Nigeria loses $29.3b yearly to erratic power supply - The Nation Newspaper

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Nigeria loses $29.3b yearly to erratic power supply

The Electricity Generation Companies at the weekend said the country loses $29.3billion yearly to low supply resulting from load shedding and inadequate facilities.

Ogaji, a lawyer, also sought a strict regulation of the transmission and distribution chains of the Nigeria Electricity Supply Industry to compel the distribution companies to remit the revenue they collect from their customers to the market operator. Justifying Federal Government’s continued funding of the GenCos despite the privatisation, she said the government intervention is “because investment on generation is at the instance of the off-taker . Also because they have kept to the terms of their contract with government’’.

She said NESI has huge potential, but yet to demonstrate sustainable returns to investors across the electricity supply value chain. “The first principle being that while energy flows from the left to the right supplier to the fuel transporter , to the power generator , to the power transmitter , to the power distributor and then to our homes or industry/commercial enterprises. The payment/money for the energy is expected to move from right to the left.

Ogaji said GenCos increased available generation capability was not translated to corresponding increase in power supply to consumers, so consumers believe that the system has failed.She said: “As investors, GenCos are worst hit in this electricity market logjam. They generate power and the power is consumed and not paid for. The Transition Electricity Market regulation betrayed GenCos.

 

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