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N180bn debt: NDPHC is committed to ‘light up Nigeria’ initiative – Ugho

The Managing Director/Chief Executive Officer of Niger Delta Power Holding Company Limited, (NDPHC) Mr Chiedu Ugbo, has said that the company is committed to the light up Nigeria initiative despite over  N180 billion indebtedness by by major players in Nigerian Electricity Supply Industry (NESI) to the company.

NDPHC is the highest electricity generation company to the national grid in the country.

Ugho was speaking in Lagos on Monday during the NDPHC’s campaign on ‘Light Up Nigeria’ project said: “To reasonably resolve the challenges to power plants’ operations and increase electricity supply to homes and businesses, NDPHC’s Light-up Nigeria initiative will explore not only the opportunities under the Eligible Customer Regulations and Electricity Act 2023 but also bilateral power sales in collaboration with the electricity distribution companies (Discos) and other bulk purchasers under trading arrangements

“The initiative will ensure that investment is mobilized for end-to-end solutions that will guarantee that electricity is delivered to customers and NDPHC is paid for the electricity generated”

Ugho emphasized that the core of NDPHC’s initiatives is to prioritize high-value power sale opportunities with bulk purchasers and Discos, which under Nigerian Electricity Supply Industry (NESI) have significant power supply demands across their franchise areas adding that the rationale for this approach is that projects delivered in collaboration with the potential bulk purchasers are likely to generate significantly greater volumes of power sales under bankable arrangements”, he explained.

Ugho who was accompanied by other top management staff, lamented the over N190 billion indebtedness, saying that the debt has negatively affected the speed at which the company would have improved power services in the country.

“There is also low invoice payment for energy generated to the grid. There is huge indebtedness by the market to NDPHC in hundreds of billions for unpaid invoices. NDPHC is also not paid for availability but only as dispatched thereby depriving NDPHC of hundreds of billions since 2015 when Transitional Electricity Market (TEM) was declared.”

Ugho stressed further that as a result of huge debt, the company is also owing some stakeholders in the value chain including the gas producers.

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Despite this, Ugho said that the Light Up project of the company is waxing stronger.

“We have started with Ibadan Electricity Distribution Company (IBEDC) to supply Ota Industrial Clusters, while  many other projects are also on with other DisCos”, he noted.

Ugbo said the Federal Government under President Bola Ahmed has taken a soft and citizens’ oriented approach by not increasing tariffs but assured that it would find a way to address the shortfalls in payment as per the actual consumption and the tariff.

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