Nigeria: Let’s Fix Power Sector Devoid Of Blame Games-APGC Tells Nigerian Gov’t

Power Generation Companies (GenCos) in the Republic of Nigeria have called on government agencies in the power sector to desist from engaging in blame game and put their heads together with the private sector to resolve the myriads of challenges in the sector to ensure reliable and quality power supply to the citizens.

The West African nation has been experiencing a power crisis for several years.

The situation has been compounded by the persistent collapse of the transmission grid operated by the Transmission Company of Nigeria (TCN).

Last week, TCN sought to absorb itself of blame and rather blamed the power sector challenges in the country on low generation from the power generation companies.

In a sharp rebuttal, the Association of Power Generation Companies, at a press conference addressed by its Executive Secretary, Dr Joy Ogaji, urged TCN to stop the blame game else the power sector would continue to suffer.

“Gencos have been under the excruciating impact of several factors but have in an uncommon show of patriotism and resilience continued to generate power to meet the genuine yearnings of Nigerians as well as support to the stated objective of the Federal Government to make sustainable electricity available to Nigerians,” she said.

According to the group, lack of liquidity caused by the huge sums owned Gencos by the Nigerian Bulk Electricity Trading Pic (NBET) has more than ever before continued to frustrate the Gencos and kept them incapable of meeting their obligations which are extremely necessary to keep their power plant running and make capacities available while observing required Health Safely and Environment (HSF) Standards.

Again, APGC pointed out that 80 per cent of most of the electricity generation in Nigeria comes from gas-fired turbines, and natural gas is the feedback or fuel of these unending gas-related challenges which inhibit optimal power generation in the country.

To address this challenge, the group pointed out the unenforceable state of the contracts in the NESI and the broken cycle of payment assurance which has made the enforcement of parties to the industry agreement impossible.

They furthermore stressed that since 2013, when the power sector was partially privatised to date, weak and inadequate infrastructure (transmission and distribution) have continued to render inconsequential, a significant portion of the generation capacities.

They said that while Gencos are committed to increasing generation capacities to 13,000MW across the country, no corresponding investment and improvement was made at the transmission and distribution end.

Members of the Nigerian power generation companies pointed out that the restriction or redefinition of available generation capacity, a major index of the MYTO to only what the system can take or pay, is a major aberration.

“This is because the Gencos worked with available capacity as the basis for determination capacity payments,” the group said.

The group said that the government must stop playing to the gallery and rather focus on addressing the real issues of NESI, asking if the reported low generation of the past few weeks, which in their view is only symptomatic of more fundamental issues of the power sector, is focused on and addressed from a narrow perspective of blaming the Gencos for same, then, the solution cannot be found.

APGC concluded by stressing that they have consistently demonstrated their commitment to Nigeria, Nigerians and the power sector and “We have continued to make huge sacrifices and bear inestimable losses in our bid to see to a viral and thriving power sector in Nigeria”.

Source: https://energynewsafrica.com