Gencos highlight issues with Nigeria’s power sector, call on FG to divest 40% shares in Discos

Executive Secretary, Association of Power Generation Companies, Joy Ogaji, in a recent interview with The Guardian explained the key challenges that have left the power sector hamstrung and which need to be urgently addressed.

She noted that one of the key issues was data; “Resolving the liquidity crisis is not rocket science. One of the solutions is data. We don’t have enough data in the market, and our regulators go to operators for data. What do you expect in such a situation when the person who is supposed to monitor the market calls the operators for data. The regulator needs independent data to benchmark and monitor the operators. But in a situation where you call me to ask how much I have generated and I give you a figure and you don’t have an independent means of verifying that figure, then a lot can happen.”

She also noted that there was a need for a more transparent billing and collection system. She said; “On the one hand, consumers claim that they are paying, while on the other hand DisCos are saying that they are not. When two people are engaged in a controversy, the best way is to bring in an independent body to bring neutrality. We need a situation where all the stakeholders will see how the money is coming in. ”

She went on to say that the government needs to divest its 40 per cent share and introduce new and experienced people into distribution in order to inject more expertise into how distribution companies are run. “Currently, government doesn’t understand how the distribution companies work. Most of government representatives are only on the board, they don’t appear, but stay in their hotels, get their allowances and submit reports that they know nothing about,” she said.

She noted that Government needs to urgently improve the distribution and transmission network if it is really serious. She said; “As you know, power cannot be bottled for sale, but should be consumed as it is being generated. Government asked us to ramp up generation capacity without ramping up transmission and distribution capacity to collect what we are generating so we are losing because they pay only for what they collect, and our machines are subjected to generate below level. A generator that has capacity to generate 450mw is made to generate 150mw. Within this process, the gas plants lose as much as 20 per cent of gas.”

 

Source: The Guardian

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