Egbin power station slams FG with N86b bill

… As power generation drops to 425MW/30%

Egbin Power Plc, has said that the Federal Government owes it a debt of N86 billion.
Speaking over the weekend, Chief Executive Officer of the company, Dallas Peavey, said the huge debt owed it by the FG, possess a major constraint to its effectiveness, appealing to the government to pay up the debt.
He also said gas supply had been a major challenge to power generation.
“We have a total generation output of 1,320MW but currently we are generating just 425MW which is 30 per cent of what we should be generating,” Mr. Peavey said.
He revealed that the company is presently 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.
According to him, the major challenge confronting the plant is gas and the company does not know what the future has for the power station.
“Another big problem is that of over N86 billion being owed by Federal Government on energy produced to the national grid in the last six months.
“We only got 16 per cent of the total bills out of the total money on energy generated to the national grid.
“The amount is the money owed by government through the Nigerian Bulk Electricity Trading (NBET) to produce power to the grid by generating companies,’’ he said.
According to Mr. Peavey, Power generating companies are constrained by the debt burden as it is frustrating power development plans.
“We are highly constrained by the lack of payment for services rendered.
“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 delay or the reasons for such delays. When the amount of the debt payment is due, they simply call for their money,” he said.
NAN had earlier reported that NBET owes the power companies various sums. About N28.29 billion is owed Transcorp Ughelli Power Limited, and N9.66 billion is owed Shiroro Power Station.
Other debts are Geregu Power Plc N7.98 billion, Kainji/Jebba Power Station, N20.94 billion, and Sapele Power Plc, N9.9 billion.