The Gambia: Barrow Inaugurates Transmission Line To Connect 46 Communities With Electricity
The Gambian President Adama Barrow has inaugurated a 30kV power transmission line from Laminkoto to Diabugu Batapa to extend electricity supply to 46 communities in the Sami and Sandu Districts.
“This important energy project has been implemented to expand electricity access to forty-six (46) communities that run from Lamin Koto to Diabugu Batapa in the districts of Sami and Sandu and within the two furthest regions of the country. These are areas that very strongly need such public projects,” the President said in his keynote address.
The US$8 million project is a medium voltage 30KV line network initiative that is fully loaded with distribution facilities.
The project includes electricity connection meters provided for one thousand Dalasi (D1,000. 00) for two thousand, five hundred and twenty (2,520) beneficiaries.
Among them will be household, institutional and commercial end-users or customers.
“It is safe to state confidently that this is a major project that has come to transform the beneficiary communities and will significantly improve the lives and livelihoods of the people who live in those communities.
“Besides providing regular electricity supply for them, the facilities will create various opportunities for the people. For example, it will enable the residents of the settlements to process and add value to their agricultural produce, facilitate access to quality social services, and enhance better living conditions,” President Barrow said.
Continuing, he said, “As my government continues to strive to provide universal access to electricity by 2025 because this project is a component of The Gambia Electricity Restoration and Modernization Project, it will undoubtedly contribute remarkably towards the achievement of our national universal electrification programme.
“While other electricity access projects are being implemented speedily to close the universal electricity access gap, we remain strongly committed to achieving the noble 2025 target of electricity access for all,” he concluded.
Source: https://energynewsafrica.com
Ghana: We’re Disappointed In TUC… Says Asogli Power Ghana
Ghana’s largest independent power producer, Sunon Asogli Power Ghana Limited, has expressed disgust at the Trades Union Congress (TUC) for failing to engage them and rather siding with Ghana Mine Workers Union (GMWU) for engaging in what they described as illegality.
According to Sunon Asogli, it expected the TUC, which is the umbrella body of all workers’ unions to have approached them to hear their side of the story regarding claims by the Ghana Mines Workers Union they were resisting attempts by their workers to unionise.
“Sunon Asogli is not and has never been against unionization.
“Indeed, the company is aware of the right of our employees under the 1992 Constitution of Ghana and the Labour Act, 2003 (Act 651), to join a union.
“The issue has been about the procedure and approach adopted by the Ghana Mine Workers’ Union (“GMWU” or “the Union”),’’ Sunon Asogli stated.
Ghana Most Likely To Partner France For First Nuclear Power PlantAt a press conference addressed by the TUC Secretary-General, Dr Yaw Baah, who accused Asogli Power Ghana Limited of resisting the decision by the workers to join a union, sent a clear message that the Chinese company cannot establish in Ghana to tell the indigenes what they should do in their own country. However, Asogli Power Ghana Limited, in a statement issued, accused the Ghana Mine Workers Union of gathering at the company’s premises in Kpone illegally. Asogli Power Ghana said what is even more surprising is the conduct of the TUC. “One would have expected that the TUC Secretary General, the overall boss of the trade unions in Ghana and whose affiliate is GMWU, will write to the company to engage and hear the side of the company, understand the issues and therefore the role the TUC could play. “They decided to follow the Union and painted the company as anti-union, but members of the public are discerning and should be able to determine whether the company is anti-union or the GMWU is an aggressive, uncompromising, intimidatory Union organization. “We are disappointed in the Trade Union Congress (TUC) as a mother body, particularly by its press release of March 27, 2023, and the subsequent speech of the Secretary-General on May Day 2023, which were laced with threats, falsehood, and distortions, with the sole intention to injure the reputation of Sunon Asogli and to lower the Company in the estimation of right thinking members of society generally and in particular to expose the Company to hatred, contempt, ridicule, and opprobrium.” According to Sunon Asogli, the inability of the TUC to hear from both sides before jumping to a conclusion is worrying. “The National Labour Commission, on March 15, 2023, advised the parties to stay all actions including commenting on the issue in the media, but the GMWU hid under the umbrella of TUC and has done just the opposite, all in the quest to intimidate Sunon Asogli,’’ it said. Source: https://energynewsafrica.com
Nigeria: Dangote Refinery Set To Be Commissioned On May 22, 2023
Nigeria-based Dangote Refinery, Africa’s largest crude oil refinery, is set to be officially commissioned on Monday, May 22, 2023, the group has announced.
