Darkness Looms As Egbin Set To Shut Down Over N110bn Debt
source: http://www.eyesoflagos.com/2017/03/darkness-looms-as-egbin-set-to-shut.html

The management of Egbin Power plant has issued a strong warning that it will shut down operations due to non-settlement of N100billion debt. The company also said inadequate gas supply and inefficiency in operations of the Transmission Company of Nigeria (TCN) are affecting its operations.
Managing director, Egbin Power Plc, Mr Dallas Peavey yesterday in Lagos warned that the country is heading towards another blackout by next week as liquidity, poor transmission and gas supply issues stand against its operations.
Peavey speaking on the dropped in generation at an interactive session with journalists yesterday said the plant was being forced to gradually shutdown due to adverse effect of grid instability that endangers its turbines.
He said inadequate gas supply to generate at optimal capacity as well as the huge debts owed the company by federal government owned Nigerian Bulk Electricity Traders (NBET) and Market Operator are posing serious threat to the plant operations.
According to him, Nigeria’s electricity supply may get worse in the coming weeks as liquidity, transmission and gas supply issues are threatening the operation of its biggest power station, Egbin.
“Egbin power plant is one of the biggest single power generating stations in Africa, with an installed capacity of 1320 MW consisting of 6 units of 220MW each.
“Following the conclusion of the government’s privatization exercise in November 2013, the consortium formed by the partnership between New Electricity Distribution Company and the Korean Electric Power Corporation (NEDC/KEPCO) acquired Egbin Power plc,” he said.
He said the effect of the debt has become worse for the company owing to the fact that it is owed N110billion. He said: ‘‘We owe gas companies, technical partners (KEPCO) and our lenders. We have made massive investments in making the plant readily available to generate electricity sustainably but unfortunately, we can’t break even due to the gross inefficiency in the value chain.
‘‘The government guarantees to pay us for every megawatt we generate and sell to NBET but they have not done that. We just got paid for the month of December, 2016, three months later and we were only paid a paltry 28 per cent out of the total 100 per cent of the verified and accepted invoice for that month.
‘‘That is how the outstanding debts kept accumulating for three and half years now.’’ He also said that eventually these unbearable business operating circumstances and conditions will shut us down any moment if it persists. “That is the simple but bitter truth. On transmission the company had reached 1,100 MW while the installed capacity is 1, 320 MW.
‘‘The grid could not take the power because of the capability issues within the Transmission Company of Nigeria system. We are constrained and limited to generate about 350MW daily due to both TCN system operations and inadequate gas supply issues.
‘‘So, 70 per cent of our output is lost because available power can’t be evacuated. When you get good news from TCN that you can increase your generation, we will be faced with not enough gas and when there is gas, you have TCN issues. So, you have one, you don’t have the other.
“Let me be honest, if Egbin fails, it’s going to be dark as Egbin provides close to 30 per cent of Nigeria’s power, so let the required intervention be completed and urgently too, however, the Egbin turbines are ready to light up Nigeria,” Peavey said.

I will not laugh as Ezekwesili admonished because this is a national issue that needs urgent attention..

The issues identified are a)Liquidity which can be solved by government paying part of the funds ..

b) Gas supply: Ibe Kachikwu should rise up to the challenge and ensure repairs are carried out on key gas facilities to ensure smooth operations of electricity generation companies(GENCOS).

c) Transmission should be handled and sorted out by Egbin power plant.

Minister of darkness
Over to you

the failures of this country is not funny anymore. please, how much will it cost to setup other alternatives to gas power generation system. or maybe the main problem is having corrupt leaders who will embezzle the money meant for the project. I pity this country.

Nothing new. We have been living without electricity since the beginning of Nigeria. Hi

2019 where art thou?

This man must be a wailer in one of the villages that is not part of Nigeria...... Sarki

Hmmm naija which way are we headin to na?

It's funny when some set of individuals expect Government bail out when they collect huge power bills from citizens. l

I think privatization should be revisited, some companies got more than they can manage or fund.

The 'cronnies' given these power set up can't do the business efficiently.

alienvirus:
Nothing new. We have been living without electricity since the beginning of Nigeria. Hi

See them

Which darkness are they talking about is it the one that is already existing or is there any other one

Such news does not frighten me because for four days now I have been in darkness so no big deal

Privatization of the Power Stations is the worse mistake the country made.. Transmission can be privatized but not generation, who does that?...
Our Unlearned and Selfish leaders have failed this country...
Enough of these old folks ruling us, they don't know about the current trend in technological development, they are unlearned! In leadership, sometimes experience don't count, knowledge does

This one na serious issue

Atiku2019:



2019 where art thou?

He is coming to waste his money and time


A NIGERIAN that vote for any of those pass leaders
Is the agent of darkness

Lesson learnt voting for Buhari, still regretting it

It is not a new thing in Nigeria anymore, we have been staying in the dark for a long time

Generators for life!

The current government seem quite clueless concerning the power issue.Even the minister for power was lamenting that he does not know exactly where the problem stems from; its either today the Gencos blame the TCN for not being able to evacuate electricity,or tomorrow,the TCN blame the Discos for rejecting power.The gas supply seem to be epileptic,and we dont even know the capacity of the national grid,all the while the people in power keep telling us that Nigeria has an installed capacity to generate 10,000MW of electricity,yet we are in darkness.Confusion everywhere.
APC is really not a serious party,its as bad as PDP.

