Nigeria: DisCos Defend the New Electricity Tariffs

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.

Eskom official drives idea of an “African Power Pool”

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

Eskom’s Thava Govender has stated that Africa needs wider interconnectivity
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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.

Nigeria: Discos defend the new electricity tariffs

In West Africa, the 11 electricity distribution companies (discos) have stated that the new electricity tariffs won’t change as it would hamper Nigeria’s economy

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.

Association of Nigerian Electricity Distributors (ANED) stands fast on electricity tariff increases
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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.

Discos explaination

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.