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Inability To Recover Invoices, Cause Of Power Sector Liquidity Crisis Says Operator



Leadership Nigeria News Today


The Head, Indepependent System Operator, Engr Musa Gummel, has stated that the inability of the power market to recover all invoices (i.e., receiving  payment for services) is mainly responsible for the liquidity problem plaguing the sector at the moment.

Engr Gummel made this observation while presenting his welcome address during a Stakeholders Workshop organised by the Market Operators on Thursday in Abuja.

He said, “No doubt there are several challenges in the electricity market. Chief of them all is the current liquidity problem. The market has not been able to recover 100 per cent of its invoices, and this is a critical problem.”

He called on all stakeholders in the power system value-chain to work together as a team to ensure so that through mutual support the industry would grow “in leaps and bounds’.

While delivering the keynote address, the Executive Director, Market Operators, Moshood Suleiman, spoke in the same vein, said it is by taking the necessary actions collectively as a team that the power sector can get over its present predicament, adding, “So our call today is that ‘blame game’ should stop while ‘appropriate actions’ should start in the interest of the sector and our dear country.”

He noted with regret that with over three into privatisation and two years of operating the Transitional Electricity Market (TEM), liquidity and infrastructure challenges are still holding the market from growing to its potential.

Suleiman also observed that a situation where more than a half of the large Nigerian population do not have access to grid connected supply of electricity with a consumption of less than 150kwh per capita is country development, adding “We all have the responsibility of building an efficient and sustainable electricity market.

The operations (both System and Market) is a unit of the Transmission Company of Nigeria (TCN).

Meanwhile, (TCN), through a press statement issued yesterday in Abuja, has announced the completion, installation and commissioning into service of 30MVA, 132/33kV power transformer in its Gombe State Transmission Substation, as well as installation and energising of a 40MVA 132/33kV mobile power transformer at the Damboa Transmission Substation in Bornu State.