ADVERTISEMENT
  • The Membership Club
  • PT Hausa
  • About Us
  • Advert Rates
  • Careers
  • Contact Us
Thursday, April 15, 2021
Premium Times Nigeria
  • Home
  • COVID-19
  • News
    • Headline Stories
    • Top News
    • More News
    • Foreign
  • Investigations
  • Business
    • News Reports
    • Financial Inclusion
    • Analysis and Data
    • Business Specials
    • Opinion
    • Oil/Gas Reports
      • FAAC Reports
      • Revenue
  • Opinion
  • Health
    • News Reports
    • Investigations
    • Data and Infographics
    • Health Specials
    • Features
    • Events
    • Primary Health Tracker
  • Agriculture
    • News Report
    • Research & Innovation
    • Data & Infographics
    • Special Reports/Features
    • Investigations
    • Interviews
    • Markets
  • Arts/Life
    • Arts/Books
    • Kannywood
    • Lifestyle
    • Music
    • Nollywood
    • Travel
  • Sports
    • Football
    • More Sports News
    • Sports Features
  • Projects
    • Parliament Watch
    • Panama Papers
    • Paradise Papers
    • AGAHRIN
  • Home
  • COVID-19
  • News
    • Headline Stories
    • Top News
    • More News
    • Foreign
  • Investigations
  • Business
    • News Reports
    • Financial Inclusion
    • Analysis and Data
    • Business Specials
    • Opinion
    • Oil/Gas Reports
      • FAAC Reports
      • Revenue
  • Opinion
  • Health
    • News Reports
    • Investigations
    • Data and Infographics
    • Health Specials
    • Features
    • Events
    • Primary Health Tracker
  • Agriculture
    • News Report
    • Research & Innovation
    • Data & Infographics
    • Special Reports/Features
    • Investigations
    • Interviews
    • Markets
  • Arts/Life
    • Arts/Books
    • Kannywood
    • Lifestyle
    • Music
    • Nollywood
    • Travel
  • Sports
    • Football
    • More Sports News
    • Sports Features
  • Projects
    • Parliament Watch
    • Panama Papers
    • Paradise Papers
    • AGAHRIN
Premium Times Nigeria
BUA Group Ad BUA Group Ad BUA Group Ad
ADVERTISEMENT
The Director General, Bureau of Public Enterprises (BPE), Alex Okoh

The Director General, Bureau of Public Enterprises (BPE), Alex Okoh

Only two of six privatised power plants delivered on targets – BPE

byBassey Udo
June 24, 2020
3 min read

The Bureau of Public Enterprises (BPE) on Tuesday delivered an unflattering assessment of the performance of the power sector since it was handed over to new private operators in 2013.

The Director-General of the privatisation agency, Alex Okoh, told the Senate Committee on Power during its investigative hearing on the power sector recovery plan that only Transcorp Power Limited and Geregu Power Limited out of the six privatised electricity generation companies (GENCOs) have met their performance targets since taking over.

Transcorp Power, operator of the 972 megawatts (MW) Ughelli power plant reputed to be Nigeria’s largest fossil-fuel based power plant, is owned by the UBA Chairman, Tony Elumelu.

The 434 MW-capacity Geregu Power plant operated by Amperion Power Distribution Company Limited, a subsidiary of Forte Oil Plc, is owned by investor and businessman, Femi Otedola.

The two companies were among the winners in the bid for four power plants privatised by the BPE in 2012.

Others

The others – Chinese-Nigeria power consortium, which consisted CMEC of China and Eurafric Energy of Nigeria, won the bid for Sapele Power plant, while North-South Power Company Limited, which had Niger State government as a stakeholder, was granted right for Shiroro power plant.

Mainstream Energy Solutions Limited believed to have been financed by former military ruler, Ibrahim Babangida, through a Nigerian businessman, Sani Bello, and NIGELEC, a company registered in Niger Republic, was granted the concession right to Kainji Power plant. No winner emerged for the 776 MW-capacity Afam Power Plant.

Performance targets, assessment

On taking over the power plants on November 1, 2013, the new investors were expected to refurbish, maintain, replace, operate and expand the capacities of the plants to achieve their mandate of generating electricity for the country.

In line with the Power Purchase Agreement (PPA) signed with the BPE, the GENCOs were to recover their cost of investment through invoices from electricity sale.

