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.”

NERSA hearings have been “bitterly disappointing” and “have not worked” – energy expert

“Eskom should ask itself is whether their business model is sustainable”

“I have reviewed the outcomes of the NERSA hearings that I have testified at since 2009, and if we are going to be honest, the results have been bitterly disappointing as will be gauged when one examines the records of decision that have blessed Eskom with over 700% price increases since 2007.” This is according to Ted Blom, energy analyst and advisor to the energy and mining industries and spokesperson for the new OUTA (Organisation Undoing Tax Abuse).

He adds: “against that backdrop, it is clear that the NERSA hearings have not worked and that people have not been heard.“ Ted Blom will testify again at the NERSA (National Energy Regulator of South Africa) hearing next week in Johannesburg as part of the regulator’s current series of public hearings into Eskom’s application for electricity tariff hikes.

He says OUTA’s message to NERSA next week “will highlight how we have pleaded in the past, and NERSA has chosen to ignore our pleadings and has, in our humble opinion, not acted properly and diligently in the execution of its duties. We will endeavour to hold NERSA to book, and act where we believe NERSA has failed”.

Is Eskom’s business model sustainable?

“The energy sector is currently undergoing a transformation, led by climate change and the need to become more energy efficient,” says Nicolette Pombo-van Zyl, editor of ESI Africa, leading power journal and online portal on the continent. She adds: “the traditional customer base are becoming prosumers by installing rooftop PV systems and the debut game-changing technologies, such as smart metering and electric vehicles (which will require charging stations).”

“With this in mind it can be argued that Eskom should rather implement changes in its business model rather than request tariff increases. But, what is often overlooked is that Eskom must not only ensure there is sufficient energy generated and available during peak times, it is also the guardian of an extensive network of transmission and distribution infrastructure – this needs to be funded.”

Solar energy as alternative

OUTA energy spokesperson Ted Blom is a big supporter of solar energy as an alternative: “new solar (household and business) can be installed in days/weeks at very affordable prices and the payback is shorter than three years. Thereafter the electricity is free for up to 25 years.”

“My estimate is that Eskom will be applying for another R80 bn price clawback in the next 24 months (vs R22bn now) which will effectively require another 32% plus price increase before 2018. That will be on top of further operational cost increases in coal and transport – two cost elements Eskom has not shown in the past that it can control and which increased by average of 20% plus year on year.”

African Utility Week

Some 250 energy experts, including Ted Blom, will lead the debate as speakers on Africa’s current energy challenges and successes at the annual African Utility Week conference and expo from 17-19 May at the CTICC in Cape Town. Energy Efficiency, Renewable Energy and Generation will form part of the six conference tracks that will take place over the three days.  Some 6000 engineers, stakeholders and solution providers from around the globe will gather for the 16^th edition of this annual power event.

In addition to the conference, Solar World, Zest, City Power, Yokogawa will be amongst the 250 exhibitors that will showcase their energy and water management and saving technologies. The trade exhibition will be free when registering in advance and feature hands-on demonstrations and CPD-accredited technical workshops on the exhibition floor. The event will also feature technical site visits and the coveted industry awards gala dinner.

ESI Africa, a leading industry trade magazine providing news, views and superior information to Africa’s power sector, is the premium media partner to African Utility Week.

African Utility Week and Clean Power Africa are organised by Spintelligent, leading Cape Town-based trade exhibition and conference organiser, and the African office of Clarion Events Ltd, based in the UK. The event forms part of a global energy event series, including European Utility Week, Australian Utility Week, Asian Utility Week and Latin American Utility Week. Other African flagship events in Spintelligent’s power portfolio are East African Power Industry Convention (EAPIC), West African Power Industry Convention (WAPIC), iPAD Rwanda Power & Mining Investment Forum and iPAD Cameroon Energy & Infrastructure Forum.

Dates for African Utility Week and Clean Power Africa 2016:
Conference and expo: 17-19 May 2016
Awards gala dinner:  18 May 2016
Site visits: 20 May 2016
Location: CTICC, Cape Town, South Africa

Websites: www.african-utility-week.com
Twitter: https://twitter.com/AfricaUtilities
Linkedin: African Power Forum

Contact:
Communications manager:  Annemarie Roodbol
Telephone:  +27 21 700 3558
mobile:  +27 82 562 7844
Email:  annemarie.roodbol@spintelligent.com

In Nigeria, the Benin Electricity Distribution Company (BEDC) has earmarked $13,5 million for the procurement of smart meters for over 741,000 customers in its network, this is according to CEO, Funke Osibodu, The Nation reported.

BEDC to receive much needed maintenance

Osibodu said that installations for over 100,000 customers will commence in the first phase, adding that measures were being implemented to tackle the challenges around the operations, maintenance, and human resources, which it inherited from the defunct Power Holding Company of Nigeria (PHCN).

