‘If Egbin fails, it’s going to be dark’ — Power plant threatens shutdown over N110bn debt

Egbin power plant may be forced to shut down as a result of the non-settlement of N110 billion debt and insufficient gas supply.

Dallas Peavey, managing director, Egbin Power Plc, on Wednesday warned that a nationwide blackout was imminent.

Speaking during an interactive session with energy correspondents in Lagos, Peavey said the government had refused to pay for power generation despite guarantees made to that effect.

He said the power plants needed funds to settle its debts to gas companies and banks.

“We owe the gas companies and have others like our technical partners (KEPCO) to pay, and importantly our lenders, the banks,” he said.

We have made massive investments in making the plant readily available to generate electricity sustainably. Unfortunately, we can’t break even due to the gross inefficiency in the value chain.

“The government guarantees to pay us for every megawatt we generate and sell to Nigerian Bulk Electricity Trading, NBET, but they have not done that.

“We just got paid for the month of December, 2016, three months later and we were only paid a paltry 28 per cent of the total 100 percent of the verified and accepted invoice for that month. That is how the outstanding debts kept accumulating for three and half years now.

“That is the simple but bitter truth. Let me be honest, if Egbin fails, it’s going to be dark as Egbin provides close to 30 percent of Nigeria’s power, so let the required intervention be completed and urgently too.

“Egbin power plant is one of the biggest single power generating stations in Africa, with an installed capacity of 1320 MW, consisting of 6 units of 220MW each.”