Power generation companies in Nigeria (GenCos), have attributed the continued epileptic power supply across the country to illiquidity, caused by the N1.644 trillion owed them by the Nigerian Bulk Electricity Trading Plc (NBET).
This follows the recent report by the Transmission Company of Nigeria (TCN), ascribing low power generation to GenCos inability to generate power.
Speaking under the aegis of the Association of Power Generation Companies (APGC), the association noted that the huge sums owed them has more than ever before continued to frustrate the GenCos and keep them incapable of meeting their obligations which are extremely necessary to keep their power plants running.
The Executive Secretary of APGC, Joy Ogaji who addressed pressmen said that the amount was as a result of accumulated unused capacity which spread through 2015 to 2022.
According to Ogaji, total debts owed as at 2015 was N214.93 billion, N273.32 billion in 2016; N236.47 in 2017, N264.08 billion in 2018.
Others include: N256.97 billion, N266.01 billion and N120.25 billion and 12.01 in 2019,2020, 2021 and January 2022 respectively.
“Illiquidity, caused by the huge sums owed GenCos by the Nigerian Bulk Electricity Trading Plc (NBET), has more than ever before continued to frustrate the GenCos and keep them incapable of meeting their obligations which are extremely necessary to keep their power plants running and make capacities available, while observing required Health, Safety and Environment (HSE) standards.
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“Such obligations include our operations and maintenance (O&M) as and when due, procurement of critical capital, spare parts and accessories, payment, and servicing of existing loans from lenders and financiers, employee-related obligations, etc.
“Recently, GenCos cried out to the authorities and are still looking forward to a favourable consideration of their pleas for foreign exchange (FX) support to enable them to procure critical spares for their turbines and equipment to keep them in good state of repair,” she said.
She further explained that about 80 percent of electricity generated in Nigeria come from gas-fired turbines, adding that GenCos have consistently been dealing with unending gas-related challenges which inhibit optimal generation.
She said that issues of gas volume, gas quality, gas pressure and gas transportation have consistently curtailed capacity utilization by GenCos thereby affecting generation.
Speaking further, Ogaji 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 by GenCos.
“While the owners of the GenCos invested committedly and increased generation capacity up to 13,000MW across the country, no corresponding investment and improvement was made at the transmission and distribution ends,” she said.
