BRF: “Reality before privatization is that Ministry of Power had over 50,000 staff, owned trucks, employed electricians who went out to repair faults, controlled power stations like Jebba,Kainji, Egbin & employed all who worked in Distribution. All that is gone, since Nov 2013.”
BRF: “From over 50,000 staff, the Ministry now has a staff strength of 729 people. There are no electricians, fitters, repair vehicles or distribution staff in our ministry anymore and we do not supply, repair or replace distribution transformers or meters.”
BRF: “All of these are now the work of the DisCos, under contract with BPE and under license by NERC as a matter of Law.”
BRF: So, if the DisCos are not performing, what can the Minister do?
By law, the Electric Power Sector Reform Act of 2005 (EPSRA), the Minister is not empowered to issue directives to DisCos directly.
He can issue directives to:
By law, the Electric Power Sector Reform Act of 2005 (EPSRA), the Minister is not empowered to issue directives to DisCos directly.
He can issue directives to:
BRF:
“a) NERC to exercise their regulatory power over DisCos or GenCos and this includes for non-performance or to license a competing company to provide an alternative to non-performance
b) BPE which has a performance contract with DisCos to enforce the T&Cs of the contract.”
“a) NERC to exercise their regulatory power over DisCos or GenCos and this includes for non-performance or to license a competing company to provide an alternative to non-performance
b) BPE which has a performance contract with DisCos to enforce the T&Cs of the contract.”
BRF: “It is such directives from the minister that have led to Regulations being made by NERC to license Meter Asset Providers to bridge the metering gap that DisCos cannot cover...”
BRF: “... and Eligible customers to allow consumers who utilize up to 2 MW and are not satisfied with what the DisCos give them, to buy their power directly from the GenCos.”
BRF: “For advocates of review who think that licenses of DisCos should not be renewed (or should be cancelled), that power exists but is not vested in the ministry or the minister. The power is vested in the Regulator [@NERCNG] under sections 73 and 74 of the EPSRA...”
BRF: “Contrary to widely held beliefs:
a) State Govts can establish their own power stations
b) generate, transmit & distribute electricity in areas not covered by National grid within that state
c) Establish own electricity [Cos] to promote and manage their own power stations.”
a) State Govts can establish their own power stations
b) generate, transmit & distribute electricity in areas not covered by National grid within that state
c) Establish own electricity [Cos] to promote and manage their own power stations.”
BRF: “... Areas not covered by the Grid therefore constitute a viable area of intervention by a state government to contract their own power supply without reference to the federal government.”
With the above in mind, what therefore has @FMPWH done in last 3+ years:
BRF: “Power Sector Recovery Programme(PSRP), covering: Payment Assurance, Eligible Customer Policy, Meter Asset Provider, Transmission Expansion Plan, Investment in Distribution, Off-Grid deployments, etc”
BRF: “Power Sector Recovery Programme(PSRP), covering: Payment Assurance, Eligible Customer Policy, Meter Asset Provider, Transmission Expansion Plan, Investment in Distribution, Off-Grid deployments, etc”
#Throwback
“Nigeria’s dysfunctional state power plants set to go private” - I wrote for the FT ahead of the 2013 privatization of PHCN. The mood was generally a very optimistic one, at the time. Phew. The DisCos, not GenCos, are the weakest link, btw... google.com/amp/s/amp.ft.c…
“Nigeria’s dysfunctional state power plants set to go private” - I wrote for the FT ahead of the 2013 privatization of PHCN. The mood was generally a very optimistic one, at the time. Phew. The DisCos, not GenCos, are the weakest link, btw... google.com/amp/s/amp.ft.c…
In fairness to BRF, he’s always shied away from repeating mistake of his predecessors,which was to obsess w setting/announcing MW targets. 10k/20k by 2010/2020 etc.
From the start BRF’s always emphasized the philosophy of INCREMENTAL POWER - which is the only realistic approach
From the start BRF’s always emphasized the philosophy of INCREMENTAL POWER - which is the only realistic approach
It’s the #IncrementalPower approach that’s led to sustained focus on resolving inherited bottlenecks, diversifying to off-Grid, implementing Afam Fast Power, completing several abandoned Gen/Transm projects, pushing Azura to Fin Close, rolling out Eligible Customer policy etc etc
The #IncrementalPower approach is taking big markets/econ clusters off the Grid - Ariaria in Aba, Sabon Gari in Kano, Sura/Shomolu/Iponri in Lagos, etc & also 37 Federal Universities & 7 Uni Teaching Hospitals -off the Grid. Check out #EnergizingEducation & #EnergizingEconomies
This from May 2017 - landmark NERC regulation to increase access to power: “Eligible power consumers are now free to purchase electricity directly from power generation companies, the minister of power, works and housing, Babatunde Fashola, has said.”
google.com/amp/s/www.prem…
google.com/amp/s/www.prem…
“In a major policy directive, the Honourable Minister of Power, Works & Housing, Mr. Babatunde Raji Fashola, has on May 15, 2017, declared four (4) categories of eligible customers in the Nigerian Electricity Supply Industry (NESI).“ nercng.org/index.php/medi…
“The declaration which permits electricity customers to buy power directly from GenCos is in line with the provisions of Section 27 of the Electric Power Sector Reform Act 2005 whereby eligible customers are permitted to buy power from a licensee other than electricity DisCos.”
“In exercising the power conferred on him by the said Act, the Honourable Minister @FMPWH directed the Nigerian Electricity Regulatory Commission @NERCNG to permit four categories of customers to buy power directly from a licensee other than electricity distribution companies.”
“1st category of eligible customers comprises of a group of end-users registered with the Commission whose consumption is no less than 2MWhr/h & connected to a metered 11kV or 33kV delivery point on the distribution network & subject to a distribution use of system agreement...”
“The next category of eligible customers are those connected to a metered 132kV or 330kV delivery point on the transmission network under a transmission use of system agreement for connection and delivery of energy.”
“3rd category of customers under the declaration consists of those with consumption in excess of 2MWhr/h on monthly basis and connected directly to a metered 33kV delivery point on the transmission network under a transmission use of system agreement.”
“Last category are eligible customers whose minimum consumption is more than 2MWhr/h over a period of one month & directly connected to the metering facility of a GenCo, and has entered into a bilateral agreement for the construction and operation of a distribution line...”
Guess what: The Presidential Villa is one of the 1st sign-ups for the Eligible Customer Policy. The Villa will soon be buying its electricity directly from a GenCo - North South Power Co Ltd. This opportunity is open & available to ANY customer that meets Eligible Policy criteria
Emohasis on Off-Grid Power (and leading by example): @FMPWH is installing a Solar Electricity system to power its HQ in Mabushi. 4 blocks, 894 Offices in total. Contract approved by FEC recently.
March 2019: FEC approved concessioning of 5 small and medium scale Dams for Hydro Power generation.
- 6MW Ikere Gorge Dam in Oyo State
- 2MW Omi-Kampe Dam in Kogi State
- 300KW Zobe Dam & 4MW Jibiya Dam in Katsina State
- 3MW Bakolori Dam in Zamfara
#IncrementalPower
- 6MW Ikere Gorge Dam in Oyo State
- 2MW Omi-Kampe Dam in Kogi State
- 300KW Zobe Dam & 4MW Jibiya Dam in Katsina State
- 3MW Bakolori Dam in Zamfara
#IncrementalPower
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