Category: Energy

  • Electricity Tarrif: Lawyer drags NERC, AEDC to court over implementing Band A to E  classification …says action discriminatory

    Electricity Tarrif: Lawyer drags NERC, AEDC to court over implementing Band A to E classification …says action discriminatory

    An Abuja based lawyer, Festus Sanmi Onifade, has asked the Federal High Court, Abuja, to restrain the Nigeria Electricity Regulatory Commission (NERC) and the Abuja Electricity Distribution Company (AEDC) from continuing with the implementation of multi-year tariff order 2024, which classified electricity consumers into Band A to E.

    Recall that NERC announced a new electricity tariff increase for customers in the Band A category from N66/kWh to N225kWh, that is, those enjoying 20-hour daily electricity supply.

    In the suit marked FHC/ABJ/CS/492/2024, the lawyer stated he sued for himself and on behalf of other consumers.

    In his affidavit in support of the originating summons dated April 16, 2024, Onifade contested the various power supply timelines set for residents in Nigeria.

    He insisted that a 20-hour power supply to Band A residents alone amounts to preferential treatment and discrimination of other Nigerians.

    He faulted the electricity price increment and downgrading, insisting that himself and other customers who are on B, C, D, and E are seeing their fundamental right to freedom from discrimination being breached by the development.
    He stated,

    “l am a legal practitioner practicing my trade in within the jurisdiction of the court and by virtue of my practice l am conversant with the 1999 Constitution of Federal Republic of Nigeria, the Electricity Act, 2023 and laws regulating the Review of Electricity supply in Nigeria and Consumer Rights in Nigeria.

    “That in addition to the above, I am a loyal Customer and Consumer of the product and services of the 2nd Defendant in Abuja with meter No. 04177493725 within the jurisdiction of this Honourable Court.

    “That on the 3rd April, 2024, the 1st Defendant introduced a policy of classification of the Claimant and other 2nd Defendant’s customers into band A, B, C,D, and E, and the said classification policy took immediate effect.

    “That by virtue of this classification, the 1st Defendant classified the 2nd Defendant’s Customers Iiving in the high brown urban areas of Maitama, Asokoro, Aso villa to Band A to enjoy electricity supply for 20 hours and above.

    “Similarly, by the same classification, the 1st Defendant classified the Claimant and other 2nd Defendant’s Customers living in less privileged areas to Band B, C D and E thereby consigning these categories of customers to a perpetual state of lower, limited electricity supply of 16 hours for customers on band B, 12 hours and above for Customers on Band C, 8 hours and above for Customers on band D and 6 hours and above for Customers on Band E respectively.

    “That the policy of classification of the 1st and 2nd Defendants gives preferential treatment of electricity supply to Customers in band A over and above the Claimant and other customers in band B, C, D and E respectively.

    “That the present policy and the introduction of new tariffs was done without knowledge of many of the distribution companies.”

    The applicant’s lawyer, Moses Awuru Esq, told the court that unless it intervenes, the injury and breach occasioned by the policy of classification of electricity supply to AEDC’s customers will persist.
    The Claimant thereby sought the following reliefs:

    “A DECLARATION that the Policy of classification of the Claimant and other Consumers by the 1st Defendant into band A, B, C, D and E is a breach of the Claimant’s and other Consumers fundamental Right to freedom from discrimination as enshrined in the African and Human and People Right’s and the Constitution of the Federal Republic of Nigeria 1999 (As Amended) and therefore unconstitutional, unlawful, illegal, null and void.

    ” AN ORDER of this Honourable Court perpetually restraining the Defendants, their privies, agents and other person from giving effect and continuing with the implementation of Multi Year Tarriff Order 2024 and increase in the of prices of Electricity and downgrading of the Claimant and other Customers by classification into Bands A, B, C, D, E forthwith.

    “AN ORDER of this Honourable Court mandating and compelling the Defendants to pay the Claimant jointly and severally the sum of N5,000,000.00 (five Milion Naira) only for breached of the Claimant’s fundamental right to freedom from discrimination by the Defendants.
    “AN ORDER of this Honourable Court directing and mandating the Defendants jointly and or severally to pay the Claimant the sum of N1, 000,000.00 (One Million Naira) only as Cost of this suit.

