Power Holding Company of Nigeria

Last updated

The Power Holding Company of Nigeria (PHCN), formerly the National Electric Power Authority (NEPA), was a power company owned by the government of Nigeria. It represented Nigeria in the West African Power Pool. During the era when it operated as NEPA, the company managed a football team, NEPA Lagos.

Contents

The history of electricity development in Nigeria can be traced back to the end of the 19th century when the first generating power plant was installed in the city of Lagos in 1898. From then until 1950, the pattern of electricity development was in the form of individual electricity power undertaking scattered all over the towns. Some of the few undertakings were Federal Government bodies under the Public Works Department, some owned by the Native Authorities and others by the Municipal Authorities.

Electricity Corporation of Nigeria (ECN)

By 1950, in order to integrate electricity power development and make it effective, the then-colonial government passed the ECN ordinance No. 15 of 1950. With this ordinance in place, the electricity department and all those undertakings which were controlled came under one body. [1]

The statutory function of the authority is to develop and maintain an efficient co-ordinate and economical system of electricity supply throughout the Federation. The decree further states that the monopoly of all commercial electric supply shall be enjoyed by NEPA to the exclusion of all other organisations. This however, does not prevent privy individuals who wish to buy and run thermal plants for domestic use from doing so.
NEPA, from 1989, has since gained another status-that of quasi-commercialisation. By this, NEPA has been granted partial autonomy and by implication, it is to feed itself. The total generating capacity of the six major power stations is 3,450 megawatts.

In spite of considerable achievements of recent times with regards to its generating capability, additional power plants would need to be committed to cover expected future loads. At present, efforts would be made to complete the ongoing power plant projects. Plans are already nearing completion for the extension and reinforcement of the existing transmission system to ensure adequate and reliable power supply to all parts of the country.

By 1970, the military government appointed a Canadian Consultant firm, Showment Ltd, to look into the technical details of the merger. The report was submitted to the government in November 1971. By Decree No. 24 the ECN were merged to become the NEPA with effect from 1 April 1972. The actual merger did not take place until 6 January 1973 when the first general manager was appointed. The day-to-day running of the authority is the responsibility of the managing director.

In the early 1960s, the Niger Dam Authorities (NDA) and Electricity Corporation amalgamated to form the Electricity Corporation of Nigeria (ECN). Immediately after the end of the 1967-1970 Nigerian civil war, the management of ECN changed its name to the National Electric Power Authority, or NEPA. In the late 2000s, the company became a public limited company (NEPA plc), and then later the name was changed again from NEPA plc to the Power Holding Company of Nigeria (PHCN).

For several decades, despite consistent perceived cash investment by the federal government, local and at times even nationwide power outages have been the norm instead of the exception. Because of such outages, over the years the Nigerian public has given the company numerous humorous backronyms such as "Never Expect Power Always" (NEPA), [2] "No Electrical Power at All; Please Light Candle" (NEPA plc), and "Please Hold a Candle Now" (PHCN).

Generally, the tariff has been criticised as being too low compared to the cost of generating power. The federal government of Nigeria has increased the tariff to attract foreign investors since 1 July 2010 in order to meet the growing concern for foreign investors into the electricity sector.

Payment of bills

The sample consists of the procedures enrolled in payment of bills by way of banks. The Power Holding Company of Nigeria, PHCN, has made settling customers monthly electricity bills easier, hence the introduction of the bank revenue collection system to complement the operations of the cash offices in PHCN premises. This program is to facilitate prompt and regular settlement of the PHCN's monthly bills, as customers are no longer expected to travel far outside their immediate neighbourhoods to settle PHCN Bills. [3]

Privatization

Major issues within the Nigerian power sector, principally concerning power outages and unreliable service, compelled the Nigerian government to take radical action. It enacted the Electric Power Sector Reform Act of 2005, [4] which called for unbundling the national power utility company into a series of 18 successor companies: six generation companies, 12 distribution companies covering all 36 Nigerian states, and a national power transmission company. The act stipulated that ownership of these companies be granted to the Bureau of Public Enterprises (the privatization arm of the federal government) and the Ministry of Finance Incorporated. This unbundling paved the way for an ambitious privatization program to be carried out by the Bureau of Public Enterprises in Nigeria.

In 2007, the Bureau of Public Enterprises hired CPCS Transcom Limited, an international consulting firm based in Ottawa, Ontario, Canada to provide advice about the best ways to move forward with the privatization of the country's 11 distribution companies and the 6 generation companies. In 2010, CPCS was consulted again in order to provide advice on the Nigerian government's privatization program. [5]

On 30 September 2013, following the privatization process initiated by the Goodluck Jonathan regime, PHCN ceased to exist. In its stead, the Nigerian Electricity Regulatory Commission (NERC) was formed. The independent regulatory agency, as provided in the Electric Power Sector Reform Act of 2005 was tasked with monitoring and regulating the Nigerian electricity industry, with issuing licences to market participants, and with ensuring compliance with market rules and operating guidelines.

