Biden Bans Oil And Gas Leasing Near New Mexico Cultural Site
The U.S. Administration has banned new oil and gas leasing near the Chaco Culture National Historic Park in New Mexico as part of a plan to protect the area and a larger portion of federal land from drilling.
The Chaco Canyon, a major center of ancestral Pueblo culture between 850 and 1250, is a World Heritage site on the list of the UN’s cultural agency, UNESCO. In addition to the Chaco Culture National Historical Park, the World Heritage property includes the Aztec Ruins National Monument and several smaller Chaco sites managed by the Bureau of Land Management.
Now the U.S. Department of the Interior bans for 20 years new leasing on federal land within 10 miles of the Chaco Culture National Historic Park. The suspension of leases does not include private, tribal, or state lands.
“Today marks an important step in fulfilling President Biden’s commitments to Indian Country, by protecting Chaco Canyon, a sacred place that holds deep meaning for the Indigenous peoples whose ancestors have called this place home since time immemorial,” Interior Department Secretary Deb Haaland, who is a New Mexican and a member of the Pueblo of Laguna tribe, said in a statement carried by Reuters.
Last month, the Navajo Nation voted to reject any buffer around the Chaco Culture Historical National Park, saying that “If the buffer zone is adopted, the Navajo allottees who rely on the income realized from oil and natural gas royalties will be pushed into greater poverty.”
Oil and gas companies have also opposed the no-leasing area around the park.
New Mexico is the second-largest oil-producing state after Texas, with which it shares the top-producing basin, the Permian. In 2021, New Mexico accounted for 11.1% of U.S. crude oil production, second only to Texas and its share of 42.4%, per Energy Information Administration (EIA) data.
New Mexico saw the highest growth in crude oil production of any U.S. state last year, with output gains of 300,000 barrels per day (bpd) accounting for half of America’s oil production increase, the EIA said in a report last month.
Source: Oilprice.com
Ghana: ECG, NEDCo Issue Tariff Reckoner For New Electricity Tariffs
The Electricity Company of Ghana (ECG) and the Northern Electricity Distribution Company (NEDCo) have released the tariff reckoner to guide consumers following the 18.6 per cent increase in electricity tariff approved by the Public Utilities Regulatory Commission (PURC).
Your authoritative news portal energynewsafrica.com publishes the two tariff reckoners below.
We encourage consumers to take time to go through to be abreast with how much they will be paying for their consumption of electricity from hence.
Click on the links below for more……
JUNE ’23 TARIFF RECKONER (RESIDENTIAL) – NEDCo
Electricity Company of Ghana Ltd – Current Tariff (ecg.com.gh)
Click on the links below for more……
JUNE ’23 TARIFF RECKONER (RESIDENTIAL) – NEDCo
Electricity Company of Ghana Ltd – Current Tariff (ecg.com.gh)
Ghana: Fuel Prices Shoot Up
Major Oil Marketing Companies (OMCs) in the Republic of Ghana have adjusted their pump prices upward by 15 pesewas, energynewsafrica.com can confirm.
As of Thursday, leading OMCs such as GOIL, Shell and TotalEnergies adjusted their pump prices for both petrol and diesel by 15 pesewas.
By this, a litre of petrol and diesel are currently selling at Gh¢12.45.
Unlike in other parts of Africa where fuel prices are reviewed monthly, in Ghana, fuel prices are reviewed every two weeks.
During the last window which ended on May 31, 2023, the three leading OMCs sold both petrol and diesel at Gh¢12.30 per litre while other players sold petrol and diesel between Gh¢11.50 and Gh¢11.99.
Prices of finished products for petrol had been between US$790.45 and US$828 per metric tonne while diesel prices had been between US$683 and US$691 per metric tonne for the past two weeks.
Crude oil prices had also been between US$70 and $76 per barrel for the past two weeks.
Source: https://energynewsafrica.com
Africa Needs Natural Gas To Meet 27th United Nations Climate Change Conference (COP27) Commitments By: NJ Ayuk
By: NJ Ayuk
The 27th United Nations Climate Change Conference, or the Conference of the Parties of the UNFCCC (COP27), held in Sharm El Sheikh, Egypt, in November 2022, featured a slight philosophical shift from where mindsets had been just the year before.
COP26 saw Africa under pressure to accept that its fossil fuel resources should remain underground. During the conference, representatives from wealthier nations made efforts to cast our continent as the recipient of undue climate change impacts deserving of financial compensation and the impetus to accelerate their own green agendas.
This year, the failure to deliver on those compensatory commitments, paired with Russia’s invasion of Ukraine, the subsequent effect on global energy prices, and a more unified voice of opposition from African leadership, managed to direct discussions toward another direction.
