Communique Issued at the end of the 16th monthly meeting of the Honourable Minister of Power, Works and Housing with operators of the Power Sector

Communique
Issued at the end of the 16th monthly meeting of the Honourable Minister
of Power, Works and Housing with operators of the Power Sector, held
on Monday, June 12, 2017 at Ugwuaji 330/132 kV Transmission
Substation, Enugu State.
1. Introduction
The Honourable Minister of Power, Works and Housing, Babatunde Raji Fashola (SAN) chaired
the sixteenth monthly meeting of operators in the electricity industry. The meeting was hosted
by Niger Delta Power Holding Company (NDPHC) at Ugwuaji Substation, Enugu State.
The meeting focused on identifying, discussing, and finding practical solutions to critical issues
facing the Nigerian Electricity Supply Industry.
The operators were fully represented at the highest executive management levels, including
Commissioners of the Nigerian Electricity Regulatory Commission (NERC), Managing Directors
and CEOs of Generating Companies (GenCos), Distribution Companies (DisCos), and the
Transmission Company of Nigeria (TCN), Gas Companies (GasCos) and other government
agencies such as the Niger Delta Power Holding Company (NDPHC), the Nigerian Bulk Electricity
Trader (NBET), Nigerian Electricity Liability Management Company (NELMCO) and Nigerian
Electricity Management Services Agency (NEMSA) responsible for the regulation and
development of the electricity industry. Nigerian National Petroleum Company (NNPC) and the
Central Bank of Nigeria (CBN) were also represented.
2. The meeting reiterated its purpose, and in addition deliberated and agreed as follows:
a) The MD of NDPHC in his introduction reiterated the benefits of the meeting to NDPHC
in terms of finding practical solutions to problems and assistance in prioritizing
projects important to stakeholders
b) That the Power Sector Recovery Programme (PSRP) is receiving public attention
focusing on the importance of unity, and the common view of the Nigeria people on
the importance and urgency of solving power problems. There is a growing consensus

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among the government and the public that power must be paid for and that power
must be conserved.
c) That Honourable Minister has exercised his powers under the Act to declare criteria
for eligible customers. NERC is conducting consultations with stakeholders to
operationalize it. Certain steel companies and generating companies have shown
clear interest in ensuring that previously undelivered power is purchased by industries
who need it. DisCos are encouraged to improve service, as customers benefitting from
efficient DisCo service would be unwilling to leave their coverage.
d) That the State Governments are also empowered to become ‘eligible’ customers to
procure premium power directly from Generating Companies. State Governments are
encouraged to appoint Energy advisers to ensure understanding of the power sector
before formulating power policies.
e) DisCos should bring up their observations about eligible customer declaration, for all
concerns to be addressed.
f) That payments for the Power Sector Payment Assurance Programme has been
approved for January and February. January has been disbursed and February is in
progress as invoices are usually submitted in arrears of the invoicing period, hence
the delay.
g) That cooperation of DisCos was vital to the reduction of connection time for new
businesses, leading to 100% compliance by the Power Sector in the Presidential
Initiative for Enabling Businesses. DisCos are encouraged to implement the reduction
from 190 days to 60 days.
h) Appealed to Enugu State House of Assembly to make allowances for privatisation,
which has only been in place for four years compared to decades of public
management, and encouraged positive engagement with Enugu DisCo to improve
service delivery. Additionally, Enugu State was encouraged to verify and pay the
N2billion debt said to be owed by Enugu State Government as making payment for
energy consumed is important in funding improvements in the power sector.
i) That communication is a key aspect of quality service, and therefore the need for a
clear understanding by the public of the reasons behind delivery gaps.

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j) That energy theft is also a limiting factor in quality service, because a small population
bears the large cost of energy consumption. The public was encouraged to extend the
whistle blowing policy of government to the power sector to ensure energy theft is
brought under control. Stakeholders are also encouraged to name and shame energy
thieves as a deterrent.
k) That NERC should take decisive action with regards to disconnection of households
with prepaid meters, as this action leads to low level of public trust in the sector.
l) That progress on incremental power is being made, and damaged transformers at
Afam IV have been repaired and gas supply will restart shortly for additional 100MW
of power. The Fast Power project at Afam III is also on course for completion with 240
MW supply expected before the end of the year. Azura 450 MW is on course and is
expected to be completed by Q1 2018. About 160,000 households are expected to
benefit from a more stable, effective and efficient power sector delivered by the
commissioning of these plants.
m) That progress on the IBEDC line to Magboro has been made, and the line is currently
being tested and that power should reach customers from Oke Aro to the MFM area
in that area within one week.
n) That NDPHC has made considerable progress on the Okija distribution substation as
transformer equipment is on site and is being installed in Okija town, close to the
Police Station. Progress was announced on Alaoji to Onitsha line which will bring
power to the vitial industrial clusters of Ihiala, Nnewi, Orlu community in Imo and
Anambra State, while also supplying the Onitsha metropolis, with expected
completion Q1 2018. NDPHC announced that work to supply power to the Omotosho
host community is expected be completed by Q3 2017.
o) That Maximum Demand (i.e. large consumption) customers who are not metered
should notify NERC to resolve payment disputes and must pay for energy consumed.
NERC reminded the industry that these customers should be metered and not given
estimated bill, unless by specific and exceptional derogation by the commission.

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p) That Jos DisCo has responded to complaints of inaccurate metering from its customer
base satisfactorily and is in process of refunding costs charged to customers for meter
installation.
q) That transparency in the sector must be fostered by allowing information sharing
between TCN and DisCos regarding energy delivered and make sure that the sector
has clarity on any weak points.
r) That the Market Operator is still reporting poor payment performance to service
providers and Abuja and Kaduna are still working on participant registration. Market
participants were asked to ensure full payment is made.
s) Announced that TCN had made progress in grid improvement, as compensation
payments for Makeri – Pankshin line has been completed, and the project should be
completed in Q4 2017. Gombe injection substation has been completed on May 18,
2017, while Ikeja West Injection Substation is in progress.
t) That Benin DisCo has begun the process of reconnecting the Okitipupa community
and that Ikaram/Egedegede, Ibaramu, Ikakumo, Ise, Ipese and Auga have already be
reconnected and the rest are in process. Petitions from Agulu town in Anaocha LGA
of Anambra State and Ajijedidun/Abiola Alao Landlord Association were forwarded to
Enugu and Eko DisCo respectively for review and swift response.

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