The refinery, situated on a 6,180 acres (2,500 hectares) site at the Lekki Free Trade Zone, Lekki, Lagos State, and currently the world’s largest single-train refinery, will produce as much as 650,000 barrels of crude per day.
Its pipeline infrastructure is the largest anywhere in the world, with 1,100 kilometres to handle three billion Standard Cubic Feet per day (Scf/d) of gas due to the large capacity of the refinery.
The group made the official commissioning ceremony in a letter inviting some industry players.
The refinery is expected to help Nigeria to address its fuel issues.
Currently, local reports suggest that the refinery is going through pre-inauguration tests.
Source: https://energynewsafrica.com
Nigeria: IBEDC Appeals To Customers To Pay Outstanding Debts To Avert Blackout
The Ibadan Electricity Distribution Company (IBEDC), one of the power distribution companies in the Federal Republic of Nigeria, has appealed to customers in Oyo, Ogun and Osun States to pay their debts to avert total blackout following threats by the Transmission Company of Nigeria (TCN) to disconnect it from the national grid.
The IBEDC, in a message sent out to its customers, read: “SOS! Help Us Avert the Black Out! Dear esteemed customer.
“We regret to inform you of the plans by the Transmission Company of Nigeria (TCN) to disconnect IBEDC from the national grid over poor remittances.
“Paying your bills immediately is the only solution to this pending blackout. Pay 100% of your current and outstanding electricity bills now to prevent IBEDC from being disconnected.”
Last month, the market operator, a subsidiary of Transmission Company of Nigeria, threatened to disconnect 13 Discos for breaching market rules.
Consequently, last week, the market operator disconnected Kano, Kaduna Electric Distribution Company and Apple Electric.
However, the three Discos were reconnected after the Minister for Energy intervened.
Source: https://energynewsafrica.com
Ghana Deepens Petroleum Trade Ties With Mali
Ghana’s downstream petroleum regulator, National Petroleum Authority (NPA), has initiated moves to promote fuel trade and investment between Ghana and Mali.
The NPA’s strategy is to continuously engage the Malian authorities and importers to achieve the objective of increasing fuel supply to the Sahelian region.
Consequently, a delegation from the NPA, led by a Deputy Chief Executive, Mrs Linda Asante, paid a four-day working visit to Mali.
The team held meetings with key stakeholders including the regulators, Office Malien des Produits Petoliers (OMAP), the Malian Customs, and the directorate in charge of trade–Direction Generale Commerce de la Consommation et de la Concurrence (DGCCC) and Malian petroleum importers operators.
Mrs. Asante said the visit was part of NPA’s strategy to deepen economic relations between Ghana and Mali, and other countries in the sub-region, particularly in the area of fuel trade.
“It was also to discuss matters on trade facilitation and the signing of a trade cooperation agreement between Ghana and Mali,” she added.
The Deputy Chief Executive stated that the idea was to collaborate with key Malian institutions to develop export protocols and sign a trade cooperation agreement to promote fuel trade and investments between the countries.
She also revealed that another key area of focus for the delegation was to strengthen the collaboration between NPA and its counterparts in curbing illicit fuel activities associated with the fuel trade to ensure the tax revenues of both countries are protected, and also ensure that the Ghana-Mali corridor is safeguarded to protect the economic interests of both countries.