While some of the messaging shared at COP27 regarding Africa remained much the same as the previous year — that the focus should remain on moving away from reliance on coal and inefficient fossil fuel subsidies — the proposals supporting those sentiments showed a noticeable change. The conference more readily acknowledged both the economic benefits of leveraging African natural gas and the role that it could play in easing Africa’s eventual energy transition to renewables.
Commitments We Can Keep
It was also heartwarming to see African policymakers take the proactive step of committing to climate actions that are both feasible and have the potential to improve the lives of millions of Africans.
As noted in our soon-to-be-released outlook report, “The State of African Energy Q1 2023,” two of COP27’s most significant developments were the launch of the Africa Carbon Markets Initiative (ACMI) and the Africa Just and Affordable Energy Transition Initiative (AJAETI).
With sponsorship from the Global Energy Alliance for People and Planet, Sustainable Energy for All, The Rockefeller Foundation, and the UN Economic Commission for Africa, ACMI aims to harness carbon markets and produce 300 million carbon credits (the equivalent of 300 million tonnes of CO2 reduction) per year by 2030 and 1.5 billion credits per year by 2050. In addition to providing support for over 110 million jobs in the same time frame, commitments to this initiative could generate more than USD120 billion in revenue, helping to expand energy access across the continent while protecting our biodiversity.
AJAETI focuses on transition, first to clean cooking and then eventually to green energy from renewable electricity generation. Aligned with the United Nations Sustainable Development Goal 7.1, AJAETI hopes to see 300 million Africans gain access to affordable energy and transition to clean cooking fuels and technologies within the next four years. Furthermore, the initiative also hopes to see a 25% increase in electricity from renewables by 2027 with a long-term goal of developing a fully renewables-based power sector by 2063.
Though one might not make the connection initially, the measures that the African Energy Chamber (AEC) endorses, including dramatically increasing Africa’s use of its natural gas resources would actually support and even accelerate progress toward the longer-term goal of eventually transitioning away from fossil fuels.
As examined in our Q1 2023 Outlook Report, estimates for African upstream emissions are expected to reach 795 million tonnes of CO2 equivalent between now and the end of the decade. These emissions would rank Africa in fifth place behind North America, the Middle East, Asia, and Russia and account for only 9.5% of global upstream emissions.
However, half of these extraction-related emissions would result from gas flaring — the act of burning natural gas as a byproduct of oil extraction in place of preservation and distribution. If left unchecked, African gas flaring will account for nearly 20% of global flaring-related emissions. By simply capturing resources that are currently going to waste, Africa can contribute to a sizeable reduction in atmospheric CO2 levels.
Realizing Our Potential
In hard numbers, current estimates for African holdings include 74.365 billion barrels (Bbbls) of recoverable liquids and 82.875 billion barrels of oil equivalent (Bboe) of recoverable natural gas resources. At present, only half of these liquids and just a third of the natural gas resources connect to producing facilities. With the production rates of these tapped resources in terminal decline, Africa must secure the necessary investments to ramp up infrastructure development if we are to achieve any outcome greater than mere stabilization.
Getting back to hard numbers, the realistic dollar values at play here are an initial USD65 billion invested in greenfield projects over the next two years, followed by further investments totaling USD225 billion by 2030. To fully achieve the goals we have set for Africa, continued investment over the subsequent decade would bring this figure up to USD485 billion. However, current commercial forecasts project that investments between 2031-2040 will amount to only USD55 billion. As stated in our Q1 2023 Outlook Report, this disparity could represent “a potential deathblow to Africa’s oil and gas aspirations” and severely impact the future of numerous fossil-fuel export-dependent economies across the continent.
Considering that Africa expects to still rely on coal for 9% of its power mix even beyond 2040, this diminished investment rate would also cripple the hope of expanding access to electricity and reversing African energy poverty by using natural gas as a transition fuel.
A Clear Path Forward
As more developed nations transition away from fossil fuels, the international oil and gas industry must recognize Africa’s potential as a future global energy supplier. While it is reassuring to witness what might be the early stages of a sea change in environmental policy, as evidenced by the sentiment at COP27, the AEC will continue to advocate passionately for energy development in Africa. Though Western powers and even some climate activists have finally acknowledged that oil and gas will continue to play a necessary role well into the future, we have much more work to do. For Africa to realize its goal of offering universal access to electricity and clean cooking, the industrialized world must also recognize Africa as the next energy frontier.
African resources offer a two-way path toward a greener and more prosperous future. Through international partnerships and infrastructure development, investment in Africa will support the remaining fossil-fuel needs of the rest of the world while providing for its own, and an infusion of capital to our continent will diversify our economy, produce millions of new jobs, and, in turn, provide the funding for our own eventual transition to a renewables-based energy network.
