Page 12 - AfrElec Week 23

AfrElec NEWS IN BRIEF AfrElec

POLICY Electricity Trader, NBET and Nigeria INVESTMENT
Electricity Regulatory Commission, NERC to
Nigeria to investigate power appear before the Committee next week for a Sun Exchange raises $3mn
three- day probe.
sector corruption for crypto-driven solar

The Nigerian Senate has started probing about power in Africa
NGN1.8 trillion the Federal Government TARIFFS
invested in the Power Sector through the South Africa-based renewable energy startup
Electricity Supply Industry, NESI, from 2013 SA consumers call for tariff Sun Exchange has raised $3mn to close its
to date. Series A funding round totalling $4mn.
According to the Senate, a holistic refirm The company operates a peer-to-
investigation would be carried out, especially peer, crypto-enabled business that allows
to find out how interventions by the Federal South Africa’s largest power consumers individuals anywhere in the world to invest in
Government to address the problems are calling on the Department of Mineral solar infrastructure in Africa.
associated with the power sector had been Resources and Energy to urgently review the “You as an individual are selling electricity
executed, noting that government had, over regulatory methodology being used by the to a school in South Africa, via a solar panel
the years, intervened at various times. National Energy Regulator of South Africa you bought through the Sun Exchange,”
Addressing journalists, yesterday, in Abuja, (Nersa) to set Eskom tariffs. explained Abe Cambridge, the startup’s
Chairman, Senate Committee on Power, The Energy Intensive Users Group (EIUG), founder and CEO.
Senator Gabriel Suswan (PDP, Benue North whose mining and industrial members “Our platform meters the electricity
East) lamented that despite the huge sums account for over 40% of the electrical energy production of your solar panel. Arranges for
spent so far, the sector has been epileptic, with consumed in South Africa, describes the the purchasing of that electricity with your
no commensurate results. current multiyear price determination chosen energy consumer, collects that money
He said that, from 2013 to date, the Federal (MYPD) methodology as outdated and warns and then returns it to your Sun Exchange
Government had spent N701bn; N600bn that persisting with the framework will result wallet.”
and this year, there has been N380bn and in continuously rising electricity tariffs, which It costs roughly $5 a solar cell to get in and
N213bn, adding that all these monies were will further accelerate the utility ‘death spiral’ transactions occur in South African Rand or
FG intervention in the power sector to make under way at Eskom. Bitcoin.
it efficient and for Nigerians have access to The EIUG made the appeal in a response to “The reason why we chose Bitcoin is we
electricity. Nersa’s May 15 Regulatory Clearing Account needed one universal payment system that
Suswam said that despite the huge amount (RCA) determination, through which the enables micro transactions down to amnth of
of money that had been expended, the result regulator approved an RCA balance of R13.3- a U.S. cent,” Cambridge told TechCrunch on
is that the performance has been below billion in favour of Eskom, which will be a call.
expectations, adding that the Senate was liquidated through future tariff adjustments. He co-founded the Cape Town-
geared towards determining the adequacy of “The RCA approval was granted for headquartered startup in 2015 to advance
such funds. He noted that if the funds is found adjustments to primary energy costs, the use renewable energy infrastructure in Africa.
to have been adequate, the Senate wants to of open cycle gas turbines as well as employee “I realised the opportunity for solar was
know why Nigerians are not receiving stable benefits and sales volumes. Although this enormous, not just for South Africa, but for
and adequate power supply. decision is within the regulatory methodology the whole of the African continent,” said
Consequently, the Senate has summoned for electricity tariffs, it highlights the EIUG’s Cambridge.
the Minister of Finance, Budget and National view that the methodology is outdated and “What was required was a new mechanism
Planning, Zainab Ahmed; Minister of Power, must be reviewed.” to get Africa solar powered.”
Saleh Mamman; Presidential Power Initiative;
Bureau of Public Enterprises; Nigeria Bulk

ESKOM
Eskom paid ZAR5bn by

mistake

Eskom has said that it did not erroneously pay
ZAR5bn to a contractor.
Parliament’s standing committee on
appropriations said that it would call Eskom
back to account on the alleged payment error.
But the power utility said it hadn’t paid
R5bn to anyone by mistake.
“What did happen was that Eskom in 2016
signed a contract with Tegeta Rescources
and Exploration for coal supply contract of

P12 www. NEWSBASE .com Week 23 11•June•2020