[s]

EVarn:
The current government seem quite clueless concerning the power issue.Even the minister for power was lamenting that he does not know exactly where the problem stems from; its either today the Gencos blame the TCN for not being able to evacuate electricity,or tomorrow,the TCN blame the Discos for rejecting power.The gas supply seem to be epileptic,and we dont even know the capacity of the national grid,all the while the people in power keep telling us that Nigeria has an installed capacity to generate 10,000MW of electricity,yet we are in darkness.Confusion everywhere.
APC is really not a serious party,its as bad as PDP.

[/s]

It is a legacy problem bequeathed by PDP, improper privitization and other corrupt process is what created this problem.

vedaxcool:
[s][/s]
It is a legacy problem bequeathed by PDP, improper privitization and other corrupt process is what created this problem.

Yes I know,but the current administration needs to develop a coherent template for solving our power issues,inherited or not; the Gencos and Discos are complaining about being owed hundreds of billions by government agencies.It is only logical that they demand payment,they are private entities afterall.The government should seriously look into it,because how do we expect them to be running at a loss for years now?.We should also look into gas supply and power transmission,they seem to be major sources of complaint.
2018 is the last governing year,and there hasnt been any meaningful progress in any sector of the Nigerian system till date.

Why is the govt so insensitive to critical issues like this

which kind joke b dis? abeg mk i go sharply charge my phone and power bank, aw i wish say i fit charge my generator too

'Any serious government will make power constant within 6 months' by fashola, where is he? Abi 6 months never pass?.

I didn't expect any thing more than blackout since buhari make a lawyer minister of power.

I think buhari should invite Prof. Barth Nnaji & give him minister of power, or any other person with power industry experience.

Its now fashola know that is easier said than done.

vedaxcool:
[s][/s]

It is a legacy problem bequeathed by PDP, improper privitization and other corrupt process is what created this problem.

its a big shame that APC is confuse & don't know what to do next on power.

PDP at least solved one out of three major problems the industry are facing.
That is enforcing the Gencos to revive their turbine like egbin, jebba, shiroro and other unlike before egbin unit six is down and remaining 5 need overhauling but gej forced them to revive their units.

Gej at a point paid some of the depts old NEPA own NGC.

But its like the remaining two major problems are bigger than APC as fashola keeps running round the problem.

[s]

9jabull:


its a big shame that APC is confuse & don't know what to do next on power.

PDP at least solved one out of three major problems the industry are facing.
That is enforcing the Gencos to revive their turbine like egbin, jebba, shiroro and other unlike before egbin unit six is down and remaining 5 need overhauling but gej forced them to revive their units.

Gej at a point paid some of the depts old NEPA own NGC.

But its like the remaining two major problems are bigger than APC as fashola keeps running round the problem.

[/s]

When you can say a word of truth let me know.

EVarn:
Yes I know,but the current administration needs to develop a coherent template for solving our power issues,inherited or not; the Gencos and Discos are complaining about being owed hundreds of billions by government agencies.It is only logical that they demand payment,they are private entities afterall.The government should seriously look into it,because how do we expect them to be running at a loss for years now?.We should also look into gas supply and power transmission,they seem to be major sources of complaint.
2018 is the last governing year,and there hasnt been any meaningful progress in any sector of the Nigerian system till date.

Eventually a drastic decision will be taken, the criminal privatization that gave companies who had nothing to offer must be looked into.

Eglin produces over 1000 MW but can only wheel out 350 MW due to rejection by the thieving Discos the watch of Fashola . Fashola has to to stop energy fraud being perpetrated by the discos immediately by forcing them to accept
Over 80 percent of what ever the generation companies throw at them whether or not they use it or not ..

vedaxcool:
[s][/s]

When you can say a word of truth let me know.

which of them is lies?
pin point which & which is lies?

Overhauling was carried out in egbin by Korean power services from 2014 DEC. to 2015 after election. Google it that was when they revive unit 6 that has been abandoned for years.
Egbin even borrow money from their bank to carried out the overhaul.

kainji, jebba, shiroro did same too

Gej paid Dept's owned by old NEPA Google it or somebody else should help us Google it.

what major power problem has APC solved for 2 years now?.

fashola should resign or buhari should split the ministry and make those with experience in the sector minister.

Argue with facts

[s]

9jabull:


which of them is lies?
pin point which & which is lies?

Overhauling was carried out in egbin by Korean power services from 2014 DEC. to 2015 after election. Google it that was when they revive unit 6 that has been abandoned for years.
Egbin even borrow money from their bank to carried out the overhaul.

kainji, jebba, shiroro did same too

Gej paid Dept's owned by old NEPA Google it or somebody else should help us Google it.

what major power problem has APC solved for 2 years now?.

fashola should resign or buhari should split the ministry and make those with experience in the sector minister.

Argue with facts

[/s]

I don't argue with liars

vedaxcool:
[s][/s]
I don't argue with liars

Where is your evidence to prove that i lied?9 not just canceling my post.