Egbin threatens to shut operation over debt

From Mohammed Shosanya, Lagos

Egbin Power Plc is considering shutting its operation due to inadequate gas supply,transmission and the sum of N110billion owed the company by Federal Government and market operator.

With 1,320 MW installed capacity,the station is the largest power generating asset in the country.

Managing Director of the company,Mr.Dallas Peavey,who made the threat at a press conference yesterday said Nigeria risked another blackout if the issues raised were not addressed in few weeks.

He lamented that the huge debt had unsettled his company in recent time,adding:``we owe the gas companies and have others like our technical partners (KEPCO) to pay, and importantly our lenders, the banks.

``We have made massive investments in making the plant readily available to generate electricity sustainably but 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 NBET but they have not done that.’’

Peavey, said the company had reached 1,100 MW while the installed capacity is 1, 320 MW, adding that the grid could not take the power due to hitch within the Transmission Company of Nigeria system.