Source: NJ Ayuk, Executive Chairman, African Energy Chamber
Nigeria: Setting Power Sector Agenda For The New Administration (Opinion)
By: Adetayo Adegbemle
I have read a number of write-ups, trying to set agenda for the new administration led by Bola Ahmed Tinubu, but many of them have fallen short of addressing the major issues facing the power sector. While it must be said clearly that President Muhammadu Buhari has built on the progress of the power sector, there is also the need to build and consolidate on the successes and review a couple of decisions here and there.
There is the continued call for a truly independent regulatory commission, devoid of political interference, and one of the best ways to achieve this is to bring in individuals who have shown commitment to the growth of the power sector in one capacity or the other. The era of making political appointments and then expecting a quick delivery of key performance indicators should be dispelled.
Proper interviews and presentations on what challenges facing the power sector should be done, and the best candidate be given the political powers to turn around the fate of the sector. Once this can be achieved with NERC, it will send a clear message and tone.
One of the structures to be clearly made away with is the Presidential Power Initiative, which at best, should function as a desk in the ministry of power, which should handle such bilateral relationships with companies like Siemens.
Keeping an “agency” like the PPI increases our overhead unnecessarily, duplicating tasks and command chains, and asking questions of the professionals in the ministry of power.
With the success recorded by the Muhammadu Buhari administration in deepening our fuel/energy mix, we should be having more generating capacity coming mainstream, our focus should therefore be on how to align the new wheeling capacity being achieved by the Transmission Company of Nigeria and their numerous projects, with the off-takers in the DisCos.
The focus should also be on harnessing the over N50 billion naira the Manufacturers Association of Nigeria spends on alternative energy into the national grid.
All the funds being expended on TCN projects would come to naught if electricity distribution companies (DisCos) are not able to utilise these capacities.
Market liquidity has become a perennial problem for the power sector, but our policymakers are not considering the root cause, and in dealing with the issue, how to solve this effectively. The truth remains that unless the issue of metering is resolved, we would continue to experience stunted growth in the power sector.
This metering covers every interface in the power sector. That is from the generation interface with the transmission, from the transmission interface with the distributors, and ultimately to the distributors’ interface with the final consumers.
In solving this problem, I have been advocating for the establishment of the local metering ecosystem and local metering standards. This will ultimately lead to deepening our local meter manufacturing capacities, removing the foreign exchange components in meter pricing, increasing/creating employment, and ultimately solving our local metering problems.
Beyond encouraging the local meter manufacturing ecosystem, we need to also establish local transformer manufacturing and repair units. We need to develop this local capacity.
Resolving our huge local metering challenge will automatically also a more accurate figure of the number of connections that we have to the national grid, thereby helping with more accurate data for national planning.
Not knowing what our demand looks like will make us continue to make abstract plans that will continue to fail. I have heard many commentators saying that a nation of over 200 million people should have access to over 100,000MW of electricity but we cannot, and should not continue to extrapolate with scientific data to make sensible decisions.
Yes, this can be achieved in four years if we have the political will to proceed, and if in making appointments, factors like what their earlier contributions have been.
I will continue to hammer on national interest first as the basis to make appointments and forming policies. Without this, the power sector will continue in its doldrums and the potential to be great unachieved.
Adegbemle is a public opinion commentator/analyst, researcher, and convener of PowerUpNigeria, an Electric Power Consumer Right Advocacy Group. He tweets @gbemle and @PowerUpNg
Ghana: Genser Energy Empowers Communities Through Strong Partnerships
Genser Energy, a leading energy company in Ghana, has made significant strides towards enhancing its corporate social responsibility (CSR) initiatives by implementing a comprehensive plan aimed at providing sustainable and tailored solutions to communities within its operational areas.
The company’s commitment to fostering strong relationships with local authorities and community members has set a new benchmark for effective community engagement.
Recognizing the importance of establishing solid partnerships with key stakeholders, Genser Energy prioritizes engagement with local authorities, including unit committees, assembly members, traditional authorities (Odikros), religious leaders, youth groups, and opinion leaders.
This initial groundwork lays the foundation for Genser’s Sustainability Department to conduct in-depth research by immersing themselves in the local communities and gaining a firsthand understanding of their needs before developing suitable solutions.
Michael Smith, Genser Energy Communication Relations Superintendent, highlighted the company’s approach, stating, “The community relations team immerses themselves in these communities to gather relevant information about local government authorities, traditional leadership, community lifestyle, culture, and customs. This enables us to establish preliminary contacts with key stakeholders and ensure effective community entry and sensitization.”
Once Genser Energy enters a community, it conducts a comprehensive socioeconomic survey, gathering essential data on household composition, education background, housing conditions, water & sanitation availability, healthcare access, and other critical aspects. This information forms the basis of an up-to-date database that assists in designing comprehensive CSR programs tailored to each community’s unique needs.