The delegation also paid a courtesy call to Ghana’s Ambassador to Mali, H.E. Napoleon Abdulai.
Additionally, the visit presented an opportunity to initiate discussions to increase the supply of the fuels currently being supplied (gasoil, gasoline and Jet-A1) to Mali and promote LPG imports to the Malian market from Ghana.
The team established a working relationship with the Embassy on how to advance the economic interests of Ghana and facilitate the signing of the trade Cooperation Agreement.
She also revealed that another key area of focus for the delegation was to strengthen the collaboration between NPA and its counterparts in curbing illicit fuel activities associated with the fuel trade to ensure the tax revenues of both countries are protected, and also ensure that the Ghana-Mali corridor is safeguarded to protect the economic interests of both countries.
The delegation also paid a courtesy call to Ghana’s Ambassador to Mali, H.E. Napoleon Abdulai.
Additionally, the visit presented an opportunity to initiate discussions to increase the supply of the fuels currently being supplied (gasoil, gasoline and Jet-A1) to Mali and promote LPG imports to the Malian market from Ghana.
The team established a working relationship with the Embassy on how to advance the economic interests of Ghana and facilitate the signing of the trade Cooperation Agreement.
Source: https://energynewsafrica.com
Kenya: Ministry Of Energy And Petroleum To Plant 300,000 Trees In 2023 To Tackle Climate Change
Kenya’s Ministry of Energy and Petroleum has pledged support towards the fight against climate change in East Africa through the tree planting initiative.
In a tweet on the Ministry’s page and sighted by this portal, it said the Ministry, through the State Department for Energy, is committed to planting over 300,000 tree seedlings this year.
The Ministry said the tree seedlings would be planted in “our adopted forests to combat climate change.”
The initiative is to complement the presidential project aimed at planting 15 billion trees in the next ten years.
Source: https://energynewsafrica.com
Ghana: ECG Detects 6,492 Illegal Connection In Tema District; Recovers Gh¢2.14M
Ghana’s southern power distribution company, the Electricity Company of Ghana (ECG), has detected 6,491 cases of illegal connections in the Tema Region over six months.
Out of the 6,491 illegal connections detected from September 2022 to February 2023, a total of 1,555 illegal connections were detected in February 2023 alone, the highest within the period.
The cost of the power consumed through illegal connections amounted to Gh¢2,891,263.4.
So far, an amount of Gh¢2,149,148.25 has been retrieved, leaving Gh¢742,115.15
ECG Tema Region covers nine districts which include North Tema South Tema, Nungua, Afienya, Prampram, Ada, Krobo, Juapong and Ashaiman.
The Public Relations Officer for ECG Tema Region, Sakyiwaa Mensah, who revealed this, said the company is worried by the increasing incidents of illegal connections which are affecting the operations of the company and said ECG would stop at nothing to prosecute offenders.
“Within the six months period which is between September 2022 and February 2023, the ECG Tema Region detected 6,491 illegal connections. Out of this, we billed an amount of Gh¢2,891,263.4. We have been able to retrieve GH¢2,149,148.25.
“We detected these through routine meter monitoring to check the integrity of meters. The Revenue Protection Unit of the Tema Region handles these issues. Out of the 6,491 illegal connections detected, the highest was a total of 1,555 in February 2023 alone,” she said.
She said ECG has the mandate to prosecute customers caught bypassing meters and those who fail to pay for power users would be charged with the offence of stealing.
“We, therefore, admonish customers to desist from all forms of illegal connection which includes meter bypass, meter tampering and direct connection. Customers should please stay away from fidgeting with all ECG installations including meters,” the Public Relations Officer for ECG Tema Region cautioned.
Source: https://energynewsafrica.com
Ghana: NPA Cautions Motorists To Desist From Filling Fuel Tanks To The Brim
Ghana’s petroleum downstream regulator, National Petroleum Authority (NPA) has cautioned fuel retail outlets and motorists against using ramps to aid the pumping of fuel into vehicles.
