas is supplied to investors in the power sector.
He maintained that that with 187 trillion standard cubic feet of gas reserves, the nation has sufficient capacity to sustain supply to power stations. “We are blessed with commercial reserves and should not be searching for gas to generate electricity after all we are the nation supplying to other nations. As a matter of policy, we should meet our domestic demand for power generation before supplying to other nations because domestic power generation is key to our national economic development.” A top official of Energy Institute, Nigeria who preferred not to be named further said emphasis should be given to improved transmission. He who noted that there are a lot of leakages in the system said: “The Federal Government should monitor transmission activities because there are indications that the Transmission Company of Nigeria, TCN has not been able to reduce of completely eliminate transmission loses in the system.”
Expectedly, the situation constitutes a double tragedy for consumers because of many challenges, especially a recent increase in tariff. The Nigerian Electricity Regulatory Commission (NERC) has come under attack for approving the new tariff which took effect from February 1, 2016. Some electricity consumers in the Federal Capital Territory (FCT) and the environs say the new tariff was approved without due consideration of the plight of the consumers who they argue have got the fare share of bargain as far as electricity supply is concerned. Many residents of the suburbs of capital city decried the low supply of electricity in the last few months, stressing that time is not right for any form of increment in tariff.
“Let me use this medium to declare that the new tariff was adopted without regard to the plight of the consumers. There ought to be condition precedent to the operators before the tariff is approved. Among which is stable electricity and supply of smart meters and these are yet to be met but NERC was quick to approve the new tariff. Whose interest are they serving?” queried James Amaze, a resident of Zuba. Meanwhile, NERC has insisted that the existing electricity tariff order was carried out after wide consultation with different shades of opinion, and in strict compliance with extant rules and judicial pronouncements. The clarification was made available to newsmen NERC’s Head, Public Affairs Department, Dr. Usman Abba Arabi.
In the statement, NERC stated that while the it will restrain itself from delving into a matter already before the court, NERC, however, has taken note of the ongoing protest by the Nigerian Labour Congress (NLC). ‘In this regard, the Commission hereby states that it is committed to act in the best Interest of electricity customers and all stakeholders in the development of the electricity industry. The tariff regulation process entails wide consultation with stakeholders. In addition, the Electric Power Sector Reform (EPSR) Act 2005 empowers any party aggrieved or dissatisfied by the decision of the Commission to appeal to it within 60 days from the date of the decision. Therefore, the Commission is still open to further consultation.
“On the issue of the Court Injunction, we wish to state that the Commission is a law abiding government body with respect and regard for the judiciary and the rule of law. The Commission will not contravene any court order. However, we wish to state that we must all exercise restraint to allow the court to do its duty of determining the matter before it. “NERC has since filed all necessary papers before the court in response to all the court cases. In the mean time, we wish to state that the Commission is dedicated to ensuring that regulation of the sector is fair and balanced for consumers, investors and all stakeholders in the delivery of a safe, adequate and reliable electricity supply” the statement reads in parts. But consumers in the FCT have called on the Federal Government to ensure a commensurate improvement of electricity supply to their areas before allowing the implementation of the new tariff order.
The consumers, who spoke to our correspondent in different locations including Gwgwlada area council, Mararaba, and Zuba in Abuja, say they had yet to benefit from the promise of stable electricity supply by President Muhammadu Buhari administration. Also, a resident of Zuba in the Gwagwalada Area Council of the FCT Mr. Zubeiru Suleiman said that the cost of diesel and maintenance of generating sets was overwhelming. Chief Johnson Okechukwu, a businessman at Deidei Building Material Market, urged the President Muhammadu Buhari-led administration to implement projects for which it would be remembered. Alhaji Mufutaudeen Balogun, an Islamic scholar and resident of Zauda Village in the Abuja Municipal Area Council (AMAC), said that the community had not seen light for the past two months. Balogun attributed the blackout in his area to the deplorable condition of the transformer serving the community. He appealed to the relevant authorities to assist the community by replacing the old transformer with a new one. It is against this understanding that the executive director, Spaces for Change, Mrs. Victoria Ohaeri has urged relevant stakeholders, especially investors and regulators to tackle these and other challenges in order to deliver adequate and stable power to consumers nationwide