Mr. Chiedu Ugbo, Managing Director of Niger Delta Power Holding Company, Limited, has described measures being taken by the company to alleviate bottlenecks that have plagued energy delivery to consumers in the country.
Ugbo revealed this while fielding questions from State House media after leading the company’s management to the inaugural meeting of the NDPHC’s Governing Board at the Presidential Villa in Abuja, chaired by Vice-President Kashim Shettima.
He emphasised the primary disadvantage, stating that offtake evacuations from transmission and offtake by distribution pose a challenge to the entire power system, and that if distribution is unable to take what distribution can transport, transmission would be unable to take what is created.
He explained that NDPHC is “working assiduously to ensure end-to-end, from generation to end users” to tackle the problem. We are now working with distribution firms to eliminate bottlenecks, and we are also working with gearbox companies to clear bottlenecks to guarantee that we reach the end customers.
“We have distribution interventions all over the country, in all states, to ensure that we improve distribution companies’ capacity.” We are currently engaging with Eko and Ibadan distribution businesses through what we call bilateral sales. As a result, we sell to them directly. Fortunately, the ones we’re selling and some of them are paying us on time.
“We are also targeting industrial and large consumers who, according to the National Electricity Regulatory Commission, can take two megawatts or more. We are supplying them and are working on supplying more.”
Mr. Ugbo added of the NDPHC’s specific issues and efforts to tackle them, “we have a mandate as the Niger Delta Power, Holding Company Limited.” The Federation, federal, state, and local governments have spent a lot of money on assets that have been developed on behalf of Nigerians.
“Because the assets are there, we have been tasked with ensuring that they are optimised for the benefit of Nigerians.” We require optimum asset performance, particularly in power generation assets where gas is limited.
“We also have transmission and distribution constraints, but we are a government investment, and we will work with the relevant stakeholders to ensure that these challenges are overcome and that the load from these power plants is offtaken for the benefit of Nigerians.”
Concerning the need to pay an outstanding debt of over N180 billion due to the corporation by the government, the Managing Director stated that it is a systemic issue that would also be resolved.
“It is a systemic issue in terms of collections from distribution companies to the Nigeria Bulk Electricity Trading NBET (N-BET) and N-BET paying us,” he says. It is a systemic problem, and as a result, we owe some gas firms as well.
“However, I believe the regulatory commission with the Federal government is working on it to ensure that it is resolved as soon as possible.” “We are, without a doubt, owed,” Ugbo added.