Oil & Energy
2015: Nigerians Expectations From Power Firms
As a new year (2015)
sets in, most Nigerians wish to know what the power firms particularly the Generating Companies (GENCOS) and Distribution Companies (DISCOS) have for them. With the low efficiency that sparked off and sustained crises in 2014 rule the day, or will the private dominated sector show some improvements in 2015?
As our correspondent samples the feelings of consumers, government officials and authorities of some power firms, divergent views were expressed in hope of a promising future ahead.
Authorities of Port Harcourt Electricity Distribution Company (PHEDC) last week rekindled the hope of its customers in Port Harcourt when it promised them better power supply to power the socio-economic activities of the residents and companies which constitute the firms major customer.
However, Chief Nicholas Njoku, a Port Harcourt-based businessman said, “such promises have always been made but they have not been able to change the situation.
Njoku, who condemned the poor supply of PHEDC last year expressed strong need for the firm to live up to the expectations of the people.
“What can Nigeria in its totality be without good power supply? It is high time we got the point clear that our dream of industrialisation would remain a mirage until adequate power supply is given to the people,” said Njoku.
“Yes, PHEDC has made a good promise, but the company should not forget that such a promise has raised people’s expectations and I advise that PHEDC should match its promise with action,” he stated.
A senior staff in the office of Diobu Business Manager of PHEDC who pleaded anonymity said the company is ready to improve on power supply particularly of the volume of gas supplied to the company improves.
“You should understand that the new power firms that took over the Power Holding Company of Nigeria (PHCN) were relatively new,” he said appealing that the companies which were more or less studying the industry needed some patience, understanding and high level of co-operation from the public.”
“As the days roll by, there is the natural likelihood that improvement would come and when our customers are happy, the power firms would also feel fulfilled,” he stressed.
But the issue of non-availability of metres was raised by Chidinma Okoroafor, a trader at Mile 1 Market in Port Harcourt.
“My concern is that when I sell my goods to customers, they pay me according to the value of the goods in monetary terms. PHEDC does not apply that principle in their business operations,” she said.
Okoroafor is worried that, “PHEDC chooses the amount of power they supply and also forces you to pay any amount it wishes. What kind of business is that,” she queried and noted that until an acceptable mode of payment which must correspondent with services rendered, is applied the promise of better supply is not enough.
She insisted that electricity meter, which is the universal measurement for power supply must determine supply, condemning the outright fixing of pay by the company.
“What annoys me most is that the government appears unconcerned about the cries of the masses and I begin to wonder who protects the people.”
An official of the Rivers State Ministry of Power who identified himself simply as George expressed strong hope that 2015 would come with better supply.
George said, “if you check round in Rivers State, you will observe that more communities especially in the rural areas now have light. I can tell you that more would have power supply because a good number have their rural electrification projects at various completion stages.”
Also expressing hope of better days ahead, a former staff of PHCN, Ihekoronye Obodo, noted that as PHCN operations transited to the new investors, consumers are yet to change their attitude. “They still think that power supply is in the hands of government but that is wrong because private investors are out to make profit to remain in business.”
Obodo solicited for patience and co-operation and expressed hope that with time, the private firms that are daily upgrading their facilities are prepared to improve supply to their customers.
“They must stop the attitude of power stealing because it is criminal, and let government establish special court to handle the issue of power theft, vandalism of power facilities and irregular payment for services used,” he stressed.
“As far as I am concerned, I have told PHEDC to disconnect me because I am no more interested in its power supply or whatever you call of PHEDC is an embarrassment to me because PHCN which was equally poor in service supply is even better than PHEDC,” said another consumer, Cletus Alaye.
Alaye, who said he returned from Canada two years ago would not see any need for PHEDC’s promises, stressing, what have I to do with promises. May be, the firm will ask people to pay for the promise it made. Let them prove to the people that they know how to do their job and until I see light regularly, I will continue to use my private generator.”
He, however, advised the Federal Government not to rely on the DISCOs and GENCOs but to diversify.
“Nigeria as a growing economy should look at the alternative means of supply to the masses. Solar energy, coal and other areas should be given proper attention,” he said and suggested that since so many rivers are in the country, experts should concert these potentials to provide energy.”
The Minister of Power, Prof Chinedu Nebo, last week disclosed Federal Government’s intention of providing over one million prepaid meters to reduce metering gap nationwide.
The minister, who stated this during a town-hall meeting with stakeholders in Abuja said the intervention was to help electricity distribution companies in which government has 40 per cent equity to reduce the metering gap.
He said the only way to reduce over billing was to provide meters to all consumers in the country.”
“Government still owns 40 per cent of the DISCOs. This is why it is still giving out its own counterpart funding,” Nebo stressed.
On pipeline vandalism, he said plans were underway by the government to digitise the pipelines to forestall vandalism and emphasised the need for a legislation to provide stiffer penalties to punish pipeline vandals.
Several efforts have also been made by the government to upgrade and build new power stations. It is believed that if the incidence of theft for which Nigeria is noted as the highest amongst countries of the world, is checked, meters provided to check the over-billing of power distribution firms to their customers and more dedication to responsible service provision as well as increased improvement on facilities are maintained, 2015 may reduce the so much darkness and provide light for socio-economic advancement of the nation.
Chris Oluoh
Some Transformers Donated by the lawmaker representing Oyigbo in the RSHA Hon. Okechukwu .A. Nwaogu
The Nigerian Navy Units under the auspices of Operation Delta Sanity says it has recorded significant successes against crude oil theft and illegal refining sites in the Niger Delta.
The Navy, in an updated operations, said the successes were recorded between Thursday August 29 and Monday September 2, 2024.
