Poor Power Generation: GenCos Claim N1trn Debt From FG

The generation companies, yesterday, disclosed that the Federal Government, through its agency, Nigerian Bulk Electricity Trading (NBET) is owing it over NI.644trillion, a situation, they claim, has incapacitated their operations.
The Executive Secretary and the spokesperson of the generation companies (GenCos), Dr Joy Ogaji, who disclosed the figure when he spoke with newsmen in Abuja, also said that NBET was owing stranded available capacity from 2015 till date.
She added that the government has never paid them subsidy.
“Rather, what they paid was the part-payment of what it owes the GenCos”.
According to her, the N701billion the government paid was just to offset 80per cent energy losses from 2017 to 2018.
“From 2015 to 2016, there is a big chunk of money being owed us. From that amount, the N701billion was used to cover 80per cent invoices of 2017 and 2018, and what it covered was energy only.
“If you understand the difference between energy and capacity, you will be able to understand that when the GenCos came on board, their Power Purchase Agreement (PPA) was capacity and energy. NBET contracted all the GenCos’ capacity. And the contract says we should ramp up capacity within five years.
“From 2013 till date, power has been stranded.
“From 2015, we had 6.616megawatts available, and 3,606 was taken or utilised while 3,010 was stranded or unutilised and the capacity payment loss was N214.93billion
“For 2016, we generated an average of 7,040megawatts. Out of the figure, only 3,212 was taken or utilised. The stranded or unutilised capacity amounted to 3,828 and the capacity loss was N273.32billion.
“In 2017, we made 6,871megawatts available when the Niger Delta boys tampered with the gas pipeline. That’s why power reduced from 7,040 to 6,871.
“Out of that, only 3,599megawatts was taken and 3,312 was left stranded. That is, the capacity payment loss came to N236.47billion.
“For 2018, we made 7,506megawatts available. Out of that, only 3,808 was taken or utilised while 3,699 was not taken or stranded or unutilised. And the capacity loss from there was N264.08billion.
“In 2019, we made generation up to 7,381megawatts. Out of that, only 3,782 was taken. The stranded capacity was 3, 599megawatts. The equivalent in terms of capacity loss was N256.97billion.
“In 2020, generation rose to 7,993 megawatts, (nearly 8,000) and what was utilised was 4,050megawatts. A difference of 3,742megawatts was stranded or unutilised. The capacity payment equivalent was N266.10billion
“In 2021, 6,336.51megawatts was available and what was utilised was 4118.98megawatts. What was stranded was 2245.50megawatts. The capacity payment loss was N120.25billion.
“In January, this year, we had 613.99megawatts. The average utilised capacity was 4,122.96megawatts. Stranded was 1981.03megawatts. For only January, we recorded N12billion.
“Currently, unpaid available capacity we are owed by NBET is N1,644.15trillion”, she said.