The Senate Committee on Power has disclosed that only two out of the six privatised power generating companies (Gencos) have met the performance targets set by the Bureau of Public Enterprises (BPE)
Specifically, the Chairman of the Committee, Senator Gabriel Suswan, who disclosed this at the just concluded three=day investigative hearing on the power sector recovery plan, listed the two Gencos to include Transcorp Power and Geregu Power.
Suswan, who said the disclosure was contained in a BPE presentation explained: “Out of six Gencos, privatised, only two of them are performing. We have listened to presentations from the government side and the operators and we have seen that there is no alignment anywhere and that is the problem.”
According to him, “Once there is an alignment an proper coordination and proper tariff, it makes the sector liquid. So, once there is money in the sector, potential investors would come in and the banks would also be able to put in more money.”
The BPE presentation was made by the Director General of the agency, Alex Okoh.
Okoh, commenced with a background that showed key statistics of the Nigerian Power Sector before 1999, revealing that only 17 out of the 79 generation units were operational and average daily generation nationwide was 1,750MW as at then.
According to the presentation by the BPE boss, investments made in the power sector was highest in 2001 with over $400 million.
However, funding was not provided for the sector for seven years, which was from 1989 to 1995.
He pointed out that the Nigerian Electricity Supply Industry (NESI) has huge challenges. He listed the challenges faced by the Gencos to include liquidity, inadequate gas supply, weak transmission infrastructure and foreign exchange procurement.
Overall, Gencos’ percentage increase in available capacity from privatisation was put at 78 per cent. This was 22 per cent below their collective targets.
Sapele had the worst performance of 29 per cent below target, while Transcorp Power surpassed the five-year performance agreement target (670mw) set by the Bureau during the handover of Ughelli Power, by achieving 680.83MW.
Analysts anticipates that by 2024, Transcorp Power would generate 2500mw with the acquisition of Brownfield Thermal Projects, the expansion of the existing TPL Plant and greenfield renewable energy projects which all together add up to 25 per cent of the power generated within the country.