NERC: No electricity customer should pay more than metered neigbours - Newstrends
Connect with us


NERC: No electricity customer should pay more than metered neigbours



The Nigerian Electricity Regulatory Commission (NERC) says the Federal Government introduced the capping in the estimated billing for unmetered customers to ensure uniformity with their metered counterparts.

Commissioner in charge of Legal, Licensing and Compliance, Mr Dafe Akpeneye, said this at a web conference organised by PricewaterhouseCoopers (PwC), adding that the development was temporary because no customer should pay more than their metered neighbours in the same vicinity and under a similar classification.

He also said that since the Discos failed in their responsibility to meter customers, the only option was to resort to estimation.

He said, “The issue of estimated billing came about as a bridge to manage the interests of the utilities’ interest of providing power and the customers’ interest of paying for power.

“Under an ideal situation, the meter is an assurance that the utility should get paid for what it delivers and the customer pays for what he consumes. But we have found ourselves in a situation whereby when the assets were handed over, metering wasn’t a priority when the utilities were owned by the Federal Government.

“And if you look at the Nigerian demographics, with the way the population is expanding, rapid urbanisation with new connections coming to the grid, the metering of these customers has become a problem.

“One of the key requirements is for the Discos to bridge the metering gap because the problem we had to deal with was because of their inability to do that on time. We had to balance the fact that customers receive power without meter and devise a way to make sure customers have electricity without having a meter.

“Therefore, the estimated billing methodology was introduced . But that was supposed to be temporary, certain things were not done. So, estimated billing became the number one consumer complaint in the industry.”

The NERC stated that exiting the estimated billing regime is impossible for now, adding that since it is not practicable to meter everyone at once, the practice will continue for a while until the issues are resolved.

“Because we realised that meters can’t be rolled out for everyone, something had to be done to balance it out. Some measure of fair estimation had to be put in place.

“The commission developed the capping order. What this seeks to try to create is parity between metered customers and unmetered customers. So, we have someone who lives in a duplex in a certain part of town who is unmetered and we created a scenario whereby one who is unmetered does not pay more than the metered, so that they both pay almost the same thing,” he added.

In his intervention, the Director General, Bureau of Public Enterprises (BPE), Mr Alex Okoh, said the privatisation of the power sector in Nigeria remains the most ambitious of its type in Africa.

According to him, though the sector is not where it should be because of lack of investments, it has improved since it was handed over to private individuals to manage.

He said, “South Africa has 4,904 kwh per capita while Nigeria has 300kwh per capita. Now for the biggest economy in Africa, that says a lot.

“This sort of challenges prompted the bold decision to reform the power sector. So, in 2005, ESPRA was enacted and essentially was geared towards breaking the monopoly of NEPA.

“It was also to make the sector attractive. That particular action led to the unbundling to Gencos, TCN and Discos. Prior to this , electricity was generally poor. We are talking 1,500mw across the value chain.

“Post-privatisation, we have seen significant improvement and impact of privatisation of the power sector. We are just 10 years.

“There are interventions that are currently going on to correct some of the shortcomings of the privatisation exercise. Let’s not also forget that the power sector privatisation in Nigeria is perhaps the biggest privatisation programme in the continent of Africa.

“Were we rather overambitious in this privatisation. I don’t think so. Could we have taken a modulated approach to it? Maybe. But I think the decision was bold to address the lack of investment in the sector.”

In his remarks, former Minister of Power, Prof. Barth Nnaji, said government must strive to draw private sector investment to ensure sustainable supply of power.

He stated that with the right environment, the Discos can conveniently pay for power, as was shown by Eko and a few others at a point, adding that the bulk trading arrangement should be jettisoned once the Discos become credit worthy.


United Nigeria Airlines finally apologises to passengers after NCAA lifts suspension



United Nigeria Airlines finally apologises to passengers after NCAA lifts suspension


United Nigeria Airlines has apologised to its passengers taken to Asaba instead of Abuja lady week due to miscommunication between the crew and control tower.

