4,724.76MW Stranded Power Leaves GenCos With N27.14bn Losses

With Electricity Distribution Companies, DisCos, unwilling to offtake available power, Generation Companies, GenCos, have disclosed that they lost N27.14 billion in January and February 2024 after 4,724.76MW capacity was left stranded.

Data posted by the Association of Power Generation Companies, APGC, showed that in January while available power generation capacity was 6,444.05 Megawatts actual average daily generation was 4,293.86MW, leaving 2,150.37MW of power stranded at a loss of N13.04 billion.

In February, available power generation capacity was 6,384MW while actual average daily generation was 3,809.96MW leaving 2,574.39MW of capacity unutilised at a cost of N14.10 billion.

In a note obtained by Vanguard, the CEO, APGC, Dr. Joy Ogaji explained that contrary to the narrative in the public domain, power generation was not the problem in the sector.

She claimed that GenCos were being paid only 30 percent of their invoice, wondering how the plants were expected to operate efficiently in such an environment.

“The narrative out there has been that there is not enough generation. But has anyone bothered to check the NSONG (the portal for generation and distribution data managed by the National System Operator) to see if the declared capacity and availability was fully utilised ever in the history of our power consumption?

“Then what is the discussion around remittances or payments? Can 30% of half (energy without capacity payments) your invoice component sustain any business? Given that demand drives production. Are we really ready for optimal supply?, she queried.

Writing on the issue, the President, Nigeria Consumer Protection Network, Mr. Kunle Olubiyo bemoaned the present poor state of power supply in the country, stressing that the “situation is getting worse with energy crisis in Nigeria.

“Nobody sleeps with light (power) again and the hot weather is not helping matters. The Federal Government needs to resolve the issues with pre-privatisation exercise, legacy debts and post pivatisation era debts to gas producers/gas suppliers”.