Business
- Anayo Ezugwu
THE Association of Power Generation Companies, APGC, has blamed the worsening power supply in the country on the weak transmission infrastructure of the electricity distribution companies, Discos, and the Transmission Company of Nigeria, TCN.
Joy Ogaji, executive secretary, APGC, said the Gencos have installed capacity of about 12,500 megawatts, MW, while the transmission capacity is put at 5,500MW.
She said there is a great difference between generation capacity and transmission capacity in the country. She said: “if there are blackouts in parts of the country, then it is not from Gencos stations.”
According to her, “It is not due to generation fall, we are generating enough and we have enough capacity. So, I have the power and there is no transporter to transport it, and when you check the capacity of Discos, they have only 4,600mw capacity, and you have a producer who is producing up to 12,500mw but the people to take it can only transport 5,500mw. Then the retailers who take it to Nigerians can only take 4,600mw.
“So, what are we looking at? Are we serious? Under normal circumstances, if the Gencos have 12,500MW, then the transmission companies should be able to have up to 14,000mw because the capacity should exceed what is even available.”
She said they were not even getting up to 10,000mw, adding, “When will they be able to take this power? There is disparity. Nigerians need to start asking questions. You say you are increasing power. Which power? If generators are generating, how do we get the power? You and I should know that power cannot be fetched in bottles and buckets and put on the shop for sale and everybody go and pick it. It has to be transmitted and it has to be distributed, if these things are not aligned, and synchronised how then can the promises come to be.”
According to Ogaji, until the government starts putting all the necessary things in place, it will take some time to fix the Nigerian power sector. She said some people may be sabotaging the power sector but argued that if the sector is critically looked at, the Discos don’t have the capacity to take the power that is being generated and the TCN does not have the network to transmit the power that is generated.
On gas supply, she said the generators could not pay for gas because the gas sellers were selling it according to who could pay. Ogaji echoed the views of most stakeholders associated with power generating companies by stating that the federal government’s directive on direct sale of electricity to end users, will address major challenges in the nation’s power sector.
She said the declaration of eligible customers portends several benefits for the sector as it would also address some of the revenue shortfalls in the industry. She said the declaration would make Gencos to ramp up their generation capacities, to provide supply to eligible customers and address issues on financial viability in the electricity supply value chain.
She said the envisaged guaranteed cash flow that would follow the practical implementation of the exercise would definitely boost the morale of potential investors in the area of gas field development. She noted that the decision would also boost the development of the manufacturing sector, as constant power generation and supply would be provided to meet production demands. According to her, declaration of customer eligibility will further introduce competition on the demand side and complete the liberalisation of the Nigerian Electricity Supply Industry, NESI.
The APGC executive secretary said this would result in greater pressure for efficiency on the suppliers of electricity in the country. She said that the presence of retailers, or the mere possibility of future competition, would force existing power distributors to establish appropriate customer services and commercial divisions. The measure will also promote national economic development through supply of electricity to the productive sectors of the economy. This will go a long way to supporting economies of scale, through bulk purchase of electricity.
The measure, she said would result in further reduction of technical and non-technical losses for bulk high voltage supply in the NESI. According to her, it will reduce financial risk by supplying power to credit worthy eligible consumers. Other benefits accrued to the selling of power direct to the consumers are increased attention to consumers and confer on on them the power to choose an energy supplier.
According to Ogaji, the decision would also bring about a more efficient electricity market; stimulate investment in the sector as electricity generators could sign long term contracts. She explained further that the declaration would also send a powerful signal that the electricity sector was evolving towards full retail competition. On its effect on the Distribution Companies, she said they could also procure additional power as eligible customers. She said that the development would compel the Discos to increase efficiency with sufficient attention to service improvement in the short-term by reducing major losses incurred by them in the power chain. The development will also result in the creation of jobs, given the availability of adequate power in the country.
Sept. 8, 2017 @ 11:59 GMT |
Tags: APGC Association of Power Generation Companies Gencos blames Discos Joy Ogaji TCN for Epileptic Power Supply
