Pay N86 Billion Debt, Egbin Power Station Begs FG

Egbin Power Plc's CEO Dallas Peavey speaks during an interview with Reuters at his office in Ikorodu on the outskirts of Nigeria's commercial capital Lagos December 4, 2015. Nigeria's biggest power company Egbin Power Plc plans to double its generation capacity to 2,640 megawatts (MW) over the next three to four years at a cost of $1.8 billion to tap growing demand, its chief executive said. Picture taken December 4, 2015. To match Interview NIGERIA-POWER/KEPCO REUTERS/Akintunde Akinleye

The Chief Executive Officer of Egbin Power Plc, Mr. Dallas Peavey, said yesterday that the company was highly constrained by more than N86 billion debt owed it by the Federal Government.

Speaking at the company’s scholarship award programme to schools within Ijede community in Lagos State, Peavey said the debt was disrupting its operations.

He also said gas supply had been a major challenge to power generation.

“We have a total generation output of 1,320MW but currently we are generating just 425MW which is 30 per cent of what we should be generating,” he said pointing out that the company was considering other sources of power generation that would complement gas, such as Low Pour Fuel Oil, one of the products in the fractional distillation of crude oil.

Of the debt, he said: “We only got 16 per cent of the total bills out of the total money on energy generated to the national grid. The amount is the money owed by government through the Nigerian Bulk Electricity Trading to produce power to the grid by generating companies.

“No matter how much broad-minded you are and no matter the desire to serve your nation, if services are not paid for, the momentum to continue to serve will not be sustained.

“Industry operators are in dire need of funds as most of the monies used in acquiring the power assets and other post-privatisation investments came from the banks.

“But banks do not want to hear about any delays or the reasons for such delays. When the amount of the debt payment is due, they simply call for their money.”

Peavey said that the company had spent N760 million in the last three years on Corporate Social Responsibility to communities within its area of operation.

He said that the company also spent over N120 million to offer scholarships to indigent pupils within the community of Ijede where it was operating.

Peavey said the scholarship programme to students in the communities to contribute part of our quota to their development.

“It is part of our CSR, which takes care of over 25 pupils’ schools fees, textbooks and other required amenities for four years,’ he said.’

NBET owes the power companies various sums, N28.29 billion owed Transcorp Ughelli Power Limited, and N9.66 billion owed Shiroro Power Station.

Other debts are Geregu Power Plc N7.98 billion, Kainji/Jebba Power Station, N20.94 billion, and Sapele Power Plc, N9.9 billion.

Source: Vanguard

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