The apology came after the Nigerian Civil Aviation Authority (NCAA) announced the lifting of suspension it imposed on operations of the airlines’ wet lease aircraft.

The NCAA made the announcement in a letter signed by Ibrahim Dambazau, its director of operations, licensing and training on Friday.

On Sunday, a United Nigeria Airlines aircraft which departed Muritala Muhammad International Airport, Lagos, en route to Abuja, diverted to Asaba, Delta State.

In its defence a few hours after the incident, United Nigeria said the flight was diverted to Asaba as a result of bad destination weather.

On Tuesday the NCAA began an investigation into the airline’s two wet lease aircraft resulting in a suspension of operations.

In its latest response in a statement, the airline apologised to the passengers for the experience and expressed their gratitude for their understanding during the period.

“We are pleased to announce the lifting of the suspension placed on our ‘Part G’ operations specifications which affected one of our aircraft,” the airline said.

“We want to express our deepest gratitude to you for keeping faith with us and for your understanding during this period.”

Providing the result of the investigation in the letter referenced NCAA/DOLT/UNA/Vol.02523, NCAA cited that the incident was due to a lack of “adequate liaison” between the lessor’s OCC (operation control centre) and lessee’s OCC which has also omitted appropriate flight briefing from the point of departure.

The authority also said there was non-adherence to the approved filed air traffic control (ATC) flight plan.

The authority also gave recommendations to the airline, adding that both cockpit and cabin crew should hold appropriate briefings before flight and procedures should be strictly adhered to by both the lessor and the lessee’s OCC.

Continue Reading


Updated: Jetour hits Nigerian market with affordable top-class SUVs



Updated: Jetour hits Nigerian market with affordable top-class SUVs


The Nigerian automobile market has received a boost with the introduction of Jetour, a new brand from the Chery Holding Group, offering top-class affordable luxury vehicles.
The automaker says the brand was introduced in response to the market trend and consumers’ demand.
With the slogan ‘Drive Your Future’, Jetour focuses on the travel + market segment, and its products are mainly SUVs to satisfy users for better travel.
The brand which is now in the Nigerian market was launched globally in 2018 to provide practical travel solutions for more families and individual.
Its vehicles are uniquely designed with intelligent driving and energy-saving electric system.
Indeed, Jetour says its vehicles are produced from an intelligent factory that incorporates automation, intelligent customization, flexibility, scalability, and environmental conservation.
Jetour’s goal is also to provide excellent vehicles that demonstrate individuality for today’s young people.

Brand users
The brand is targeted at uncompromising group of individuals, unwilling to settle for mediocrity and are certain that brilliance is gained through action rather than waiting.

Jetour concept
Jetour is derived from Jet+Tour, which connotes “convenient tour”. This means that customers that work hard in many industries can finally enjoy the benefits of their wonderful and happy lifestyles.

Technical strength
The brand focuses on core new energy technologies, offering the latest comprehensive energy technology system; Battery Electric Vehicle (BEV) platform and the Plug-in Hybrid Electric Vehicle (PHEV) platform.
With technologies such as intelligent driving, intelligent network connection, Vehicle-to-Everything (V2X), its products are sold to many nations globally.
The core technologies of new energy electric vehicles such as battery, motor, electronic control, and vehicle controller have been independently applied to the different platform models.

