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Discos Failed To Pay N510.53bn In 2020 – NERC

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Power distribution companies in the country failed to pay a total of N510.53bn for the electricity sold to them in 2020 by Nigerian Bulk Electricity Trading Plc, the Nigerian Electricity Regulatory Commission has said.
The government-owned NBET buys electricity in bulk from generation companies through Power Purchase Agreements and sells through vesting contracts to the Discos, which then supply it to the consumers.
The 11 Discos were given a total invoice of N730.71bn for the energy received in 2020 but paid only N220.18bn to NBET, according to NERC data.
The power distributors received a total invoice of N52.13bn in January; N52.01bn in February; N52.62bn in March; N68.08bn in April; N68.09bn in May; and N56.27bn in June.
The Discos received a total invoice of N66.33bn in July; N63.62bn in August; N59.10bn in September; N62.95bn in October; N62bn in November; and N67.50bn in December.
But they paid N14.96bn in January; N13.18bn in February; N6.07bn in March; N10.67bn in April; N12.84bn in May; and N12.91bn in June.
They paid N12.91bn in June; N12.91bn in July; N14.99bn in August; N37.57bn in September; N22.47bn in October; N33.27bn in November, and N28.33bn in December.
NERC, in its latest quarterly report, noted that the financial viability of the Nigerian electricity supply industry had remained a major challenge threatening sustainability.
“The liquidity challenge is partly due to the non-implementation of cost-reflective tariffs, high technical and commercial losses exacerbated by energy theft and consumers’ apathy to payments under the widely prevailing practice of estimated billing,” it said.
It said the period of the lockdown introduced by the Federal Government as a measure to curtail the spread of COVID-19 pandemic in 2020 further affected Discos’ billing of post-paid customers.
“The severity of the liquidity challenge in NESI was reflected in the settlement rates of the service charges and energy invoices issued by Market Operator and NBET respectively to each of the Discos as well as the non- and low payment by the special and international customers respectively for the services rendered by the MO,” the regulator said.
According to the report, the Discos were expected to make a market remittance of 44.87 per cent during the second quarter of 2020 but only 28.05 per cent settlement rate was achieved within the timeframe provided for market settlement in the Market Rules.
The PUNCH reported on Monday that electricity consumers paid a total of N542.73bn to the Discos last year, out of a total bill of N816.15bn.

The Punch

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Petroleum: DPR Promise To Sustain Uninterrupted Product Supply 

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The Bauchi office of the Department of Petroleum Resources (DPR) says it will continue to ensure the availability of petroleum products across the 500 existing filling stations in the state.Malam Abdullahi Isyaku, the Operation’s Controller of the agency made this known in an interview with the News Agency of Nigeria (NAN) in Bauchi on Monday.

Isyaku said the department would continue to closely monitor filling stations, especially on the implementation of safety measures by retail outlets.

He added that it would constantly ensure that outlets adhere to the official pump price of the commodity.

“We are determined and committed to sanctioning erring outlets found to be shortchanging consumers,’’ he said.

Isyaku said that the regulatory agency was fully committed to assisting interested marketers who want to venture into dealing with Liquefied Gas LPG in accordance with the Federal Government policy on Domestic Gas Utilisation.

According to him, the department has intensified efforts on routine surveillance of all existing retail outlets.

This is with a view to ensuring compliance with operational guidelines.

“We will not compromise standards,’’ He said.

The controller called on all registered marketers to key into the newly introduced operational monitoring tool called ‘Down Stream Remote Monitoring System’ (DRMS).

NAN reports that DRMS was recently launched by the national office of the department.

According to Isyaku, the device will assist DPR in online routine monitoring of stock positions of the products at both depots and retail outlets.

It will also help marketers to monitor activities in their filling stations.

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Leadway Assurance Charges Nigerians To Embrace Cyber Insurance

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Leadway Assurance Company Limited has charged corporate entities, institutions, religious organisations and individuals to embrace cyber insurance to protect their database and computer networks from attacks by hackers.

With increased online and internet connectivity becoming part of our day to day business, as a result of COVID-19 pandemic, there is need for protection against cyber attacks, Mr. Uzodinma Ibe of the Casualty & Liability Underwriting, General Insurance, said.

