Power Generation in Nigeria Drops to 1,400MW

TCN power plant


Transmission Company of Nigeria says only 1,400 megawatts of electricity can be supplied to consumers as power generation drops due to gas constraints and pipeline vandalism

By Anayo Ezugwu  |  May 30, 2016 @ 01:00 GMT  |

ELECTRICITY supply in Nigeria has dropped drastically in the last few months as a result of gas supply constraints and pipeline vandalism. According to the Transmission Company of Nigeria, TCN, the total amount of power available to distribute to homes and offices across Nigeria is 1,400 megawatts MW.

The System Operation/Market Operation Department of the TCN stated this in a statement issued by Clement Ezeolisah, assistant general manager, public affairs, TCN, in Abuja, on Tuesday, May 17. The statement explained that the drop in electricity generation into the national grid was because of operational challenges experienced by gas power generation companies in the country.

He said the drop in electricity generation was due to constraints in the thermal power stations which have prevented the generators from producing at optimal levels. He did not disclose the nature of these challenges but it was connected to the drop in gas supply to the plants.  Key pipelines conveying gas to power plants in the south have been vandalised and are undergoing repairs which the government said would be completed by the end of May.

However, Ezeolisah said all stakeholders in the power sector were working assiduously to achieve improvements in the system. The TCN expressed regret over the attendant inconvenience the low power generation has caused to homes and businesses in the country.

Meanwhile, the 11 electricity distribution companies have deplored the increasing revenue shortfall in the power sector, saying the liquidity crisis is threatening to undermine the electricity value chain and the ability of the operators to continue to serve their customers.

At the World Press Conference organised in Lagos, the Discos under the auspices of the Association of Nigerian Electricity Distributors, ANED, noted that despite the liquidity challenges, they have deployed 3,283,402 meters to customers in the last two years, thus reducing the metering gap in the country to 2.8 million.

Sunday Odutan, executive director, ANED, said the revenue shortfalls had affected the ability of the companies to make capital investments in metering, network expansion, equipment rehabilitation and replacement. “Industry shortfall is massive and growing, now about N300 billion. This is a cash liquidity crisis that threatens to completely undermine the electricity value chain and its ability to continue to serve its consumers,” Odutan said.

He identified gas pipeline vandalism as the major cause of low electricity generation, saying this has denied customers the needed power supply and also prevented the distribution companies from collecting sufficient revenues to maintain and improve their networks. “Gas pipeline vandalism leads to shortage of gas to power stations; shortage of gas leads to low generation. Low generation and poor transmission facilities lead to low distribution. Therefore, discos are not to blame for poor power supply. We cannot give what we don’t have.”

Odutan also identified theft of electricity, debts owed by ministries, departments and agencies, MDAs, and lack of access to foreign exchange as some of the serious challenges facing the Discos. He revealed that some customers bypass meters and connect themselves illegally, adding that the electricity industry cannot survive with the present level of theft in the sector.

According to him, the MDAs debts plus interest now stands at N93 billion, which is yet to be paid. “The ability of the industry to meet its service delivery obligations is severely constrained by the lack of access to foreign exchange.”

According to him, the companies have also embarked on internal restructuring and streamlining of operational costs to make them run more efficiently.

Operators have also initiated improved meter rollout strategies at the customer level and the interface trading points. The   Discos are getting better, accounting for the energy they receive, which will lead to reasonable estimated bills, he said. According to him, the federal government should honour the terms of the privatisation and also maintain consistency in regulations to ensure commercial viability of the sector. He also stressed the need for the Discos to be allowed access to foreign exchange.

The conference was attended by Anthony Youdeowei, chief operating officer, Ikeja Electric; Neil F. Croucher, managing director, Abuja Electricity Distribution Company, and John Donnachie, managing director, Ibadan Electricity Distribution Company.


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