Transnational Corporation of Nigeria Plc (Transcorp)’s power subsidiary Transcorp Ughelli Power Plc (Transcorp Power) today detailed the key issues affecting the ability of most Generating Companies (GENCOs) to operate at peak levels and increase available capacity.
The issues they highlighted are as follows:
1. Since privatization there has been delayed and sometimes partial payment for the electricity generated. This has led to the industry owing Transcorp Power about N25 billion. Other GENCOS are also owed.
2. •In the lack of a cost reflective tariff that would most ideally generate revenue for the power generated, as tariff of generating companies have not been reviewed since May 2014 despite the major cost component that drives the tariff such as forex rate, inflation and Gas prices has increased significantly since the last review.
3. Lack of predictability as the activation of contractual agreements such as the Power Purchase Agreement which is a key ingredient of the TEM are yet to be effected, thereby creating uncertainty in the market in relation to cashflow planning and investments
4. Transcorp Power’s Ughelli Power PlantAbout 35 – 40% of available capacity of the plant has been lost in the current year as a result of 3rd parties actions such as gas outages /quality and incessant instructions from the National Control Centre to reduce load due to inability of transmission to wheel the power
5. NCC has begun issuing regular directives to GENCOs and DISCOs decreasing the amount of power that is generated and sent out. Last quarter when lack of gas supply meant that, Transcorp Power had available 650MW, NCC rejected more than half of that; and DISCOs were ordered to go as low as 200MW
NIGERIA WE HAIL THEE!!!
Any time I read about generating and distributing electricity in Nigeria. I cannot help crying because it pains to the marrow of my bone, that MOST NIGERIANS HAVE BEEN MENTALLY CHEATED BY MOTHER NATURE. I cannot help laughing for the same reason either because it is so RIDICULOUS. A nation of about 170 million inhabitants does not know how to put their heads together and find a long lasting solution. Nigeria is the sixth or seventh world largest exporter of oil with abundance of natural gas from which power can be generated. It is shameful that some idiots from the government have the guts and shameless brazen face to come to the public and blame the failure on vandalism.