Issah Mohammed, Genser Energy Sustainability Manager emphasized Genser Energy’s commitment to incorporating the perspectives of the community members, including traditional authorities, youth groups, vulnerable groups such as women, children, the physically challenged, and the elderly, in the development of their CSR programs. By engaging the community in this manner, Genser Energy ensures the full support and participation of all stakeholders throughout the project implementation process.
Addressing prevalent community issues, Mohammed added, “Many of these communities face challenges related to water and health facility renovations, among others. We have short, medium, and long-term needs assessment CSR plans in place.”
In line with their community-centric approach, Genser Energy has actively engaged with more than 150 communities in preparation for the construction of gas pipelines.
These pipelines will connect the Ejisu Plant Metering Station in the Ashanti Region, serving the 250-Megawatt (MW) Africa and Middle East Resource Investment (AMERI) Thermal Power Plant. Notably, Genser Energy’s involvement in these communities extends beyond job creation, with a comprehensive plan that addresses the unique needs of each community.
To ensure ongoing dialogue and involvement, Genser Energy has established a continuous engagement management framework, employing strategic measures to work collaboratively with project-affected persons (PAPs) throughout the project’s lifecycle. This framework includes the appointment of Community Liaison Representatives (CLRs) by PAPs in each community. These representatives provide vital information regarding the pipeline’s right-of-way, community concerns, and community management, facilitating informed planning and decision-making.
To further strengthen stakeholder engagement at the community level, Genser Energy has formed grievance management committees and employment committees at various pipeline sections. These committees address pressing concerns that may not be immediately apparent to the company and help streamline the employment and recruitment process within the communities.
Over the years, Genser Energy has actively contributed to the development of the communities along its gas pipeline routes. The company has undertaken initiatives such as providing school desks and constructing mechanized boreholes in the Amansie South and Sefwi districts of the Ashanti and Western North Regions, respectively. These efforts demonstrate Genser Energy’s commitment to sustainable development and improving the lives of community members.
In collaboration with the American Chamber of Commerce Ghana (AmCham) and the Ghana Union Assurance (GUA), Genser Energy has also committed over GHS1.8 million to construct a covered market in Appiatse. The market project aims to support the community, which was severely impacted by a tragic explosion earlier this year. The all-inclusive market will be equipped with improved amenities such as water, electricity, and a creche, contributing to the rebuilding and restoration of the vibrant community.
In addition to its community-centric initiatives, Genser Energy has also made noteworthy contributions to the sports sector. Last year, the company donated a SEWA 504 tractor with a mower worth GHS200,000 to the Takoradi Sports Club, enabling the continued upkeep of the facility and encouraging future community activities. Genser Energy also co-sponsored the 2022 Gold Fields Professional Golfers Association (PGA) tournament, demonstrating its support for professional golfers and promoting sporting events within the region.
Genser Energy’s commitment to corporate social responsibility and community engagement stands as a testament to its dedication to sustainable development and the well-being of the communities it serves. Through its inclusive approach and tailored CSR programs, the company continues to make a positive impact on Ghanaian communities, fostering lasting relationships and driving socio-economic progress.
Source: Genser Energy
Ghana: Vivo Energy Ghana Promotes Responsible Waste Management
Vivo Energy Ghana, the Shell Licensee, has donated a skip container to the La Enobal Basic School in Accra to support responsible waste management and by extension, environmental sustainability.
The energy company has a dedicated programme named ‘The Green Champions’ to support sustainable projects to protect the people and the planet through meaningful partnerships.
The Green Champions are made of employees who are passionate about climate action and sustainability and see an opportunity to promote sustainability initiatives in their workplace, engaging other members of staff and acting as a focal person for those wanting to take green action.
The desire to protect the environment for future generations is undeniably a point of focus for governments, international communities and businesses. The skip container donation to the La Enobal Basic School illustrates perfectly how Vivo Energy Ghana’s Sustainability Framework seeks to support the planet by encouraging recycling and reducing waste generation. The Green Champions admitted: “We want to preserve the environment and make the world a better place for our children, they are Ghana’s citizens of tomorrow”.
Speaking at the presentation ceremony, the Corporate Communications Manager of Vivo Energy Ghana, Shirley Tony Kum, who spoke on behalf of the Managing Director, expressed her delight at the opportunity to support the La Enobal Basic School in its efforts to promote responsible environmental practices.
She mentioned that Vivo Energy Ghana’s dedication to fostering sustainable development in Ghana is reflected in the Green Champions Programme.
“We are committed to supporting the communities where we operate, and the Green Champions programme is one of the ways we are demonstrating this. We believe that by supporting initiatives like this, we can contribute to the achievement of the Sustainable Development Goals in Ghana,” she said.
The Headmaster of the La Enobal Basic School, Michael Odonkor expressed his gratitude to Vivo Energy Ghana for the donation. He noted that the skip container will help the school to promote a cleaner and healthier environment for its pupils and the community at large.
