…As Transmission Constraints Worsen
The Niger Delta Power Holding Company of Nigeria (NDPHC) has initiated moves to recover over N180 billion debt owed it as transmission constraints have left a major percentage of the company’s installed capacity idle for months.
The NDPHC is saddled with the responsibility of implementing the Nigeria Independent Power Plants (NIPP), with an initial design of 10 NIPP power plants in 2006 with capacity of 5000 megawatts out of which eight had been completed. The current installed capacity of the plants totaled 3,585 MW and two plants yet to be commissioned.
Confirming the high level of debt owed the company, the new Managing Director and Chief Executive of the Company, Jennifer Adighije, during a visit to the Nigerian Electricity Regulatory Commission (NERC), described the visit as part of the management’s efforts to foster a harmonious working relationship with the power industry regulatory commission.
Adighije, who led the management team on the visit, highlighted the plan to ensure that debts owed the entity were recovered to enable it to fulfil its mandate.
She explained: “We look forward to having and fostering a harmonious working relationship with the NERC. This is the first official working visit that we’ll be embarking on as a new management.
“And therefore, that demonstrates the priority and importance that we place on this relationship with the NERC, particularly for the role that you play in growing and fostering the Nigerian Electricity Supply Industry (NESI).
“As a new management, this is to familiarise and to have a handshake with the NERC. We’re a young team, very dynamic, forward thinkers, ready to deploy all our energy and expertise to push new frontiers in line with the guidelines and the directives of the NERC”, NDPHC boss added.
According to her, with the deep knowledge of the power sector as the regulatory commission, the NERC leadership was in a good position to be able to work with the company to ensure that the Nigerian people are better served.
Adighije further clarified: “You have a deep understanding, not only do you understand, you have a deep understanding of the peculiarity and the prevalence of issues within the NDPHC and in the industry at large.
“You do know that we have the largest generational capacity in the industry, but we’re made to bear some of the greatest burden in the industry, which has given our shareholders costs to worry.
“On Thursday last week, we held our inaugural board meeting, which was chaired by our chairman, His Excellency, the Vice President, Senator Kashim Shetima. Our rising debt exposure, amongst other issues, was very key subjects of discussion.
“This compelled the chairman to give us a directive to begin to pursue debt recovery, amongst other issues, very aggressively, and report back on the progress made within two weeks. We do know that the success of our exercise, and generally the existence of the company, is subject to how we can cooperate and partner with the NERC.
“Therefore we appeal to you to use your kind office to expedite your internal processes to ensure that we deliver positive results back to the chairman of the board”, she added.
She also canvassed the setting up of a technical working committee to start to look at the issues that would support the company’s financial records reconciliation as soon as possible.
In his remarks, NERC Chairman, Sanusi Garba, maintained that although the NERC would not bend the rules for any of the entity under its regulation, it will support whatever will ensure that government’s investment in the NDPHC is well deployed.
He promised: “I want to assure you that the commission will always provide every possible support, without bending the rules to make sure that the significant investment made by the three tiers of government in the NDPHC is actually brought to bear for the benefits of Nigerians.
“We do understand that the challenges are quite significant. There is probably need for more focus on strategic direction for the organisation so that the little you have, it will not spread too thin to a point where you do not deliver on anything,” Garba added.
