Nigeria: Lagos High Court Restrains Ikeja Electric, NERC From Applying New Tarif
A High Court in Lagos in the Federal Republic of Nigeria has restrained Ikeja Electric Plc and the Nigerian Electricity Regulatory Commission (NERC) from applying, administering or implementing the purported tariff stipulated in the 2024 Supplementary Order on tariff increase on “Bank A” Feeders.
The court presided over by Justice Chukwujekwu Aneke on Tuesday held that the tariff comprised those published by Ikeja Electric on April 4, 2024 and/May 2024 Supplementary Order on Tariff Increase on “Band A”, published on May 6, 2024 on a firm, Rida National Plastics Limited.
The presiding judge made the interim injunction after hearing an ex-parte application filed by Rida National Plastics’ lawyer, Dr. Kemi Pinheiro SAN.
The judge ruled that the order subsists pending Ikeja Electric and NERC’s full compliance with Section 51 of the Electricity Act, 2023 and the hearing and determination of the Motion on Notice for Interlocutory Injunction.
Rida National Plastics is the plaintiff/applicant while Ikeja Electric Plc and NERC are the 1st and 2nd defendants/respondent in the suit marked FHC/L/CS/1051/2024.
Justice Aneke also temporarily restrained the 1st & 2nd defendants from imposing the payment of the sum of N20 million on the plaintiff being the balance payable on the purported electricity bill dated 4th of May 2024 calculated on the basis of the April 2024 Supplementary Order on Tariff Increase on “Band A” Feeders and/or the May 2024 Supplementary Order On Tariff Increase on “Band A”.
In addition, the Interim Injunction also restrained Ikeja Electric and NERC “from intimidating and threatening to disconnect or actually disconnecting” Rida National Plastics’ electricity supply for non-compliance with the purported tariff.
He adjourned the suit till July 9, 2024 “for hearing of the motion on notice filed contemporaneously with the instant ex-parte application.”
Source: https://energynewsafrica.com
Niger: Military Junta Revokes Mining Licence Of French Nuclear Fuel Producer
Niger has revoked the operating licence that was issued to Orano, a French firm, to explore uranium at the Imouraren uranium mine, one of the world’s largest uranium deposits, amid rising tensions between France and Niger’s ruling junta.
The decision was taken on Monday, 24th June 2024, according to a top journalist in the West African nation who spoke to this portal.
The Nigerien government had warned of the revocation if work had not begun by June 19, which Orano claims to have complied with.
The company, which has been in Niger since 1971, said it is open to dialogue with the government but maintained that it reserves the right to contest the decision in national or international courts.
Niger, a key uranium supplier to Europe, has turned against France since the junta took power in July last year, favouring ties with Russia and Iran.
Source: https://energynewsafrica.com
Ghana: It Is Illegal To Move Our Meters To A New Location—ECG
The Electricity Company of Ghana (ECG) has cautioned the public against moving the company’s meters from one geographical area to another.
According to the ECG, it is illegal to change the location of a meter per PURC (Consumer Service) Regulations, 2020 (LI2413).
Section 4 (e) of the LI2413 states that a customer shall “not change the location of a meter.
“Any customer who flouts the above regulation is liable for imposition of a fine determined by the Public Utilities Regulatory Commission (PURC) under section 44(d) of the LI2413.”
Speaking during a recent media training programme for selected journalists in Accra, the capital of Ghana, the Director of Communications, William Boateng, explained that when a prospective applicant applies for a meter, a Geocode is assigned to the meter, showing the area where the meter will be fixed.
He said information on the applicant’s Ghana Card is entered into the ECG’s system.
According to William Boateng, the meter is for a specific location and is not transferrable without their knowledge.
He said if for some reason a customer is relocating to another area, the customer has to inform ECG.
He said if the customer removes the meter to his or her new location, it will be considered illegal.
“So come to us for us to discuss. If it is possible, we will let you know,” Mr Boateng advised.
