Eko Electricity Distribution Plc on Friday gave explanations for the current power rationing and intermittent outage being experienced in areas under its coverage over the past few weeks, The Punch reports.

The company, in a statement signed by its Head of Corporate Communications, Mr. Idemudia Godwin, said the power supply instability was partly due to inadequate bulk electricity load allocation to the company from the national grid. It said this arose from a drop in the national generation level as a result of incessant acts of vandalism on gas pipelines and transmission towers.

Eko Disco said the situation was not limited to the company’s coverage areas alone, adding that all parts of the country were affected since the problem had to do with low generation levels. It said the situation had led to acute power rationing in all areas within the company’s operational territory. According to the statement, areas worst hit by the resultant power rationing include Surulere, Lekki, Ajah, Ibeju, Mushin, Apapa, Yaba and their environs.

Local media reported that the discos said this through a statement provided by their representing union, the Association of Nigerian Electricity Distributors (ANED).

Earlier this month, Nigerians saw an increase in power rates, of which the nation did not find agreeable, leading to nationwide protests by consumers and businesses alike.

As the discos are refusing to revise the electricity tariffs, this is in response to a recent order from the Senate that supports the customers’ protests.

The union stated that among the crippling of the economy, if the electricity tariffs were to be suspended, the whole country would also be left in darkness.

“Fellow Nigerians, suspending the implementation of the new tariffs will leave us in continuous darkness, with diminished and no future prospects of growth of our economy,” ANED said.

ANED’s executive director for advocacy and research, Sunday Oduntan, said in a statement: “The Senate on Tuesday, 16 February 2016 passed a resolution directing the Nigeria Electricity Regulatory Commission (NERC) to suspend the recently-implemented electricity tariff (MYTO-2015).

“However, implementation of this resolution is not without consequences and the following are a few of them. A market priced tariff is a fundamental requirement under the agreements signed between distribution company (disco) operators in the Nigerian Electricity Supply Industry (NESI) and the Bureau for Public Enterprises (BPE), raising the concern for sanctity of contract.

“Such a failure will be at a price that the government can ill-afford in these times of dire economic challenges.” The statement further outlined that the effects of the suspension would also result in job losses.

On Wednesday, speaking at an event in Johannesburg, Eskom group executive for transmission Thava Govender, stated that Africa needed wider interconnectivity as well as well-oiled transmission infrastructure to facilitate cross-border trade and drive investments in generation.

Developing an integrated African power pool

According to Mining Weekly, Govender said: “To become more flexible in optimising the [energy] resources of individual countries we need to develop an integrated African power pool.

“While we have established power pools on the continent – and Eskom is a member of the Southern African Power Pool (SAPP) – the interconnectivity of the system needs to be increased to ensure that the resilience of the power system is improved.”

This expansion of interconnectivity would facilitate “wheeling to areas and countries that may have energy constraints, such as those caused by droughts and [power] plant unavailability,” he added.

Southern Africa facing power challenges

According to media, Govender highlighted the struggles being faced by Zambia and Zimbabwe, as a result of the low water levels at the Kariba dam— water levels have dropped to below 14%, according to Kay Darbourn, author of the “Impact of the failure of the Kariba Dam” report.

To add to the low dam levels, Darbourn highlighted in the report that “concerns about the Kariba dam, the Geological Survey Department director Chipilaika Mukofu said experts were still assessing the possible effect of a 4.6 magnitude earthquake on the Kariba Dam in Siavonga on 12 Jan 2016.”

Eskom feeding power to power deficit countries

Govender added that the South African state-owned power utility, Eskom, was supplying power to both Zambia and Zimbabwe during off-peak periods.

Govender said that Eskom was interested in investing in developing its own hydroelectric imports, in addition to supply from the Cahora Bassa dam in Mozambique—there was optimism around the Mozambique project having the ability to provide an additional 500MW of additional capacity in the future, Mining Weekly reported.

The Association of Nigerian Electricity Distributors (ANED) yesterday said the Senate resolution that stopped the implementation of the 2015 Multi -Year Tariff Order (MYTO) will have adverse effects on the power sector.

According to its Executive Director, Advocacy and Research, Sunday Oduntan,  a market priced tariff is a fundamental requirement under the agreements signed between Distribution Company (DisCo) operators in the Nigerian Electricity Supply Industry (NESI) and the Bureau for Public Enterprises (BPE), raising the concern for sanctity of contract.

The association in a statement, lamented that the decision will culminate in the  absence of a market priced tariff that  creates the possibility of failure by the operators.

He said such a failure will be at a price that the government can ill-afford in these times of dire economic challenges.

The group maintained that a market priced tariff is critical to address decades of under-investment such as the five million metering gap in the sector.

Oduntan insisted that globally, electricity reforms have always been tied to increased investment, resulting in improved production efficiency. Such investment is predicated on access to capital which will be jeopardised in the absence of a market priced tariff, he added.

He said the absence of a market priced tariff will endanger the viability of the entire value-chain of distributors, generators, transmission and gas suppliers, resulting in the failure of the sector.

He said: “As the upstream operators will not receive required payment (DisCos only receive 25 per cent of the revenues associated with the tariff.

“Failure of the sector will result in, among other things, loss of employment and livelihood for approximately 50,000 Nigerians, indirect job losses from factory and other business closures, possibly in the millions; and a related outcome of discouraging further investments in the development of gas reserves and production for local consumption; and

“Expected performance improvement, with appropriate investment, on the other hand, will lead to a reduction of tariffs in subsequent years.  This is empirically supported.

“Fellow Nigerians, suspending the implementation of the tariff will leave us in continued darkness, with diminished and no future prospects of growth of our economy.”

After two years, the US House of Representatives passed the Electrify Africa Act on Monday, which aims to connect millions of sub-Saharan African’s to a reliable power supply.

The bill, which will create a framework for a significant public-private partnership between the US and Sub-Saharan Africa, has now been sent to US President Barack Obama for his signature, the Voice of America reported.

Obama launched the Power Africa initiative in 2013, a project aimed at targeting 50 million people in Sub-Saharan Africa by 2020, connecting them to a reliable power network – an estimated 600 million are currently living without access to conventional power.

House Foreign Affairs Committee Chairman Ed Royce of California said: “It is a direct response to the fact that today 600 million people living in Sub-Saharan Africa — that is 70% of the population — do not have access to reliable electricity.”

The Electrify Africa Act will assist in attaining this goal by providing a framework for companies to invest in driving energy solutions in Africa.

Electrify Africa Act

The Voice of America reported that Republican member Royce, together with New York Democratic member Eliot Engel, have worked tirelessly since 2014 to get this bill passed.

According to the Voice of America: “The bill directs the president to establish a multi-year strategy to assist countries in Sub-Saharan Africa in implementing national power strategies with a mix of energy solutions, including renewable energy sources. Obama and the ambassadors from 35 African countries support the partnership.”

It is known that those without access to reliable power are hindered in terms of growth and development. By the implementation of this bill, small businesses will be able to operate at night, safety will increase through street lighting, and children will be able to improve their education by having the benefit of light at night to do homework.

During the debate on Monday, Royce noted that the high electricity tariffs in Sub-Saharan Africa make it a challenge for many to export products, adding that it is in the United States’ interest to help Africa become one of the world’s great trading partners.

Democratic representative Brendan Boyle of Pennsylvania agreed: “Mr Speaker, sometimes the right thing to do is also in our strategic interest as a country.”