According to the regulator, tilting vehicles on ramps to fill them to the brim could damage fuel tanks and lead to explosion and destruction of vehicles and lives.
The Eastern Regional Manager, Mr. David Owusu-Kena, gave the caution at an NPA media engagement in Koforidua on Wednesday.
The media engagement organized by the Communications Department was to highlight the Authority’s activities in the petroleum downstream industry and respond to industry-related questions from the media.
Mr. Owusu-Kena said fuel tanks were not supposed to be filled to capacity since fuel require space for expansion.
He said fuel in fully filled tanks spilled over on the vehicle and on the forecourt of fuel stations, which could spark fire.
Besides, he said, the expanded fuel could damage the fuel gauge and leak through old tanks into the exhaust pipe, which could start fire and burn down the vehicle and cause injuries and loss of lives.
Touching on requirements for siting a filling station, Mr. Owusu-Kena said the prospective applicants needed permits from the Environmental Protection Agency (EP), the Ghana National Fire and Rescue Service (GNFRS) and the assembly before the NPA’s grants permit for construction of a fuel station.
He said the Authority made sure that the application had secured all the necessary approvals from the EPA, the GNFRS and the assembly in order to ensure the safety of residents and protection of the environment.
Taking his turn, the Head of Planning of NPA, Mr. Dominic Aboagye, outlined measures the Authority had put in place to ensure uninterrupted fuel availability and supply in the country.
The interventions include management of storage depots, the laycan allocation programme and stock monitoring and reporting.
Besides, he said, the Gold for Oil programme, the Bank of Ghana forex support to Bulk Oil Distribution Companies and the granting of Special International Oil Trading License were key to preventing any risk of fuel supply disruption.
Mr. Aboagye said local refining of crude oil by Akwaaba Oil Refinery and the Platon Gas Oil Refinery were supporting the sector.
He said local fuel refinery would be ramped up with the expected start of operation by the Tema Oil Refinery (TOR) and the completion of the Sentuo refinery.
Welcoming the media on behalf the NPA Chief Executive, Dr. Mustapha Abdul-Hamid, the Corporate Affairs Director, Mrs. Maria Edith Oquaye, said last year’s media engagements across the country focused on pricing and quality of petroleum products, and indicated that this year’s sensitization would be on requirements for siting filling stations and security of supply of petroleum products.
For his part, a member of the Governing Board of NPA and Chairman of the Consumer Services sub-committee, Mr. Kwami Sefa Kayi, lauded the NPA for the sensitization drive and urged the media to be more proactive by asking the NPA industry-related questions for clarifications.
Source: https://energynewsafrica.com
EU Joint Gas Buying Scheme Attracts Demand From 65 Firms
More than 60 companies have submitted demands to buy gas through the European Union’s scheme for joint purchases, with the bloc aiming for the first deals to be signed within months.
The EU is launching a joint gas buying scheme to help fill gas storage ahead of winter – and avoid a repeat of the record-high energy prices and fears of energy shortages in Europe last year after Russia slashed gas deliveries.
