16 May 2014, Abuja – The Nigeria Electricity Regulatory Commission (NERC) has reduced 60 per cent capacity charge for the Electricity Generation Companies (GENCOs) due for this month following losses of revenue in the industry.
The Managing Director, Egbin Power Plant, Mr. Kenneth Uzoigwe disclosed this yesterday while crying out to the Minister of Power, Prof Chinedu Nebo over the firm’s loss of N570million revenue due to lack of gas and electricity meters.
He said: ”NERC has tried to encourage the generation companies mitigating the loss of revenue, by allowing us take away 60 per cent of this month of our capacity charge. Even the market operator is not what it should be. We are just accumulating debt.”
He urged the Federal Government to act urgently to arrest the situation. Uzoigwe noted that the current revenue profile of the firm from November 1 to date, is a daunting data for would-be investors.
He said: “Our experience after privatisation has been undesirable . Let me just use that mild word because as at the end of last month, our books showed that we were losing revenue to the tune of N570million doing business from November 1 to date . “The revenue profile in the industry is very poor. And if other investors look at it, it may give results that may not be desirable for the country.“
Uzoigwe who spoke during the minister’s visit to the NERC office in Abuja, noted that despite the investment of N7billion in the power plant that has 1,180 Mega Watts (Mw) generating capacity, the station can only generate 600Mw.
He regretted that Egbin Power Plant cannot take advantage of its economic of scale in the industry.
The CEO said: “One thing is to have available capacity another thing is to have reliability. We have brought Egbin to the point where it is reliable for 1,180Mw. But Hon. Minister, in the last three months, we have been generating only about 600Mw and we can’t take advantage of economies of scale in the business we are doing. We are losing revenue continuously.”
– The Nation