Source: https://energynewsafrica.com
Lithium Battery Factory Blaze In South Korea Claims 22 Lives
Twenty-two workers were killed in a fire that followed a series of explosions at a lithium battery factory just outside of Seoul, South Korea on Monday, with authorities not yet clear on what caused the disaster.
Citing a local fire official, the Associated Press reported that the fire started when battery cells exploded inside the warehouse, though authorities are still investigating the cause of the explosion.
The victims were reportedly foreign workers, the majority of whom are Chinese laborers.
The blaze started at 10:30 a.m. local time and was extinguished in six hours, Reuters reports.
“The fact that there were so many casualties when this was on only the second floor is because of the toxic materials and not so much because of burns,” Reuters quoted Park Chul-wan at Seojeong University as saying.
South Korea is a key producer of lithium-ion batteries and a leading exporter. The company, Aricell, manufactures lithium batteries for sensors and radio communication devices.
Company executives can be held accountable, with prison terms, in South Korea for fatal industrial accidents based on new legislation passed two years ago, according to Reuters.
Lithium-ion batteries are energy-dense, with highly flammable materials that could lead to fire, explosion, radiation, heat and chemical exposure.
They can develop thermal runways that lead to high temperatures causing batteries to vent combustible gas or to ignite, though some experts argue that these occurrences are extremely rare.
In February, a fire broke out in a warehouse storing lithium-ion batteries in southern France, causing no casualties, but requiring 70 firefighters to extinguish.
In late May, the New York State Senate passed a legislative package to enhance safety standards for lithium-ion batteries following a series of public safety incidents.
At the same time, the U.S. House approved legislation in May mandating federal safety standards for lithium-ion batteries to prevent fires.
Source: Oilprice.com
South Africa: Eskom Wants To Hike Electricity Prices By 44%
South Africa’s power utility company, Eskom has asked the National Energy Regulator of South Africa (NERSA) for a 36.15% electricity tariff hike for the customers it directly supplies and charges.
However, customers supplied by local power utilities could be harder hit, with Eskom requesting an increase of 43.55% for these customers.
A report by mybroadband.co.za which cited Daily Maverick mentioned that a confidential draft document, dated May 2024, reportedly revealed details about the electricity price increases the state-owned power utility wants and plans to submit to NERSA for its financial years from 2026 to 2028.
It asked NERSA for a standard tariff increase for non-municipal customers of 36.15% for the 2025/26 financial year, 11.81% for 2026/27, and 9.10% for 2027/28.
Those supplied by municipal power utilities could face increases of 43.55% in 2025/26, 3.36% in 2026/27, and 11.07% in 2027/28.
The first set of increases would be implemented on 1 July 2025, and the draft document was the first step in the application process.
The proposed electricity price hikes must still undergo an extensive public comment and hearing process.
Eskom hopes that through the price increases, it will generate revenue of R446 billion, R495 billion, and R537 billion in 2026, 2027, and 2028, respectively.
The state-owned power utility said the delayed implementation of South Africa’s renewable energy programme means it is under pressure to increase its generation capacity.
It noted that between 2019 and 2023, over 8,000MW of capacity that was primarily meant to come from solar and wind generation was not available as intended in the Integrated Resource Plan of 2019.
As a result, its coal-fired stations have to fill in the generation gap.
Eskom’s electricity tariff increase of 12.54% for its direct customers kicked in on 1 April 2024, while the tariffs it charges for electricity sold to local authorities like municipalities increased by 12.72% from the same date.
Source: https://energynewsafrica.com
Spain: ATIDI, Globeleq Set To Announce Exciting Collaboration At Africa Energy Forum
The African Trade & Investment Development Insurance (ATIDI) and Globeleq will be hosting a signing ceremony today, Tuesday, to announce their collaboration on a
geothermal project in an East African country on the sidelines of aef2024 in Barcelona, Spain.
This event marks a pivotal moment in the collaboration between ATIDI and Globeleq and underscores their joint commitment to advancing renewable energy solutions in the region.
“Over the last years, we’ve worked tirelessly with our various partners to ensure that RLSF cover is available to eligible IPPs in ATIDI member countries.
