
Electricity Distribution Companies (Discos) operating in Nigeria have billed the federal government in excess of N63 billion for electricity supplied to its ministries, departments and agencies (MDAs), Babatunde Fashola, the minister of power, works and housing, has said.
Fashola stated this Monday at the 19th monthly power sector operators meeting held at Akangba in Surulere, Lagos.
The minister was responding to reports credited Dallas Monroe Peavey, the CEO of Egbin Power Plc, that debts owed to Discos by the federal government, amounting to N125 billion would lead to a collapse of the power system and darkness in Nigeria.
Peaver was reported to have said this when a group of senators from the United States visited Nigeria and Egbin Plc.
However Fashola said he did not tell the visiting senators that MDAs debts owed to Discos had been verified and instead of claims in excess of N90 billion submitted to the federal government by Discos, only about N27 billion has been established by verification, resulting in an excess bill of N63 billion.
Peaver was also alleged to have said that Egbin Power Plant could not evacuate 700 megawatts of power because of the Transmission Company of Nigeria (TCN) failured to provide the capacity to do so.
Fashola had previously admonished all operators in the sector to act in a manner consistent with their leadership role and public expectation, and to find solutions to problems, while projecting hope, and not fear.
“I also advised that all stakeholders remain factual in our public comments and refrain from being bombastic. We must promote hope and not project fear to people who entrust us with the responsibility to solve their problems,” he said.
The minister lamented that “it seems that Mr. Peaver did not hear me, or chose to ignore my admonition.”
According to him, when Mr. Peaver told his visitors that his employers could not evacuate 700 megawatts from Egbin Power Plant and blamed TCN, he was lying at worst or at best was being bombastic.
He argued that on the 2nd September 2017, around the time when the news was reported, Egbin’s peak power production was 344 megawatts (and the average power production was 336 megawatts).
This is less than 50 percent of the 700megawatts in the report credited to Peaver that his company could not evacuate.
Egbin has 6 (SIX) turbines of 220 MW each, with an installed capacity of 1,320 megawatts, and Fashola said it was the first power plant he visited when he was appointed minister.
Three turbines, ST 1, ST 5 and ST6 at the plant are not functional.
ST 6 for undisclosed faults and ST 1 and ST 5 for maintenance, meaning that Egbin Power Plc could not have been producing 700 megawatts at the time.
TCN’s wheeling capacity has exceeded over 6,500MW, according to official data from the ministry of power, works and housing.
Fashola also disclosed that allegations to the effect that Peaver is inciting other Gencos to refuse to comply with grid codes and regulations made pursuant to the Electric Sector Power Reform Act of 2005, prescribing frequency levels of operation for power generating companies.
“While we do not know why Mr. Peaver is acting contrary to our national interest, we also know that he has been in and out of Nigeria and came in on 17th August 2017 without a record of visa issuance on arrival.
The minister said he has directed that the matter be referred to the immigration department for advice on Peaver’s legal status vis-à-vis a valid visa and work permit, stressing further that “I expect that appropriate action will be taken,”
“Let me say to Mr. Peavey and other non-Nigerians that your partnership is welcome, your stay will be peaceful and your rights to free speech are guaranteed. But other laws must be respected because we will enforce them,” he concluded.