The Grid Code: Recent Episodes
The Grid Code
Nigeria’s electricity customers have been expecting a tariff increase since 2015 while several nations have incrementally increased their tariffs. Nigeria’s electricity customers dread the reality of an increase in tariffs especially without receiving adequate electricity supply. The tariff increase has been postponed a few times this year already; The most recent on July 1st, 2020 taking into consideration the economic impact of the global pandemic.
The Siemens Nigeria Power Deal was introduced to rehabilitate and then expand Nigeria electricity supply by 25,000 by 2025. In May 2020, Federal Government approved the release of funding for the first part of Phase 1 of the PPI, to kick-off the pre-engineering and concession financing workstreams.
In this episode, Onyeche Tifase MD & CEO of Siemens Nigeria discusses the Siemens Nigeria Power Deal, how DisCos are represented and what the recent release of funding means for Nigerians.
The year 2019 ended on a high for the Nigerian electricity industry, The Siemens power deal was signed. The first phrase of the deal was approved in May 2020, but progress seems to be stalled as Nigeria much like the rest of the world face a global pandemic.
Earlier in the year, as an avenue to reduce consequential debt in the supply chain, NERC issued an ultimatum to the DisCos to ensure all customers are metered. This also came with a restriction on the estimated billing of unmetered customers. On political interference, Minister of Power sacked TCN MD disregarding the appropriate procedures for removal. This is not the first-time unjust removal within the power industry has occurred, and signs show it might not be the last…
As the liquidity crisis looms, electricity theft contributes to the inadequate provisions to advance the Power value chain. The Nigeria Electricity Regulatory Commission (NERC) found that sabotage of electricity was responsible for between 30 – 35 per cent of energy loss in the country.