The Managing Director of the Niger Delta Power Holding Company of Nigeria (NDPHC), Mr Chiedu Ugbo, has revealed that a whopping sum of over N190 billion was owed the company for electricity generated.
He spoke at the Senate investigative hearing on Tuesday.
The investigative hearing entitled “Power Sector Recovery Plan and the Impact of COVID-19 pandemic was to set the legislative instrument in place for recovery of power in Nigeria.”
Ugbo said that the low remittances of electricity customers were posing a huge threat to operations of Niger Delta electricity.
According to him, the sum of over N190 billion was owed by electricity consumers as at 31st May 2020, adding the indebtedness covered government agencies and individuals
“As of May 31, over N190billion was owed to NDPHC for electricity generated from our power plants to the National Grid.
Breaking down the debt by customers, he explained:
Legacy debt period: 2011 – 2013 N24,488,365,072.
Interim Rule Period: 2013 – 2015 N6,796,473,564.
TEM (NBET) : 2015 – 2020 N281,101,92,728.
“Less payment to gas suppliers: N119,393.845,935.
“This amounted to a total of N192,992,895,429 owed NDLHC.”
The NDPHC boss further explained the regulatory challenges facing the company, revealing that the company has one of the lowest tariffs compared to other stations across the country.
“NDPHC’s tariff is fixed at N18.4 per KWh as against N24 per KWh for by other Independent Power Plants(IPPs).
He expressed concerns that gas was paid for at N306 to one dollar whereas the market rate is at N360 to one dollar, which he said, has led to endless disputes with indigenous gas suppliers to its stations.
Source: Daily Post