The skip container will be used to collect, store, and sell recyclable materials such as plastics, paper, and cans. This will help the school to promote a culture of recycling and waste reduction among pupils and staff.
The Green Champions programme is one of the many sustainability initiatives that Vivo Energy is undertaking in Ghana. As an energy business, Vivo Energy Ghana is committed to promoting sustainable development in the country through our operations and community engagement initiatives.
Source: https://energynewsafrica.com
She mentioned that Vivo Energy Ghana’s dedication to fostering sustainable development in Ghana is reflected in the Green Champions Programme.
“We are committed to supporting the communities where we operate, and the Green Champions programme is one of the ways we are demonstrating this. We believe that by supporting initiatives like this, we can contribute to the achievement of the Sustainable Development Goals in Ghana,” she said.
The Headmaster of the La Enobal Basic School, Michael Odonkor expressed his gratitude to Vivo Energy Ghana for the donation. He noted that the skip container will help the school to promote a cleaner and healthier environment for its pupils and the community at large.
The skip container will be used to collect, store, and sell recyclable materials such as plastics, paper, and cans. This will help the school to promote a culture of recycling and waste reduction among pupils and staff.
The Green Champions programme is one of the many sustainability initiatives that Vivo Energy is undertaking in Ghana. As an energy business, Vivo Energy Ghana is committed to promoting sustainable development in the country through our operations and community engagement initiatives.
Source: https://energynewsafrica.com Ghana: Minority Demands Immediate Transfer Of Shares From JOHL To GNPC
The Minority Group in Ghana’s Parliament is demanding the immediate transfer of shares held by Jubilee Holdings Limited (JOHL), a company formed in the Cayman Islands, to the Ghana National Petroleum Corporation (GNPC).
According to them, this will go a long way to make Ghanaians confident that the government is exercising the needed oversight of the nation’s oil assets.
For the past two weeks, the Ghanaian media have been dominated by discussions on the planned sale of half of the seven per cent stake Ghana acquired from Anadarko in 2021.
Ghana’s Energy Minister, Dr Matthew Opoku Prempeh, had objected to the sale of Ghana’s share held by Jubilee Oil Holdings Limited to PetroSA, the national oil company of South Africa, but the Board Chairman of GNPC, Mr Freddie Blay, according to the Minister, was still pursuing the deal.
The Chairman’s action infuriated the Minister, compelling him to write to notify the presidency about what he described as a clandestine move by the Board Chairman of GNPC.
The issue attracted the attention of civil society groups working in the extractives sector, anti-corruption and good governance.
At a press conference, the group demanded the immediate removal of the CEO of GNPC and the Board Chairman.
Describing their action as illegal, the group stated that their continuous stay in office poses threats to the oil and gas sector.
Reacting to the issue, Mr Freddie Blay said he did nothing wrong and argued that the planned sale of Ghana’s oil assets was in the best interest of the state.
Commenting on the issues, the Minority Group, in an official statement on Tuesday, May 30, 2023, and signed by the Minority Leader, Dr. Cassiel Ato Forson, said the transfer of the shares would show that the government is monitoring the revenues accruing from Ghana’s petroleum resources.
“By this statement, the Minority calls on the Akufo-Addo/Bawumia NPP government to transfer the shares held by JOHL to GNPC without delay, so that Ghanaians can be assured that appropriate oversight is being exercised on these assets by Parliament and other stakeholders. This will only go a long way to ensure proper accountability and effective monitoring of the revenues accruing from our petroleum resources.”
Source: https://energynewsafrica.com
The Chairman’s action infuriated the Minister, compelling him to write to notify the presidency about what he described as a clandestine move by the Board Chairman of GNPC.
The issue attracted the attention of civil society groups working in the extractives sector, anti-corruption and good governance.
At a press conference, the group demanded the immediate removal of the CEO of GNPC and the Board Chairman.
Describing their action as illegal, the group stated that their continuous stay in office poses threats to the oil and gas sector.
Reacting to the issue, Mr Freddie Blay said he did nothing wrong and argued that the planned sale of Ghana’s oil assets was in the best interest of the state.
Commenting on the issues, the Minority Group, in an official statement on Tuesday, May 30, 2023, and signed by the Minority Leader, Dr. Cassiel Ato Forson, said the transfer of the shares would show that the government is monitoring the revenues accruing from Ghana’s petroleum resources.
“By this statement, the Minority calls on the Akufo-Addo/Bawumia NPP government to transfer the shares held by JOHL to GNPC without delay, so that Ghanaians can be assured that appropriate oversight is being exercised on these assets by Parliament and other stakeholders. This will only go a long way to ensure proper accountability and effective monitoring of the revenues accruing from our petroleum resources.”
