NATIONAL ASSEMBLY ANGRY WITH THE POWER SECTOR - STOPS PROPOSED BOND

Reports have emerged that the Senate has urged the Federal Government to suspend its plans to raise N309 billion bond to finance electricity generation with a view to erasing recorded shortfall in projected power availability. This move according to the Senate is to allow its committees on Power and Privatization to investigate the state of the sector. The motion which was moved by Senator Mustapha Bukar was unanimously adopted by the legislators.

Bukar’s reasons in support of the motion is that the bond was not necessary in view of a recent intervention of N213 billion in the power sector by the Central Bank of Nigeria through the Nigeria Electricity Sector Intervention fund. He pointed out that the shortfall in power generation has continued to escalate at an equivalent rate of N500 million per day. He further opined that the continued incidence of market shortfall is a disincentive for new investors to venture into the power sector and that an increment in generating capacity would further aggravate and worsen the market shortfall. The Senator concluded with saying that the intervention would amount to not only spoon-feeding the operators but doing so at great cost to the country.

While also opposing the proposed bond at the House of Representatives, Hon. Edward Pwajok stated that the Discos which collect revenues fail to remit in full to other market participants and that there have been no measures put in place by the Nigerian Electricity Regulatory Commission (NERC) to block leakages and sanction defaulters. The lawmakers also premised their angst on the fact that there has been no noticeable improvement in the electricity sector despite the fact that tariffs have been raised twice since 2013.

There were resolutions at both chambers of the National Assembly for the Nigerian Bulk Electricity Trading Company to halt the move to raise the bond. However, the National Assembly is yet to give a hint as to the legislative direction it wants to take on the Power Sector in addressing the myriads of problems confronting that sector. It is instructive to recall that during the privatization of certain segments of the power sector such as the distribution companies, there was a commitment by the investors to meeting certain targets on the reduction of Aggregate Technical Commercial and Collection (ATC&C) losses. The aggregation of losses being technical, commercial and collection losses is the methodology for assessing the overall health of a utility.

The National Assembly’s disappointment with the performance of the power sector is not isolated. However, there must be a template for taking these power companies to task particularly on the ATC&C loss reduction commitments which they made when they bided for these utilities. To stop the proposed bond and do nothing thereafter is certainly not an option for us. Nigeria needs a viable power sector and the only way to get there is to ensure that the sector remains well-funded, regulation is effective and that the sector operators adhere to their respective obligations. 

BENUE SET TO GET TO EMBEDDED POWER GENERATION

Benue State is set to be the beneficiary of an US$18 million dollar investment in embedded power generation courtesy of Contec Global. This came to light following the visit of the Executive Governor of Benue State, Dr Samuel Ortom to the Nigerian Electricity Regulatory Commission (NERC) in Abuja who led the delegation of the State’s investors this 4th October. Contec Global seeks to construct a power plant with a name plate capacity of 10MW for embedded generation.

Embedded generation otherwise referred to as “distributed generation” is usually a small-scale production of electricity which is connected within the distribution network in such a manner that the generation plant has no direct access to the transmission network. This is unlike the usual power plants that are connected to the transmission system through which the generated capacity is wheeled to loads such as distribution network in a process overseen by the System Operator. The distributed generation power plant can either be connected to the existing distribution company serving the area or to an independent electricity distribution network (IEDN) which is separately licenced by NERC. The Distribution Company operating in Benue State is the Jos Electricity Distribution Company.  

In a release from the office of the Public Affairs Department of NERC headed by Dr. Usman Abba Arabi it was intimated that the NERC Chairman Dr Anthony Akah MNI while welcoming the delegation stated that NERC was ready to assist State Governments invest in the power sector. NERC Chairman also invited state governments to key into on-going consultations on the making of mini-grid regulation which could be explored by States to provide electricity to areas that are not connected to an existing grid or are underserved.

