National shame as Nigeria’s electricity generation slumps to 1,360mw

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    • As DisCos settle N9.6bn out of 42bn July energy bill – NBET
    • ‘Sector records N20b loss in one month’

    Despite recent economic reforms and the economy exit from recession Nigeria’s power generation has dropped to lowest generation of 1,360 megawatts (mw) on October 15, 2017, according to the daily generation report from the Transmission Company of Nigeria.

    Nigeria lost over N20 billion to reported frequency management constraint due to loss of DisCo feeders and gas constraint, data from Nigeria Electricity Supply Industry (NESI) shows.The country’s electricity generation had fluctuated between 3,500mw and 4,500mw in the last few months before the latest development.

    This is a far cry from the country’s installed capacity of 11,165.40mw and national peak demand forecast of 19,100mw.According to TCN, although, the country’s current transmission capability has increased from 5,500mw to 7,000mw, peak energy generation ever attained remained 5,074mw, which was recorded in February last year

    For example, NESI explained that on October 11 2017, average power sent out was 3,655 MWh/hour (down by 123.98MWh/h).According to NESI, the reported gas constraint was 410mw; reported line constraint was 0mw; frequency management constraint due to loss of DisCo feeders was 1993.5mw.

    NESI disclosed that the power sector lost an estimated N1.149 billion on October 11 2017 alone.Reviewing the progress made in the sector in the last one month, Minister of Power, Works and Housing, Babatunde Fashola, said the sector has recovered 100mw from the damaged Afam IV Power Plant, which he recalled, had been inoperative since January 2015.

    The Minister also reported that the TCN has energized the Jebba-Kainji 2nd 330KV line and the 2nd Ajaokuta-Abuja 330KV line both of which were inoperative since 2015 while in the last one month, “specifically on Wednesday 4th October 2017”, the Federal Executive Council has approved the verified sum of Federal Government MDA debts of N25.9Billion, and its payment by setting it off against the debts owed by the DisCos to the Nigerian Bulk Electricity Trader (NBET).

    MEANWHILE the Nigerian Bulk Electricity Trading Plc (NBET) said the 11 Distribution Companies (DisCos) only paid N9.6 billion for energy invoice of N41.96 billion supplied to them in July 2017, leaving a deficit of N32.3bn.

    In its routine market payment update published yesterday, NBET said 3,907 megawatts hour (mwh) of electricity was generated in July while 3,646 mwh was produced in June.

    The DisCos got 92.7 per cent of the generated energy while the international customers, including Benin and Niger republics, got the remaining 7.28 per cent in July.

    In June, the international customers got 8.57 per cent, while the larger quantum of 91.43 per cent went to the 11 DisCos, it said.

    However, the DisCos remitted a higher amount of N11.23bn in June from an invoice of N40.81bn. It was N1.63bn higher than the remittance in July.

    While a N55m late payment was received in June from some of the DisCos, for May; NBET said the late payment recurred again with N1.196bn received for June, but paid in July.

    According to the intermediary agency, which collects money from the DisCos and pay the Generation Companies (GenCos), the performance rate went lower in July. While it was 27.67 per cent in June, payment performance dropped to 25.80 per cent in July.

    To the GenCos, NBET paid N11.29bn from an invoice of N44.64bn in June; the GenCos also received N10.825bn from invoice figures of N45.25bn in July. The deficit and unpaid energy charge to the DisCos remains N67.77bn for both months, Daily Trust analysis shows.

    In June, the top three performers were Benin, Eko and Ikeja DisCos who paid up to 40 per cent of their energy invoices. While Benin DisCo led with 41 per cent in July, Eko and Ikeja DisCos maintained their 40 per cent performance rate.

    Kano and Yola DisCos did not remit any money in June, even when they ought to pay N2.88bn and N1.35bn respectively. The list of zero performers grew to three in July, with Port Harcourt (N3.5bn), Kano (N3bn), and Yola (N1.4bn) DisCos not remitting a total of N7.9bn, the record shows.

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    Godwin Okafor is a financial journalist, Internet Social Entrepreneur and the Founder Naija247news Media Ltd He has over 16 experiences in journalism, which cuts across traditional and digital media. He started his journalism career in Business Day, Where he was a senior editorial graphic artist, before he left to start Naija247news, An Online Financial Newspaper in 2010. He has won series of awards and he is the chairman of Emmerich Resources Limited, the publisher of Naija247news.com and also sits on the board of Students In Business Awards, (SIBA).

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