“Thanks to the support of various stakeholders: we are quite excited to be in a position to make this announcement alongside our partners at Globeleq,” said Obbie Banda, Underwriter & Acting RLSF Coordinator, ATIDI.
ATIDI predominantly provides Political Risk, Credit Insurance and Surety Insurance.
Since its inception, ATIDI has supported USD85 billion worth of investments and trade into Africa.
For over a decade, ATIDI has maintained an ‘A/Stable’ rating for Financial Strength and Counterparty Credit by Standard & Poor’s (S&P), and in 2019, ATIDI obtained an A3/Stable rating from Moody’s, which has now been revised to A3 Positive.
ATIDI and the German Development Bank, KfW Development Bank, with financing from the German Federal Ministry for Economic Cooperation and Development (BMZ), launched the RLSF in 2017.
The facility was created to help tackle climate change and attract investments by supporting renewable energy projects in ATI’s member countries.
In 2022, the Norwegian Agency for Development Cooperation (Norad) committed additional funding towards the continued implementation of RLSF.
RLSF has a capacity of USD153.7 million and supports small and mid-scale renewable energy projects with an installed capacity of up to 100 MW (larger projects can be considered on a case-by-case basis) by protecting the projects against the risk of delayed payments by public off-takers; in turn improving project bankability and ensuring that more projects reach financial close.
Source: https://energynewsafrica.com
Lesotho: Lesotho Electricity Company Plunged Into Financial Woes
The Lesotho Electricity Company (LEC) is in financial difficulties due to the high costs of importing electricity from South Africa and the huge debts it owes to service providers.
The company’s situation is so dire that it has no funds to pay employees’ annual bonuses which are due at the end of this month, according to a report by Lesotho Times.
The report said the company has agreed on a payment plan with its staffers to stagger the bonus payments and ward off an industrial action they had contemplated.
The power utility will pay M38 million to Eskom for 24 Megawatts of power at the end of this month and pay M2 million to the Lesotho Highlands Development Authority (LHDA) for the same amount of power from ‘Muela Hydropower Station in Butha-Buthe.
Speaking about the company’s financial situation, the Managing Director of Lesotho Electricity Company, Mr Mohlomi Seithleko, confirmed that Eskom’s high has contributed to the utility’s current financial problems.
He said Muela was currently only producing 48MW as only two turbines were working.
“It costs us M2.42 to render electricity services to customers whom we charge M1.41 on average, which means we are running at a huge loss, thus, struggling to meet obligations due to the tariffs that are not cost reflective,” Mr Seitlheko said.
“Electricity usage reaches its peak between June and August each year due to the cold winter season. Therefore, the Muela turbines are expected to be in full swing during this period. However, one is still down.
“They (LHDA) promised it will be up in early July. Now that it was not working in June, we are going to pay Eskom M38 million compared to the M2 million we would have paid the LHDA. During this peak season, we buy a unit at M5.89 from Eskom whereas an LHDA unit costs us M0.12 throughout.
“We are already working on the plan to supply the country during the six months from October to March when the Muela plant will be under maintenance.
“Eskom has already promised to meet our demands. We are already in talks with the government to chip in as we would need to import more electricity then. The Ramarothole plant is not helping much because it only produces during the day.”
Mr Seitlheko said they were going to pay the workers’ bonuses in intervals from this month-end due to the financial problems.
“I will not lie. Yes, we do have financial problems. It is a policy issue to pay employees bonuses at the end of June each year but our finances are not allowing us to do so. We had proposed to the employees to pay them in December when our cash flows would be better as operating costs are not that high in summer. However, they refused.
“We had to negotiate and find common ground. The decision reached this morning was that we will pay them in intervals, starting from the bottom staff layers this month-end.
“The supervisors to middle management will be paid in July, while senior management will be paid in the two months of August and September. This will enable us to manage the cash flows whilst also avoiding the industrial action which was on the cards.”
Source: https://energynewsafrica.com
Nigeria: Dangote Refinery Accuses Downstream Petroleum Regulator Of Sabotage
Africa’s largest refinery, Dangote Refinery, is accusing the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) of being reckless by issuing fuel importation licences indiscriminately.