    Motion on notice
    In his motion on notice, Ewuru sought an order of interlocutory injunction restraining NERC, AEDC and the Attorney-General of the Federation from continuing with the policy of classification of Nigerian customers to Band A, B, C, D and E by their location and increasing their tariffs pending the hearing and determination of the substantive suit.

    He also urged the court to restrain the defendants from taking any special step that may negatively affect the rights of the claimant pending the hearing and determination of the suit.
    He stated that he has raised serious of law which needs to be determined urgently for the benefit of Nigerians.

    No date has been fixed for hearing of the matter.

    Meanwhile, NERC had revealed that the pp planned saving N1.5 trillion with the tariff adjustment while subsidizing Bands below the A classification.

    The Commission had fined Abuja Disco N20 million for wrongfully billing Band B customers with Band A electricity tariff rate.

  • National Grid Collapses

    National Grid Collapses

    Nigeria’s electricity grid has collapsed again.

    The grid collapsed around 2:42 am on Monday, with generation dropping to 64.70megawatt.

    Only one generation company, Ibom Power, was active according to data from the Independent System Operator (ISO), a branch of the Transmission Company of Nigeria, has shown.

    This is the sixth collapse in 2024.

    As of 8am on Monday, the latest data from the ISO showed that the grid is currently generating 266.50mw of electricity from Okpai, Geregu and Ibom power.

    Confirming the collapse in a statement, Jos DisCo said: “The current outage being experienced within our franchise States is a result of loss of power supply from the national grid. The loss of power supply from the national grid occurred in the early hours at about 0242Hours of today, Monday, 15th April 2024, hence the loss of power supply on all our feeders.”

    The company’s head of Corporate Affairs, Dr Friday Adakole Elijah, expressed hope that the grid is restored for normal power supply to its esteemed customers.

  • Blackout Looms As Electricity Workers Threaten Strike Over Tarriff Hike 

    Blackout Looms As Electricity Workers Threaten Strike Over Tarriff Hike 

    The National Union of Electricity Employees (NUEE) has strongly criticized the recent increase in electricity tariffs by the federal government. 

    The Nigerian Electricity Regulatory Commission (NERC) announced the tariff hike on April 3, affecting customers enjoying 20 hours of daily power supply.

    Under the new classification, customers in Band A will pay N225 per kilowatt-hour, a significant increase from the previous N66 rate. 

    In response, NUEE, led by its National President Adebiyi Adeyeye, has demanded a reversal of the hike, citing its disproportionate impact on those reliant on electricity for daily needs.

    Adeyeye emphasized the importance of government subsidies for electricity, pointing to examples from advanced countries like Germany and the United States. 

    He argued that the tariff hike disregards the economic struggles of Nigerian workers and threatens to exacerbate inequalities.

    NUEE warned of potential action, including the withdrawal of its members, if the government fails to address the issue promptly. 

    The union called upon all Nigerians to join in opposing the tariff hike and advocating for the prioritization of citizens’ well-being over corporate interests.

    “If the government fails to address the crippling cost of electricity, NUEE will not hesitate to take strong action, including the swift withdrawal of our members expected to be used by DISCOs to impose the tariff hike on the good people, to protect the livelihood of our members.

    “I, however, call upon all Nigerians to join us in raising our voices against this injustice. Together, we can force the government to prioritize the well-being of its citizens over corporate interests. Our unwavering commitment remains to safeguard the interests of our members and ensure equitable access to electricity for all Nigeria.”

  • Obasanjo’s farm, 27 feeders downgraded from Band A to E after FG increased electricity tariff 

    Obasanjo’s farm, 27 feeders downgraded from Band A to E after FG increased electricity tariff 

    The Ibadan Electricity Distribution Company, IBEDC, has made public the names of erstwhile Band A feeders downgraded to B, C D, or E.

    The Farm Feeder serving the Obasanjo Farm, owned by Former President Olusegun Obasanjo, was downgraded from Band A to Band E in the list released by the IBEDC on Saturday, April 6.

    About 28 feeders under the IBEDC were downgraded in Oyo, Ogun, Kwara, and Osun States.

    In the list, some areas dropped from 20 hours of daily power supply to zero hours.

    The Nigerian Electricity Regulatory Commission, NERC, has said this brought about the removal of those feeders from Band A to the band that fits their daily power allocation.

