By Benjamin Umuteme
Abuja
The Bureau of Public Enterprises (BPE), has rejected the notice to declare force majeure by Distribution Companies (DisCos).
In a letter to the DisCos, the Bureau’s Director-General, Mr. Alex Okoh stated that there wa no basis for the issuance of notice to declare force majeure by the electricity distribution companies (Discos) following the policy directive on Eligible Customers and the Eligible Customer Regulations by the Nigerian Electricity Regulatory Commission (NERC).
The DG added that BPE, as the contracting party on behalf of the Nigerian government to the agreements which governed the privatisation of the power assets to the core investors, rejects the notice.
The Discos, in giving notice for the declaration of force majeure had claimed that NERC’s directive on Eligible Customers and the Eligible Customer Regulations have resulted in a change of law which they further claimed have prevented them from fulfilling their obligations under the Performance Agreement.
Countering, Mr. Okoh faulted the DisCos claim that the change in law and political force majeure event pursuant to certain clauses in the Performance Agreement signed with the privatization agency.
The BPE boss further said that “pursuant to the Electric Power Sector Reform Act 2005, it is obvious that the Minister of Power, Works and Housing is empowered to issue the policy directive specifying the class or classes of end-use customers that shall constitute Eligible Customers. In the same vein, NERC is similarly empowered to issue Eligible Customer Regulations.
“As you are aware, this is the same Act which midwifed the process whereby the power assets were privatized to the core investors. Given that the Declaration and the Regulations were lawfully and validly issued by the Minister and NERC, and that there has been no change in the law giving rise to a political force majeure event, we are unable to see the basis for the issuance of the notice.”
Install all CAPMI meters or face sanction, NERC warns Discos
The Nigerian Electricity Commission, NERC, has warned electricity Distribution Companies (DisCos) to install all meters that were paid for under the Credit Advanced Payment Metering Implementation, CAPMI or face sanctions.
CAPMI was initiated by electricity regulator, NERC in 2015 to address the slow pace of customer metering by the 11 Distribution Companies.
The initiative allows willing customers to pay for their meters, after which the Discos will then refund either in cash or equivalent energy unit.
Commissioner, Consumer Affairs, Dr. Moses Arigun, NERC, in a tweet through NERC’s official Twitter platform urged the DisCos to install meters already paid for by electricity consumers the period that the scheme lasted.
“@NERCNG at 21st Ministerial meeting wants Discos to install all CAPMI meters to avert sanctions over uninstalled CAPMI meters,” NERC said in the tweet.
However, in early 2017, the Commission instructed that CAPMI be wounded down following various abnormalities that plagued the process.
According to NERC, the decision to enforce compliance by the Discos, was agreed upon at its 21st ministerial meeting, which was attended by the Minister of State, Surveillance, Suleiman Zarma Hassan, and Permanent Secretary in the Power Ministry, Engr. Louis Edozie.
NIPP power plants: Bidders propose payment plan
The Niger Delta Power Holding Company (NDPHC) has disclosed that the federal government is set to receive 30 per cent cash equity and 70 percent debt equity from bidders negotiating to buy Electricity Generation Companies (GenCos).
The GenCos put up for privatization are those built by the NDPHC under the National Integrated Power Projects (NIPPs).
The federal government has shortlisted five power plants: Calabar, Omotosho, Egbema, Gbarain and Geregu plants.for immediate privatization.
According to Managing Director of NDPHC, Engr. Chiedu Ugbo, EMA Consortium, which emerged as preferred bidder for Calabar GenCo with a price of $625 million, Dozzy Integrated Power offered $415.7 million offer for Egbema Generation Company, while Seoul Electric Power Limited emerged as the preferred bidder for Geregu Generation Company with a bid price of $690.2 million, KDI Energy Resources and Omotosho Electric Power emerged as preferred bidders for Gbarain Power plant and Omotoso plant with offers of $340 million and $659.9 million.
Engr. Ugbo, “We are still negotiating with the buyers. The privatization challenges such as liquidity problems, inadequate gas supply, as well as microeconomic issues, had a significant impact on the privatization process since the emergence of the bidders on March 7, 2014. But we are negotiating with them.”
According to him, the next stage immediately after the emergence of the preferred bidders for the 10 plants would have been submission of their guarantee which, he said, they did at a time and commenced negotiation with them to finalise the payment structure.
The round of bidding is a continuation of the 2013 NIPP privatization that saw the emergence of successful bids for the 80 percent equity in the 10 power plants at $5.736bn.
