LAGOS – Nigerians maybe soon face more blackout as the management of Egbin Power Plc is considering shutting its operation due to inadequate gas supply, inefficiency in operations of the Transmission Company of Nigeria, (TCN) and the sum of N110billion owed the company by Federal Government through Nigeria Bulk Electricity Trading PLC (NBET) and market operator.

With 1,320 MW installed capacity,the station is the largest power generating asset in the country.

Managing Director of the company,Mr.Dallas Peavey,who made the threat at a press conference yesterday said Nigeria risked another blackout if the issues raised were not addressed in few weeks.

He lamented that the huge debt had unsettled his company in recent time,adding:“we owe the gas companies and have others like our technical partners (KEPCO) to pay, and importantly our lenders, the banks.

“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.’’

Peavey, said the company had reached 1,100 MW while the installed capacity is 1, 320 MW, adding that the grid could not take the power due to hitch within the Transmission Company of Nigeria system.

“We just got paid for the month of December, 2016, three months later and we were only paid a paltry 28 per cent of the total 100 percent of the verified and accepted invoice for that month. That is how the outstanding debts kept accumulating for three and half years now.”

He explained that these unbearable business operating circumstances and conditions would force the company to shut down any moment.

“That is the simple but bitter truth. Let me be honest, if Egbin fails, it’s going to be dark as Egbin provides close to 30 percent of Nigeria’s power, so let the required intervention be completed and urgently too.

“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,‘’ Peavey said.

http://www.energywatchng.com/egbin-power-plant-threatens-shutdown-operations-n110bn-debt/

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