FG Denies Plans To Stop Payment Of Shortfalls To GENCOS
Following a report in a national daily newspaper, the Ministry of Power, Works and Housing Wednesday denied that the Federal Government has stopped the payment of shortfalls to Electricity Generation Companies (GenCos), describing the report as both false and unfounded.
The report, contained in the Wednesday edition of Punch Online media, held that the Federal Government on Tuesday ordered power generation companies to find customers and sell their power directly to the identified customers as, according to the report, “plans are on the way for it to ultimately exit the monthly payments to Gencos to help cushion the revenue shortfalls on the books of the power generators as a result of the poor remittances from the power distributors”.
The report titled, “FG to stop payment of shortfalls to Gencos” and attributed to the Permanent Secretary (Power) in the Ministry, Engr. Louis Edozien, emanated from the remarks of the Permanent Secretary at a Workshop organized by the Nigerian Electricity Regulatory Commission (NERC) on Tuesday, 12th February, 2019 on the Eligible Customer Regulation.
But in a Statement signed by the Permanent Secretary in person, the Ministry asserted that at no point in his remarks did the Permanent Secretary state that "FGN is to stop payment of shortfalls to Gencos", pointing out that the Payment Assurance Programme of the Federal Government that authorized the Nigerian Bulk Electricity Trader (NBET) to guarantee payment for any power it has contracted from generation companies on the national grid had not been reversed.
The Statement read in part, “The Payment Assurance Programme of the Federal Government of Nigeria that authorized NBET to borrow N701.9 billion to guarantee payment for any power it has contracted from generation companies on the national grid and their gas and other suppliers has been in operation since January 2017. The amount NBET is authorized to borrow is not yet fully drawn. The Federal Executive Council (FEC) approved the programme. FEC has not taken any decision to stop it. FEC is the appropriate authority to comment on the Programme’s tenure and borrowing ceiling”.
In order to set the records straight, the Statement clarified that at the workshop organized by NERC on the Eligible Customer Regulation, the Permanent Secretary urged generation companies to more aggressively take advantage of the regulation to sell the power they can generate, of which 2,000MW is now stranded, to Eligible Customers who need it and are willing and able to pay for it.
Insisting that it would be better than waiting for NBET to pay for it or to guarantee it, for which NBET needs support from the Federal Government due to shortfalls in payment by distribution companies, the Permanent Secretary decried that though the Minister issued the policy direction to NERC that gave rise to the regulation in May 2017, and NERC has issued the regulation, none of the interested consumers and their generation company suppliers have been given licenses to buy and sell power as Eligible Customers. He encouraged NERC to accelerate and simplify the licensing process.
He further stated that the Transmission Company of Nigeria (TCN) should continue to support the regulation by making targeted investments in the national grid, as needed to service specific contracts with generation companies and Eligible Customers to transmit the power, with penalties for failure to transmit, adding that TCN could finance such targeted investments with the expected revenue from such bilateral transmission contracts.
Encouraging electricity distribution companies (DisCos) to embrace the policy, the Permanent Secretary argued that if the DisCos were satisfying the power supply needs of their consumers of bulk power adequately such consumers would have no reason to generate the power by themselves or to want to become Eligible Customers adding that by embracing the regulation, the DisCos could partner with investors and generation companies to build new distribution infrastructure to better serve specific paying customers.
“They can buy power directly from generation companies and contract with TCN to deliver it, and give premium service to selected customers or customer groups”, the Permanent Secretary said adding that in such cases the distribution company must be willing and able to guarantee the payment for the power they buy, “because the shortfalls in payment which characterizes their power purchases from NBET, would not be possible in such bilateral contracts”.
The Permanent Secretary then enjoined dissatisfied consumers to take advantage of the Customer Care platforms set up by all the distribution companies in compliance with the provisions of their license, and escalate unresolved complaints to the NERC Consumer f Forum offices, as provided for in regulations, emphasizing that dissatisfied consumers could take advantage of the Mini-Grid Regulation, NERC's up-coming Franchising Regulation and the Eligible Customer Regulation to get premium power that meets their needs.
