NDPHC SEEKS PAYMENT OF N400BN POWER DEBT

The Niger Delta Power Holding Company has called for the settlement of more than N400bn owed to it by participants in Nigeria’s electricity market, saying the outstanding debt is affecting its operations.

NDPHC Managing Director and Chief Executive Officer, Jennifer Adighije, made the appeal during an oversight visit by the House of Representatives Committee on Power to the company’s headquarters in Abuja.

Adighije said the debts included more than N400bn owed by the Nigerian Bulk Electricity Trading Plc and other electricity market participants. She also called for the settlement of obligations linked to NDPHC assets recognised in the regulated asset base of the Transmission Company of Nigeria.

She identified transmission constraints, low tariffs, inadequate market settlements, gas supply challenges, unpaid debts and vandalism as some of the major issues affecting the company.

According to her, NDPHC has more than 1,500 megawatts of mechanically available generation capacity but receives an average hourly dispatch of about 500MW. This has created significant suppressed and stranded capacity, which she said had cost the company more than N300bn.

The NDPHC boss urged regulators to review the dispatch merit order to enable the company to make better use of its available generation capacity.

The House committee said it would examine the concerns and work with relevant stakeholders to address the challenges facing the power company.