Electricity generation companies
have threatened to shut down power plants across the county if the federal
government fails to intervene in the challenges troubling them.
In a statement on Monday, Joy
Ogaji, executive secretary of the Association of Power Generation Companies
(APGC), the umbrella body for the GenCos, said the decline in available
generation is due to various challenges experienced by its members in the electricity
market.
Ogaji said the challenges include gas constraints,
on-going maintenance of power plants and low demand by electricity distribution
companies (DisCos).
“Available generation capability
experienced a drop due to various factors such as Gas constraints, on-going
maintenance by some gas suppliers and Low load demand by Distribution Companies
(DisCos) which resulted in reduced generation or outage of some power plants,”
the statement read.
“For instance; Afam power Plc
(Afam VI Gas/Steam),GT12, 13 and ST10 power plants were shut down for a period
of about 16 days due to a planned maintenance that was carried out by the gas
suppliers on their facilities. Although Afam power Plc was duly notified about
the maintenance, it resulted in a reduction of Afams available generation
capability from about 490MW to 0MW.
“Also within this period, most of
the NIPP’s suffered from various gas constraints, for example Alaoji NIPP,
Sapele NIPP, Olorunsogo NIPP, Omotosho NIPP, etc. Some of the companies’ generation
capability dropped to 0 due to the outage of their power plants which was as a
result of gas constraints. Case in point was Aloaji NIPP whose supply was cut
off by their gas suppliers due to their inability to pay for their gas.
“Jebba Power plant generation
capability reduced by about 110MW to 360MW due to low load demand. This
reduction demand was also suffered by Egbin Power plant and FIPL-Omoku.
“The decline was not an act of
rebellion by the GENCOS neither was it deliberate but was beyond their control.
It can be traced to the various challenges experienced by the GENCOS in the
electricity market such as liquidity issues, power rejection by the DisCos and
Gas constraints due to the sorry state of the market.
“This should serve as a wake-up
call to the federal government to the on-goings in the industry with regards to
the GENCOS and if the actions are not taken by the necessary agencies, GENCOS
will be forced to shut-down business.”
In August 2018, the GenCos
threatened to shut down plants over the inability of the Transmission Company
of Nigeria (TCN) to transmit available volume of electricity generated into the
national grid.
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