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DISCOs Embrace Embedded Generation To Meet Electricity Demand

By Temiloluwa Adeoye
07 February 2015   |   6:04 pm
IN a bid to redeem their battered image, electricity distribution companies (DISCOs) have embraced embedded generation as an additional means of power supply.       Embedded generation entails that which is sourced from a private distribution network. According to the Assistant General Manager, Communications, EKO Electricity Distribution Company PLC (EKODP), Mr. Idemudia Godwin, embedded…

Embedded-PowerIN a bid to redeem their battered image, electricity distribution companies (DISCOs) have embraced embedded generation as an additional means of power supply.

      Embedded generation entails that which is sourced from a private distribution network. According to the Assistant General Manager, Communications, EKO Electricity Distribution Company PLC (EKODP), Mr. Idemudia Godwin, embedded generation avails DISCOs the opportunity to buy excess power off private organisations who are not dependent on DICSCOs for Power supply; they generate their own power. 

     Eko DISCO recently shortlisted 43 companies for the project, which is expected to generate 1,000 mega watts by year 2020.The Head, Corporate Communications and Strategy, Ikeja Electricity Distribution Company, Mr. Olaonipekun Adeyanju, also confirmed that Ikeja DISCO is also looking at embedded generation but did not disclose how many organisations they intend to work with.

      These DISCOs are presently being under-utilised in terms of megawatts (MW) they can absorb. Due to vandalisation, Eko DISCO is currently being supplied about 200 to 300 megawatts a day when it has the capacity to absorb 1,000 mega watts, while Ikeja DISCO is capable of absorbing about 1,200MW.   

      Assistant General Manager, Ikeja Electricity Distribution Company (IKEDC) Mr. Godwin Idemudia, explained that vandalisation is a major reason for the poor supply of power. 

       Getting an alternative generating source is said to be a decision only the Federal Government can take, as representatives of both organisations avoided commenting on their relationship with the generating companies (GENCOs), except on how it affects their services. 

      Power generation companies are responsible for generating power and sending to DISCOs through the transmitting company; but the capacity drop in power supply, according to the DISCOs suggests failure of the GENCOs. The GENCOs also pointed at vandals as the culprit.

      The continuous vandalisation of the Transfocardos pipeline has reduced its capacity; about 1,500 mega watts drop left consumers with few hours of power supply and crippling small businesses. 

     Mrs Oyenusi Ayobola sells frozen foods. She said electricity is a necessity for businesses like hers to survive, and lack of it means she has to power her generator consistently, which has added to the cost of selling frozen foods. Ayobola said whenever her generator develops fault; she resorts to praying for power supply because the consequence leads to loss, as she has had to dispose some of her goods. “We all have hopes that light will get better at the beginning of every year but the distribution companies are distributing more darkness than light, yet we pay for it.” 

       The Group Executive Director, Gas and Power, Nigerian National Petroleum Corporation (NNPC), Dr. David Ige, had said, within January 2015, the Trans Forcados pipeline, a major pipeline that conveys crude oil from oil fields in Oben, Sapele and Oredo amongst others had recorded up to four major breaks across its length, which further reduced its capacity and It takes about four or five days to repair the holes depending on the extent of damage.

        Dr. Oluseyi Peters, a lecturer at the university of Lagos said vandalism could not affect the drop in wattage. Wattage is product of two components in electrical engineering: current and voltage. The result is Volt Ampere (VA); then, addition of power factor makes it an issue of wattage. He said Power generated at generating station must be transported to load end but when it does not get there, then there is a loss which is majorly caused by vandalism; transmission cables become attractive to some people who steal it to make some money out of it. 

        According to him, there are opportunities to cut pipes and once it is vandalised, gas might not get to the station at all or at a reduced capacity depending on the extent of damage done. “Meanwhile gas flows to the reservoir first, not instant supply. Every station has reservoir; so if the officials are saying it is because of vandalism, is it a recent vandalism that is affecting the country or something that had happened for two weeks? When we look at some of theses things, we may not be able to say they have been straightforward with what they explain.”  

        Mr Debare Olasupo, a consumer said officials of the organisations involved should be checked, because he does not believe someone who has no knowledge of electricity or gas can go and vandalise transformers or gas pipes. 