The Nigeria-based refinery claims holders of fuel importation licences are importing dirty diesel and jet fuel into the country, thereby, compelling them to export 3.5 billion litres of products, representing 90 per cent of their production.
“The decision of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), in granting licences indiscriminately for the importation of dirty diesel and aviation fuel has made the Dangote refinery expand into foreign markets.
“The refinery has recently exported diesel and aviation fuel to Europe and other parts of the world.
“The same industry players fought us for crashing the price of diesel and aviation fuel, but our aim, as I have said earlier, is to grow our economy,” said Devakumar Edwin, Vice President of Oil and Gas at Dangote Industries Limited, said during a training programme for selected journalists in Lagos at the weekend.
According to Edwin, despite Dangote’s effort to meet ECOWAS’s standards, the authority gives licences to traders to import high-sulfur petrol from Europe into the country.
He explained that since the US and UK have issued a cap on Russia’s petroleum products, these products are now dumped in Nigeria’s market by various traders.
“Even though we are producing and bringing out diesel into the market, complying with ECOWAS regulations and standards, licences are being issued, in large quantities, to traders who are buying the extremely high sulphur diesel from Russia and dumping it in the Nigerian Market.
“Since the US, EU and UK imposed a Price Cap Scheme from 5th February 2023 on Russian Petroleum Products, a large number of vessels are waiting near Togo with Russian ultra-high sulphur diesel and, they are being purchased and dumped into the Nigerian Market.
“Some of the European countries were so alarmed about the carcinogenic effect of the extra high sulphur diesel being dumped into the Nigerian Market that countries like Belgium and The Netherlands imposed a ban on such fuel being exported from its country, into West Africa, recently.
“Sadly, the country is giving import licences for such dirty diesel to be imported into Nigeria when we have more than adequate petroleum refining capacity locally,” Edwin said.
In addition, Edwin said the reason why Dangote can export to foreign countries is because its products meet international oil standards.
He said this indiscriminate licensing by NMDPRA would only frustrate the refinery’s adherence to standard quality, making it easy for traders to import low-quality petroleum products into the country.
Source: https://energynewsafrica.com
Ghana: NEDCo Undertakes Revenue Mobilisation And Loss Control Exercise Today
The Northern Electricity Distribution Company Ltd (NEDCo) has commenced revenue
mobilisation and loss control exercise across its operational areas effective June 24, 2024.
The exercise will cover all categories of customers in arrears including both privately owned
and state-owned accounts apart from a selected critical few.
A statement issued by the Corporate Communications Manager of NEDCo, Maxwell Kotoka, said significant attention would be given to loss-inducing activities such as illegal and/or unauthorized connections of all forms.
According to him, special security arrangements would be put in place to arrest and prosecute anyone who interfered with the exercise.
He said any person identified to be engaged in illegal connections or re-connections would equally be dealt with by the law.
NEDCo’s Head Office and Area Offices will be closed temporarily to allow for the full engagement of all staff, including top management in this exercise.
“Our customer service centres, zonal offices and third-party vendors will, however, remain open to address customer concerns including re-connections,” he said.
Mr Kotoka said the exercise would not interfere in any way with ongoing prosecution processes.
Also, customers in NEDCo’s operational arrears are entreated to pay their bills immediately to avoid disconnection and payment of re-connection fees.
Similarly, those involved in various forms of illegal and unauthorised connections are advised to stop and desist forthwith from such actions to avoid any brush with the law.
“NEDCo urged all to cooperate for the exercise to be successful, bearing in mind that we can only serve you well when you use power decently and pay for same,” he concluded.
Source: https://energynewsafrica.com
Dangote Claims Oil Majors Are Trying To Sabotage Africa’s Biggest Refinery
The international oil companies operating in Nigeria are seeking to undermine the operations and profit margins of Africa’s largest refinery, Dangote, by asking for high premiums for domestically produced crude, a senior official at the Dangote refinery has told local media.