    Announcing the April 2024 supplementary Multi-Year Tariff Order on Wednesday, April 3, the Federal Government said it would no longer pay subsidy on electricity consumed by Band A customers, saying others would continue to pay the old rates.

    Band A customers, who were said to be enjoying electricity for a minimum of 20 hours per day now pay N225 kilowatt per hour.

    Here is the list of IBEDC Band A downgraded feeders:

    1. IBADAN: Bank Road 11kv Feeder – Magazine Road, Oba Adebimpe Road, Oke Bola (Now in Band B with 16 hours supply)

    2. OGUN: GTB 11kv Feeder: Only GTBank Training School, Oke Ilewo Abeokuta ( Now in Band B with 19 hours power supply)

    3. KWARA: Seminary 11kv Feeder: From High-school Area to Seminary, Randa area, Olomi area, Bowen Area, Takie Junction, Apake area, Star- Light area, Sabo area, Orita Naira Junction and Terminated at Bode-Eniafe Street (Downgraded to Band B with 16 hours power supply)

    4. IBADAN: Ami 11KV Feeder: Onireke, Jericho, Railway Quarters (Downgraded to Band C with 12 hours power supply)

    5. KWARA: Asa 11KV Feeder: Asa Dam, Ilorin (Downgraded to Band C with 14 hours power supply)

    6. OGUN: Homan 11kv Feeder: Daraju, Eagle Packages and NYCIL (Downgraded to Band C with 14 hours power supply)

    7. OGUN: Rite Food Quarters 11kv Feeder: Rite Food Quarters (Downgraded to Band C with 12 hours power supply)

    8. KWARA: Senior Staff Qtrs F20 11kv Feeder: Senior Camp Road (Downgraded to Band C with 15 hours power supply)

    9. KWARA: SF2 New Bussa 11kv Feeder: Ibadan Way, Wawa Garage Road (Downgraded to Band C with 12 hours power supply)

    10. IBADAN: State House 11kv Feeder: Ikolaba, Kuye, Road 214, Oniκοκο (Downgraded to Band C with 14 hours power supply)

    11. KWARA: Yidi 11kv Feeder: Asa Dam Road, Irewolede Road, High Merit Road (Downgraded to Band C with 14 hours power supply)

    12. IBADAN: Dugbe Awolowo 11kv Feeder: Old Bodija, Sango, and Veterinary (Downgraded to Band D with 11 hours power supply)

    13. KWARA: Government House 11kv Feeder: Agba Dam Road, Umaru Audi Road, Adelodun Road, Abdulkadir Road, Saad Alamu Street, Offa Road, Flower Garden, Idiagbon Street, Sayomi Street 2nd Avenue Street (Downgraded to Band D with 9 hours power supply)

    14. IBADAN: ONIREKE 11KV FEEDER: Link Reservation, Joe Berchort, Oba Akensua (Downgraded to Band D with 10 hours power supply)

    15. IBADAN: Oremeji 11kv Feeder: Oba Akinbiyi, Uncle Joe, Letmauk Barracks Road (Downgraded to Band D with 8 hours power supply)

    16. IBADAN: Anfani 11KV Feeder: Anfani Road, Ibadan (Downgraded to Band E with 5 hours power supply)

    17. KWARA: Basin 11kv Feeder: Umaru Audi Road, Fate Road, Fate Tanke Road, Gra Ilorin, Gss Ilorin, Mubo Strrt, Agric Estate, Sango Road, Alhaji Tunde Mohammed Road, Panat, Station Road, Catchment Road (Downgraded to Band E with 7 hours power supply)

    18. Oyo: Crown 11KV Feeder: Premier Rd, Oshuntokun, Adeyi, Awolowo Road (Downgraded to Band E with 1-hour power supply)

    19. OGUN: Farm 11KV Feeder: Main Obasanjo Farm (Downgraded to Band E with 7-hour power supply)

    20. OSUN: Gbongan Road 11kv Feeder: Gbongan-Ibadan Road (Downgraded to Band E with 0-hour power supply)

  • NERC Sanctions AEDC for Misapplying New Electricity Tariff 

    NERC Sanctions AEDC for Misapplying New Electricity Tariff 

    The Nigerian Electricity Regulatory Commission (NERC) has taken action against the Abuja Electricity Distribution Company (AEDC) for incorrectly implementing the new electricity tariffs in the nation’s capital.

