NDPHC Takes “Light Up Nigeria” Campaign To Lagos

Posted By: Peter Joneson: November 14, 2023In: NewsNo Comments

* Mr Joseph Chiedu Ugbo, MD/CEO

The Niger Delta Power Holding Company Limited (NDPHC)’s Sustained Media Campaign to enlighten journalists in the promotion of

‘Light Up Nigeria’ was held in Lagos yesterday even as issues that will transform People’s lives not just economically but also socially were exhaustively discussed.

Speaking at the well attended interactive media parley, the Managing Director/Chief Executive Officer of Niger Delta Power Holding Company Limited, (NDPHC) Mr Joseph Chiedu Ugbo, said that Lighting Up Nigeria is life.

He reiterated that People need energy in any society for so many things particularly for economic growth and good living, adding “we are not taking this project for granted”.

While fielding questions from Journalists, Mr. Ugbo said that despite the debt of about N190bn debt owed the company, NDPHC was poised to light up Nigeria by addressing some of the electricity challenges.

According to the Managing Director, “There is also low invoice payment for energy generated to the grid, huge indebtedness by the market to NDPHC in hundreds of billions for unpaid invoices amongst others.

He also disclosed that NDPHC is not paid for availability but only as dispatch thereby depriving NDPHC of hundreds of billions (N) since 2015 when transitional electricity market (TEM) was declared.”

While noting that NDPHC also owes some stakeholders, Ugbo said the Federal Government under President Bola Ahmed has taken a soft and citizens’ oriented approach by not increasing tariffs but assured that it would find a way to address the shortfalls in payment as per the actual consumption and the tariff.

Ugbo further said: “To reasonably resolve the challenges to power plants’ operations and increase electricity supply to homes and businesses, NDPHC’s Light-up Nigeria initiative is to explore not only the opportunities under the Eligible Customer Regulations and Electricity Act 2023 but also bilateral power sales in collaboration with Discos and other bulk purchasers under trading arrangements will ensure that investment is mobilized for end-to-end solutions that will guarantee that electricity is delivered to customers and NDPHC is paid for the electricity generated.

“At the core of NDPHC’s initiatives is to prioritise high-value power sale opportunities with bulk purchasers and Discos, which under Nigerian Electricity Supply Industry (NESI) have significant power supply demands across their franchise areas. The rationale for this approach is that projects delivered in collaboration with these potential bulk purchasers are likely to generate significantly greater volumes of power sales under bankable arrangements.”

Mr. Ugbo added that NDPHC’s operations are hampered by a number of systemic challenges that have significantly affected its cash flow but which put differently present good private investment opportunities, adding that the challenges also present opportunities for investments.

On the transmission constraints, the NDPHC Boss identified inadequate transmission and distribution grid capacity to evacuate energy generated from the power plants as a challenge noting that in 2022, transmission and distribution available capacity was estimated at about 5,500MW.

He, however, said that NDPHC has currently allocated a maximum dispatch space of 975MW (peak period) and 757MW at off-peak (despite often being substantially mechanically available).

In Ugbo words: “Talking more about constraints, evacuation limitation is further exacerbated by systems operations (SO’s) frequent start-up & shut down instructions to the plants ostensibly for frequency and load control to ensure system safety and reliability but resulting in increased turbine stress, more unscheduled outages, and significant maintenance costs.

“Another challenge is gas supply and transportation constraints. There is an unavailability of sufficient volumes of gas to guarantee generation up to the Transmission Company of Nigeria (TCN) allocated evacuation capacity of 975MW let alone the full capacity of its power plants.

“Calabar is the only plant with a full gas supply. Plants in the western axis require about 150MMSCF/day to meet the TCN-allocated evacuation capacity of 535MW (Peak).

“Gas supply to western axis power plants is further challenged by low pressure on NGIC gas pipelines –ELPS & Oben-Ajaokuta. Gas suppliers want higher gas tariff beyond industry approved gas tariff ($2.50 vs. $2.18).”

Other Senior management team who took their turn to address the media gathering include Executive Director(Networks), Engr Ifeoluwa Oyedele, Executive Director(Generation), Mr. Kassim Abdullahi and Executive Director,(Legal Services) Dr. Steven Andzenge, MON amongst others.