TCN, GENCOs contrasting views on low power generation show poor coordination in electricity value chain

In contrasting views expressed by the Transmission Company of Nigeria (TCN) and power generation companies (GENCOs) over the drop in power generation have exposed poor coordination among various players in the electricity value chain, checks .

In recent days Nigerians have witnessed a massive drop in power generation, which has affected power transmission and distribution in the country.

The transmission company had blamed the development on a drop in grid power generation. This is because it can only transmit generated power to distribution companies to enable power supply.

Ndidi Mbah who heads the public Affairs department of the TCN said: “The very low power generation by the GENCOs for TCN has made it difficult to wheel enough electricity through the national transmission grid to power distribution companies nationwide.”

On the other hand, the Association of Generation Companies of Nigeria, (APGC) said huge debt overhang to gas companies was frustrating the operations of its members.

“Generation companies are dying under huge unpaid debt. Gas is cash and carry. Their bills are consume and pay later at an indeterminate date. Gas is cash and carry while power generation is on credit with indeterminate date of payment,” the Executive Secretary of APGC Joy Ogaji said.

Ogaji told reporters that debt owed the generation companies amounted to over a trillion naira.

This is not the first time the GENCOs are raising this concern.

In 2020 , the generation companies threatened force majeure as a result of huge debts owed them which haven’t been completely cleared.

Meanwhile, some industry analysts raised concerns about coordinated systems planning in the sector.

They raised observations that suggest inadequate coordination among various stakeholders in the power value chain.

“Who is in charge of the follow-up to ensure that there are some levels of coordination between the variables in the system? Issues such as maintenance of the generators or machines, power plants, issues of gas scarcity which could only arise if you don’t make early advance down payment for gas at least in three months in advance?” President Nigeria Consumer Protection Network Kunle Kola Olubiyo asked.

Olubiyo called for review of power sector privatisation to ensure optimal performance of the sector.

Principal Partner NEXIER power Emeka Okpukpara, who shared similar concerns told our correspondent that proper alignment and coordination among key stakeholders would lessen the problems in the power sector.

“Proper coordination among various value chain players is key and would save us from the perennial problems of poor grid power performance among various value chain players,” he said.

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