MYTO 2015 fails to meet 5,600mw projection
Even as Nigerians groan over the epileptic power supply, the management of Eko Electricity Distribution Company has asked the senate committee on privatisation to put up legislations that would ensure stringent punishment and prosecution of those that are involved in vandalism, energy theft, tampering with power equipment, building on right of way of power companies.
Oladele Amuda, managing director and chief executive of Eko Electricity Distribution Company made this request when the Senate Committee on privatisation paid the company a visit as part of it over sight function.
Amuda observed that Multi Year Tariff Order (MYTO 2015) which was projected to generate 5,600mw has failed because the power industry currently generates below 3000 mw which is problem to power companies that were privatised.
The Eko boss said the Nigerian electricity stabilisation facility provided for by the Central Bank of Nigeria (CBN) is a loan meant to solve the pre existing liquidity issue in the sector and legacy debts so we are like taking a loan to solve the industry problems, adding that his company got close to N5 billion from the fund.
According to him, the continuous shortfall in the electricity supply is are caused by the vandalisation of gas pipelines which has reduced gas supply to power stations drastically .
He said the industry market is reflecting the current foreign exchange regime, saying it was structured at 199 to a $1 but today the foreign exchange is about N305 to a $1. He said interest rate is also contributing to the problem of the industry, so also the total debt from government and parastatals is about 10.7 billon
He said in addition to the problems facing the Discos the Manufacturing Association of Nigerian (MAN) has taking the them to court saying they would not pay the current tariff
“ There is also the issue of transmission as the Transmission Company of Nigeria (TCN ) regional offices are underfunded there by militating against prompt attendance to fault, if there is any fault around now the TCN does not have money to take care of such issue. Sometime the disco have to come to the help of TCN by providing money or material equipment to clear the default”, he said.
The other challenges confronting the industry he said, are the issues of energy theft through meter by passing and illegal connections, customer hostility and frequent vandalisation of the transformer and cables which has eating deep into the funding of the company.
He also mentioned that there is the problem of regulatory ambiguity informing the senators on what the company is doing to improve power supply, he said the company has entered into some bilateral agreement with some companies such as Egbin and Paras which are supplying 100mw and 60 mw respectively to augment whatever is given to it in from the grid.,
Apart from this, he said, it has also gone into partnership with about 10 successful bidders that are engaged in embedded power generations. These embedded generating power companies would generate about 568 mw of electricity.
He advocated for the approval of special exchange rate for the power industry, saying it is very important because the rate at which the exchange rate is moving up and down is not good for the industry ,. “A transformer that formerly sells at N2.5 million is now about N4.7 million”.
He urged the senate to also make substantial appropriation for TCN projects scattered across the country. So also the debt owed by the MDAs should be included in the 2017 appropriation.
They are asking the senator to give consideration for approve of special intervention fund for the power sector.
Olusola Bello