Source: https://energynewsafrica.com Ghana: Pay 30% Of Outstanding Arrears By June 30—IPPs To Gov’t
The Independent Power Generators, Ghana, formerly Chamber of Independent Power Producers, Bulk Distributors and Consumers (CiPDiB) has given the Government of Ghana up to June 30, 2023, to settle 30 per cent of their outstanding arrears to guarantee continued power supply to the national grid.
The group communicated this in a letter to the Minister for Finance after their emergency meeting on Tuesday, 23rd May 2023.
According to the group, government arrears to them for power supplied to the national grid have ballooned to the cedis equivalent of circa US$1.6 billion to date.
The group said they are aware that ECG’s recent revenue mobilisation exercise yielded some Gh¢3.1Billion.
The group said the above notwithstanding the arrears continue to increase and no improvement on the part of ECG /Government to settle the debt to enable them to persuade their creditors, contractors and key stakeholders to defer critical payments required to maintain operations.
“We are pleased to learn that the Government has successfully concluded the IMF negotiations. We are aware that in the 2023 Budget approved in line with the IMF Staff Level Agreement, allocations were made for payments to IPPs. We are also aware of the Electricity Company of Ghana’s recent debt collection efforts, as reported in the media which yielded circa Gh¢3.1 Billion.
In a letter to the Minister of Finance Ken Ofori Atta on Wednesday, May 31, 2023, sighted by energynewsafrica.com, the group mentioned that in their letter of 28th March 2023, they demanded significant payment of their outstanding arrears, but Government failed to honour their request thereby putting pressure on their members.
“Regrettably, we must stress that unless we receive the payment requested by the said date, members of the chamber will not be in the position to guarantee the continued generation of electricity,” the group said.
The IPPs comprising Aksa Energy, Amandi Energy, Sunon Asogli Power Ghana, Early Power, Cenpower Generation, Cenit Energy, Trogan, Meinergy, and Karpowership Ghana Limited generate more than 50 per cent of the power supply to the national grid.
Source: https://energynewsafrica.com
Nigeria: NNPC Limited Increases Petrol Price More Than 200%
Nigeria’s national oil company, NNPC Limited, has adjusted pump prices for Premium Motor Spirit (petrol) across its retail outlets in line with current market realities.
Previously, NNPC Limited sold PMS at N184 per litre in Lagos, N194 in Abuja, N189 in Port Harcourt and N194 per litre in Kaduna.
However, a statement issued by NNPC Limited on Wednesday announced about more than 160 per cent increases in the cost of petrol across its retail outlets.
In Lagos, PMS is now selling at N488 per litre, N537 per litre in Abuja, N511 per in Port Harcourt and N540 per litre in Kaduna.
“As we strive to provide you with the quality service for which we are known, it is pertinent to note that prices will continue to fluctuate to reflect market dynamics.
“We assure you that NNPC Limited is committed to ensuring a ceaseless supply of products,” a statement issued by Garba Deen Muhammad,Chief Corporate Communications Officer NNPC Ltd, said.
Source: https://energynewsafrica.com
Source: https://energynewsafrica.com
Ghana: ECG Customer Connects Power To 33 Structures Illegally In Gbetsile
The Afienya District of the Electricity Company of Ghana (ECG), on Tuesday, May 30, 2023, discovered that one customer had connected electricity to about thirty -three structures within the same vicinity in Gbetsile, a suburb of Kpone Katamanso Municipality in the Greater Accra Region.
The illegal activity was discovered as part of ECG’s ongoing revenue mobilisation exercise, which started on Monday, May 29, 2023, and is expected to end on Friday, June 2, 2023.
Upon the arrival of ECG personnel, the customer fled from the scene.
However, the team managed to locate the meter outside the customer’s premises, making it accessible for investigation purposes.
During interactions with the residents, ECG officials learned that some individuals claimed to have been making monthly payments to the owner of the meter for the power they were using.
This raised suspicions about the illicit distribution of power in the area.
Another discovery made in the same vicinity had to do with a fake meter and normal ECG meters which had been moved from their original locations to new structures in Gbetsile, all of which are infractions.
Briefing the media, the District Manager for ECG Afienya District, Ing Daniel Mensah-Asare indicated that as part of the exercise, “we also check on the state of the meters to ensure that they are in good condition and working as they are expected to.”
He said it was during one of such meter checks that the group discovered that the meter, which had been fixed to one of the structures, had wires connecting to surrounding structures.
Further checks, he said revealed that there had been an illegal connection in the form of a meter bypass and so the customer was not paying the right amount for the power consumed.
The team engaged some of the residents who claimed to have been paying for the power they were using to the owner of the meter every month.
Some said they had been paying an average of Gh¢35 a month for several months.
The ECG personnel informed the other residents of the various infractions discovered before disconnecting the supply from the service pole.
The service cable was also seized by the company.
Ing Mensah-Asare indicated that the revenue mobilisation and meter integrity checks were going on well, adding that they had not had any resistance from customers.
