By BENJAMIN ORISEMEKE, Abuja –
The Power Generation Companies (GENCOS), Sunday, alleged that the Nigerian Bulk Electricity Trading (NBET) owed them over N1.644 trillion.
According to the GenCos, the debt is the amount for stranded or unutilized power from 2015 till date.
The companies in response to the statement issued by the Transmission Company of Nigeria (TCN), issued on the 8th day of March 2022,, which ascribed the low power generation to GenCos’ inability or refusal to generate power, also alleged that a large chunk of its generated power are stranded.
Addressing a press conference in Abuja, the Executive Secretary of the Association of Power Generation Companies (APGC), Dr. Joy Ogaji, said the development was affecting the smooth operations of the GENCOs.
Giving the breakdown, she said from 2015 till January of this year, on the average, a minimum of 3010 megawatts were stranded on a daily basis, which she said resulted in a huge payment loss.
She said: “… I told you from 2013, power is stranded. Now, from 2015 or 2016, We have 6.616 megawatts available. 3606MW was taken and 3010MW stranded. The capacity payment loss for 2015 was N 214. 93 billion. In 2016, we made an average of 7000MW, only 3212MW was utilized, the standard capacity amounted to 3888MW , the equivalent capacity loss equivalent was N273. 273bn.
In 20 17, we made 6008 71MW, only 3599MW was taken, 3302WM was left stranded. That’s the capacity the event loss came to N236. 47 billion for 2018’’.
While reiterating the readiness of the GENCOS to generate adequate power for Nigerians, Ogoji said: “Since 2013 when the power sector was partially privatized till date, weak and inadequate infrastructure (transmission and distribution) have continued to render inconsequential, a significant portion of the generation capacities recovered or added by GenCos through huge investments done by them to increase their respective generation capacities.
“While the owners of the GenCos invested and increased generation capacity up to 13,000MW across the country, no corresponding investment and improvement was made at the transmission and distribution ends. The result was the significant stranded capacity of GenCos, which ironically, Nigerians are in dire need of but cannot get. Given that capacity utilization in any market is often used as a measure of productive efficiency, decisions about investments in power generating capacity depend on expected returns and costs’’.
But when contacted, NBET disputed the figures quoted by the GenCos, saying that only companies with active gas supply and transportation contracts were paid for unutilized capacity.
The Head Corporate Communication, NBET, Henrietta Ighomrore explained that in the country only five power generation companies with active Gas Purchase Agreement were paid for unused capacity.