Akah assured the Benue delegation and the investors of their willingness to provide them with technical assistance on the procedure for the issuance of the relevant licence for the project. Ortom pointed out that the power plant will be dedicated to industrial layouts in Benue State for the benefit of economic activities in the State. The proposed power station will be powered by gas. Under the Electric Power Sector Reform Act any person seeking to engage in embedded power generation requires a generation licence under Section 64(1) of the Electric Power Sector Reform Act. 

FREE PRE-PAID METERS TO BE SHARED IN SOKOTO AND ENVIRONS

Kaduna Electric, the electricity distribution company covering Sokoto, Kaduna, Kebbi and Zamfara is to commence the free distribution of pre-paid meters with effect from October 10 for electricity consumers within the States of their coverage. This was disclosed in a statement by the company’s Head, Corporate Communication, Abdulazeez Abdullahi made available to newsmen this Tuesday, 4th October. Abdullahi said the unveiling of the meters will be performed in Sokoto by the Honourable Minister of Works, Power and Housing, Babatunde Fashola SAN.

Mr Abdullahi said the company had already commenced the distribution of pre-paid meters to customers that had made payments under the Credit Advance Payment for Metering Implementation (CAPMI). The spokesman said the development is in line with the directive issued by NERC for the winding down of the CAPMI scheme by November 1. He said customers that have paid under the CAPMI programme will be provided with their prepaid meters. The Disco has advised customers not to make any further payments for prepaid meters. 

IMPROVED POWER SUPPLY DUE TO RAINFALL AND HYDRO PLANTS – FASHOLA

The Minister of Power, Works and Housing Babatunde Fashola SAN has attributed the improvement of power supply in the country to the increased capacity of our Hydro Plants. While expressing confidence in the incremental gains of privatization in the power Sector, the Honourable Minister stated that in the last two weeks, about 400MW of electricity has been added to the National Grid from the hydro plants.

Fashola attributed the increased capacity of the hydro plants to the fixing of turbines that were abandoned or unmaintained for about three decades. He said that within the period, a lot of repair and maintenance work had been carried out. The Minister however acknowledged the increased cycle of rainfall and water levels as a factor in the improved performance. On a very interesting note, the Minister pointed out that about 1MW of electricity has been added through solar energy projects. This is good news for the diversification of the energy mix of the country. 

OUR POWER SECTOR PROBLEMS ARE MAN-MADE – FASHOLA

Minister of Power, Works and Housing, Babatunde Fashola SAN has described the problems facing the power sector in Nigeria as man-made. This is against the belief that problems bedevilling the sector are technical. In a document made available through Sweetcrude, the Minister identified problems such as non-payment of contractors, lack of project supervision, inadequate supervision of unbudgeted projects and inadequate funding of budgeted projects.

The Minister added that his ministry has developed a roadmap for tackling the problems facing the sector. He however identified the problem of insufficiency of power for distribution as one of the setbacks of the power sector. He listed projects being implemented for the increase of power to be distributed to include the 400MW Azura Power Plant in Edo State, the 700MW Zungeru Hydro Power Plant in Niger State, the Gurara Hydro Power Plant in Kaduna State, the Kashimbilla and the 115MW Power Plants all in Kaduna. The Minister also identified on-going transmission line projects as those of Kano – Kaduna Transmission Station, Lambe Transmission Station, Kumbotsu Transmission Station and the Alagbon Transmission Station in Lagos. The Okada transmission Station in Edo State is said to have been completed. 

Wave Driven Electricity Coming on Stream in the US

In the quest for the expansion of the stakes of renewable energy and the reduction of reliance on fossil fuels, the first ever wave-driven electricity is soon to come on stream in the United States off the Coast of Hawaii. The technology in use will rely on the ocean currents particularly tidal waves to generate electricity which will be wheeled out through a sub-sea cable for about a mile to a military base and fed into Oahu’s power grid according to Cathy Bussewitz.

It is estimated that energy from this source when fully developed and harnessed is capable of meeting about a quarter of the energy needs of the United States. The Navy is also said to be interested in this technology as a source of re-fuelling their fleet off-shore and the provision of electricity to coastal communities. There is however concerns about altering the aesthetics of the ocean view with clusters of electricity machines projecting out of the ocean all for the sake of electricity generation.