He called on customers to ensure that the meters would be accessible to ECG workers whenever necessary.
He also admonished against illegal connections, adding that “potential culprits should know that ECG has the mandate to prosecute for illegal connection which could lead to a jail term, fine or both.”
The Public Relations Officer for the ECG in the Tema Region, Sakyiwa Mensah called upon the offender to immediately report to the Tema Regional Office of ECG to address the issue and face appropriate consequences.
She explained, “This customer has decided to distribute power to the other 33 structures. Further checks also revealed that the owner of the meter had done an illegal connection in the form of a meter bypass, which means that all the power they are using does not pass through the meter, so they are not paying for using the power.”
Despite the customer’s attempt to evade capture, ECG has taken proactive steps by issuing a summons letter to the offender.
Source: https://energynewsafrica.com
South Africa: SARB Prepares For ‘Unlikely National Grid Failure’ To Cushion Financial Sector
South African Reserve Bank (SARB) Governor Lesetja Kganyago has reiterated that the central bank through the Financial Sector Contingency Forum (FSCF) continues to prepare for the unlikely event of a national grid failure to cushion the financial sector.
Kganyago was speaking at the release of the bank’s first Financial Stability Review for 2023.
The objective of the Financial Sector Review is to communicate the bank’s views on the potential risks to financial system stability and the policy actions being taken to address these risks.
Kganyago says they are coordinating plans to mitigate the impact of the grid collapse.
“The SARB through the Financial Sector Contingency Forum continues to plan for the unlikely. But not an impossible scenario of a national electricity grid failure – in line with the role and function of the FSCF. Current efforts are centred around developing, coordinating and testing contingency plans to mitigate the impact of a national grid failure on the fin system and the economy,” Kganyago added.
Last week, the Reserve Bank hiked interest rates by 50 basis points taking the prime lending rate from 11.25% to 11.75%. This marked the 10th increase, since November 2021, totalling 475 basis points over the period.
Source: SABC
Ghana: Justification Of The 2023 2nd Quarter Tariff Adjustment
The Public Utilities Regulatory Commission (PURC) has justified its decision to increase electricity tariffs by 18.36% for the 2nd quarter of 2023.
Below is a write by the PURC
Background
The Public Utilities Regulatory Commission sits between utility service providers and consumers. While PURC ensures that the utilities are financially viable to provide adequate services (by approving adequate revenue requirement for them), the Commission also ensures that consumers get access to reliable and competitively priced services. This means, the Commission must balance the interest of both utilities and consumers. As part of steps to perform this balancing act, the Commission approves major tariffs, which are applicable over a regulatory period. The Commission also undertakes quarterly adjustments of the tariffs, performs regulatory audits, monitors performance of the utilities, educates the public, receives and resolves complaints.
The PURC in September 2022, undertook a major tariff review (2022-2025) in which, it considered the cost of operation for regulated utilities, exchange rate, inflation, cost of fuel and other factors. Since the exchange rate, inflation and cost of fuel are neither under the control of the utilities nor the Commission, variations in these variables are considered as a pass-through cost. Additionally, the energy mix, which is subject to the hydrology of the dam and other climatic factors are beyond the reach of the Commission, thereby necessitating its consideration in any quarterly tariff adjustment.
To this end, the Commission per its guidelines considers these four factors (exchange rate, inflation, energy mix and cost of fuel) and adjusts electricity tariffs on a quarterly basis to restore value of the tariffs and to meet the revenue requirements of the utility service providers. This is what is referred to as the Quarterly Tariff Adjustment. A similar approach is applied to water tariff.
Explanation of the June 1st, 2023, Quarterly Tariff Adjustment
Some detailed explanations on the 2nd Quarter Tariff Decision of the Commission, which is expected to take effect from June 1, 2023, is given below.
With the recently announced quarterly tariff decision, the electricity utilities are to recoup an amount of GHS1.3149 billion over the next quarter. This is to help purchase fuel to generate power, transmit, distribute and continuously serve consumers. To recover the full amount, electricity tariffs should have been increased by 27.51%. However, given the approved tariff of 18.36%, an amount of GHS877.70 million will be recovered, leaving a balance of GHS437.22 million to be recovered. On the other hand, the amount to be recovered through the water tariff is GHS 650,267,161 million.
This brings us to the reasons for the recoveries. In other words, what and why are we recovering?
The first is the price of natural gas.
In the first quarter tariff decision, Jubilee Oil Field contributed 32.7% of gas, Sankofa contributed approximately 51.8%, while Nigeria Gas (N-Gas) contributed 15.1%. Gas from the Jubilee Field was priced at USD 0.5/mmbtu, Sankofa was at USD 6.6272/mmbtu, while N-Gas was priced at USD 8.1510/mmbtu in the weighted average cost of gas (WACOG).
