- As FG extends contract with Manitoba
The Permanent Secretary, Ministry of Power, Dr. Godknows Igali Tuesday stated that the power generation has increased from 4, 517 megawatts in June to 4, 545 megawatts presently.
The Permanent Secretary disclosed this at stakeholders meeting with Distribution Companies (Discos) in Abuja.
In a statement from the Ministry Chief Press Secretary, Mr. Timothy Oyedeji, Igali stated: “The current electricity supply stands at 4,545MW, this is a marginal increase over 4,517MW recorded on 12th June, 2015, as it stands there has been stable supply of electricity, adding that no system collapse has been recorded”.
Oyedeji further revealed that the Permanent Secretary attributed the improvement in power generation and supply to the ability of security agencies to reduce the menace of vandalism of pipe lines carrying gas to the various thermal plants.
Igali appealed to the owners to support President Muhammadu Buhari’s pledge to improve power supply nation-wide by massive investment on upgrade of their systems and networks.
In his remarks, Mr. Ernest Orji from EKO Diso, who spoke on behalf of the Discos, pledged their support for the new government stressing that government should assist them in closing gaps that were not envisaged when they were acquiring these assets, so as to reduce the bashing on the Discos from the public.
He said Discos are at the receiving end in the value chain: “We are the ones that have direct interaction with the public hence everyone heaps blame on us”.
He identified some gaps to include non cost reflective tariff, losses at take-over, less power produced which has been envisaged to be in excess of 7,000MW, stressing that the expected lower energy cost cannot be achieved as we are still struggling with a little above 4,000MW.
Orji said that large investment in distribution network is still a mirage as the goal-post keeps moving, “it is scary, as many of us cannot meet payment obligations to market operators.”
Meanwhile, the Federal Government has signed a one-year extension of its current Management Contract for the Transmission Company of Nigeria (TCN) with Manitoba Hydro International (MHI) Ltd. of Canada.
According to statement from the General Manager, Public Affairs, Seun Olagunju, the extension follows a three-year Management Contract signed in 2012 to manage TCN’s electrical power transmission, system operation and market operation undertakings, as well as train TCN personnel. The contract, which was signed by TCN, MHI and the Bureau of Public Enterprises, and which would expire on July 31, 2015, has now been extended to July 31, 2016.
The General Manager stated also that MHI will continue to assume responsibility for the management and control of TCN’s entire operations, working alongside their Nigerian counterparts to transform the company into a technically and financially efficient, stable, and sustainable company.
TCN revealed that MHI working together with TCN staff have achieved a wheeling capacity of 5,300 MW and reduced system losses from over 12 percent to approximately eight percent. In addition, system collapses have reduced significantly, from 22 in 2013 to 9 in 2014, while the duration of collapses has reduced from more than 2.5 hours to approximately 30 minutes.
The GM said: “The fourth year of the contract will focus on further increasing TCN’s capacity to transmit power in the grid, in anticipation of rising levels of generation in the country. Additionally, MHI will facilitate the unbundling of TCN into two new organisations, the Transmission Service Provider and the Independent System Operator, while
simultaneously building the capacity of local management to take over the leadership of these organisations at
the end of its contract”.
The Permanent Secretary disclosed this at stakeholders meeting with Distribution Companies (Discos) in Abuja.
In a statement from the Ministry Chief Press Secretary, Mr. Timothy Oyedeji, Igali stated: “The current electricity supply stands at 4,545MW, this is a marginal increase over 4,517MW recorded on 12th June, 2015, as it stands there has been stable supply of electricity, adding that no system collapse has been recorded”.
Oyedeji further revealed that the Permanent Secretary attributed the improvement in power generation and supply to the ability of security agencies to reduce the menace of vandalism of pipe lines carrying gas to the various thermal plants.
Igali appealed to the owners to support President Muhammadu Buhari’s pledge to improve power supply nation-wide by massive investment on upgrade of their systems and networks.
In his remarks, Mr. Ernest Orji from EKO Diso, who spoke on behalf of the Discos, pledged their support for the new government stressing that government should assist them in closing gaps that were not envisaged when they were acquiring these assets, so as to reduce the bashing on the Discos from the public.
He said Discos are at the receiving end in the value chain: “We are the ones that have direct interaction with the public hence everyone heaps blame on us”.
He identified some gaps to include non cost reflective tariff, losses at take-over, less power produced which has been envisaged to be in excess of 7,000MW, stressing that the expected lower energy cost cannot be achieved as we are still struggling with a little above 4,000MW.
Orji said that large investment in distribution network is still a mirage as the goal-post keeps moving, “it is scary, as many of us cannot meet payment obligations to market operators.”
Meanwhile, the Federal Government has signed a one-year extension of its current Management Contract for the Transmission Company of Nigeria (TCN) with Manitoba Hydro International (MHI) Ltd. of Canada.
According to statement from the General Manager, Public Affairs, Seun Olagunju, the extension follows a three-year Management Contract signed in 2012 to manage TCN’s electrical power transmission, system operation and market operation undertakings, as well as train TCN personnel. The contract, which was signed by TCN, MHI and the Bureau of Public Enterprises, and which would expire on July 31, 2015, has now been extended to July 31, 2016.
The General Manager stated also that MHI will continue to assume responsibility for the management and control of TCN’s entire operations, working alongside their Nigerian counterparts to transform the company into a technically and financially efficient, stable, and sustainable company.
TCN revealed that MHI working together with TCN staff have achieved a wheeling capacity of 5,300 MW and reduced system losses from over 12 percent to approximately eight percent. In addition, system collapses have reduced significantly, from 22 in 2013 to 9 in 2014, while the duration of collapses has reduced from more than 2.5 hours to approximately 30 minutes.
The GM said: “The fourth year of the contract will focus on further increasing TCN’s capacity to transmit power in the grid, in anticipation of rising levels of generation in the country. Additionally, MHI will facilitate the unbundling of TCN into two new organisations, the Transmission Service Provider and the Independent System Operator, while
simultaneously building the capacity of local management to take over the leadership of these organisations at
the end of its contract”.
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