Power generation companies in the country, under the auspices of Association of Power Generation Companies have decried the loss of over N1.66 billion over seven years.
The loss was attributed to non-payment for unused power.
Executive secretary of the association, Dr Joy Ogaji, disclosed this at a stakeholders’ meeting on the Regulators Monitoring Programme on electricity organised by the Wole Soyinka Centre for Investigative Journalism.
She explained that deemed capacity is the capacity that should have been delivered, but for the system operator’s instruction to a Genco to derate or reduce its capacity to achieve grid balance and stability.
She said 34.20 percent (2,117.86MW) of the Gencos’ generation capacity are currently stranded, compared to 48.03 per cent (3,742.43MW) in 2020.
Ogaji said the available generation capacity dropped to 6,192.34 megawatts this year from 7,792.51MW in 2020 while the average generation capacity rose to 4,120.96MW from 4,050.07MW.
She said the Gencos recorded a capacity payment loss of N151.22 billion in 2021, N266.10 billion in 2020, N256.97 billion in 2019, N264.08 billion in 2018, N236.47 billion in 2017, N273.32 billion in 2016 and N214.93 billion in 2015.
Under the current arrangement, since the unbundling of the electricity sector, government-owned Nigerian Bulk Electricity Trading Plc buys electricity in bulk from Gencos through Power Purchase Agreements and sells through vesting contracts to the distribution companies, which supply the same to consumers.
“The generation companies are willing to make that power available but the system is not able to take it. So whether or not it is because Nigerians are not taking the power or they are not able to pay or we are having infrastructural challenges is what the government needs to investigate and resolve because this is eight years post-privatisation.”
According to her, the installed generation capacity at the Gencos’ power stations is about 13,427MW.
“So, if we are able to utilise what is already available, which is about 8,000MW, then it will give a boost to generation companies to bring up the rest. But for eight years, we are just remaining within 3,000MW-3,500MW and a maximum of 4,000MW. We are not making progress.
“The generation companies also have expansion capacity to double that 13,427MW. What is going on is not giving them an incentive to boost it, and their business is, as it were, stagnant. This is in addition to not being paid for what has already been utilised.”
Ogaji put the average annual growth in the utilisation of available generation capacity at 100MW.
The Executive Director/Chief Executive Officer, WSCIJ, Motunrayo Alaka, said the REMOP was conceived as a media initiative geared at following and reporting activities of government agencies, ministries and institutions that have the responsibility to perform oversight functions on particular sectors and or issues.