The Dangote Refinery in Nigeria, Africa’s biggest, began the production of fuels in January 2024, marking the start-up of the refinery that has seen years of delays.
Now a senior official accuses the multinational companies operating in the country of “plotting” to bankrupt the refinery.
“While the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) are trying their best to allocate the crude for us, the IOCs are deliberately and willfully frustrating our efforts to buy the local crude,” Devakumar Edwin, Vice President, Oil and Gas at Dangote Industries Limited (DIL), told Nigerian media this weekend.
“It seems that the IOCs’ objective is to ensure that our Petroleum Refinery fails. It is either they are deliberately asking for ridiculous/humongous premium or, they simply state that crude is not available,” Nigeria’s newspapers quoted Edwin as saying.
The refinery had to pay $6 per barrel above the market price at one point, the official added.
“It appears that the objective of the IOCs is to ensure that Nigeria remains a country which exports crude oil and imports refined petroleum products,” Edwin was also quoted as saying.
The Dangote refinery, which has a processing capacity of 650,000 barrels per day (bpd), is expected to meet 100% of Nigeria’s demand for all refined petroleum products and have a surplus of each of the products for export.
The refinery expects to export diesel to customers in Europe, as well as gasoline to Latin American and African markets. However, production of Euro V gasoline, the gasoline complying with Europe’s emissions standards, is not expected to be produced until late 2024, according to analysts at Facts Global Energy.
Aliko Dangote, Africa’s richest man, is looking to set up a trading firm that would handle crude supply for the new mega refinery in Nigeria, Reuters reported in March, citing multiple sources with knowledge of the plans.
Source: Oilprice.com
Congo: Chinese Firm Embarks On A Multi-Faceted Oil And Gas Project
The Republic of the Congo has a goal of increasing hydrocarbon production to 500,000 barrels per day (bpd) and projects such as Wing Wah Oil Company’s Banga Kayo development will serve as catalysts for meeting this objective.
The project is a strong example for how integration and scalability can be utilized to not only monetize resources but maximize production beyond the lifecycle of initially-tied in blocks.
The African Energy Chamber (AEC) – the voice of the African energy sector – conducted a tour of Wing Wah’s project near Pointe Noire during a working visit to the country this week.
A strong advocate for the development of oil and gas in Africa, the AEC believes that hydrocarbons are the solution for making energy poverty history by 2030.
Project’s such as Wing Wah’s in the Republic of the Congo are not only a testament to the role international partnerships play in developing African oil and gas resources but to the potential for large-scale, integrated developments across the continent.
The Ministry of Hydrocarbons – led by Minister Bruno Jean-Richard Itoua – and the country’s NOC Société Nationale des Pétroles du Congo – led by Managing Director Maixent Raoul Ominga – have provided the much-needed support that companies such as Wing Wah need to develop innovative projects, and the AEC commends them for the progress made thus far.
Banga Kayo: An Innovative Oil & Gas Venture
The Banga Kayo conventional oilfield is a production permit operated by Wing Wah, which features approximately 250 wells that have been drilled to date.
Currently, the field is producing 45,000 bpd and is nearing its peak production of 80,000 bpd.
In addition to oil production, Wing Wah is implementing a phased expansion and development approach to monetize previously-flared gas resources.
Over three phases, the project will progressively increase gas treatment and valorization capacity, producing LNG, butane and propane, primarily for the domestic market. Excess products will be exported regionally.
The project incorporates the development of three trains.
The first has a capacity of one million cubic meters per day (mcm/d), while the second and third trains will have a capacity of two mcm/d each.
The second and third trains are anticipated to come online by March 2025 and December 2025, respectively, and will bring the total capacity of the project to five mcm/b.
In April 2024, Wing Wah signed an amended production sharing contract with the government for the Banga Kayo block, signaling the start of the expansion of the project.
Integration: A Tool for Maximizing Efficiency and Scalability
Wing Wah’s project in the Republic of the Congo is underpinned by a focus on integration and scalability.
The structure of the facilities has been planned in a way that prioritizes efficiency, reduces emissions and promotes scalability.
