Nigeria: TCN directs GenCos to cut electricity generation

*Power transmission tower.

*Revenue losses mount
*Damage to plants continue

17 March 2017, Sweetcrude, Abuja — The power Transmission Company of Nigeria, TCN, has repeatedly directed power generating companies of Nigeria, GenCos, to cut electricity generation resulting in revenue loss and damage to the plants of the GenCos.

While speaking in Abuja, Engr Lamu Audu, the Managing Director of Mainstream Energy Solutions, Operators of Jebba and Kainji Hydro Electricity Plants, disclosed that the GenCos could no longer bear the constant energy production reduction orders of the TCN.

He disclosed that between February and Monday this week, Jebba and Kainji lost 8, 574 MW of unutilized electricity.

The managing director explained that the total unutilized energy from all the GenCos during the period under review was huge.

Audu said power generation has improved significantly, adding that in the last one month, on the average it has been over 4, 000 MW.

“Unfortunately, GenCos are at the receiving end. In the sense that we are not allowed to deliver what we are generating. I have records here, there is no secret about it and we want Nigerians to know that the effect is so much.

“Apart from the loss of revenue after declaring what we are capable of generating, because we have what we call, “Day-Ahead-Declaration” by the regulation, we are expected to declare within the next 24 hours what we are going to generate, the capacity which we have and are sure to put into the grid –which we declare to the National Control Centre.

“It is a rule that you must declare in 24 hours that capacity, the idea of the declaration is to enable the system operator to prepare for what it has to give out.

“Unfortunately, most of the time, we are not allowed to put the whole energy we have declared 24 hours earlier into the grid.

“There are two things that happen: One, our machines will see that the power being generated and put on the grid is not utilized fully, so they will on their own de-load, they will come down on their own.

“Secondly, we receive direct instructions from the National Control Centre to reduce load or even shut down. We have the records here.

“What that means is that we have stranded energy. That is energy that is not being utilized. Now, one we lose revenue that should have come to us as a result of that energy that is not utilized.

“In addition, it has technical effects on our machines, leading to increase in the cost of maintenance.

“The third is that our shareholders are beginning to ask questions as to why should they put more money to realize more capacity if what we are generating now is not being utilized. So you can see that it has weakened the appetite of investors to invest more in the generation of electricity.

“I just felt I should share with you events that took place between February and March (2017). Within the February and March, the total energy that could not be evacuated from Kainji and Jebba is 8, 574 MW. In Naira terms, it stood at N97, 077, 529 total revenue losses to our company between February and March 13.

 

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