The test project near Kaneohe Bay consists of two buoys anchored half a mile off the coast. One of the buoys, a 50-foot wide, doughnut-shaped device called the Lifesaver was developed by a Norwegian company. The 3-foot-tall ring is anchored to the ocean floor with cables; when the buoy is moved by the sea, the cables move, turning the wheels of a generator according to Steven Kopf. The technology however still lags well behind wind and solar power. 

EVER WONDERED HOW YOUR ESTIMATED ELECTRICITY BILL IS CALCULATED?

Available data shows that of all the electricity consumers in Nigeria about 60% majority still have no electricity meters. That is, they have neither the prepaid meters that operate with vouchers nor the old fashioned post-paid meters that are supposed to be read before bills are issued. Hence, most electricity consumers have no meters at all and the electricity bills are simply estimated.

Granted that the Nigerian Electricity Regulatory Commission (NERC) has severally ordered the Distribution Companies to provide every electricity consumer with a meter, they have also made regulation for the estimation of bills for unmetered consumers pending when they are metered. This Regulation is called the NERC Methodology for Estimated Billing, 2012 which every Distribution Company has an obligation to comply with in the estimation of electricity bills.

This Regulation categorises consumers into two for the purpose of the estimation of their electricity bills. The two categories are:

Unmetered Maximum Demand Customers – The following tariff classes are under this group and this is indicated on the Bill issued to such customers as follows: Residential (R3, R4); Commercial (C2, C3); Industrial (D2, D3); and Special i.e. religious houses, agro enterprises, water boards, government hospitals and institutes (A2, A3)..

Unmetered Non-Maximum Demand Customers – The following tariff classes are under this group and this is indicated on the Bill issued to such customers as follows: Residential (R1, R2); Commercial (C1); Industrial (D1); Special i.e. religious houses, agro enterprises, water boards, government hospitals and institutes (A1) and Street Lights (S1)

BILLING OF UNMETERED MAXIMUM DEMAND CUSTOMERS

The billing of unmetered Maximum Demand Customers is based on “Load Measurement Method” which is the measurement of voltage and current on the customer’s premises for a specific period between one to twenty four hours during normal operation and the application of the following formula:

Kwh = √3 × V₂ × I₂ × PF × Av × LF × 1000

Where:

V₂ = Line Voltage in Volts

I₂ = Line Current in Amperes

PF = Power Factor

LF = Load Factor

Av = Number of hours of power supply availability in the month.

Amount payable = (Tariff Class rate × kwH) + Fixed Charge + VAT

BILLING OF UNMETERED NON-MAXIMUM DEMAND CUSTOMERS

In calculating estimated bills for unmetered non-maximum demand customers for the tariff classes under this group, the principle applied here is the “weighted average cluster load”. Under this method, the load of the entire metered customers at a feeder is subtracted from the total energy supplied to the feeder (such as 33kv, 11kv feeders etc). Your feeder is located at the transformer you are connected with. Then there is an application of an appropriately determined availability factor and correction of losses which is now applied across the various classes and number of customers on each feeder.

This method also requires the determination of the average consumption of various classes of customers in the urban and rural areas. The relationship derived is applied to determine the proportion of the energy supplied to the feeder which is then proportionately distributed among the various customers.