        According to Idemudia, none of the EKEDP staff has been arrested for vandalisation. He said some of the people who damage these facilities are quacks and some of them get electrocuted in the process.  

       Oluseyi maintained that those who vandalise gas pipes must be experienced in the area of oil and gas because he does not know the equipment they use to burst the pipes. According to him, the pipes are mighty enough to hinder one from seeing the other side when standing before it, so for someone to use welding matching to cut the pipes or unscrew the bolts, the person must have knowledge of it. He said vandalism has been a tenable excuse since the 70s, it is time to build structures that can bypass vandals and also but we should look outside oil and gas. 

        According to Oluseyi, government should look at other means of generating electricity because a number of houses now generate electricity through solar. There are research institutes that government can fund, make demands from and give time frame to get constant. In his words, “our power policy is not right, government should do the right thing.” 

       The power sector has been rife with controversy over metering and estimated billing with allegations of fraud thrown at officials of the electricity distribution companies known as DISCOs. Privatising the power sector was meant to make it efficient. However, years after, consumers think the county is still far from where it should be. Chukwuma Anyawu, a drycleaner said he does not understand why electricity took a turn for worse barely a month into 2015; yet he still pays for the distribution of darkness just to be at peace with them and not put himself in a situation where he has to beg or bribe to prevent disconnection. 

      From the complaints of consumers, 2015 is not looking different from the previous year as consumers are complain of crazy bills. Despite the promises made by Discos that houses will be metered this year, meters are slow in coming even though they claim they have so much in store.      

       Marketers do not have the capacity to produce at once for the entire population that needs prepaid meters; hence, they can only produce in batches. The Federal Government recently decided to set the ball rolling by procuring and distributing one million meters to the DISCOs, a rather small fraction when compared to the number of houses in Lagos, talk more of the entire country that also needs smart meters.  Some Residents of Lagos State believe the meters coming from the government weeks before election is politically motivated to sway more votes in favour of President Goodluck Jonathan. Musa Aliu, who sells provisions, said “we have been paying estimated bills through our nose for years, the meters did not come until elections are around the corner.” According to Mr. Idemudia, EKO DISCO has started distributing their meters even though the ones promised by Federal Government are yet to be distributed. IKEJA DISCO is yet to begin metering but will begin soon. 

        Amidst the allegations by consumers that DISCOs are deliberating being slow in metering so they could recover so-called investments. Nnamdi Chigozie, a consumer, said he does not understand why businessmen were given loans to purchase DISCOs despite the fact that it was undersold. Still, government is giving them a million meters; although it is a welcome development, it is not necessary. 

        Consumers are still hoping to get prepaid meters. Mr Nduka Ebuka, who lives at Abule Egba, said he is still expecting to see prepaid meter even though he does not know when it will arrive but he believes Nigeria is more than ready for every house to be metered whatever the challenge. 

        In the heat of metering gaps in 2014, the chairman of the Nigerian Electricity Regulatory Committee (NERC) Dr. Sam Amadi stated that discos were being mischievous by not metering customers and extorting money from them.       

       Dr. Oluseyi is still using the old meters. He said DISCOs are under pressure to service their loans and recoup their investment at all costs, but engineering takes time and does not yield instant profit. Engineers know that, but the businessman does not. He said his log record for power supply for a month is not up to 24 hours but he pays about N10, 000 every month. He said his bill reduces only after letters, but will increase to the former amount, the following month. According to him, a woman told him she asked why prepaid meters were yet to be made available and an official said meter readers will loose their jobs once smart meters are installed in all houses.

      Consumers are still expressing their frustration over payments. Tobi Awodipe complained that the recharge cards are only available in value of thousands when she has a bill of N3,317 to pay; so she is forced to buy N4,000 0r N3,000 recharge cards to send to the short code. She said she had to buy three N1,000 and N10 is deducted for every message she sends to the short code, gulping the sum of N30, which she finds outrageous when regular phone messages deliver at N4 per message. According to her, after paying her bill, she then gets a notification that she is owing a N4,449, which she was told is a system error and effort to rectify it has been frustrating.

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