Dallas Peavey, the Chief Executive Officer, Egbin Power Plc, has said the company is highly constrained by more than N86 billion debt owed it by the Federal Government.

Mr. Peavey made this known in Lagos on Saturday during the company’s scholarship award programme to schools within Ijede community in Lagos State.
He appealed to the government to pay up the debt to enable it to carry out its operations.
He also said gas supply had been a major challenge to power generation.

“We have a total generation output of 1,320MW but currently we are generating just 425MW which is 30 per cent of what we should be generating,” Mr. Peavey said.
He said the company was considering other sources of power generation that would complement gas, such as Low Pour Fuel Oil, one of the products in the fractional distillation of crude oil.

According to him, right now the major challenge confronting the plant is gas and the company does not know what the future has for the power station.
“Another big problem is that of over N86 billion being owed by Federal Government on energy produced to the national grid in the last six months.

TooNoisy:
Hmmmn,

The entire power industry may soon implode. Jonathan's privatisation was very poorly done. The assumptions used were wrong and it was more of a scam than anything else.

However, Fashola has taken too long to even understand the issues. He should never have been given power. Power needed someone who really understands the industry and could begin work on day one. Not someone like Fashola who needed six months to understand the issues and has to be guided.

My view is that the privatisation has to be done afresh!

989900:
Gov't should pay jor.

Exploring alternative fuel sources for the plant would be a good one.

rildwanullahi:
like what, the plant has gas and steam turbines not diesel or petrol It is a gas fired power plant not a gigantic generator house

DaGC:
In just 6months?

Funny enough, Govt dont want to owed excise duties, tax etc.... hypocrisy

989900:


Read the article.

rildwanullahi:
am replying you not the article

EazyMoh:
Hmmm government is the best and at the same time worst client. God will see us through. But does the debit accumulate this much, isn't the power sector supposed to be private sector driven?

leahcimzil:

lol it's from past governments too man. Did you think the debts accumulated during the previous administration automatically becomes settled once they exit government?

DaGC:


The OP quoted the CEO saying the company is being owed N86B for energy supplied in the past 6months

rildwanullahi:
like what, the plant has gas and steam turbines not diesel or petrol It is a gas fired power plant not a gigantic generator house