Nigeria: Group Cautions Market Operator And Discos Against Insensitive ActionsIn the scheme’s first demand-collecting round, which closed on Tuesday, 65 European companies registered demand to jointly buy gas, EU Commission Vice President Maros Sefcovic said. In total, 101 firms have now registered interest in the platform either as buyers or sellers – an initial response that Sefcovic said had “exceeded our expectations”. Sefcovic said the scheme aimed to improve gas market access for smaller companies and tame energy prices for Europe’s energy-intensive industries like fertiliser and steel producers. “The prices as we have seen them last year, and I would say even prices until now – we cannot accept them as a new normal,” he told Reuters in an interview. Czech energy firm CEZ, Spain’s Cepsa and Poland’s PKN Orlen are among the companies that plan to take part in the joint buying scheme, spokespersons for the firms said. Around 19 of the 101 companies registering interest have also signed up as intermediaries to represent multiple smaller firms that want to pool their demand. EU officials have said some large energy firms had expressed reluctance to take part, questioning what incentive they had to join as they can already negotiate their own gas deals at competitive prices. Most of the registered gas demand – 77% – is for deliveries to points in pipeline networks, while 23% is for liquefied natural gas, Sefcovic said. He declined to confirm the outright volume of gas being sought through the scheme, which cannot purchase Russian gas. “We are reaching out to all international suppliers with the exception of Russia,” Sefcovic said. As a next step, the EU platform will collect offers from suppliers, and match buyers with suppliers by 17 May. Matched companies will then negotiate gas contracts. The EU will not be involved in those commercial talks. Source: Reuters
Ghana: GRIDCo Holds SCADA Upgrade Site Project Meeting With Hitachi Energy
Staff of Hitachi Energy, contractors for the Supervisory Control And Data Acquisition (SCADA) Upgrade Project, have visited GRIDCo to gain first-hand information on the status of the Project.
The team of two (2) Project Managers from Hitachi ABB, met with the GRIDCo Project Team (from the System Operations Department and MIS Section), tasked with the SCADA works, to review the project plan and ensure that, the agreed milestones of the project are met.
The week-long meeting, chaired by the Director of System Operations, Mr. Frank Otchere, featured design workshops to review and finalise the design of the new SCADA system.
A review of required equipment was also conducted to facilitate the procurement and installation processes.
The SCADA Upgrade project will upgrade GRIDCo’s Network Manager System (NMS) application and Servers to the latest versions, making it more robust against software attacks, as well as increasing its functionalities.
The project also includes a new video wall for the System Control Centre and a backup control centre for emergency situations.
Angolan Energy Infrastructure Poised To Spur Growth And Diversification
For Angola to achieve its targeted 9.9 GW of installed generation capacity and 60% electrification rate by 2025, the country’s Government has instituted an ambitious infrastructure plan.
This plan is supported by a series of regulatory reforms, incentives for investors, and strategic partnerships that will require the execution of bankable Power Purchase Agreements, external financing, and the participation of experienced private sector developers.
For the country to support new production capacity, power transmission infrastructure in Angola will have to be enhanced. As such, Angola’s Energy Sector Efficiency and Expansion Program Phase I will serve to connect the country’s three grid systems – the northern, central, and southern systems – through the construction of a 16,340km-long 400 kV North-Central-South transmission line by 2025.
The interconnection system will evacuate approximately 1,000 MW of low-cost hydropower from the Kwanza River basin to the country’s capital and other population centers in the southern part of Angola.
This project is being implemented through a collaboration between the U.S. Agency for International Development’s Power Africa initiative and multilateral development financial institution, the African Development Bank (AfDB), as part of efforts to improve electricity distribution and strengthen the financial viability of the power market.
The project will be overseen by Angola’s Ministry of Energy and Water and will involve a $530 million investment from the AfDB.
What’s more, under the country’s Angola 2025 Plan, the Government’s stated renewable energy production goal is 700 MW.
As such, the Government approved three solar projects that include the development of seven solar power plants with a combined capacity of 370 MW, which are set to be constructed over the next four years across the Benguela, Huambo, Bié, Luanda Norte, Luanda Sul, and Moxico Provinces. Additionally, the Plan includes the construction of a 50 MW solar plant in the Namibe Province, which will be developed by Solenova, a joint venture between oil and gas supermajor, Eni, and Angola’s state-owned Sonangol.
Furthermore, a 30-100 MW solar photovoltaic power plant in the Huíla Province is being developed through a consortium that includes multinational energy company, TotalEnergies, and Angolan energy company, Angola Environment Technology.
With regards to hydropower, construction of the country’s 960 MW Cambambe and 2,070 MW Laúca hydroelectric power stations have been largely completed, while the 2.2 GW Cacula Cabaça hydroelectric power station is expected to initiate commercial commissioning by 2024.