Some of these issues extend to include aging systems, which have been poorly maintained, unreliable and overloaded systems, low demand side management (DSM) initiatives, corporate governance challenges, lack of technology interventions to reduce revenue leakage and lack of skilled manpower, The Nation reported.

Osibodu added that since utility takeover in November 2013, several upgrades have been implemented, with significant improvements made with regards to safety practices and unsafe network for the public.

Smart meters: funds to make a difference

Osibodu was optimistic that the $13,5 million smart meters project investment will adequately address customers meter challenges, media reported.

“We don’t have control over generation and transmission. We are like collection agents for the entire power industry. Across the power supply value chain in the Nigeria Electricity Supply Industry (NESI), we collect the entire money but just get 25 per cent of the total collections.

“Once we collect the billing from the customers, the generation companies (GenCos) get 60 per cent and pays the gas suppliers, Transmission Company of Nigeria (TCN) gets 11 per cent, while the regulator, bulk trader and market operator get the remaining four per cent,” she said.

She added: “We are directed to meter all our customers within one year, but we are constrained by the limit of capital expenditure (capex) that we can invest. We at BEDC cannot spend above N4 billion per year as capital expenditure and if we invest above that, we won’t be able to recover our investment due to the present tariff structure.”

“Event’s 16 year history has its roots in the metering sector”

The global prepaid meter standards industry organisation, STS (Standard Transfer Specification), has joined the leading power and water conference and trade expo African Utility Week as an industry partner. STS will hold its AGM during the event in Cape Town in May and also run a free  technical workshop on its improved KMC (Key Management Centre) features.

Franco Pucci, technical advisor for the STS Association says “the interest in the STS specification in and beyond South Africa continues to increase as the industry pursues electrifying many millions of home. Our innovative edge has been the cornerstone of the success of prepayment in South Africa over the past 20 years, and, since its inception in this country, all over the world. Our working groups have been working on the requirements for the new KMC (Key Management Centre), which will be launched at African Utility Week 2016.”

He adds: “the new KMC has many advanced features from high vending key security using state of art algorithms, to easier coding of security modules and it also supports key rollover. The new KMC has reduced risk when it comes to key validity period, which will assist in reducing the occurrence of ghost vendors.”

Metering a vital component of event
“African Utility Week’s 16 year history has its roots in the metering sector” says event director Evan Schiff, “and it is still a very vital component to our conference and trade expo. We are therefore delighted to welcome prepayment pioneers STS as official industry partners to our event. We look forward to a long and fruitful relationship and invite all metering professionals to take advantage of the opportunity to learn from the best during the free workshops on the expo floor from 17-19 May.”

Some 40% of the African Utility Week trade expo is dedicated to the latest metering technology and services on offer to African power and water utilities.

About African Utility Week

The 16^th African Utility Week and Clean Power Africa conference and trade exhibition takes place at the CTICC in Cape Town from 17-19 May 2016 – gathering some 6000 engineers, stakeholders and solution providers from around the globe.

The event will feature 250 exhibitors, 250 speakers, a six stream strategic conference, a free-to-attend technical conference on the expo floor, three high-profile keynote sessions, technical site visits and the coveted industry awards gala dinner. The African Utility Week Industry Awards also include categories for African Water Executive and Water Utility of the Year where pioneering water utilities and innovative projects for saving water are recognised and celebrated.

The trade exhibition will be free when registering in advance and showcase water and energy saving technologies and services for the industry and feature hands-on demonstrations and CPD-accredited technical workshops on the exhibition floor.

About STS
The Standard Transfer Specification (STS) has become recognised as the only globally accepted open standard for prepayment systems, ensuring inter-operability between system components from different manufacturers of prepayment systems.  It has become established as a worldwide standard for the transfer of electricity prepayment tokens since its introduction in South Africa in 1993 and subsequent publication by the International Electrotechnical Commission as the IEC62055 series of specifications.  http://www.sts.org.za/

African Utility Week and Clean Power Africa are organised by Spintelligent, leading Cape Town-based trade exhibition and conference organiser, and the African office of Clarion Events Ltd, based in the UK. The event forms part of a global energy event series, including European Utility Week, Australian Utility Week, Asian Utility Week and Latin American Utility Week. Other African flagship events in Spintelligent’s power portfolio are East African Power Industry Convention (EAPIC), West African Power Industry Convention (WAPIC), iPAD Rwanda Power & Mining Investment Forum and iPAD Cameroon Energy & Infrastructure Forum.

Dates for African Utility Week and Clean Power Africa 2016:
Conference and expo: 17-19 May 2016
Awards gala dinner:  18 May 2016
Site visits: 20 May 2016
Location: CTICC, Cape Town, South Africa

Websites: www.african-utility-week.com
Twitter: https://twitter.com/AfricaUtilities
Linkedin: African Power Forum

Contact:
Communications manager:  Annemarie Roodbol
Telephone:  +27 21 700 3558
mobile:  +27 82 562 7844
Email:  annemarie.roodbol@spintelligent.com