Page 11 - AfrElec Week 08

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NEWS IN BRIEF
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of prices by federal electricity regulators has started.
“We are looking at an average increase of about 35%,” Ije Okeke, a finance executive at AEDC, said.
He was speaking as part of AEDC’s effort to educate the public on its role in the highly controversial power sector, with officials lamenting that most of the blame was being heaped on them by politicians even when they have a restricted latitude to take key industry decisions.
Officials complained that about 60% of the energy distributed to consumers failed to match revenue projections, adding additional burden to distributors’ portfolio.
Nigerians currently pay about NGN24 (0.06) per kWh of electricity. A 35% increase would raise this to NGN32 (0.09) per kWh.
This could further enrage a populace already complaining about overbilling and under-delivery of service by distributors.
Okeke’s comments come as the Nigerian government announced plans to phase out estimated billing scheme, which allowed distributors to impose arbitrary charges on households without metering systems.
High tariffs have already been announced across the country as the government ordered 78 per cent upward review in January, although this was in turn heavily subsidised by the government.
Although it remained unclear to officials when the fresh tariff hike in Abuja and elsewhere would kick off, the government had tentatively fixed April 1 for the expiration of its subsidy on electricity tariff, prompting distributing companies to commence awareness crusade to brace consumers.
A P P O I N T M E N T S
African Union endorses
Adesina for second AfDB
term
The Executive Council of the African Union has supported Akinwumi Adesina’s candidacy for a second term as President of the African Development Bank.
The decision was taken during the thirty- sixth Ordinary Session of the AU Executive Council, held during the AU Summit in Addis Ababa, Ethiopia, 6-7 February 2020.
Adesina was elected to his first term as President by the Bank’s Board of Governors
at its Annual Meetings in Abidjan on 28 May 2015. He is the eighth President of the African Development Bank Group and the first Nigerian in the post.
During his first term, the Bank’s shareholders approved a landmark $115bn capital increase in late October. The increase in the capital base, from $93bn to $208bn, signaled strong support from the Board
of Governors in the continent’s foremost financial institution.
Adesina is a renowned development economist who has held a number of high- profile international positions, including with the Rockefeller Foundation, and as Nigeria’s Minister of Agriculture and Rural Development from 2011 to 2015.
The African Union Executive Council comprises 55 ministers of foreign affairs representing the member states of the African Union.
In December 2019, the Economic Community of West African States (ECOWAS) also endorsed Adesina for a second term as Bank chief. The election will again take place at the Bank’s Annual Meetings in May in Abidjan.
AFRICAN DEVELOPMENT BANK
P E R F O R M A N C E
Kenya Power posts worse profits fall in 16 years
Kenya Power has reported its worst profit in 16 years, turning the spotlight on the push by the utility firm to raise retail tariffs for homes and businesses.
The firm’s net profit plunged 92% from KES3.26bn to KES262mn ($31.9-2.5mn) in the year to June — the lowest profit since it returned to profitability in 2004 after posting a KES2.89bn loss the previous year.
The cost of buying electricity from power generators like KenGen jumped by KES18bn during the period, Kenya Power said, blunting the impact of an increase in sales to customers.
Kenya Power has made an application to the regulator for an increase in electricity prices by up to a fifth, saying it is key in reversing its reducing profitability — which has seen its earnings drop for three years in a row.
Finance costs also went up 46.4% to KES10.3bn due to higher short-term borrowings, the company said.
“This was mainly attributable to increase
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