RelatedNews

Elumelu: Youth Restiveness Ticking Time-Bomb for Africa, Others

Buhari reappoints BPE DG Alex Okoh for second term

EFCC arraigns ex-BPE boss, Dikki, for N1billion bribe

Nigeria to concession TBS in Lagos, trade fair complex, others

In his presentation, the BPE DG told the Senate Committee headed by Gabriel Suswam that at the beginning of the Nigerian power sector privatization in 1999, only 17 of the 79 power generation units were operational, with average daily generation capacity at 1,750 MW nationwide.

The Nigerian Electricity Supply Industry (NESI), he noted, has huge challenges, which have made the sector not commercially viable.

Apart from the liquidity problem the DISCOs are grappling with, the BPE DG said other challenges include inadequate gas supply, weak transmission infrastructure and foreign exchange procurement.

Dangote adbanner 728x90_2 (1)

On the two GENCOs that have met performance targets, the BPE boss said their output raised overall electricity generation capacity from the privatised power plants to 78 per cent, although it is still bout 22 per cent below their collective targets.

He said Transcorp Power, in particular, surpassed the five-year performance agreement target of 670 MW set by BPE at the handover of Ughelli Power, after achieving 680.83MW generation capacity.

Mr Okoh said by 2024, the plant is expected to generate about 2,500 MW with the acquisition of Brownfield Thermal Projects, to expand the existing Transcorp Power Limited plant.

Also, other greenfield renewable energy projects by the company, he said, would add up to 25 per cent of the power generated capacity within the country.

GENCOs blame BPE

However, the GENCOs, through the Executive Secretary of the Association of Power Generation Companies, Joy Ogaji, recently blamed BPE for the challenges of Nigeria’s power sector after privatisation.

Mrs Ogaji was responding to the call by the Senate President, Ahmad Lawan, for the review of the privatisation of the power sector for failure to deliver on its objectives.

ADVERTISEMENT

She said BPE should be held responsible for failing to meet its obligations in two of the three foundation agreements reached with the new operators in 2013, which contributed to the poor performance of the GENCOs.

The agreements reached with BPE prior to the takeover of the power industry in November 1, 2013, included guidelines on how to make electricity generation and supply in the post-privatisation era sustainable and effective.

The governing contract agreements included the Power Purchase Agreement (PPA), the Gas Supply Agreement (GSA), the Gas Transportation Agreement (GTA) and the Grid connection agreement

The other agreement was meant to provide security and guarantee to the PPA and power production to ensure 100 per cent payment for available power.

However, Mrs Ogaji said since the takeover of the power plants by their new owners, none of the agreements have been activated by BPE resulting in the non-payment for power generated and supplied to the national grid.

Mrs Ogaji, who also made a presentation to the committee, said despite BPE’s poor assessment of the performance of the GENCOs, available electricity generation capacity since the takeover of the new owners in 2013 has grown by 138.48 per cent.

From about 3,427.5 MW in 2013, she said, electricity generation capacity has increased by 8,174MW, as GENCOs recovered about 4,746.5MW.

However, she said due to system constraints, GENCOs are forced to reduce generated power to match the transmission and distribution infrastructure that convey electricity to the customer.

In the first quarter of this years, Mrs Ogaji said despite an available generation capability of 8,145MW, GENCos were only allowed to generate 3,987MW, thus losing an average of 4,159MW daily.

  • WhatsApp
  • Tweet
  • Email
  • Print
  • Telegram
  • More
  • Share on Tumblr
  • Pocket

Support PREMIUM TIMES' journalism of integrity and credibility

Good journalism costs a lot of money. Yet only good journalism can ensure the possibility of a good society, an accountable democracy, and a transparent government.

For continued free access to the best investigative journalism in the country we ask you to consider making a modest support to this noble endeavour.

By contributing to PREMIUM TIMES, you are helping to sustain a journalism of relevance and ensuring it remains free and available to all.

Donate


TEXT AD: To advertise here . Call Willie +2347088095401...