Specifically, the facility enables Wing Wah to tap into stranded gas that would have otherwise been flared, thereby providing opportunities for monetization and the utilization of gas across the oil production cycle.
Unlike traditional LNG infrastructure which faces challenges as blocks mature and feedstock declines, the scalable design of Wing Wah’s project creates the opportunity to maximize production – both at existing blocks and new concessions.
Additionally, each unit at the facility has its own power generation solution which are scalable in increments of 2 MW.
Currently, 22 MW is installed, with generators utilizing gas from associated blocks. As production increases, so can power generation, thereby ensuring scalability and durability.
Meanwhile, the water management system is also integrated into the project in a way that promotes environmentally-friendly operations. Water treatment is conducted on-site and distributed back into the ocean once treated.
As such, the facility provides a quintessence of oil and gas integration.
The development approach features fast construction, fast commissioning and quick, efficient operations.
Wing Wah are using state-of-the-art equipment and have an organized layout of the overall infrastructure and storage.
This is expected to boost efficiency at the project site while ensuring the project plays an instrumental role in processing oil and gas for the long-term.
Prioritizing Local Community Development
In addition to project efficiency, the Banga Kayo development has been constructed in a way that takes into account the needs of local communities.
All of the processing facilities have on-site accommodation, with senior management on-call to ensure a constant review of work.
Currently, the project employs more than 3,000 people, the majority of whom are workforce Congolese.
Meanwhile, excess power generated at the project site can be distributed to local communities, providing a clean and reliable source of power.
Water management also takes into account regional demand, with surrounding communities benefiting from a clean source.
This structure not only brings tangible benefits to local communities but reducing emissions across the project’s operational cycle.
“Wing Wah’s integrated project in the Republic of the Congo is a model that can and must be replicated in other oil and gas producing nations in Africa.
“The project’s focus on scalability ensures production is not limited to specific blocks, but rather, infrastructure can be easily tied into new concessions as exploration ramps up across the country.
Through gas-fired power generation, innovative water management and a long-term approach to production, the project is poised to unlock a wealth of benefits for the country,” states NJ Ayuk, Executive Chairman of the AEC.
Source: African Energy Chamber
Niger Confirms Anti-junta Rebels Behind Oil Pipeline Attack
Niger’s junta has confirmed that rebels damaged an oil pipeline carrying crude oil to neighbouring Benin.
The Patriotic Liberation Front, which is fighting for the release of former president Mohamed Bazoum, who was overthrown in a coup last July, said it was behind the attack earlier this week, a report by the BBC said.
It has threatened to target oil installations and called on the Chinese companies that run the pipeline to end their support for the military regime.
It is the latest setback to hit the newly opened 2,000km (1,243-mile) pipeline as relations between Niger and Benin continue to sour.
State media said the “malicious individuals” who had sabotaged part of the pipeline would be apprehended and prosecuted.
“We know which group is the author of the act [and which also] claimed [it],” public prosecutor Ousmane Baydo is quoted by the AFP news agency as saying.
Footage aired on state-run broadcaster Tele Sahel on Friday evening showed the damage in Niger’s southern Zinder region, with an oil spill stretching out into the bush.
The pipeline was formally launched at the end of last year and links Niger’s Agadem oilfield to Benin’s coast – and is set to be vital to both economies.
But its future has been in jeopardy following last year’s coup, when regional sanctions were imposed on Niger.
In February, the regional bloc Ecowas agreed to lift them and borders were allowed to be reopened.
Benin’s economy had also been hit by trade block and was anxious for imports and exports to resume.
But Niger decided to keep its borders closed to goods from Benin, alleging its neighbour was hosting French forces that were training others to destabilise Niger.
The junta in Niger views France with suspicion and has established closer ties with Russia since coming to power.
It kicked out French troops who had been in the West African state to fight militant Islamists threatening stability across the region.
France maintains it has no bases in Benin and such allegations are part of disinformation campaigns against the former colonial power.
Nonetheless the refusal to reopen the land border, usually busy with lorries driving back and forth, prompted Benin to block Niger’s inaugural oil exports.