He spoke at a virtual training workshop on “Understanding Cyber Insurance” organised by Leadway Assurance for insurance journalists recently.

Ibe said a comprehensive report by a United Kingdom (UK) cybersecurity company, confirmed that there was high traffic when it comes to information, transactions and data emanating from Nigeria into digital space, adding that the survey noted that 36 percent of Nigerian organisations suffered cyber attacks in the last 12 months.

He also stated that 64 percent of cyber attacks in Nigeria exploited misconfigurations on the organisation servers, pointing out that Nigeria has the highest data leakage in the world.

On business activities, social networking and governmental activities, he said the report has also identified where Nigeria as a digital hub is and to what extent are their cyber exposures.

In order to avoid cyber attacks on our computer networks, which sometimes resulted into data and financial losses, there is a need for enterprises, individuals, corporate organisations, to see it as a serious business and take up some form of cyber mitigating efforts in this regard.

According to him, “Here in Leadway, through our research, we have been able to identify a particular area of cyber exposure where corporate entities can find themselves and see how we can do proper risk management and provide specific insurance product that can help them mitigate such exposures through Cyber Risk Management Insurance which in some quarters called Cyber Liability Insurance and in some, Cyber Risk Management Insurance.

“We have been able to highlight that technology, social media and transactions over the internet (cyber platforms) play a key role in how most organisations conduct business and reach out to prospective customers today. These vehicles have gateways – platforms, integrations that cyber attackers often use.

From Leadway point of view, our Cyber Enterprise Risk Management Insurance Policies try to help any organisation mitigate risk exposure for a certain cost expenses involve with recovery after a cyber-related security breach or similar event.

On who is being indemnified or who is being provided cover, he explained that Leadway Cyber Insurance provides first-party coverage and third-party liability risk covers against cyber-attacks for organisations.

“First party which is the policyholder, the individual or that corporate entity that buys the insurance, such policy caters for private investigation expenses where there is some form of data compromise or breach to reach out to different customers to inform them of the breach.

“Third-party liability coverage indemnify companies for losses to others caused, for example, by errors and omissions, failure to safeguard data, or defamation; and other benefits including regular security-audit, post-incident public relations and investigative expenses, and criminal reward funds.

“Risks of this nature are typically excluded from traditional commercial general liability policies or at least are not specifically defined in traditional insurance products. Most people believe that only large-scale industries, such as banks only need cyber security insurance. However, any electronic information such as your name, email, contact number, financial records, medical records, payment information, government documentation, etc., stored in your personal devices can be easily and quickly hacked by a genius hacker,” he explained.

“Cyber-insurance is a specialty lines insurance product intended to protect businesses, and individuals providing services for such businesses, from Internet-based risks, and more generally from risks relating to information technology infrastructure, information privacy, information governance liability, and activities related thereto,” he pointed out.

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PENGASSAN Suspends Strike Over Chevron’s Agbami Oilfield Dispute

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Mr Lumumba Okugbawa, General-Secretary of PENGASSAN made this known to the News Agency of Nigeria (NAN) on Friday in Yenagoa.

Okugbawa told NAN that the strike had been put on hold following a truce with company’s management on April 15. According to him, the leadership of PENGASSAN and management of CNL reached an agreement over the matter, making the proposed strike unnecessary.

Okugbawa said that the mediatory meeting by Chief Timipre Sylva, Minister of State for Petroleum with the leadership of the union scheduled for April 15 could not also hold because a truce had reached.

PENGASSAN had threatened to down tools and shutdown Agbami Offshore Oilfield over moves by Chevron to cut its workforce by 25 per cent.

The plan to lay off 600 workers was announced, in a statement, on Oct. 2, 2020 by Mr Esimaje Brikinn, CNL’s General Manager Policy, Government and Public Affairs.

Brikinn said the job cut was to reposition the oil firm for greater efficiency and competitiveness.

Agbami field, which has the capacity to produce 250,000 barrels per day (bpd), currently produces about 140,000 bpd according to industry data.

NAN

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