Energy available for billing at the feeder for both metered and unmetered customers is calculated as follows:

Z = X - µX

Where Z is energy available for billing;

          X is energy on all feeders; and

µ is the percentage distribution technical loss currently put at (10% under MYTO)

How each of the bills is calculated using R1 customers as an example

R1 = ƪc R1 Zu/N R1

Where ƪc R1 is the weighted class average for R1 consumers

          Zu total energy used by unmetered consumers at the feeder

          N R1 total number of R1 consumers connected at the feeder

Same formula applies to the other non-maximum demand consumers as follows:

R2 = ƪc R2 Zu/N R2

Next time your estimated bill increases by any percentage, here are the things to check for:
(1)Percentage change in tariff (if NERC has increased the tariff) - tariffs  are printed on bills 
(2)Percentage increase in electricity supplied to your area
(3)Percentage reduction in the number of unmetered power consumers at your feeder
(4)Whether the transformer in locality has been replaced with another one of bigger capacity

If these factors have remained the same, while your utility bill has increased then you may be have a ground to query your bill. If there is an increase in these factors apart from (3) then your utility bill can justifiably increase by the percentage of change in these factors. If the reverse has been the case then your estimated bill should decrease else you have a ground to query it. 

In our next post we will let you know the prevailing tariff for your tariff class and how to estimate if your next estimated bill will be lower or higher than the last one you got. 

CONTD. Rights of Electricity Consumers in Nigeria

Right to seek disconnection from electricity supply: An electricity consumer has a right to request to be disconnected from electricity supply at his or her supply address if the request has the consent of the occupants of the address and following such disconnection such consumer cannot be billed any more until the disconnection request is cancelled.

Right to remain connected for three months after default on payment: An electricity consumer can only be disconnected where the period between the payment date and the date of disconnection is up to three (3) months.

Right to a 24 hours response to supply complaints: Consumers are entitled to have their electricity supply complaints due to a minor fault in the Disco’s equipment attended to within 24 hours of the making of such complaint by a representative of the Disco and for other faults, within 48 hours of the initial complaint except the logistics of rectifying the fault within the 48 hours is not feasible.

Right to notice of supply interruption: An electricity consumer is entitled to be notified of interruption to electricity supply for routine maintenance at least three working days prior to such an interruption. Consumers must also be informed through the media when the Disco embarks on load management or ‘load shedding’ owing to system constraints. Consumers with demand of 1MW and above, hospitals, public water works and other essential service providers have to be informed by telephone call. For a sustained period of load shedding, power consumers must be informed of the load shedding roaster through the media.

Right to voltage complaints being attended to within 24 hours: Where a consumer complaint bothers on power being delivered at a voltage too high or too low, a representative of the Disco must attend to the problem within 24 hours of such complaint being lodged.

Right to have meter checked: Where a consumer complaint bothers on meter accuracy, a representative of the Disco must attend to the problem and have the meter tested within three working days and a response provided within five working days of the visit.

Right to have meter repositioned: Subject to the payment of the standard fee and the agreement of the Disco, a consumer is entitled to have his meter repositioned within the same premises by the Disco within five working days of the request.

Right to have prepaid meter attended to within 24 hours: A consumer using a prepaid meter is entitled to have the meter checked within 24 hours of lodging a complaint and fixed or replaced except when the meter is found to operating normally or is inaccessible.

Right to be provided with prepaid meter in 60 days under CAPMI: Consumers that have voluntarily decided to pay for meters under the Credit Advance Payment for Metering Implementation (CAPMI) scheme must be provided with meters within 60 days of such payment after which period, estimated billing of such a consumer must stop.

Right to have meter read: Meters of consumers’ using post-paid meters have to be read once in a month or at least once in three months except for customers with unmetered supply or those using prepaid meters.

Right to free replacement of damaged transformers, poles etc.: Power consumers have a right to have any damaged electricity supply equipment in their environs such as power transformer, poles, cables etc. to be replaced without paying any fees for the replacement.

Right of unmetered consumers to challenge electricity bills: Unmetered electricity consumers have a right to challenge their estimated bills and while this petition is pending against such bills, they are to pay only the previous undisputed bill. 

Right to have the contact of business unit official printed on bills: Power consumers have the right to have the contact of the Disco’s business Unit officer printed on their utility bills to facilitate the making of complaints.

Right to have complaint resolved at the CCU: Electricity consumers are entitled to have their complaints resolved at the Customer Complaints Units which all Discos are mandated to setup and to have such complaints resolved within 15 working days.

