‘Eko Disco deploys forward looking strategies to achieve supply stability’

Sam Nwaire, chief operating officer of Eko Electricity Distribution Company in this interview with Olusola Bello, Energy Editor spoke about the strategy responsible for the stability in power supply in areas under the jurisdiction of the company and the efforts being made to sustain such. Excerpt:

 

How have you manage to provide steady supply amidst issues around generations?

For Eko Electricity Distribution Company to operate in the electricity market, we must do some things differently to serve our customer better. There is a grid that everybody is hooked to, from that grid; we are not allowed to have more than 11 per cent of whatever is generated nationally. This 11 per cent would not in any way help us to serve our customers right, and from day one, we knew this and began to source for alternative sources of power. What we did was to begin to look for how to attract some level of investments in terms of energy generation.

This is what we call embedded generation. As I speak to you there are two of such projects that are running now. We are currently getting 100mw of the grid allocation from Egbin and we are paying directing not through the market channels. There is another 45 to 65 mw from in other areas; it is 65 that is the maximum, this we are getting from Paras. We also expect that in a couple of weeks, we be finalising agreement with First Power.

First Power is supposed to give us 60 mw and this would come directly from Ijora to Marina. This is an enhancement of whatever we are getting from the national grid. Most people in Eko network have enjoyed the improved power supply. This is the secret of the regular power the people under EKO Electricity Distribution Company are enjoying. Yes the energy has improved; we are still saddled with the challenge of getting consumers of electricity to pay for what they are given.

How do you intend to overcome this challenge?

We have no other way to get it right other than employing persuasive marketing. For instance today, I have spent more than three hours discussing with Festac customers who went about carrying banners and pasted posters everywhere. In short, they shut us down, asking us not to operate in Festac. They are asking us to give them prepaid meters.

The question is prepaid meters not tied to the consumption you have had? If you say that today I have paid my bills up to date and going from tomorrow don’t give bills until you bring prepaid meters, this would be understandable, but when you are owing us and you have consumed supplies up to six months or one year and you have not paid and you are saying no prepaid meter no payment. It is our responsibility to give meters to our customers, we are not running away from this, but we are saying however that it cannot happen in a day. Right now we are now doing is segmental meter roll out.

The board of directors has purchased about 40,000 meters. This we have started deploying them. In this case we don’t collect money for the deployment but it is the responsibility of the customer to pay for the cable that will take supply electricity to your house up to the point of our meter. The cable must also meet our specified standard that is approved by the regulated authority. This is what we asking customers to do which some have agreed. We would start deployment in all the districts not just Festac. This is just a starting point. But they must have to be patient to see us roll out these meters. We have five years to complete this and even after five years, it is not the customers that would ask us but the regulators would ask us.

Going back to the issue of embedded power generation programme, why are you just working with three companies now as against over 10 now?

Egbin has a unit that is dedicated for the business. It is not given us from the national grid. This was approved by the ministry and regulators. It is an embedded thing because it is directed to specific customers.

What megawatts are you expecting from the three companies?

From Egbin, 100 mw, Para 40 or 65 mw and first Power 60 MW, we would be getting about 200 mw now from the scheme for now. Eko is expected to get 11 per cent of what comes from the national grid. But don’t forget that the generation fluctuates.

What are the challenges you have as regards the pre-paid meters?

You know we have a prepaid meter that you come and vent and do not have communication attached to it and there is another one that has two ways communication. This is the one we call smart meters. For us in EKO, we are doing Smart meters. Smart Meter in the sense that that is the type that you don’t need to be running around to know what is happening to the meter.

Even for me too I don’t have to be running around to know what is happening to your meter, I can monitor what is happening right from my office. The server would tell me what the meter is doing at any given time. So for us we don’t have so many challenges as regards that except when we have communication limitations. For the prepaid the only thing I want to say irrespective of the fact that I am here, is that it is not everybody that needs prepaid meter because even the roll out cost is high.

If you look at the cost of one meter is about N38, 000. So why would the person that stays in one room apartment get N38, 000. Right now we are looking out for meters that are cheaper and that could be used by different people. In fact as at now we are talking with Lagos state government. Lagos is interested in partnering with us to get cheap meters for rural areas like people in Badagry and Epe. If you ask these people to buy meters for N38, 000, where would they get it? The Lagos State Government is making efforts to see that supplies get to Seme by collaborating with transmission Company of Nigeria (TCN).

The other embedded power companies, how has the arrangements gone so far?

You see when you talk about embedded power generation arrangement it is something that is purely commercial, it has a very rigorous route. You don’t say come and let me give you light, no.

You show interest to sell and we must also show interest to be an off taker, then you now prepare your tariff and go to the Nigeria Electricity Regulatory Commission NERC, which would asked us questions whether we have the capacity to take the load and when this is clarified, the power generation company would come back and we would finalise tariff. The company would now go back and begin to put the first pin on where it is going generate.

When we advertised the programme there were about 85 companies that wanted to participate and after screening we arrived at about 62 of them and these 62 are at different stages of the business. Many of them are still talking about land while some are in Germany or any other country of the world trying to arrange one thing or the other just to realise their dreams before they come back. But the first leg of the whole process is that you must find out who is your off taker.

And after this there can be commitments that we would take the power. It is after receiving the commitments that the real investment can start. These 62 I am telling you are those that have gone through the hurdle and already doing something. Orile Power is there, there is one is Lekki and some others.

How soon would arrangement with First Power be ready?

I think they are ready but you must know that this is regulated industry. You may want to do it today but if other parameters are not right the regulator may not allow you to take off. We need approval from the regulator for the customers that would buy at that rate we agreed. We don’t want to be seen as selling above the regulated price. These are bottle necks we go through once a while.

Has your company ever had reasons to reject power allocated to it?

No, we need about 1000 megawatts so how can we reject supply. There are a lot of suppressed loads within our system. Many of the manufacturing companies and Hotels are not under us. So how can we reject what we don’t have? More than 80 per cent of the companies in Agbara have gone on gas because of power supply reliability problems.

Where do you procure meters from?

We have good meter companies in the country. As at today, we have Mojec and MOMAS. The quality of their meters is built to specification and they need to be encouraged.