Following debt owed Niger Delta Power Holding Company (NDPHC) Limited by the Transmission Company of Nigeria (TCN), the country may experience power cut in the total on-grid electricity generation Thisday has reported exclusively.
The report said the electricity cut maybe about 25 per cent being the percentage the NDPHC’s 7 power plants contribute to the current 3,400 megawatts (MW) electricity output. The plants are owed N58 billion by the TCN for electricity generated and supplied to the national grid but paid for.
The debts are reportedly split into two: legacy and post-Power Holding Company of Nigeria (PHCN) privatization debts with NDPHC describing the debt as “burdensome and worrisome” in one of the memos seen by Thisday.
N30,388,365,072 for legacy debt on energy supplied from January 1, 2011 to 31 October 2013, as well as N27,379,680,072 for debts incurred after the government’s privatisation of PHCN successor companies were stated as part of the breakdown of the debts.
The debt covered between January 2011 and December 2014 with a number of official correspondence between NDPHC, the Market Operations (MO) under TCN, Ministry of Power and the Nigeria Electricity Regulatory Commission (NERC) to reconcile and offset the debt.
In several memos seen by the newspaper, the Managing Director of NDPHC, James Olotu, said the debts were getting worrisome and could hinder the survival and growth of the company.
“In view of the huge outstanding debts by TCN on energy supplied, it is becoming critically difficult for NDPHC to meet her commitments and obligations to pay the Nigerian Gas Company (NGC) and her representatives for gas consumed, settle vital plant operations and maintenance costs, schedule plant maintenance, as well as meet our routine overhead needs” the MD was quoted.
He also stated that NDPHC’s budget for 2015 was hinged on the revenue it is able to generate from running its plants, adding that TCN’s debt was making it difficult for the company to stay afloat.
Just recently, te federal government announced a 50% reduction in electricity tariff or “NEPA bill” as it is popularly called in Nigeria.
The report said the electricity cut maybe about 25 per cent being the percentage the NDPHC’s 7 power plants contribute to the current 3,400 megawatts (MW) electricity output. The plants are owed N58 billion by the TCN for electricity generated and supplied to the national grid but paid for.
The debts are reportedly split into two: legacy and post-Power Holding Company of Nigeria (PHCN) privatization debts with NDPHC describing the debt as “burdensome and worrisome” in one of the memos seen by Thisday.
N30,388,365,072 for legacy debt on energy supplied from January 1, 2011 to 31 October 2013, as well as N27,379,680,072 for debts incurred after the government’s privatisation of PHCN successor companies were stated as part of the breakdown of the debts.
The debt covered between January 2011 and December 2014 with a number of official correspondence between NDPHC, the Market Operations (MO) under TCN, Ministry of Power and the Nigeria Electricity Regulatory Commission (NERC) to reconcile and offset the debt.
In several memos seen by the newspaper, the Managing Director of NDPHC, James Olotu, said the debts were getting worrisome and could hinder the survival and growth of the company.
“In view of the huge outstanding debts by TCN on energy supplied, it is becoming critically difficult for NDPHC to meet her commitments and obligations to pay the Nigerian Gas Company (NGC) and her representatives for gas consumed, settle vital plant operations and maintenance costs, schedule plant maintenance, as well as meet our routine overhead needs” the MD was quoted.
He also stated that NDPHC’s budget for 2015 was hinged on the revenue it is able to generate from running its plants, adding that TCN’s debt was making it difficult for the company to stay afloat.
Just recently, te federal government announced a 50% reduction in electricity tariff or “NEPA bill” as it is popularly called in Nigeria.
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