Power sector loses N20.5bn as load rejection looms

Nigeria’s power sector reportedly lost an estimated sum of N20.5bn between January 1 and 22, 2021, as operators in the business complained that energy was still being rejected by distributors, PUNCH reports.

According to data obtained from the Federal Ministry of Power on Friday, it was learnt that the sector lost N20.5bn within the first three weeks of the year.

In the same vein, the General Manager of Market Operations, Transmission Company of Nigeria, Edmund Eje, said that the widening revenue gap in the market had further made the Discos to drop electricity load.

Eje, who spoke at the just held virtual power dialogue, explained that the load rejection had impacted negatively on the machines of power generation and transmission companies.

He said, “As the market gap started widening, the Discos resorted to reducing their invoice monthly. How could that be effected? It was by reducing the amount of energy they take.

“By reducing the amount of energy you take, you are restricting the amount of energy to be evacuated from the transmission side.

“And it has to be understood by everybody in the power sector that energy consumed, generated and evacuated are done simultaneously because energy is not stored anywhere.”

The TCN official stated that despite the over 12,000MW installed generation and transmission capacities, there was a high amount of unutilised energy due to load rejection by power distributors.

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