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Business News of Wednesday, 18 January 2023


Power generation drops to 2,200Mw

File photo to illustrate the story File photo to illustrate the story

At 14:00 hours yesterday, power generation dropped to 2,200MW from 3,553MW at 13:00 hours, The Nation learnt.

Of 24 power plants, only 10 generated the 2,200MW, according to the Independent System Operator of the Transmission Company of Nigeria (TCN) in its document entitled: “List of GenCos and their MW Load at 14:00hours on 17/01/2023.”

It implies a loss of 1,253MW within one hour, indicating 35.26 per cent decrease in the energy production of the Nigeria Electricity Supply Industry (NESI).

The 10 electricity Generation Companies (GenCos), which produced the 2,200MW, were Alaoji NIPP (Gas) 102.40MW, Azura-Edo (Gas) 422MW, Jebba (Hydro) 369MW, Kainji (Hydro) 390MW, Odukpanu NIPP (Gas) 307MW, Okpai Gas (Steam) 101MW, Omotosho (Gas)164.60MW, Omotosho NIPP (Gas) 101MW, Paras Energy (Gas) 65.80MW and Sapele (Steam) 85.80MW.

In a similar document entitled: “Distribution Load Profile: Data as at 17/01/2023 @14:46:00,” the SO show that it allocated 2,888MW to the 11 electricity distribution companies (DisCos), The Nation also learnt.

The allocation was as follows: Abuja DisCo 389MW, Benin DisCo 237MW, Eko DisCo 371MW, Enugu DisCo 277MW, Ibadan DisCo 349MW, Ikeja DisCo 409MW, Jos 166MW, Kaduna DisCo 193MW, Kano 205MW, Port Harcourt 209MW and Yola 83MW.

It would be recalled the Association of Power Generation Companies (APGC) had last Sunday attributed the decline in production to grid disturbance.

Responding in a WhatsApp chat with The Nation, APGC Managing Director, Dr. Joy Ogaji, said: “There was grid disturbance.” Asked why this was so, she said: “Due to inadequate payment.”

According to her, the debt that the Nigerian Bulk Electricity Trading Company (NBET) is owing the GenCos is over N1 trillion.

“It is estimated to be above N1 trillion,” said Ogaji.

She further explained that by GenCos contract, the outstanding falls into various categories – unpaid invoices for power generated and consumed from 2015 till date.

She added that it is also payment on capacities made available and tested by NBET yearly. This includes deemed capacity, which means the difference between declared and actual, she said.

The Managing Director further broke the debt down to payment due on forex differentials; supplementary charges associated with starts stops, which have moved from 12 in the Power Purchase Agreement to over 365 times a year.

She attributed the debt to interest on unpaid invoices – Nigeria Inter-Bank Rate (NIBOR) plus four.

Ogaji said it was also due to quantification of losses from low plant utilisation and stranded capacity; quantification of tariff for Ancillary Services rendered but unpaid; and quantification of tariff for Free Governor Mode of Operation (FGMO) outside the design parameters.