Adelabu Sheds Light On Power Sector Woes: Unpaid Debts And Gas Shortages Affecting Operations

Adelabu Sheds Light On Power Sector Woes: Unpaid Debts And Gas Shortages Affecting Operations

During a visit to the Olorunshogo Power Plant in Papalanto, Ogun State, and the Omotosho Power Plant in Ondo State, Minister of Power, Bayo Adelabu, brought attention to the challenges plaguing power plants, hindering them from operating at full capacity…..CONTINUE READING

In charge of managing two government power plants under the Niger Delta Power Holding Company, Adelabu expressed concern about the underutilization of these facilities, currently operating at less than 25% capacity.

The primary obstacle, as highlighted by Adelabu, is the shortage of gas supply to the power plants, emphasizing the urgent need to address this issue to improve operational efficiency. During his nationwide tour of Federal Government power installations, Adelabu meticulously inspected the physical and operational states of the power plants, with the aim of identifying solutions to enhance their performance.

The minister underscored the profound impact of outstanding debts on power generation companies, particularly those associated with electricity subsidies. Adelabu proposed a transition to cost-reflective tariffs to ensure the sustainability of subsidies and urged the Federal Government to fulfill subsidy promises with adequate funding.

Highlighting the critical role of liquidity in the power sector, Adelabu pointed out that unpaid debts hinder power generating companies from settling their dues with gas suppliers, causing disruptions in the gas supply chain.

In addressing the mounting debts issue, Adelabu acknowledged the shared responsibilities of Distribution Companies (DisCos) and the Federal Government in contributing to the financial challenges faced by power plants.

He pledged ongoing efforts to enhance power availability in Nigeria, focusing on reliable energy sources to meet the nation’s growing demand. The revelations by the Minister of Power shed light on the intricate challenges within the power sector and the necessity for strategic measures to ensure its sustainability and efficiency.