Power Sector Loses N48bn Revenue to Gas, System Constraints


•Abuja Disco distributes 900,000 free meters

By Emmanuel Addeh

Despite achieving a new electricity supply high on October 28 and 31, respectively, the Nigerian power sector suffered severe loss of revenue due to gas as well as transmission and distribution constraints in the value chain.

This is coming as the Abuja Electricity Distribution Company (AEDC), yesterday flagged off the national mass metering programme in Gaduwa meant to distribute about 900,000 meters to its customers.

The Transmission Company of Nigeria (TCN) last week stated that its system peaked at an all-time generation high of 5,459.50MW and was efficiently transmitted through the nation’s transmission grid at a frequency of 50.26Hz by 8.15 pm on the 28th of October 2020.

It was higher than any peak ever recorded in the nation’s power industry and surpassed the 5,420.30MW achieved on August 18, 2020, by 39.20MW,” the TCN said.

The Acting Managing Director of the agency, Mr. Sule Abdulaziz, attributed the gradual but the steady improvement in the quantum of power delivery to collaboration by the sector players.

Again, on October 31, the TCN disclosed that it reached a new all-time national peak generation of 5,520.40MW which was achieved on 30th October 2020 at 9.15 pm, surpassing the previous 5.459MW recorded on 28th October 2020 by 60.90MW.

But according to latest figures from the Advisory Power Team resident in the office of the Vice President, Prof. Yemi Osinbajo, with a revenue leakage of about N1.4 billion daily due constraints within the system, the country lost N47.9 billion in the month of October.
“On October 29, 2020, average energy sent out was 4,532 MWH/hour (up by 82.22 WH/hour from the previous day).

“The power sector lost an estimated N1,442,000,000 on October 29, 2020, due to constraints from insufficient gas supply, distribution infrastructure and transmission infrastructure,” a report from the office stated.

A day after, precisely on October 30, the report put the average energy sent out at 4,284 MWH/hour which indicated that power was down by 87.39 WH/hour from the previous day.

On that day, the report revealed that the sector lost an estimated N1,023,000,000 which was attributable to the same constraints from the insufficient gas supply, distribution infrastructure and transmission infrastructure.

Meanwhile, the Abuja Electricity Distribution Company (AEDC), yesterday flagged off the national mass metering programme in Gaduwa meant to distribute about 900,000 meters to its customers.

Managing Director of the company, Dr. Ernest Mupwaya noted that what is significant about the new scheme is that the federal government has sourced sufficient funding to support Discos through a low-interest shareholder loan that will make it possible for them to receive sufficient meters to close the existing gap.

He noted that over the years, the company had embarked on various metering initiatives such as CAPMI and MAP, adding that the programmes had achieved some successes that resulted in the metering of over 300,000 customers.

Mupwaya stated: “With the flag-off of this national free mass programme, AEDC will receive a total of 900,000 meters, at the cost of N93billion which will be sufficient to meter all customers including replacement of defective meters.

“Between now and December 2021, AEDC has planned to install over 101,000 meters at a cost of N6 billion without charging customers. The rest of the meters will be installed 18 months after, through a comprehensive roll-out programme that will result in simultaneous installations in all three states of Niger, Kogi and Nassarawa in addition to FCT.”

He remarked that the metering of customers has a huge positive implication not only to the electricity industry but to the entire economy in a number of ways, including in the creation of jobs through installation and inspections of meters after installations.