The managing director, Niger Delta Power Holding Company (NDPHC), Jennifer Adighije has said it is being owned about N600 billion by the Nigeria Bulk Electricity Trading (NBET) Plc and other bilateral entities.
Adighije in a statement on Sunday, said the debt is taking a toll on the operations of the power holding company.
She lamented the limited uptake of electricity from the market, which she said continues to weigh down operations.
“Gas supply challenges, transmission constraints as well as close to N600 billion debt being owed the company by Nigeria Bulk Electricity Trading (NBET) and other bilateral entities are hindering the company’s operations,” Adighije said.
The managing director said the new management has been proactive, restoring five turbine units at Calabar, Omotosho, Sapele, and Ihovbor plants.
She said the units, previously offline, now contribute an additional 625 megawatts (MW) to the national grid.
NDPHC currently has mechanically available generation capacity of about 2,000MW that is significantly stranded due to transmission constraints, gas supply and gas transportation limitations in addition to dwindling offtake by the distribution companies (DisCos),” Adighije said.
Over the years, according to the NDPHC, the “NIPP plants are utilised by the system operator to carry out primary frequency response, enabling power grid stability”.
“These ancillary services ought to be monetized in line with the grid code and industry regulations. However, NIPP plants are ordered to startup and shut down at the prerogative of the system operator without any form of compensation thus leading to low utilization of capacity and operational stress on the generating turbine units,” she said.“As you know, in accordance with the grid code, we are placed on restrictions for a number of reasons, from inadequate transmission grid availability – although this is being seriously addressed by the Honourable Minister of Power, Chief Bayo Adelabu – to low demand from the downstream electricity market.
“It is important to note that power generation is driven by demand, and therefore, if the demand isn’t made, the plants will not generate.
“In certain cases when the demand arises, there is inadequate dispatch corridor or wheeling capacity through the grid network.”
In spite of these limitations, she said the NDPHC continues to spearhead “transmission grid expansion plan and distribution network interventions to enable power generation to be delivered to the last mile underserved communities”.