Page 12 - AfrElec Week 34

AfrElec NEWS IN BRIEF AfrElec

Holdings SOC Ltd., which will need further
guarantees from an already cash-strapped
government, Ntoi said.
When you are dealing with “technically
bankrupt state-owned enterprises, as the
counterparties you need some sort of
guarantee,” he said. “Government’s ability to
provide these guarantees is limited.”

achievement award focus on power TARIFFS

Andrew Herscowitz, the former Coordinator A $1.9 billion infrastructure fund owned by Nigeria reveals new tariffs
of Power Africa, USAID’s programme to Old Mutual said South Africa should start
increase access to electricity in sub-Saharan with power as it embarks on an ZARR2.3 Nigeria’s federal government has disclosed
Africa, has won the coveted African Power, trillion drive to lure private investment that poor and vulnerable Nigerians will not be
Energy & Water Industry Awards Lifetime into infrastructure over the next decade, experiencing any electricity tariff increase. The
Achievement Award. Bloomberg reported. clarification is in response to a media report
<pstyle:3>He is currently the Chief Electricity is South Africa’s most urgent of an increase in electricity tariffs in Nigeria. It
Development Officer at the US International need and the country has experience of also asked the general public and stakeholders
Development Finance Corporation. approving renewable energy projects with in the power sector to disregard any report of
The seventh edition of the coveted African a prior program attracting R209 billion of an arbitrary tariff increase.
Power, Energy & Water Industry Awards took private investment, Vuyo Ntoi, co-managing The disclosure was made by the Nigerian
place during a live broadcast on August 25. director of African Infrastructure Investment Electricity Regulatory Commission (NERC)
The awards honour the most remarkable and Managers. through a press statement that was issued on
inspiring energy projects and power pioneers “Energy is our biggest low-hanging fruit,” Wednesday, August 27, 2020, and signed by its
on the continent. he told Bloomberg on August 26. “We’ve Executive Chairman, James Momoh.
During this year’s digital celebration, got an energy crisis and we have got lots of NERC revealed that electricity tariff
Andrew Herscowitz received several heart- project developers who have experience in reviews, going forward, will only follow
warming testimonials from leading names in implementing projects in South Africa. Those service-based principles. Under these
government and business on the continent, are the easiest wins.” principles, Electricity Distribution Companies
praising his accomplishments and particularly The government program, unveiled by (DISCOs) will only be able to review tariff
his passion for the African power sector. President Cyril Ramaphosa in June, seeks rates for customers when they consult with
Nigeria made a clean sweep in all the other investment in everything from power plants them, and commit to increasing the number
categories, walking away with top honours to low-cost housing, using finance tools of hours of supply per day and quality of
for ground-breaking contributions to the ranging from bank loans to green bonds. On service.
industry. July 27, the state issued a list of 55 projects it NERC stated that in line with these
“First of all, I had to ask your colleagues, says are ready for investment. expectations, DISCOs have been directed to
are you old enough to receive a Lifetime Ntoi isn’t so sure. The government needs to engage with their customers on a Serviced
Achievement Award? But then when I think develop the capacity to identify and approve Based Tariff structure, where DISCOs can
back about your history in Power Africa, the right projects and the right funding only review tariffs for customers under certain
and I think it’s been over ten years now that solutions, he said. conditions.
we have worked together. Andy, you made “They certainly aren’t shovel ready,” Ntoi Going further, NERC disclosed that even
Power Africa cool. Before that, we did our said. “Don’t get me wrong, I think a lot of under the above stated conditions, there will
one project a year if we were lucky and Power work has been done but there is that lack of be no tariff change for the most vulnerable,
Africa has changed the market. We’ve done so implementation expertise.” as tariffs for those consuming 50KW or less
many projects together. We’ve done Azura and Evidence of that came this week when the remain frozen. Also, customers receiving less
Tibo Wind in Senegal and Kipeto in Kenya infrastructure office in the presidency sent than 12 hours of power supply are expected
and South African renewables and there a letter to AIIM seeking the secondment of not to experience any change in tariffs.
are more. It was your creativity in using the investment professionals to help it with its The President has also approved a waiver of
USAID toolbox that makes you deserve this plans, he said. the import levy on meters so that those who
Lifetime Achievement Award. I raise a glass A further barrier comes in the way do not have meters can be supplied as early as
and I hope to have one with you in person infrastructure projects have mostly been possible at reasonable costs.
soon. Take care, Andy, congratulations,” said funded in South Africa, with banks providing
Lisa Pinsley, head of Africa at Actis Energy. almost all the money through project finance.
CLARION EVENTS AFRICA It will take time to develop an GRID
infrastructure-bond market and regulations
governing investment rules for pension funds South Africa seeks to
INVESTMENT may need to be altered to direct more funds to
infrastructure, he said. And then you have the boost grid system with
Old Mutual fund urges SA to poor state of many South African state-owned
companies, such as electricity utility Eskom

P12 www. NEWSBASE .com Week 34 27•August•2020