China stepped into ease tensions – and Niger did manage to join the world of oil exporters, its first batch of crude leaving Benin at the end of May.
But the spat between Benin and Niger has continued.
Earlier this month five Niger nationals were arrested at an oil port in Benin on impersonation charges – and a loading of second crude shipment was reportedly aborted.
Three of the Nigeriens were given 18 months suspended sentences – and all of them, who worked for the Chinese oil firm running the pipeline, were expelled and flown to Niamey on Friday.
Source: https://energynewsafrica.com
Nigeria: KEDCO Drags Manufacturers Association Of Nigeria To Court Over Unlawful Interference
Kano Electricity Distribution Company (KEDCO), one of the power distribution companies in the Federal Republic of Nigeria, has dragged the Manufacturers Association of Nigeria (MAN) to the High Court of the Federal Capital Territory, Abuja, over unlawful interference with its business, causing huge financial damage to the company.
A statement signed by Sani Bala Sani, Head of Corporate Communications, on Thursday, said the actions of MAN have subjected the company to a huge revenue loss of over 5.3 billion Naira per month.
The company also accused MAN of unlawful interference with its business, despite their knowledge about the FG’s removal of electricity subsidy for all Band A customers, and fluctuations in various macro-economic indices such as exchange rates, gas prices, inflation, and other factors responsible for computing electricity tariffs.
These factors have warranted KEDCO’s cost-reflective tariff to increase from ₦159.13 per kWh to ₦225.00 per kWh.
The statement attributed the conspiracy to actions including circulars signed and issued by the Director-General of MAN, Segun Ajayi-Kadir, directing all its members, including other Band A customers, to disregard their obligations and pay the old tariff rate on account rather than the statutory new tariff as approved by the regulator.
This has led customers on Band A to breach their obligations to pay the newly approved tariff.
The company said that MAN’s action has unfairly burdened it with the FG’s subsidy removal on Band A customers and the attendant losses, taking cognizance of the fact that KEDCO also has an obligation to pay the power generating companies’ cost-reflective tariff.
KEDCO vehemently lamented MAN’s mindful intention to protect its interest at the expense of causing damage to its business and employees.
This action not only causes unbearable losses to KEDCO, but it also hinders the company’s ability to procure more energy to serve its teeming customers, posing a threat to its corporate sustainability and Nigeria’s power sector growth.
Therefore, despite several engagements with MAN and its affiliate associations, KEDCO is left with no option but to drag MAN to court for committing the tort of procuring a breach of contract, unlawful interference, and conspiracy against its business.
Source: https://energynewsafrica.com
Uganda: Rural Electricity Access Project To Connect 54000 Households With Electricity Before December Ends
Uganda is targeting to connect 54000 new customers under the Rural Electricity Access Project (REAP) before it ends by December 31, 2024.
So far 87,450 households from 981 villages have been connected to the National grid under this project supported by African Development Bank and the European Union.
During a stakeholders engagement in Jinja, which attracted officials from ministries, agencies and departments, the Ministry of Energy and Mineral Development revealed that the project which started in 2015 is ending this year.
“The project has been able to extend grid of about 1790Km and over 2600Km of low voltage which connects from the line to individual customers,” Samuel Bishop, the coordinator of the Project said in a report by Nilepost.co.ug.
He revealed that they have installed 981 transformers at different load centres including town centres and villages that have been connected to the grid.
He added that they have a target of connecting more 54000 new customers before end of this year.
“We are into the process of connecting close to 54000 unto the grid on single phase and we shall also consider three phase for those who deal in milling and other businesses including health centres, schools, churches among others ,” he said.
As the project comes to an end this year , government has embarked on fresh negotiations with the African Development Bank for another loan.
“So far we have spent over USD 85 million of the loan the remaining 15% of the loan is still outstanding to be paid out as the contractors close out their activities,” Bishop said.
In 2015 Uganda secured a loan of USD 100M from African Development Bank and additional grant of 11.2M Euros from the European Union for the Uganda Rural electricity Access project which has been extended to about 55 districts.
Source: https://energynewsafrica.com