JOIN THE CONVERSATION

  • Disqus (2)
premiumtimes



PT Mag Campaign AD

Previous Post

Why APC governors are pushing for NEC meeting — Bagudu

Next Post

Community concerns in ongoing Ogoni clean-up

Bassey Udo

Bassey Udo

Bassey Udo is PREMIUM TIMES' Business & Economy Editor. He has covered finance, energy, oil, gas & extractive industries for over a decade. He is a winner of the Wole Soyinka Award for Investigative Journalism, and the Thomson Reuters Foundation (Wealth of Nations) Award for Business Reporting. Bassey is an alumnus of the U.S. International Visitors Leadership Programme. Twitter: @ba_udo

More News

APC Secretariat

Why Nigerians still have trust, faith in APC – Secretary

April 15, 2021
Two IDPs killed in another campfire disaster in Borno

Two IDPs killed in another campfire disaster in Borno

April 15, 2021
Nigeria Police officers are working with the military to counter insurgency.

Despite insecurity, Nigerian police deploy 17,500 personnel for local election

April 15, 2021
Ghana Is Eating Nigeria’s Lunch, By Bámidélé Adémólá-Olátéjú

PDP cites Buhari’s ‘failure’, as reason Twitter located base in Ghana

April 15, 2021
Kagawa Shigeko with the Olympic Torch on Monday [Courtesy of Olympics website]

Tokyo 2020: 109-year-old woman realises dream of bearing Olympic torch

April 15, 2021
Dubawa trains NOA officials on how to combat fake news

Dubawa trains NOA officials on how to combat fake news

April 15, 2021
Next Post
Oil spill near a farmland in K-Dere, Ogoniland

Community concerns in ongoing Ogoni clean-up

L-R , The Project Consultant, ISN Medical Laboratory Scientist of the Year Award, Mr Daniel Adewuni, the Executive Director SN Products Nigeria Limited, Mr. Felix Ofungwu, the immediate Past President, Association of Medical Laboratory Scientist of Nigeria (AMLSN), Dr. Toyosi Raheem and the Head, Business Development & Client Services, Dr. Sandra Achebe during the flag off of the maiden edition of the ISN Medical Laboratory Scientist of the Year Award held in Lagos today.

ISN Medical Unveils Medical Laboratory Scientist of the Year Award

Discussion about this post

Search

#EndSARS: Latest Updates




Polaris Bank


JAIZ Ad


Explore Akwa Ibom Ad


Explore Akwa Ibom Ad


Access Bank Ad


NITDA Ad





Glo Ad

Subscribe to News via Email

Enter your email address and receive notifications of news by email.

Join 1,652,065 other subscribers.

Advertisement






netherland biz school Advert



Zenith Advert

ADVERTISEMENT

Our Digital Network

  • PT Hausa
  • Election Centre
  • Human Trafficking Investigation
  • Centre for Investigative Journalism
  • National Conference
  • Press Attack Tracker
  • PT Academy
  • Dubawa
  • LeaksNG
  • Campus Reporter

Resources

  • Oil & Gas Facts
  • List of Universities in Nigeria
  • LIST: Federal Unity Colleges in Nigeria
  • NYSC Orientation Camps in Nigeria
  • Nigeria’s Federal/States’ Budgets since 2005
  • Malabu Scandal Thread
  • World Cup 2018
  • Panama Papers Game
  • Our Digital Network
  • About Us
  • Resources
  • Projects
  • Data & Infographics
  • DONATE

All content is Copyrighted © 2020 The Premium Times, Nigeria

No Result
View All Result
  • Home
  • COVID-19
  • News
    • Headline Stories
    • Top News
    • More News
    • Foreign
  • Investigations
  • Business
    • News Reports
    • Financial Inclusion
    • Analysis and Data
    • Business Specials
    • Opinion
    • Oil/Gas Reports
      • FAAC Reports
      • Revenue
  • Agriculture
    • News Report
    • Research & Innovation
    • Data & Infographics
    • Special Reports/Features
    • Investigations
    • Interviews
    • Markets
  • Arts/Life
    • Arts/Books
    • Kannywood
    • Lifestyle
    • Music
    • Nollywood
    • Travel
  • Sports
    • Football
    • More Sports News
    • Sports Features
  • Projects
    • Panama Papers
    • Paradise Papers
    • Parliament Watch
    • AGAHRIN
  • Opinion
  • PT Hausa
  • The Membership Club
  • Dubawa
    • Dubawa NG
  • About Us
    • Advert Rates
  • Careers
  • Contact Us
  • Digital Store
  • DONATE

All content is Copyrighted © 2020 The Premium Times, Nigeria

Our website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
loading Cancel
Post was not sent - check your email addresses!
Email check failed, please try again
Sorry, your blog cannot share posts by email.