Collapsed Infrastructure: Electricity sector losses N365bn in 6 months

By enyinnayaliveth • 2 weeks ago • 5525 views • 835 comments

By Prince Okafor

INSUFFICIENT gas supply, distribution and transmission infrastructure have continued to plague the power sector, forcing it to record losses amounting to N365 billion in the first half of 2020, H1’20.

The losses, which also occurred mainly because of inadequate infrastructure, equipment failure and low water reserves, were recorded along the value chain by Generation Companies, GENCOs and Transmission Company of Nigeria, TCN, involved in the generation and transmission of power respectively.

However, this represents 23 per cent increase year-on-year (YoY) when compared to N279.81 billion losses suffered in H1’19. A breakdown showed that, in the first half of 2020, the losses stood at N56.4 billion, N55 billion and N66 billion in January, February and March respectively. In April, May and June 2020, the losses stood at N64. 6 billion, N61.6 billion and N61.8 billion respectively.

Power allocation

Energy Vanguard findings showed that the average energy sent out to the 11 Distribution Companies, DISCOs, by TCN in H1’20 surged marginally by 0.3 per cent to 3,958 megawatts, when compared to 3,948mw recorded in the corresponding period in 2019.

However, statistics obtained by Energy Vanguard from the National Control Centre, NCC, Osogbo, Osun State, showed that of 28 generating plants, 26 sent out an average of 4,896.99mw in H1’20 to the TCN thus, indicating an increase of 19.3 per cent when compared to 3,949.6mw sent out by 27 generating plants in H1’19.

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