Furthermore, Angola’s Ministry of Energy and Water has identified nearly 100 locations to produce up to 600 MW of renewable electricity from mini-hydro power stations – which will each have a capacity of less than 10 MW – throughout the country’s vast river network.
Development of these projects will require significant external financing and private sector participation to feasibly contribute to Angola’s energy sector transformation.
Meanwhile, significantly contributing to Angola’s current installed capacity of 5.6 GW, the 750 MW Soyo I combined cycle plant is currently generating 500 MW of electricity.
Plans are currently underway to develop a second Soyo combined cycle plant, which will contribute an additional 750 MW to the country’s grid. In May 2018, the Government of Angola passed the Natural Gas Commercialization Law, which is poised to encourage the provision and development of energy production equipment for natural gas, thus attracting further private investment to the country.
Angola currently serves as a non-operating member of the cooperation of national electricity companies in Southern Africa, the Southern African Power Pool.
Angola is poised to join the entity through the implementation of a connective network between Angola and Namibia through the construction of the 600 MW Baynes Dam hydroelectric plant.
Furthermore, a connection in the north of Angola with the Democratic Republic of the Congo is also being considered, through which the two countries’ grids would be connected through the Inga hydroelectric dams.
With the country’s national budget dedicated to the production, transmission, and distribution of electricity having increased from $482 million in 2021 to $490 million in 2022, Government support to promote the successful implementation of projects led by the private sector will be imperative towards supporting Angola’s power distribution capabilities.
As such, major opportunities for foreign investors and strategic partners to participate in the transformation of Angola’s energy sector exist to improve the regulatory environment within the country; develop energy regulation, planning, and procurement; and enable regional harmonization and cross border trade.
All this and more will be discussed at this year’s Angola Oil & Gas (AOG) 2023 Conference and Exhibition, the country’s official energy conference, which will return to Luanda for its fourth edition this year.
Organized by Energy Capital & Power, AOG 2023 will highlight Angola’s role as an emerging regional energy hub while promoting strategic partnerships and the country’s investment opportunities spanning the upstream, midstream, and downstream sectors; renewable energy; and infrastructure.
Source: Energy Capital & Power
The Outlook For African Oil In 2023 Is Promising (Opinion)
By: NJ Ayuk
Several years ago, the African energy industry was in survival mode. The COVID-19 pandemic had practically eliminated demand for crude oil, and African exports dropped sharply.
That’s why — though many African states are still feeling the wounds inflicted by COVID — I find it encouraging to learn that Africa’s liquids supply in 2023 has reached nearly 7 million barrels per day (MMbbs/d), more than 430,000 barrels per day (bpd) above Africa’s 2020 lows of about 6.55 MMbbs/d.
This progress is among the topics covered in the African Energy Chamber’s newly released State of African Energy Q1 2023 Report.
The report details the emerging trends shaping the world’s oil economy and highlights Africa’s role in meeting global demand.
And the overall outlook for African oil production in 2023 is promising.
Russian energy supplies to Europe continue to decline in the wake of the Ukraine war, Africa is poised to increase its oil and natural gas exports to the continent, and African oil supplies are expected to remain steady throughout 2023 and beyond.
Highlighting Africa’s Role in the Global Oil Economy
The State of African Energy Q1 2023 Report provides several key insights into African oil production for the remainder of this year.
- The 2023 global liquids (crude + condensates) month-on-month outlook is expected to stay flat and stable with an annual average of 83.4 million bpd.
- Africa’s liquids supply is expected to contribute 8% of the global volume over the year.
- The continent’s top five producers—Nigeria, Libya, Algeria, Angola, and Egypt—will contribute to over 80% of Africa’s 2023 liquids output.
- While the majority of the production from Nigeria and Angola is from offshore projects, Algeria, Libya, and Egypt’s production comes from their respective onshore fields. Libya is expected to deliver increased 2023 production as its civil war subsides.