    In response to numerous complaints from Abuja residents, NERC has fined AEDC a sum of N200 million and instructed the company to refund affected customers who were wrongly billed.

    According to NERC, the tariff adjustment was intended for customers classified under Band A, who typically receive approximately 20 hours of electricity per day. However, residents in other bands were also subjected to the increased charges when attempting to purchase electricity units.

    Although AEDC has issued an apology and attributed the situation to an error, NERC’s sanctions underscore the importance of accurate billing practices and consumer protection in the electricity sector.

  • Despite Unreliable Power Supply, FG Approves Electricity Tariff Hike

    Despite Unreliable Power Supply, FG Approves Electricity Tariff Hike

    In a controversial move, the Nigerian Electricity Regulatory Commission (NERC) has given the green light to increase electricity rates for customers classified under Band A, despite widespread complaints about epileptic power supply.

    Band A customers, who currently benefit from 20 hours of electricity supply daily, will now face a substantial hike in their tariffs. Mr. Musliu Oseni, the vice chairman of NERC, announced that these customers will be charged N225 per kilowatt-hour, a significant jump from the previous rate of N66.

    Addressing reporters during a press briefing in Abuja, Oseni revealed that Band A customers constitute 15 percent of the 12 million electricity users nationwide. He further explained that some customers previously classified under Band A have been downgraded to Band B due to their failure to receive the required hours of electricity from distribution companies.

    Oseni stated, “We currently have 800 feeders categorized as Band A, but this number will now be reduced to under 500. This means that 17 percent now qualify as Band A feeders, serving only 15 percent of total electricity customers connected to the feeders.”

    The commission also issued an order, titled April Supplementary Order, allowing for a tariff increase to 235 kilowatt-hours per hour.

    Despite the uproar over the tariff hike, Oseni assured that customers in other bands would not be affected by the review. The decision comes amid ongoing concerns about the reliability and consistency of electricity supply across Nigeria.

  • NNPCL Refutes Fuel Price Reduction

    NNPCL Refutes Fuel Price Reduction

    In response to the reports making the round that the price of Premium Motor Spirit popularly known as petrol has reduced, the Nigeria National Petroleum Corporation, NNPC has refuted the report, saying it is fake and should be disregarded.

    NNPC’s Chief Corporate Communications Officer, Olufemi Soneye, made the clarification in a statement on Wednesday, urging Nigerians to disregard the report.

    According to the statement issued to newsmen, “The NNPC Limited wishes to clarify rumours suggesting a price adjustment for Premium Motor Spirit (PMS) and Automotive Gas Oil (Diesel) at its retail stations nationwide. The company asserts that these reports are false and urges Nigerians to disregard them entirely.

    “NNPC Ltd. reaffirms its commitment to sustaining the current sufficiency in petroleum products supply across all its retail stations in the country.”

  • Blackout Hits Parts Of Nigeria As Power Stations Collapse

    Blackout Hits Parts Of Nigeria As Power Stations Collapse

    Some residents in the Federal Capital Territory, Abuja and Kogi State, are currently experiencing power outages due to the collapse of a power station.

    The two areas earlier mentioned are under the coverage of the Abuja Electricity Distribution Company (AEDC).

    On Tuesday, the AEDC informed its customers in Zamani Estate, Abacha Road Mararaba, Ruga Juli and other parts of Abuja that a technical fault on 33kv feeder k6 from AT9 Karu Transmission Station was responsible for the power outage.

    “The management of Abuja Electricity Distribution Plc wishes to notify its esteemed customers that there is currently a technical fault on 33kv feeder k6 from AT9 Karu Transmission Station, managed by the Transmission Company of Nigeria.

    “The areas affected in Abuja are: Zamani Estate, Abacha Road Mararaba, Ruga Juli, Old Karu Road, Glory Estate, and environs,” the Disco said in a statement.

    The AEDC disclosed that the TCN maintenance crew was working to ensure the supply of electricity to these areas was restored soon, regretting any inconvenience caused.

    Earlier, the TCN had announced its maintenance crew would carry out planned maintenance on its TR3 45MVA and TR2 60MVA power transformers in its 132/33kV Okene Transmission Substation.