For the second quarter tariff decision, the contribution of Jubilee Field reduced marginally to 32.2%, whiles Sankofa increased to 53.9%. This reflects changes in the quantity of Natural Gas received from both fields.
The price of N-Gas on the other hand, increased from USD 8.1510/mmbtu to USD 8.6641/mmbtu, reflecting an upward change in price.
The overall implication is that the weighted average cost of gas which was USD 6.0952/mmbtu in the first quarter now increased to USD 6.5165/mmbtu in the second quarter. representing an increase of 6.9%.
Since gas prices are a pass-through cost, it is imperative that we should pay the gas price differential to enable the power producers to generate enough power for consumption. Thus, the percentage increase of 6.9% had to be passed through the tariff.
The second variable is the Exchange Rate.
The projected exchange rate used for the first quarter tariff decision (that is February to April) was GHS 8.6816 to the USDollar. Meanwhile, the actual exchange rate for that same period was GHS 10.9507 to the US Dollar. This led to an exchange rate under-recovery of GHS 2.2690.
It is important to note that all Power Purchase Agreements (PPAs) are denominated in US Dollars. This means ECG buys power in US Dollars, but sells in Ghana Cedis. The implication is that any under-recoveries with the exchange rate threatens the utility’s ability to procure and sell power. This also threatens the ability of the power generators to procure fuel for generation. Thus, the exchange rate has to be recovered.
Additionally, the Commission only passed on 75% of the exchange rate under-recovery, which was experienced between September 2022 and January 2023 in the first quarter tariff decision. The remaining 25% which is equivalent to GHS 0.6202 had to be recovered. This means that for the second quarter tariff decision, that 25% equivalent to GHS 0.6202 from September 2022 to January 2023 period plus the previous quarter under-recovery of GHS 2.2690 has to be recovered.
The Commission however, considered the present economic circumstances of Ghanaians and Industry, and decided to recover the GHS 0.6202 under-recovery from September 2022 to January 2023 period, plus 50% of the GHS 2.2690, which is GHS1.1345 under-recovery of the previous quarter, which comes up to GHS 1.7547 (1.1345+0.6202) to be recovered.
Finally, the projected exchange rate for the next quarter (June to August) is GHS 10.9571 to the US Dollar. If the under-recovery of GHS 1.7547 of the previous quarter is added to the projected exchange rate of GHS 10.9571, the applicable exchange rate amounts to GHS 12.7118 to the US Dollar. Since only 50% of the exchange rate effect is being recovered, it means, an equivalent of GHS 437 million has been effectively passed on to the next quarter.
The third variable for consideration is the Hydro-Thermal mix.
The hydro-thermal mix used for the second quarter is 29.01% for hydro, and 70.99% for thermal; as against 26.11% for hydro and 73.89% for thermal used for the first quarter tariff decision. The increased hydro allocation of 29.01% helped to reduce the potential tariff by about 2.5%. This means that without the increased hydro allocation, the tariff would have gone up by an additional 2.5%.
The final variable is Inflation.
The projected inflation figure for the year, was 42.63%. If this figure is divided into four quarters, that amounts to an inflation rate of 10.66% per quarter.
The average actual inflation for the first quarter was 50.47%. Again, if this is divided by four, we get an inflation figure of 12.62%. This means that the inflation effect for the second quarter will be 12.62% – 10.66% which is 1.96. This figure is that which was considered in the second quarter tariff decision.
Conclusion
In a nutshell, the 2nd quarter tariff decision of 18.36% for electricity helps to fully recover (i)100% of the inflationary effect, (ii)100% of the gas price effect and (iii)50% of the exchange rate effect.
PURC Communication Team.
Ghana: Fuel Tanker And Yutong Bus Collision Kills 6, Injures 48 People At Gomoa Okyereko
A fuel tanker belonging to Goodness Energy, one of the oil marketing companies in the Republic of Ghana, and a Yutong bus fully loaded with passengers collided at Gomoa Okyereko near Winneba in the Central Region at about 4.30 am today, Tuesday, killing six passengers instantly.
The casualties included the mate of the fuel tanker.
The report suggested that the Yutong bus which was fully packed with passengers from Ivory Coast, Ghana’s western neighbour, veered off its lane and crushed into the tanker truck.
Speaking to the media, DO2 Kwesi Hughes, the Municipal Fire Commander for Winneba, said the Yutong bus was headed towards the Liberia Camp, near Kasoa, in the Western Region of Ghana while the bulk road vehicle was headed towards Cape Coast from Accra, Ghana’s capital.
The injured were dashed to the Winneba Trauma Hospital and Effutu Municipal Hospital for treatment.
A local journalist, Alex Cobbinah, popularly known as Omanhene Pozo, told this portal that one person had been referred to the Korle-Bu Teaching Hospital in Accra to seek medical attention.
According to him, the police recovered about US$8070 from the victims.
Source: https://energynewsafrica.com