Kaduna Electric Corporate Head Office Kaduna Electric Corporate Head office 01.jpg
Kaduna Electric Corporate Head Office

PHCN successor companies

Following the 2013 divestiture of the federal government from PHCN, the company was divided into separate companies or entities called Local Electric Distribution Companies or Local Distribution Companies (LDC). Each company will be responsible for handling electricity distribution in each state or region.

As of May 2016, [6] the structure of the companies was as follows:

BEDC workers in Nigeria (2017). Electricity workers.jpg
BEDC workers in Nigeria (2017).

Distribution (11 companies):

Generation (6 companies):

Transmission (1 company):

See also

Related Research Articles

<span class="mw-page-title-main">Northern Ireland Electricity</span> Irish energy company

Northern Ireland Electricity Networks Limited (NIE Networks) is the electricity asset owner of the transmission and distribution infrastructure in Northern Ireland, established in 1993 when the business was privatised. NIE Networks does not generate or supply electricity. Since 2010 it has been a subsidiary of ESB Group.

<span class="mw-page-title-main">Regional transmission organization (North America)</span> Electric power coordinator

A regional transmission organization (RTO) in the United States is an electric power transmission system operator (TSO) that coordinates, controls, and monitors a multi-state electric grid. The transfer of electricity between states is considered interstate commerce, and electric grids spanning multiple states are therefore regulated by the Federal Energy Regulatory Commission (FERC). The voluntary creation of RTOs was initiated by FERC in December 1999. The purpose of the RTO is to promote economic efficiency, reliability, and non-discriminatory practices while reducing government oversight.

<span class="mw-page-title-main">The Electricity Act, 2003</span> Electricity act of government of India

The Electricity Act, 2003 is an Act of the Parliament of India enacted to transform the power sector in India.

The Delhi Vidyut Board (DVB) was formed by the Government of Delhi in 1997 for the purpose of generation and distribution of power to the entire area of NCT of Delhi except the areas falling within the jurisdiction of New Delhi Municipal Council and Delhi Cantonment Board. On 1 July 2002, The Delhi Vidyut Board was unbundled into six successor companies:

The electricity sector in Argentina constitutes the third largest power market in Latin America. It relies mostly on thermal generation and hydropower generation (36%). The prevailing natural gas-fired thermal generation is at risk due to the uncertainty about future gas supply.

Electricity in Pakistan is generated, transmitted and distributed by two vertically integrated public sector companies, first one being Water and Power Development Authority (WAPDA) responsible for the production of hydroelectricity and its supply to the consumers by electricity distribution companies (DISCOS) under the Pakistan Electric Power Company (PEPCO) being the other integrated company. Currently, there are 12 distribution companies and a National Transmission And Dispatch Company (NTDC) which are all in the public sector except Karachi Electric in the city of Karachi and its surrounding areas. There are around 42 independent power producers (IPPs) that contribute significantly in electricity generation in Pakistan.

<span class="mw-page-title-main">Delhi Transco Limited</span>

Delhi Transco Limited (DTL), formerly Delhi Power Supply Company Limited (DPSCL) is the State Transmission Utility for the National Capital Territory of Delhi. It is responsible for the transmission of power at 220 kV and 400 kV level and for upgrading, operating and maintaining the high voltage network.

Rilwan Lanre Babalola was appointed Nigerian Minister of Power on 17 December 2008 after a cabinet shuffle by President Umaru Yar'Adua. He left office in March 2010 when Acting President Goodluck Jonathan dissolved his cabinet.

Nigerian Electricity Regulatory Commission(NERC) is an independent regulatory body with authority for the regulation of the electric power industry in Nigeria. NERC was formed in 2005 under the Obasanjo administration’s economic reform agenda through the Electric Power Sector Reform Act, 2005 for formation and review of electricity tariffs, transparent policies regarding subsidies, promotion of policies that are efficient and environmentally friendly, and also including forming and enforcing of standards in the creation and use of electricity in Nigeria. NERC was instituted primarily to regulate the tariff of Power Generating companies owned or controlled by the government, and any other generating company which has a licence for power generation and transmission of energy, and distribution of electricity.

Joseph Oyeyani Makoju served as Special Adviser to the President Goodluck Jonathan of Nigeria under two separate administrations. He was Honorary Adviser on Electric Power to the President/Commander-in-Chief, Federal Republic of Nigeria. He was also the Special Adviser to the President/Chief Executive, Dangote Group, the chairman, Cement Manufacturers Association of Nigeria, as well as West African Power Pool Executive Board. Makoju recently retired as the Group Managing Director/ CEO of the Dangote Cement PLC; a position he has held since April 2018.

The Nigerian Bulk Electricity Trading (NBET) Plc. (NBET) is the manager and administrator of the electricity pool in the Nigerian electricity supply industry (NESI). It was incorporated on the 29th day of July 2010 and is 100% owned by the Federal Government of Nigeria.