    The maintenance was scheduled to run from Tuesday to Wednesday, from 10 am to 03pm on each day.

  • Why FG may Revoke DisCos Licences – Power Minister

    Why FG may Revoke DisCos Licences – Power Minister

    The federal government has threatened tough sanctions, including licence revocation, against Distribution companies over epileptic power supply and ‘wilful non-performance’. 

    It also said Electricity Distribution Companies (DisCos) are to be held accountable henceforth for poor power supply in the country. 

    Power Minister, Adebayo Adelabu issued the threat in a statement, describing as “disheartening” the decline in power supply despite the concerted efforts to improve the situation.

    He noted that his Ministry has been exerting pressure on the GenCos to enhance their performance, resulting in a recent increase in generation to over 4000MW.

    “Moving forward, I’m committed to holding all distribution companies accountable for their performance.

    “Wilful non-performance will not be tolerated, and severe consequences, including licence revocation, may be imposed,” the minister said in a statement.

    Expressing concern over erratic electricity supply, Adelabu has summoned the Abuja Electricity Distribution Company (AEDC), the Ibadan Electricity Distribution Company (IBEDC) and the Transmission Company of Nigeria (TCN) for an emergency meeting on Tuesday.

    The supply of electricity has dipped across the country in the last three months, due to many reasons, including lack of adequate gas supply, grid breakdown, low supply from Generating Companies (GenCos), the inability of DisCos to wheel supply from GenCos and sabotage. 

    The minister also expressed concern over the poor performance of the Nigerian Electricity Supply Industry (NESI).

    Adelabu, who tweeted on his X handle, reiterated the reasons for summoning the AEDC and IBEDC chief executives and the TCN Managing Director.

    He gave the reason as an attempt to find a plausible solution to the power supply in their zones.

    “Despite this progress”, the minister said, “certain distribution companies are failing to adequately distribute the power supplied by TCN, while vandalism of power infrastructure exacerbates the problem in regions such as Abuja, Benin, Port Harcourt, and Ibadan.

    “The purpose of this meeting is to discuss the worsening power supply in their respective regions and to collectively find lasting solutions.”

    The minister threatened to henceforth hold the DisCos accountable for their performance.

    He said: “Willful non-performance will not be tolerated, and severe consequences, including license revocation, may be imposed.

    “Additionally, I have instructed TCN to prioritise repair works on damaged transmission towers and power lines to improve supply in affected regions.”

    Adelabu recalled that during recent supervisory visits to power-generating plants, he witnessed firsthand the challenges faced by the sector.

    He spoke of plans to settle outstanding debts to power generation and gas supply companies, which will alleviate the financial strain and contribute to improved generation levels nationwide.

    Pleading with consumers for understanding, Adelabu said he and his team had been making frantic efforts to tackle the challenges.

    “I urge electricity consumers to remain patient as we work tirelessly to address these issues and provide better service to all Nigerians,” he said.

    It was gathered that the payment of $120 million out of the $1.3 trillion owed to the gas suppliers has unsettled the GenCos.

    The GenCos are said to be meeting to press for the payment of their outstanding debts.

    A source from the GenCos, who was privy to the meeting, said: “Since the Federal Government has made $120 million payment to the gas suppliers as part of their debt, we are also meeting to ask the same government to settle us, the GenCos.”

    Adelabu’s Special Adviser on Strategic Communications and Media Relations, Bolaji Tunji, confirmed the scheduled meeting with the TCN and DisCos.

  • FG Bans Cooking Gas Export to Tackle Soaring Prices

    FG Bans Cooking Gas Export to Tackle Soaring Prices

    In a move to stabilize domestic gas prices, the Nigerian government has imposed a ban on the exportation of cooking gas. 

    Minister of State, Petroleum Resources, Ekperikpe Ekpo, revealed this initiative at a workshop in Abuja, emphasizing that halting the export will increase the volume available in the domestic market, leading to a natural reduction in prices.

    His words: “We are interacting with critical stakeholders to ensure that there is no exportation of LPG.

    “All LPG produced within the country will have to be domesticated. And when this is done, the volume will increase and of course, the price will automatically crash.

    “I am in contact with the regulation, NMDPRA, we hold meetings almost on daily basis, and the producers such as Mobil, Chevron, and Shell. So there is that hope that things will turn around. We don’t need to make noise about it.”