Electricity Generation Companies (Gencos) have raised the alarm that huge revenue loss is hindering the privatisation of the sector.
Chinedu Nebobo
This was disclosed when Power Minister Chinedu Nebo visited the Nigerian Electricity Regulatory Commission (NERC) in Abuja, which coincided with the monthly meeting of the NERC with the chief executive officers (CEOs) of the Gencos and distribution companies (Discos) of the Transmission Company of Nigeria (TCN).
Speaking on behalf of the Gencos, Egbin Power Managing Director and CEO, Mike Uzoigwe, lamented that although about N7 billion has been invested in the plant, it has lost about N570 million since November last year.
He said if the problem is not solved, it may send a negative signal to potential investors, stressing that no “business can continue the way it is running now.”
Uzoigwe cited a huge metering gap and inadequate gas supply as other factors militating against stable power supply.
“Our experience after privatisation is undesirable. At the end of last month, our books showed that we are losing about N570 million. Revenue profile in the electricity industry is very poor. This may discourage new investors,” he warned.
Nebo promised to address the issues, and gave an assurance that enough gas will be supplied to power plants.
He said both himself and Petroleum Resources Minister, Deziani Allison-Madueke, had agreed that “if need be we get some gas from the export portion. And everybody has agreed that every measure must be taken to make sure you have enough gas.”
The teething problems of post privatisation will not always be there, he enthused, but acknowledged that there are so much political considerations, some of which are inimical to the interest of stable polity.
“We can assure you that very soon nobody will be crying, do not be scared, nobody is going to lose his investment.”
