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Tuesday, February 20, 2024

Why the electricity supply worsened – Minister

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The Nigerian government has attributed the main cause of poor electricity supply in the country to low gas supply to generating companies (GenCos).

Nigeria’s Minister of Energy, Adebayo Adelabu, revealed this in a statement posted on his X on Friday.

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“Yesterday I held crucial discussions with power generating companies (GenCos) and distribution companies (DisCos) to address the current problem of blackouts in some parts of our country.

“The power supply during the Christmas holidays improved, but unfortunately we have experienced setbacks in the new year. After investigations, it is clear that the root cause of poor power supply is low gas supply to GenCos,” Mr Adelabu said.

The minister said he visited facilities in Olorunshogo, Ogun State, and Omotosho, Ondo State, to understand the challenges first-hand, while noting that resolving the gas supply issue is a top priority.

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Power lines used to illustrate the story. [Photo: energymixreport.com]“During our meeting, we also discussed the indebtedness of Nigeria Bulk Electricity Trading Company (NBET) to GenCos. While we recognize the sector’s liquidity challenge, we are working to validate the debt and determine a fair resolution.

“I stressed the importance of GenCos establishing contractual agreements with gas suppliers to ensure stable gas supply. Recognizing that concessions may be necessary, I assure you that we are committed to working on this to stabilize the electricity sector,” he added.

READ ALSO: Electricity: Representatives consider five% of GENCO revenue for host communities

To address the challenges of gas supply and liquidity, Adelabu said he decided to form a committee involving all stakeholders.

“Together, we will work on recommendations to resolve these issues and ensure a more reliable and consistent energy supply for our citizens,” he said.

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He explained that a plan has also been established to begin talks with the minister of state for petroleum resources about collaboration and to emphasize to the ministry the importance of prioritizing gas for energy.

“Our commitment is unwavering to address the challenges affecting energy supply. We understand the impact on citizens and our goal is to quickly resolve the problems of gas supply, indebtedness and the general stability of the sector.

“We appreciate your patience as we work collaboratively to achieve a brighter and more reliable energy future for Nigeria,” he said.

The Transmission Company of Nigeria (TCN) had said in January that there had been a gradual decline in generation available on the grid due to gas constraints.

The company said this has impacted the amount of power available on the transmission grid for subsequent transmission to distribution load centers across the country.

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