May 25, 2024

EXCLUSIVE: GENCOs lose N11 billion over non-payment for unused power in November


There are indications that the country’s power generation companies in Nigeria may have suffered a loss of N11.27 billion in November, about (7.6 percent)  against N12.21 billion recorded at the corresponding month in 2020 as a result of non-payment for deemed capacity.

This information was obtained from a document delivered to EnergyDay.

According to the document, available generation capacity for November stood at 6,233.33 megawatts against 6, 462 in 2020, while the average generation capacity dropped to 4, 312.98 mw from 4,381 mw.

According to the document, deemed capacity is the capacity that should have been delivered, but for the system operator’s instruction to a Genco to derate or reduce its capacity to achieve grid balance and stability.

According to the report, 34.20 per cent about 1.920.35mw of the GENCOs’ generation capacity are currently stranded, compared to 48.03 per cent 2,081mw in 2020.

However, the GENCOs recorded a capacity payment loss of N151.22bn between January and October this year, N266.10bn in 2020, N256.97bn in 2019, N264.08bn in 2018, N236.47bn in 2017, N273.32bn in 2016 and N214.93bn in 2015.

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