Power
By Nathan Nwakamma, News Agency of Nigeria(NAN)
THE testing of the Bayelsa Electricity Company’s 60-megawatt (MW) power plant has brought immense joy to residents in select neighborhoods of the state capital, Yenagoa.
Following the phased test run a fortnight ago, residents applauding the Bayelsa Government are yearning to experience a steady power supply.
In some of the places being powered by the gas fired power plant, there are reports of improved and reliable electricity supply as the test continues.
Although the Bayelsa Electricity Regulatory Commission had earlier indicated that the distribution of power would not be handled by the Port Harcourt Electricity Distribution Company (PHEDC), the state government had reviewed the position.
Announcing the commencement of the test run for the power plant inaugurated during President Tinubu’s visit to Bayelsa on April 10, Gov. Douye Diri noted that the distribution network operated by PHEDC was not sturdy enough to evacuate power from the gas-fired turbines.
Officials of PHEDC have since commenced drive for collection of electricity bills amidst resistance from residents who claimed that the state government was yet to fix the billing template.
Ebisintei Kumoku, a resident at Opolo area of Yenagoa, said that the people of Bayelsa deserved to enjoy the electricity for some time before billing could start.
“It is unacceptable that PHEDC has immediately swung into action of collecting bills even while the power plant is being tested.
“The people deserve a break; they should not dabble into collecting bills on the outlawed estimated billing method.
“They should first focus on installing prepaid meters while the tariff is worked out by the state government, we expect the tariff to be very affordable since the power plant was procured by the government,” Kumoku said.
Kumoku’s concern on the tariff has raised the issue of costs around the 60 MW Bayelsa power project and sustainability amidst current gas and maintainable costs.
Observers say they expect that the state government, given Bayelsa’s status as an oil-bearing state, will subsidise electricity for the people.
Diri had declined to disclose the cost of the plant at one of the inspections when a journalist threw the question.
The governor promised that the cost of the plant would be made known after completion, a pledge he has yet to redeem.
There are also concerns around the cost of gas denominated in dollars as to whether the full operational costs would be passed to the end user.
“At current gas costs compelling the Federal government to spend trillions of naira on electricity subsidy, will the Bayelsa government subsidise electricity from its power plant?’’ an analyst asked.
Some stakeholders dismiss the concerns around gas arguing that the state has successfully run a 15 MW power plant.
They say that residents who were forced to pay for power not used in the estimated billing will be ready to pay for power when it becomes available.
Investigations show that the new 60MW Independent Power Plant is designed to operate with a gas consumption of about 11.2 million standard cubic feet of gas per day (MMSCFD).
Olice Kemenanabo, Managing Director, Bayelsa Electricity Company, who gave the hint, said the gas feed to the plant was expected to gulp 3.5 dollars million per quarter.
Oando PLC, on April 16, announced that its upstream Joint Venture (JV) with NNPC E&P Limited (NEPL), the NEPL/Oando JV, had enabled the delivery of gas to a 60-megawatt (MW) Independent Power Plant (IPP) in Yenagoa.
Mrs Folasade Ibidapo-Obe, Chief Compliance Officer & Company Secretary at Oando PLC, was upbeat.
“The project, inaugurated by the President Tinubu on April 10, forms part of the state’s broader infrastructure development programme,.
“The NEPL/Oando JV is the sole gas supplier to the plant, with a contracted volume of 11.2 million standard cubic feet per day (11.2 MMSCFD).
“Gas is delivered via the JV’s Elebele Valve Station, interconnected with a major trunkline, ensuring an uninterrupted feedstock supply to the IPP.
“This supply is underpinned by a long-term gas supply arrangement, providing a stable and predictable revenue stream while supporting higher-value domestic gas monetisation and diversifying the JV’s revenue base,’’ she said in a statement.
Meanwhile, Jampour Group, the contractor for the plant which also signed a 3 million dollars deal for metering, is yet to commence action on metering of electricity users who have felt short changed by the estimated billing method.
Although the governor had assured that electricity supply from the new plant would be metered to avoid overcharging the people, he gave no hint about the tariff.
However, following the commencement of test run of the gas-fired turbines, the Bayelsa Ministry of Information, Orientation and Strategy has commenced public sensitisation on the power project on the need to pay for electricity used and the need to optimise power consumption.
On the expected tariff and affordability, Mrs Ebiuwou Koku-Obiyai, the Commissioner for Information, Orientation and Strategy, told NAN that that the state government had yet to decide on the tariff structure for various categories of electricity users.
“The tariff is a technical area that I cannot delve into now. Our major concern now is to ensure that the electricity gradually gets to communities across the state.
“Once we conclude with that, then we can work out the tariff and I will be in a position to speak on tariff,” Koku-Obiyai said.
Given the context, the fundamental issue weighing on the minds of Bayelsa residents revolves around the cost of electricity and whether the resulting tariffs will be affordable.(NANFeatures)
F.O
Tags: Bayelsa mega power