Power generation companies in Nigeria have lamented loss of N1.66tn in seven years on account of non-payment for unused power in the country.
Executive Secretary of Association of Power Generation Companies, the umbrella body for the Gencos, Dr Joy Ogaji, who announced this at a stakeholders’ meeting on the Regulators Monitoring Programme on electricity organised by the Wole Soyinka Centre for Investigative Journalism,said the available generation capacity dropped to 6,192.34 megawatts this year from 7,792.51MW in 2020 .
She said the average generation capacity rose to 4,120.96MW from 4,050.07MW.
She said 34.20 per cent (2,117.86MW) of the Gencos’ generation capacity are currently stranded, compared to 48.03 per cent (3,742.43MW) in 2020.
According to her, the power generating companies recorded a capacity payment loss of N151.22bn this year, N266.10bn in 2020, N256.97bn in 2019, N264.08bn in 2018, N236.47bn in 2017, N273.32bn in 2016 and N214.93bn in 2015.
She also spoke on the stranded generation capacity in the country.
She said:“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 government needs to investigate and resolve because this is eight years post-privatisation.”
She said installed generation capacity at the Gencos’ power stations is about 13,427MW.
She said, “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 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 given 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.”