Right to refer a complaint to the Consumer Forum: Electricity consumers have a right to file a complaint over complaints concerning their Discos at the designated Consumer Forum overseeing the area covered by the Disco.

24 Rights of Electricity Consumer Rights in Nigeria

         Right to be connected for the supply of electricity at an existing supply address: Subject to the submission of an application and identification, acceptance of supply conditions and the payment of a connection charge, every person in Nigeria has the right to be connected for the supply of electricity at his or her address not later than 48 hours after such an application is made for a hitherto connected address.

2  Right to be connected for the supply of electricity at a new supply address: Subject to the submission of an application and identification, acceptance of supply conditions, compliance with NERC electrical installation standards and the payment of a connection charge, every person in Nigeria has the right to be connected for the supply of electricity and supplied with a meter at a hitherto unconnected address within 10 working days.

3  Right to be issued with a reconnection bill: An electricity consumer at an existing supply address is entitled to be informed of the cost of reconnecting electricity supply within 3 working days of request where reconnection is subject of standard pricing and in other cases 5 working days.

4  Right to have electricity bill issued in own name: A consumer who has been connected by the distribution company for the supply of electricity following his or her application has a right to be issued with electricity bills made out in his or her name except otherwise agreed.

5  Right to disconnection notice: An electricity consumer’s supply address can only be disconnected by the delivery of a written warning that supply will be disconnected if payment is not made by the payment date and the warning must state the date of its delivery to the supply address as well as phone number and address of person through which payment assistance may be sought.

6  Right to notice after disconnection: An electricity consumer is entitled to a written notice of disconnection specifying the date and time of disconnection, reason for disconnection, steps to be taken for a reconnection and contact address and phone number of the Disco’s representative.

7      Right not to be disconnected for certain electricity consumers: Discos are prohibited from disconnecting certain electricity consumers that is consumers that paid the billed amount, entered into an arrangement with the Disco for payment, consumers  owing amounts less than the value of their monthly bill, consumers that have filed complaint against the billed amount and complaint remains unresolved and consumers that have applied for consumer assistance under programmes like the Power Consumer Assistance Fund (PCAF).

8       Right to be paid penalty for wrongful disconnection: An electricity consumer that has been wrongfully disconnected is entitled to paid compensation for each day of such disconnection ranging from =N=1000 for residential consumers to =N=2000 for special and industrial consumers.

9 Right to reconnection after payment: Electricity consumers are entitled to be reconnected for electricity supply if they were lawfully disconnected provided that the basis for such disconnection has been resolved be it by payment, arrangement for payment, rectification of illegal or dangerous connection, repositioning of meter for easy access or provision of required identification or security deposit.

1  TO BE CONTINUED 

Know Your Rights as an Electricity Consumer in Nigeria

Cheating of electricity consumers in Nigeria dates to as far back as the inglorious days of NEPA. Those were the days when “the fear of NEPA was the beginning of wisdom” while for some NEPA units, “the fear of some neighbourhoods was the beginning of wisdom”. Power consumers were indiscriminately given “crazy bills”. 

When they failed to pay or try to complain, they simply have to await the hour when NEPA officials will zoom into their neighbourhood brandishing ladders and carrying stacks of paper. Then suddenly, negotiations or fight begins. It is either the officials are bitten up and chased or they will collect as much bribe as possible from debtors who do not want to be disconnected. 

These visits normally take place during working hours when in the case of neighbourhoods of working class people they are disconnected if they fail to paste their proof of bill payment on their gates or doors. For neighbourhoods with a large stay-at home population such as ghettos, fights and scuffles can ensue. While in other cases, after the day time disconnection, electricians some of them NEPA officials are engaged to illegally reconnect disconnected consumers. 

Today, the sector is no longer in the hands of government alone. Private companies have come in and new rules have been set. The days of consumer harassment and exploitation have been put in check by new rules made by NERC (the Regulator) but many consumers do not know. We will highlight your rights as an electricity consumer in Nigeria in our next post. Do not sleep on your rights.