<span class="mw-page-title-main">Nigerian energy supply crisis</span> Ongoing failure of the Nigerian power sector

The Nigerian energy supply crisis refers to the ongoing failure of the Nigerian power sector to provide adequate electricity supply to domestic households and industrial producers despite a rapidly growing economy, some of the world's largest deposits of coal, oil, and gas and the country's status as Africa's largest oil producer. Currently, only 45% of Nigeria's population is connected to the energy grid whilst power supply difficulties are experienced around 85% of the time and almost nonexistent in certain regions. At best, average daily power supply is estimated at four hours, although several days can go by without any power at all. Neither power cuts nor restorations are announced, leading to calls for a load shedding schedule during the COVID-19 lockdowns to aid fair distribution and predictability.

<span class="mw-page-title-main">Presidential Task Force on Power</span>

The Presidential Task Force on Power (PTFP) was established by the President of the Federal Republic of Nigeria, Dr. Goodluck Ebele Jonathan's administration, in June 2010, to drive the implementation of the reform of Nigeria's power sector. It brings together all the agencies that have a role to play in removing legal and regulatory obstacles to private sector investment in the power industry. It also has the mandate to monitor the planning and execution of various short-term projects in generation, transmission, distribution and fuel-to-power that are critical to meeting the stated service delivery targets of the power reform roadmap.

<span class="mw-page-title-main">Reynolds Dagogo-Jack</span>

Reynolds Bekinbo Dagogo-Jack, popularly known as "Beks", is a Nigerian civil engineer, technocrat, entrepreneur, and public servant. For over thirty years, he has been active in both the public and private sector, especially in areas of government/public administration and project management including engineering, construction and manufacturing.

The electricity sector in Nigeria generates, transmits and distributes megawatts(MW) of electric power that is significantly less than what is needed to meet basic household and industrial needs. Nigeria has twenty-three (23) power-generating plants connected to the national grid with the capacity to generate 11,165.4 MW of electricity. These plants are managed by generation companies (GenCos), independent power providers, and Niger Delta Holding Company. In 2012, the industry labored to distribute 5,000 MW, very much less than the 40,000 MW needed to sustain the basic needs of the population. This deficit is also exacerbated by unannounced load shedding, partial and total system collapse and power failure. To meet demand, many households and businesses resort to purchasing generating sets to power their properties; this source of energy provided 6,000 MW in 2008. Nigeria has a chronic electricity shortage that has affected the country for many years. In 2022, its power grid collapsed twice in one week.

<span class="mw-page-title-main">Copperbelt Energy Corporation</span>

Copperbelt Energy Corporation Plc (CEC) is a Zambian electricity generation, transmission, distribution and supply company with operations in Zambia and Nigeria. The company is listed on the Lusaka Stock Exchange

Transcorp Power Limited's Ughelli Power Plant is a gas-fired thermal plant located in Ughelli, Delta State in the Niger Delta region of Nigeria. It is the largest fossil-fuel based power-generating station in the country. The plant has an installed capacity of 972 MW and is capable of generating 2,500 GWh of electricity annually.

Scottish and Southern Electricity Networks is one of two energy companies in the UK to be involved both in electricity transmission and distribution.

<span class="mw-page-title-main">Federal Ministry of Power (Nigeria)</span> Arm of the Nigerian government

Federal Ministry of Power is an arm of the Federal government of Nigeria with the responsibilities of providing social amenities such as Power over Ethernet across the country. The Ministry in discharging this mandate is guided by the provisions of the laws provided under National Electric Power Policy (NEPP) of 2001, the Electric Power Sector Reform (EPSR) Act of 2005, Rural Electrification Implementation Strategy Plan 2016 and the Roadmap for Power Sector Reform of August 2010.

The Transmission Company of Nigeria (TCN) is a federal government owned electric utility company in Nigeria established in 2005. It is headquartered in the Federal Capital Territory in Abuja. It is a member of the West African Power Pool, an agency committed to improving energy flow across ECOWAS member states through joint financing between member countries for better sustainability of power projects within the region. It is in furtherance of this collective objective that the TCN provides bulk power supplies to countries like Republic of Niger, Republic of Benin and Togo.

References

  1. ↑ ":: The Nigeria Electricity System Operator". nsong.org. Retrieved 3 May 2023.
  2. ↑ Umez, Bedford Nwabueze (2005). Your Excellency. Otsego, Michigan: Pagefree. p. 36. ISBN   1589613376.
  3. ↑ Ifedi, V. (2005, 21 March). Power Reform and Electricity Generation. Dawodu.com. Retrieved 29 March 2006, from .
  4. ↑ "Time to overhaul the DisCos". Daily Trust. 14 February 2022. Retrieved 3 March 2022.
  5. ↑ "Nigeria Electricity Privatisation (PHCN)". 19 January 2011. Archived from the original on 17 September 2011.
  6. ↑ "PHCN Sucessor Companies". Archived from the original on 30 June 2016. Retrieved 23 June 2016.
  7. ↑ "84: Transmission Company of Nigeria". NERC.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.