Power Sector Loses N108bn Revenue in Three Months

By Chineme Okafor in Abuja

Nigeria’s power sector has lost N108.652 billion revenue between January and March due to various constraints, representing an increase of about N10.924 billion or 11.17 per cent from the revenue lost during the same period in 2018, according to the operational data obtained from the Office of the Vice President, Prof. Yemi Osinbajo.

The statistics from the Advisory Power Team (APT) in Osinbajo’s office also stated that about 2,978 megawatts (MW) of electricity have not been able to get to the national grid within the period under consideration because of challenges of gas supply to generation companies (Gencos) as well as unavailability of transmission and distribution infrastructure.

The report, however, explained that the average constrained megawatts was higher than the 2,597MW recorded during the same period in 2018, while average supply to the grid within the periods were 4,062MW for 2019 and 3,875MW for 2018.

According to the report, 53,043 metric million standard cubic feet (mmscf) of gas has so far been supplied to Gencos for power production in 2019.

This was also lower than the 54,480mmscf of gas that was sent to Gencos within the same period in 2018.

Disclosing the activities of the sector on a daily basis in 2019, the report stated for instance that: “On March 09, 2019, average energy sent out was 4,181MW (down by 28.25MW from the previous day). 2,295.5MW was not generated due to unavailability of gas. 33.8MW was not generated due to unavailability of transmission infrastructure, while 1,226MW was not generated due to high frequency resulting from unavailability of distribution infrastructure.”

“The power sector lost an estimated N1,707,000,000  on March 09,2019 due to insufficient gas supply, distribution infrastructure and transmission infrastructure.

“The dominant constraint on March 09, 2019 remained unavailability of gas – constraining a total of 2,295.5MW from being available on the grid. Estimated amount lost to insufficient gas supply, distribution, transmission and water reserves to date in 2019 – N100,106,000,000 (One hundred billion one hundred and six million naira only),” it added.

Similarly for the previous day, it reported that: “On March 08, 2019, average energy sent out was 4,210MW (up by 31.33MW from the previous day). 2,472MW was not generated due to unavailability of gas. 33.8MW was not generated due to unavailability of transmission infrastructure, while 852.4MW was not generated due to high frequency resulting from unavailability of distribution infrastructure.

“The power sector lost an estimated N1,612,000,000 (One billion six hundred and twelve million naira) on March 08, 2019 due to insufficient gas supply, distribution infrastructure and transmission infrastructure.

“The dominant constraint on March 08, 2019 remained unavailability of gas – constraining a total of 2,472MW from being available on the grid.”

Further, it stated that the sector on March 10, had an average power output of 4,021MW, but could not generate 2,774.05MW due to unavailability of gas; 34.7MW due to unavailability of transmission infrastructure, and lost an estimated N1.348 billion.

On March 11, it explained that 4,114MW was generated while 2,793.58MW; 176MW and 168.6MW were not due to gas supply, transmission and distribution challenges, with the revenue loss for the day estimated at N1.506 billion.

For March 12, 4,442MW was generated but not 2,512.5MW; 31MW; and 440MW due to gas, transmission and distribution constraints. N1.432 billion was estimated to have been lost on that day to these constraints.

The trend continued on March 13, when 4,438MW – down by 4.82MW, was generated and 1,818MW; 42.7MW and 1,497MW could not be generated due to gas, transmission and high frequency issues. Estimated loss for the day was N1.612 billion.

“On March 14, 2019, average energy sent out was 4,141MWH/Hour (down by 296.63 MWH/Hour from the previous day). 1,776MW was not generated due to unavailability of gas.32.4MW was not generated due to unavailability of transmission infrastructure, while 863.5MW was not generated due to high frequency resulting from unavailability of distribution infrastructure. The power sector lost an estimated N1,283,000,000 on March 14, 2019 due to insufficient gas supply, distribution infrastructure and transmission infrastructure.

“On March 15, 2019, average energy sent out was 4,427 MWH/Hour (up by 286.34 MWH/Hour from the previous day). 1,797.52MW was not generated due to unavailability of gas. 32.6MW was not generated due to unavailability of transmission infrastructure, while 1,013.5MW was not generated due to high frequency resulting from unavailability of distribution infrastructure. The power sector lost an estimated N1,365,000,000 on March 15, 2019 due to insufficient gas supply, distribution infrastructure and transmission infrastructure,” added the statistics.