According to the information, on 29th August, seven large cotonou and two fibre boats operated by heavily armed oil thieves loading crude oil from an illegal loading point around Botokiri axis of Nembe Local Government Area of Bayelsa State were seized.
Also, on 31st August, six suspected crude oil thieves with 109 sacks of illegally refined petroleum products, four fibre boats and two wooden boats were arrested and seized along Ogboinbiri-Kasama-Azama-Isoni of Bayelsa State.
Again, on 1st September, two wooden boats and 328 sacks of illegally refined automated Gas Oil were seized at Otuogori community’s river bank in Yenagoa, Bayelsa State.
Additionally, on 2nd September, 35 sacks of illegally refined Automotive Gas Oil in a wooden boat were seized at Gbaraun area of Southern Ijaw Local Government Area of Bayelsa State.
These successes indicate the effectiveness of Operation Delta Sanity, and the resolve of the Nigerian Navy to sustain current efforts to rid Nigeria’s maritime environment of the menace of crude oil theft and enhance crude oil production for the overall growth of the economy.
The Eko Electricity Distribution Company Plc. has clarified that the Ministries, Departments, and Agencies of the Federal Government, including the military, owed the power distribution company N42billion as the cost of electricity consumed and not N144billion.
The Bureau of Public Enterprise(BPE), disclosed this in a Statement signed by the Head, Public Communications, Amina Othman, at the Weekend.
According to the Statement, the Disco affirmed that its total outstanding debt was N144billion, of which the MDAs and the military owe N42billion.
“The Eko Electricity Distribution Company Plc has clarified that contrary to earlier reports, the aggregate outstanding debt owed by consumers is N144billion, out of which, ministries, departments, and agencies including the military owe N42billion”, Othman stated.
The Statement said this was against prior reports that the MDAs, including the army, police, and other government agencies, were owing N144billion and had refused to pay.
The Disco said, “the clarification became necessary for proper reportage on the matter and to put the records straight”, it stated.
Recall that during a recent oversight visit by members of the House of Representatives Committee on Privatisation and Commercialisation, led by its Chairman, Ibrahim, the Acting Managing Director of the EKEDC, Mrs. Rekhiat Momoh, among other things, informed the members about the legacy debts owed the company by MDAs.
The committee had reported the acting MD as stating that the company was owed N144billion by MDAs within its operational area, saying she mentioned that the military, police, and various state government agencies failed to settle their debts, creating financial difficulties for the distribution company.
Energy infrastructure, a crucial part of global oil and gas supply and the energy transition, are set to get a boost after a heavy lifting equipment provider unveiled the world’s strongest crane-equipment capable of lifting 6,000 tons, or 15 fully loaded Boeing 747 aircraft.
Dutch heavy lifting and transport services company Mammoet has launched a new type of crane, the SK6,000, which, the firm said, could be used for modules to be built faster and also “bigger than ever before”.
As oil and gas continue to be a key part of the world’s energy system—and likely will continue for decades to come—and as renewable energy developers aim for bigger wind turbines, the support equipment for installing oil and gas platforms, offshore wind equipment, and even nuclear power stations is becoming bigger.
Bigger cranes such Mammoet’s SK6,000 could remove some of the limitations of engineering and construction firms. These firms are generally limited by how much weight can be lifted when installed on a platform or turbine.
Cranes that can carry 5,000 tons and more can shorten the time of a project being erected on a site, onshore or offshore, Mammoet says.
“Limitations on lifting capacity force engineers to fabricate smaller modules than would be optimal; tying up site space and increasing the complexity and duration of projects,” the company notes.
“This limitation can also narrow the execution choices available during each project’s planning stage and the percentage of each project that can be executed locally.”
These days, energy companies and their contractors seek faster deployment of energy infrastructure, be it wind turbines or floating production storage and offloading (FPSO) vessels and platforms for oil and gas production.
“There are so many supply chain constraints at the moment that need to be de-bottlenecked,” Gavin Kerr, Mammoet’s director of global services, told Bloomberg, commenting on the new crane.
“The bigger everything gets, you need bigger cranes.”
Moreover, the SK6,000 is containerised and can be assembled quickly on-site. This feature allows it to deliver heavy lift capability wherever it is needed, giving contractors greater flexibility in where and how energy projects are completed” Mammoet said.
“With the innovation of the SK6,000 crane, our customers can think bigger than ever before; pushing modules beyond the 4,000t and even 5,000t barriers. Its low ground bearing capacity also means the crane can be used all over the world”, said Mammoet’s Sales Director Giovanni Alders.
“With its long outreach, small minimum footprint and relatively small site impact, the SK6,000 greatly reduces the topside integration time.
“Needless to say, with larger building blocks you spend less time connecting and testing, and more time producing” Alders added
Energy companies do need faster permit-to-production times in both oil and gas and renewable energy to provide the conventional and green energy sources the world will need.
Wind turbine technology is evolving and making the hub height increasingly taller. According to the Office of Energy Efficiency & Renewable Energy at the U.S. Department of Energy, the hub height for utility-scale land-based wind turbines has surged by 83per cent since 1998–1999, to about 103.4 meters (339 feet) in 2023. That’s taller than the statue of Liberty.
The average hub height for offshore wind turbines in the United States is projected to grow even taller from 100 meters (330 feet) in 2016 to about 150 meters (500 feet), or about the height of the Washington Monument, in 2035, DOE said.
In the oil and gas industry, new resource development is needed as demand for LNG grows and legacy oilfields mature and output declines.
If contractors can bring energy projects on stream faster, both oil and gas supply and the energy transition will benefit.
By: Charles Kennedy