The automaker says its vehicles are powered by one of China’s top ten engines. Jetour is the first Chinese brand with 1.6TGDI turbo-charged engine.
It is also considered the first Chinese brand with direct injection gasoline (petrol) engine that meets China VI emission regulations.
The brand comes with the industry’s top power, the strongest Chinese brand. It enjoys the Kunpeng Power 2.0TGD1, Golden Power Portfolio, 7DCT, Strong power 187KW, 390N.m and 100 km/h acceleration < 8 seconds.
Jetour says, “More than 1,000 people worked on the Kunpeng Power 2.0TGDI engine, which is based on Chery’s 23 years of positive engine development skill, a solid product development system, and an advanced verification system that relies on three main Research and Development (R&D) facilities in Europe and China (Wuhu, Shanghai).”
The team’s five advantages are super energy, ultra-clean, ultra-quiet, ultra-solid, and ultra-light, which took 48 months to develop.
It has a maximum power output of 187kW and a maximum torque output of 390N m, and the power reserve is comparable to one 3SL V6 engine.

Quality Control
The automaker has four main test locations, and the vehicles undergo 2,000,000km of rigorous verification to ensure industry-leading quality.

Global layout
Jetour has a worldwide development strategy and development vision, and its vehicles are exported to many nations globally.
The models available in the Nigerian market are X70 – Liberty; X70 Plus – Elegance; X90 Plus – Cruise and Dashing.

Continue Reading


LCCI faults Customs frequent reviews of import duties



LCCI faults Customs frequent reviews of import duties

…suggests measures to stimulate auto industry growth


President of the Lagos Chamber of Commerce and Industry, Dr. Michael Olawale-Cole, says government’s policy inconsistency is stunting the growth of automotive industry in Nigeria.
He particularly faulted frequent reviews of import duties by the Nigeria Custom Services (NCS).
Olawale-Cole spoke through his deputy Gabriel Idahosa in Lagos on Thursday along with key players in the Nigerian auto industry at a symposium organised by the LCCI Auto and Allied Group under the theme ‘The Auto & Allied Sector: Present Day Realities in Nigeria’.
The Chairman of CIG Motor, Chief Diana Chen; General Manager of Suzuki By CFAO, Aissatou Diouf; Executive Director at Truckmaster Nigeria, Dr. Oseme Oigiagbe, and Mandela Oniemola, were other key speakers at the forum.
Olawale-Cole kicked against the Customs use of spot exchange rate to compute import duties.
He said, “The decline recorded in third quarter is a testament of automobile industry reactions to policy inconsistency, that is amplified by frequent reviews of import duties by the Nigeria Custom Services (NCS).”
He also noted that the twin effect of subsidy removal and exchange rates harmonization had impacted the industry with inconsequential gains and huge loss to the stakeholders.
He said, “If the government is not swift in stabilising exchange rate, investors may be discouraged, and domestic producers will be sceptical about mass production of vehicles that is perceived costly.
“It is important to note that the MDAs, especially the Nigeria Customs (NCS) should not use spot exchange rate as the basis for computing import duties in order to avert uncertainty and minimise the consequences of information asymmetric among stakeholders in the industry.
“However, computation that is based on last month average exchange rate could be a more reliable methodology among others. This approach will allow stakeholders to anticipate and estimate the cost of import duties that is void of misinformation, and frequent adjustment by the NCS.”
He urged the government to work with the private sector players to develop policies that promote and reduce the cost of local production as well as “encourage innovation and competitiveness to ensure the growth and sustainability of the automotive industry.
“The Federal Government, and the Nigerian Investment Promotion Council (NIPC) should collaborate with the private stakeholders to encourage investments in the industry.”
He called for the establishment of an automated banking system and a resilient local manufacturing sector.
“The sector should prioritize the use of quality-controlled, domestically manufactured parts and components, together with a skilled workforce of specialists capable of supporting investments in manufacturing and assembly,” he said.
Chairman, Automobile and Allied Services Group at LCCI, Otunba Adekunle Jaiyesimi, spoke on the significant role of the automotive industry to the nation’s economy.

“From manufacturing and distribution to maintenance and repair services, it contributes to employment, revenue, and technological advancement,” he stated
Jaiyesimi listed the challenges and opportunities in the sector as technological advancements; sustainability and environmental issues; supply chain disruptions and government policies and regulation.

Continue Reading


Skip to content