Power Sector Loses N20.5bn Due To Load Rejection By Distributors

According to the Data obtained from the Federal Ministry of Power on Friday, about N20.5bn revenue was lost by Nigeria’s power sector between January 1 and 22, 2021, as operators in the business complained that energy was still being rejected by distributors. This report is for the first three weeks of the year.

mNaija also gathered that a total of 1,941 megawatts-hour/hour of electricity was constrained during this period, as this quantum of energy could not be generated on the national grid.

The major constraints that stopped the production of this quantum of power were insufficient gas supply, as well as lack of distribution and transmission infrastructure.

Further findings from the power ministry revealed that the average energy that was sent out during the period was 4,505MWH/H.

Also, peak power generated on the country’s grid within this three weeks was put at 5,584MW, as industry operators decried the persistent rejection of electricity by power distribution companies.

The General Manager, Market Operations, Transmission Company of Nigeria, Edmund Eje, stated that the widening revenue gap in the market had further made the Discos to drop electricity load.

Eje, who spoke at the just held virtual power dialogue, explained that the load rejection had impacted negatively on the machines of power generation and transmission companies.

He said, “As the market gap started widening, the Discos resorted to reducing their invoice monthly. How could that be effected? It was by reducing the amount of energy they take.

“By reducing the amount of energy you take, you are restricting the amount of energy to be evacuated from the transmission side.

“And it has to be understood by everybody in the power sector that energy consumed, generated and evacuated are done simultaneously because energy is not stored anywhere.”

He added, “Although we have new technologies coming out now where you can use batteries to store energy, I can tell you that as the generator is generating, transmission is evacuating it.

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