- Adelabu blames the poor power supply on the underutilisation of the power plant caused by unpaid debt.
- Debt owed by DisCos and the federal government due to electricity subsidies may force Nigerians to pay full-cost electricity tariffs.
The minister of power, Adebayo Adelabu, has blamed the epileptic power supply on the underutilisation of the power plant. According to him, the inability of power plants to operate at full capacity is due to unpaid debts and a low gas supply. During an inspection of the Olorunshogo Power Plant in Papalanto, Ogun State and the Omotosho Power Plant in Ondo State on Wednesday, Adelabu expressed amazement over the under-utilisation of these power installations.
He said, “The power plant managed by Niger Delta Power Holding Company operates below 25 per cent capacity. This capacity is poor at a time when the country requires electricity. The under-capacity utilisation is due to a variety of reasons. The major part of it is the shortage in gas supply to these installations, which is why I needed to see these plants myself. To look at what can be done to improve the operational capacity of these plants. What can we do to repair those turbines that are down? What can we do to support these power plants operating at impressive capacity so that power supply will improve nationwide.”
Speaking on the debt accrued over time, the minister of power said Generation Companies (GenCos) are owed due to federal government electricity subsidies. The minister appealed to the federal government to fully fund the subsidy, stressing that it is better to migrate to a fully cost-reflective tariff if the government is not ready to fund subsidies. According to him, this is because liquidity is a major issue in the sector, which has led to the enormous debt owed to GenCos.
“And once they are owed, they are also unable to pay the gas suppliers. When the gas suppliers are not paid, they will be unwilling to supply regular gas to them. So why are these debts piling up? The DisCos owe part of the debts. The Federal Government is also owing a huge portion of these debts, which relates to the unfunded portion of the subsidy,” Adelabu added. He also said efforts were on top gear to make power available to Nigerians, especially through reliable energy sources.