Electricity Generating Companies, Gencos, weekend accused the Transmission Company of Nigeria, TCN, of rubbishing the Federal Government’s and stakeholders’ efforts at ensuring stable electricity across the country.
The Gencos, under the auspices of the Association of Power Generation Companies, APGC, were reacting to comments by TCN, that power generating companies falsify their capacity declarations for financial claims.
In a statement in Abuja, Mrs. Joy Ogaji, Executive Secretary of the APGC, Mrs. Joy Ogaji, described TCN’s allegation as malicious, baseless and an exhibition of ignorance of the electricity market proceedings.
Ogaji noted that it was important to state for clarity sake, that GenCos were not currently paid on capacity declaration but only on delivered capacity.
Delivered capacity in this regard, she said, means converting metered energy to capacity – a practice which is unknown or practiced by any electricity market in the world.
The executice secretary further stated that since TCN, through its subsidiary, the National Control Centre, NCC, is the source of all power sector data, as they relate to power generation, transmission, distribution and consumption/demand forecast, the allegation of falsified capacity declaration was worrisome.
She said: “This allegation was indicting, not just the current administration’s efforts to increase power generation in the country, but also efforts by all players in the value chain, as they were being portrayed as relying on fraudulent data.
“Early this year, the Vice President, Yemi Osinbajo stated that for the first time the country’s power generation capacity rose above 7,000 megawatts (MW), with delivered capacity at about 5,100MW.
“This was further corroborated by Babatunde Fashola, the Minister of Power, Works and Housing, who also confirmed same generation capacity.
“Similarly, President Muhammadu Buhari in his Democracy Day speech on May 29, said the country’s current available power generation capacity stood at about 7,500 MW. And here comes an allegation from a reputable government organisation faulting the government’s submissions.”
Ogaji argued that if the President and all other top government officials based their information on data provided by the NCC which TCN is discrediting, then TCN has serious questions to answer.
She explained that capacities declared by the GenCos are confirmed by the Power National Control Centre, NCC, before allocating same to the Discos and cannot allocate what is not available.
Ogaji further stated that Gencos have available capacity well above what the Transmission Grid can evacuate, while she also questioned why the national grid that has a capacity of about 12,000MW not able to evacuate 7,500MW?
She said, “Can the power distribution companies, DisCos, alleged load dropping account for TCN’s inability to evacuate the GenCos available Capacity?
“It is obvious that the grid constraints and inefficient grid administration are reasons why NCC forces GenCos to ramp down on their production without taking responsibility for the associated deemed capacity payments.
“Meanwhile, it is difficult to make distinction between the alleged DisCos load dropping and Transmission inefficiency – which, of late has culminated into serial burning of power transformers across the grid.
“It is also noteworthy that because the grid cannot evacuate GenCos available capacity, the NCC dictates what the grid can carry.”
To this end, she said no GenCo could declare the capacity it does not have, because the NCC uses SCADA and other electronic means to confirm every GenCo’s declared capacity.
“Therefore, it takes ignorance of the market flow to make such a frivolous allegation that GenCos declare false capacity which they cannot make available on demand,” Ogaji noted.
She maintained that in addition to the NCC’s capacity monitor, the Nigerian Bulk Electricity Trader (NBET) as well as the Independent System Operator (ISO) periodically send their teams to carry out capacity test on all GenCos to re-confirm NCC’s capacity data.
Ogaji insisted that in a regulated electricity market such as Nigeria’s, operators and Market Participants are bound by regulations and rules and not frivolity as portended by TCN.
According to the statement, the TCN had a few days back alleged that most power plants submit generation capacities they are unable to deliver when its subsidiary, the National Control Center (NCC) make such demand.
“The NCC operates strictly in line with the grid code and merit order. Stability of the national grid is paramount. Unfortunately many GENCOs due to greed, destabilise the grid through illegal practices in order to collect more money from NBET.
“They do so through false capacity declarations, unwillingness to put their generators on effective frequency response, delay in executing NCC dispatch instructions, intimidation and blackmail of NCC operatives,” the statement quoted Ndidi Mbah, spokesperson of the TCN, as saying.