The Workshop revealed that the Ministry has received forty four (44) expressions of interest with a total demand for 600MW from underserved and unserved consumers desirous of becoming Eligible Customers. Of these, 14 have submitted license applications to NERC, two have fulfilled all NERC's conditions and expect to be licensed imminently.
The Ministry enjoins the public to discountenance the false report, and requests that the news outlets purveying such fake news cease and desist.
APC CONVENTION SATURDAY, 6TH OCTORBER, 2018
This is to inform FCT Residents, Visitors and Motorists that due to the National Convention of the All Progressives Congress, APC slated for Saturday, 6th October 2018 at the Eagle Square, Abuja, an unusual influx of human and vehicular traffic will be experienced within the city with the attendant traffic congestion in and around the venue of the convention.
To this effect all vehicular movement through Shehu Shagari Way from the early hours of Saturday, 6th October, 2018 to Sunday, 7th October will be diverted at Ralph Sodeinde Street by Bullet Building to link Central Business District. Motorists will also be diverted at Kur Mohammed Street and Constitution Avenue at Bayelsa House to Central Business District.
Traffic on Ahmadu Bello Way will equally be diverted at Ralph Sodeinde Street by Finance Junction to Central Business District. Motorists will also be diverted at Kur Mohammed Street or Constitution Avenue by Benue Building to link Central Business District.
The Federal Capital Territory Administration have mobilized Officers of the Police, FRSC, FCT Directorate of Road Traffic Service and other relevant Traffic Enforcement Agencies to various flash points to ensure seamless traffic flow.
Parking has been made available at the National Stadium for ALL Delegates coming from outside Abuja from where they will be conveyed to the venue by dedicated Buses.
In the same vein, ALL Delegates from within the FCT should converge at the Old Parade Ground from where they will be conveyed to the venue.
Please note that parking around the Eagle Square and its environs will not be tolerated as offending vehicles will be removed.
The understanding of the public is hereby solicited
Secretary, Transportation Secretariat
Federal Capital Territory
FG To Erring Contractors, Up Your Games Or Face Sanctions
The Zonal Director of the National Housing Programme in the North- West, Federal Ministry of Power, Works and Housing, Architect Joseph Toluhi, has urged erring contractors handling the on going construction of housing project in Kebbi State to step up their games or face necessary sanctions.
He noted that contractors, who fails to perform diligently on the job will have to give way for others to be engaged, adding that relevant clauses in the contract agreement can be invoke for appropriate sanctions.
This was contained in a statement by the Zonal Director on Wednesday in Biriin Kebbi during the North-West inspection tour to the project site.
Toluhi stated that the federal government is committed to provide decent and affordable housing to its teeming population and reduce the housing deficit in the country, adding that the NHP project is designed for the medium income earners who have the affordable means to acquire these houses across the nation.
The National Housing Programme, Kebbi State consist of 76 housing units of 1bedroom, 2 bedrooms and 3 bedrooms semi-detached bungalows, are being handled by 19 indigenous contractors.
In a similar development, the zonal inspection team led by Toluhi also visited the National Housing Programme site in Sokoto State to have on-the-spot assessment of the on going construction works which has reached 95 per cent completion stage.
“I must say that I am pleased and happy with the level of progress of work on this site because we have a very high level of competition. Most of the building here have been completed”. He noted that out of 20 contractors engaged, 12 of them have already been completed while four are yet to be roofed.
According to him, “this means, we are ready to move into these buildings. The infrastructure such as water supply, road arterial and water supply have reached a very high level of completion”.
The Team Leader in Sokoto State, Mr lliya Kastuda also confirmed that construction work has reached 95 percent completion, adding that there is provision of worship centers, school, market to give necessary comfort and police post to ensure adequate security within the housing estate.
The zonal Director and other officials of the Ministry inspected a similar project in Gusau, Zamfara State, which is put at 65% completion stage. He however expressed disappointment in the poor quality of job done, stressing that government will not tolerate sub-standard jobs from any contractor.
