Egbin Power Plant may be Shut Over Rising Debt
Days of darkness when the people would be without power looms as the biggest supplier of electricity into the National Grid threatens to shut down over huge debts owed it.
The Managing Director and Chief Executive Officer, Egbin Power Plc, Mr. Dallas Peavey Jr., submitted that the plant might be forced to shut down if the huge debt situation remain unresolved.
The MD said, “We are owed N86bn and we in turn owe the gas suppliers approximately N30bn. We think if this is not addressed in the next couple of weeks, we are going to take the hard look at shutting down, because we can’t afford running it any longer. That’s a dire prediction.”
Generation from Egbin was said to be limited to 383MW on Wednesday due to gas constraints, compared to 1,085MW on March 15, according to industry data obtained by our correspondent. The plant hit a record low of 246MW on last Saturday from 425MW on Friday.
The Nigerian Electricity Market is currently characterized by illiquidity, an economic situation where the Discos who have been supplied electricity are not able to return 100% of the monetary value of electricity delivered to them. The return rate according to industry watchers has been well below 40%. That means that the Generating companies as well as the ancillary service providers like TCN, System Operator and Market operators can not get commensurate payments for their services. The situation is becoming critical.
Energy Business learnt that officials of the Office of the Vice President, Ministry of Power, the Regulator, NERC have been having series of meetings with the stakeholders to resolve the situation.