Issued at the end of the 19th monthly meeting of the Honourable Minister of Power, Works and Housing with operators of the Power Sector, held on Monday, September 11, 2017 at NAPTIN Guest House, Surulere, Lagos State.
- Introduction
The Honourable Minister of Power, Works and Housing chaired the nineteenth monthly meeting of operators in the electricity industry, supported by both Honourable Ministers of State for Power, Works and Housing, Hon. Mustapha Baba Shehuri and Hon. Suleiman Zarma Hassan. The meeting was hosted by Eko Electricity Distribution Company (EKEDC) in NAPTIN Guest House, Surulere, Lagos.
The meeting focused on identifying, discussing, and finding practical solutions to critical issues facing the Nigerian Electricity Supply Industry.
The operators were fully represented at the highest executive management levels, including Five Commissioners of the Nigerian Electricity Regulatory Commission (NERC), Managing Directors and CEOs of Generating Companies (GenCos), Distribution Companies (DisCos), and the Transmission Company of Nigeria (TCN), Gas Companies (GasCos) and other government agencies such as the Niger Delta Power Holding Company (NDPHC), the Nigerian Bulk Electricity Trader (NBET), Nigerian Electricity Liability Management Company (NELMCO) and Nigerian Electricity Management Services Agency (NEMSA) responsible for the regulation and development of the electricity industry. Nigerian National Petroleum Company (NNPC) and the Central Bank of Nigeria (CBN) were also represented.
- The meeting reiterated its purpose, and in addition deliberated and agreed as follows:
a. EKEDC informed the meeting of its progress in achieving incremental power, with the progress of several substations in Surulere, Orile, Keffi and Akoka to provide supply to its customers in Lagos State.
b. The Chairman encouraged the meeting to promote the true story of hope in the sector based on all the ongoing projects and efforts to improve the power sector, and to limit inaccurate and alarmist comments in the media about the power sector. The Honourable Minister reminded the meeting of the Payment Assurance Guarantees to the Generation companies, as well as the verification of the MDA debts which have been announced in the meetings and the media, as parts of the Government’s plan to resolve liquidity challenges in the Power Sector.
c. The Chairman commended the Nigerian Electricity Regulatory Commission (NERC) for its new MiniGrid regulation which has yielded new projects already with the commissioning of a new 20KW project in Kwali LGA in the Federal Capital Territory with a plan to power 145 households and 5 businesses by Haven Hills Synergy Limited and another one to be completed shortly in Kano State. The Honourable Minister encouraged investors and developers to cooperate with NERC to fast track the implementation of the regulation, with the hope that the private sector increase capacity to distribute the over 6000MW currently available for distribution.
d. NDPHC announced completion of Magboro connection project, and also announced progress of projects in Ugwuaji, Egbema, Okija, Omotosho and Olorunsogo host communities with expected completion by December this year. He listed vandalism as a major challenge to the progress of projects in Afam – Ikot Ekpene axis and encouraged the public to end vandalism. TCN also announced the completion of rehabilitation works at Omotosho plant in line with planned reconnection of the communities.
e. NERC announced commencement of nationwide stakeholder consultation for sanctions on meter bypass regarding a potential penalty to be determined after consultation with DisCos. Other topics due for consultation include regulations on: eligible customers, metering, review of MYTO methodology, and business continuity regulation.
f. The Senior Special Assistant to the President on Power announced that the MDA debts draft recommendation has been completed and will be presented by the Hon. Minister to the Federal Executive Council for approval and payment.
g. Eko and Yola recorded 100% payment performance to the Market Operator for Service Providers, and the meeting was encouraged to make payment for transmission and other services provided in good time.
h. TCN announced that the transformer replacement in Kombotso is in progress, with a view to completing at the end of December 2017. TCN also noted progress of projects in Alagbon, and completion of projects in Akangba (Surulere), Ajah, and Ejigbo.
i. Benin DisCo announced connection in 16 out of 36 communities in Ondo North/Akoko communities. Unfortunately, transformers in 20 communities have been vandalised hindering swift resolution of issues. Due to challenges of payment for power provision, Benin DisCo noted its plans to liaise with the State Government to gain commitment of payment for services rendered.
j. NERC announced sector ranking of DisCos based on metering, collections, network improvement and incremental power with Eko, Yola, Jos and Abuja DisCos as the best performing in Q2. NERC also announced that Olorunsogo I and Calabar NIPP were the best performing GenCos based on availability and average load.