Patrick Ugeh With Agency Reports
3 September 2008
Abuja — Nigerian Electricity Regula-tory Commission (NERC), said "the poor" will still enjoy some subsidies on electricity after the three-year moratorium granted by the government.
The Federal Government in July, approved the take-off of Multi-Year Tariff Order (MYTO), with a three-year moratorium on subsidies.
NERC chairman, Dr Ransome Owan, told the News Agency of Nigeria (NAN), yesterday in Abuja, that after three years of MYTO's full operation, a "Power Consumer Assistance Fund (PCAF)" would be initiated.
This clarification is coming as the NERC also urged Nigerians to be patient with the Independent Power Producers, IPPs, for the production of 10,149 mega watts for the national grid, saying it would take some time for them to produce the required amount of power.
A total of 27 licences have so far been issued to the IPPs.
Owan, who made the plea yesterday while presenting a generation licence to Ibom Power Ltd. for a 190MW power plant at Ikot-Abasi, Akwa Ibom State, said: "We implore all Nigerians to be patient with the IPPs that have so far been issued with licences as it takes quite a while to move the projects from the issuance of licence to the commissioning stage because of the unique nature of power projects."
What this means, according to him, is that "even if you are given all the money required to build a plant, you will still require at least two to three years to accomplish the task." He disclosed that the IPPs were all at various stages of completing their projects while the commission receives quarterly reports from them to enable it monitor their progress.
Owan said the primary reason for any state to embark on power project was to attain self sufficiency.
"If a state produces say only 10mw of electricity and it wants to keep it all within the state, that commercial arrangement can be made, so that the state enjoys its investment," he said.
"However, when a state can generate excess power than it may need, then we encourage them to allow evacuation to the grid and we pay them the going rate," Owan said.
He explained that it was only through this way that the states and others who generated electricity could get the full recovery of their costs.
He, therefore, enjoined other governments to emulate Rivers and Akwa Ibom by venturing into power production, to achieve the country's objectives in the sector.
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We inherited the 220 volts of electricity from Britain,but we can introduce 110 volts as a mix to extend power supply to many people.The countries that have this type of mix are: Algeria,Belgium,Brazil,Canada,Egypt,Finland,France,Germany,Greece,and highly industrialized countries like JAPAN,and USA,have only 110 volts,and they do not have power shortage from year to year.There is nothing like electricity subsidy for the poor.There is a unit of measurement through the miter reading.Instead,what the govt.can do is to issue mitres free to all who has electricity in the house,and have them read it by themselves every month,to be comfirmed by the employees of the company.
Subsidies for what service? When people dont get electricity supplies 95% of the time, why should they even pay a penny for the 5% of service because they have to pay for gasoline for the generator for the 95% duration of black out whereas NEPA or is it now PHNC still bill their customers every month as if the supply was a 100% Ditto for water supplies as well. This is a rip off - it is only in Nigeria that you pay for services you did not get yet the prople kept quiet, shufering and schmilling in their misery. The people's revolution currently happening in Thailand is on its way to Nigeria - just a matter of time, Isha-Allah.