Remarks By Honourable Minister At The Inauguration Of Nigerian Electricity Regulatory Commission (NERC) Commissioners
P R O T O C O L S
Welcome to this solemn but important event that has the propensity to profoundly and positively impact the electricity sector of our economy.
Pursuant to the nomination of suitably qualified Nigerians by Mr. President and the confirmation of the Senate, we gather to inaugurate:
1. Messrs Sanusi Garba, an Engineer (Electrical)-Vice Chairman
2. Professor Frank Okafor, an Engineer (Electrical)
3. Dafe C. Akpeneye, a Legal Practitioner
4. Nathan Roger Shatti, an Accountant
5. Dr. Musiliu O. Oseni, an Economist
6. Dr. Moses Arigu, a Scientist & Mathematician
as Commissioners of the Nigerian Electricity Regulatory Commission (NERC).
They have been chosen in the manner prescribed by law; and I particularly welcome their arrival for many reasons:
a) Provides stability in governance regulatory action and institution building to the sector; and
b) It allows the Ministry to focus on policy; coordination and completion of on-going Generation and Transmission projects.
I will like to thank Dr. Anthony Akah, who acted in capacity of CEO of NERC for about a year. His service to his country is highly appreciated and he must now hand over to the Vice-Chairman and his fellow Commissioners and return to his normal schedule of duties.
For the information of the public, this occasion provides the opportunity to again share knowledge with ourselves about the Nigerian Power Sector.
The first thing to emphasize is that the power sector has been privatized.
This process occurred and was concluded in November, 2013; and has resulted in the vesting of majority of Power Generation and Power Distribution in the hands of private owners.
So for the avoidance of doubt, power is now in private hands, and government is now largely a policy maker, and Regulator. Policy is the work of the Ministry and as I said, the completion of on-going Generation projects and Transmission projects.
Regulation is the work of NERC acting through the Commissioners we inaugurate today.
So for all those seeking license to generate power, to build coal and solar plants, and all other similar proposals, your letters should go to NERC not to the Ministry – Although you can copy us for information.
For all those who have issues with Meters, Estimated Billing, Customer Service issue, this is the work of NERC to ensure that the DISCOs perform and I urge you to direct your complaints to them, and keep us informed about the service they render to you, because we oversee them; but will not interfere with their work.
To NERC and the new Commissioners, I welcome you on board.
Be firm, but fair.
Regulate but be business oriented.
Remember that regulations are Rules; and Rules are made for us, we are not made for the Rules. Regulate with the understanding that the industry is young, in Transition and needs support.
I wish you success and you can count on the support of the Ministry.
BABATUNDE RAJI FASHOLA, SAN
HONOURABLE MINISTER OF POWER, WORKS & HOUSING
7TH FEBRUARY, 2017.
FASHOLA WIFE OTHERS VOTE IN SURULERE LAGOS DURING THE GOVENORSHIP HOUSE OF ASSEMBLY POLLS
Hon Minister of Power Works Housing Mr Babatunde Fashola SAN casts his vote during the Governorship and House of Assembly Polls at the Ward G3 Unit E002 State Junior Grammar School Itolo Street Surulere Lagos on Saturday 9th March 2019
FASHOLA AT THE 6TH EDITION OF THE TOP MANAGEMENT RETREAT FOR DIRECTORS CEOS OF PARASTATALS AGENCIES AND HEADS OF UNITS OF THE FEDERAL MINISTRY OF POWER WORKS AND HOUSING IN OWERRI IMO STATE
Hon Minister of Power Works Housing Mr Babatunde Fashola SAN middle Permanent Secretaries in the Ministry Mr Bukar Mohammed Works and Housing left and Engr Louis Edozien Power right during the 6th Edition of the Top Management Retreat for Directors Chief Executive Officers of Parastatals Agencies and Heads of Unit of the Federal Ministry of Power Works and Housing with the theme Re Inventing Governance for National Prosperity at the Imo Concorde Hotel Concorde Boulevard Off Port Harcourt Road Owerri Imo State on Saturday 23rd March 2019