New York State Successfully Passes Ban On Natural Gas Stoves
New York successfully passed a law late to ban natural gas stoves and appliances in all new buildings. It is the first state in the nation to pass such legislation.
New York Governor Kathy Hochul and Democratic lawmakers passed the state’s new $229 billion budget, which included a provision for ending natural gas and other fossil fuel-powered hookups in new buildings.
The legislation includes a ban on gas stoves, gas furnaces, and propane heating in all residential buildings seven stories and shorter by 2026.
Buildings taller than seven stories will be allowed to install gas-powered appliances until 2029.
Large industrial buildings are exempt from the ban.
Late last week, The Washington Post reported that Governor Hochul and lawmakers reached a handshake deal on the new law.
Some cities have already passed bans on gas stove hookups, including Berkley, California, which passed a ban in 2019.
Last month, however, an appeals court ruled against the city of Berkley, California, over its scheme to ban natural gas hookups in new buildings.
In the ruling, the court sided against Berkely, saying that its 2019 ban on natural gas hookups effectively banned all appliances operating with natural gas, which it was not allowed to do because of federal legislation that pre-empts such local legislation.
New York City passed its own version of a gas hookup ban for new builds in 2021.
Hochul said that the new budget would put “New York on trajectory to a cleaner, healthier future.”
But the American Gas Association president and CEO Karen Harbert said that “Any push to ban natural gas would raise costs to consumers, jeopardize environmental progress and deny affordable energy to underserved populations,” according to CNN.
Source:Oilprice.com
Nigeria: Group Cautions Market Operator And Discos Against Insensitive Actions
A consumer advocacy group, PowerUp Nigeria, has cautioned Market Operator, a subsidiary of Transmission Company of Nigeria (TCN), to be mindful not to take decisions that negatively affect consumers.
The Market Operator, last week, disconnected some Discos from the national grid over a breach of Market Rules.
The development plunged many areas into darkness, with some soldiers in Kebbi, storming the head office of Kaduna Electric Distribution Company to molest customers and staff on duty.
A statement issued by Adetayo Adegbemle, Executive Director of PowerUp Nigeria, said the list of 13 “defaulters” include distribution companies that could be considered “healthy” but mostly populated with Discos that recently entered into receivership among which are Ibadan, Benin, Kaduna and Kano DISCOs.
“After the Tuesday, March 21st, 2023 publication, the MO went ahead to partially disconnect both Kano and Kaduna Discos. Again, both companies that have recently gone into receivership barely eight months ago, for the same reasons, they went into receivership in the first instance.”
The group said it gathered that the response by these Discos to the March 21st publication by the MO was not really considered, with the MO demanding and insisting on bank guarantees from these defaulting Discos to cover their market shortfall despite being in a receivership status.
“Admittedly, Market Rules MUST be followed by ALL Market Participants, but we should not be oblivious to the realities on the ground.
“Liquidity issues in the NESI is a problem that has been in existence for over nine (9) years since after the privatization, and it is a wonder why the MO and Regulators expect things to change overnight.”
Since the takeover by these DISCOs in July 2022 by the temporary boards, every metric that the regulators and the market use to measure performance by the Discos have improved considerably.
It must be noted that the performance of these companies has shown an upward trajectory in the last eight months, particularly their remittance to the market.
“We should be careful, in our bid to enforce Market Rules, not to aggravate the liquidity challenges of thedefaulting Market Participants, and throw away the little progress that might have been achieved in the last eight months. We, therefore, encourage an active engagement with the affected defaulters to seek a way lasting solution to the market shortfall issue without causing undue hardship to the defaulters and their customers affected by the disconnection.
“At the end of this imbroglio are consumers and industries that will continue to suffer the fallout, and the further loss of confidence from would-be investors that might be interested in buying the ailing Discos,” the group warned.
Source: https://energynewsafrica.com