*Power generation capacity drops to 30%
12 September 2016, Sweetcrude, Lagos — The operator of Egbin Power plant has revealed that the activities of the company is being constrained by over N86 billion debt owed by the Federal Government in the last six months.
Chief Executive Officer of Egbin Power Plc, Mr. Dallas Peavey, who made the disclosure at the weekend appealed to Government to pay up the debt to help ease the company’s operation.
Speaking during the company’s scholarship award programme to schools within Ijede community in Lagos State Mr. Peavey said that besides the huge debt challenge, gas supply is also a major challenge to power generation.
As a result of these challenges, Mr. Peavey said the 1,320 megawatts capacity power generation plant can only generate 425 megawatts which translate to 30 percent of its output.
“In view of the gas constrain he added that the company is 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.”
Commenting on the N86 billion debt, Peavey said; “We only got 16 percent of the total bills out of the total money on energy generated and fed to the national grid.
“The amount is the money owed by the government through the Nigerian Bulk Electricity Trading (NBET) to produce power to the grid by generating companies,” he said.
Beside Egbin, Peavey stressed that other generating companies are highly constrained by the debt burden which inevitably truncated the power development plans.
“We are highly constrained by the lack of payment for services rendered,” Mr. Peavey said.
He continued, “No matter how much broad-minded you are and no matter the desire to serve your nation, if services are not paid for, the momentum to continue to serve will not be sustained.
“Industry operators are in dire need of funds as most of the monies used in acquiring the power assets and other post-privatisation investments came from the banks.
“But banks do not want to hear about any delays or the reasons for such delays. When the amount of the debt payment is due, they simply call for their money,” he said.