The Niger Delta Power Holding Company of Nigeria (NDPHC), has said that it is owed a whopping N190 billion for electricity generated.
The managing director, Mr. Chiedu Ugbo, who spoke at a Senate investigative hearing last week, said that the low remittances of electricity consumers were posing a huge threat to operations of Niger Delta electricity.
The investigative hearing entitled “Power Sector Recovery Plan and the Impact of COVID-19 Pandemic” was to set the legislative instrument in place for recovery of power in Nigeria.
Ugbo said the sum of over N190 billion was owed by electricity consumers as at 31st May 2020, adding the indebtedness covered government agencies and individuals. “As of May 31, over N190billion was owed to NDPHC for electricity generated from our power plants to the National Grid.
A breakdown of the debts by customers shows a legacy debt period: 2011 – 2013 N24, 488, 365, 072, Interim Rule Period: 2013 – 2015 N6, 796, 473, 564. TEM (NBET): 2015 – 2020 N281, 101, 92,728. SUB-TOTAL N312, 386.741. 364. “Less payment to gas suppliers: N119, 393. 845, 935. This amounted to a total of N192, 992, 895, 429 owed NDLHC.”
The NDPHC boss further explained the regulatory challenges facing the company, revealing that the company has one of the lowest tariffs compared to other stations across the country. “NDPHC’s tariff is fixed at N18.4 per KWh as against N24 per KWh for by other Independent Power Plants (IPPs).
Ugbo said that gas was paid for at N306 to one dollar whereas the market rate is at N360 to one dollar, which he said, has led to endless disputes with indigenous gas suppliers to its stations.
Chibisi Ohakah, Abuja