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NDPHC Explains Power Supply Disruptions To Eko DisCo, APLE

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…Says We Only Export Power To Togo

By CLEMENT NWOJI, Abuja

The Niger Delta Power Holding Company Limited (NDPHC) has advanced explanations on why Eko Electricity Distribution Company (Eko DisCo) and Aba Power Limited Electric (APLE) experienced few days of power allocation shortfall and consequently, disruptions in electricity distribution to its respective franchise customers, attributing it to scheduled maintenance on gas facilities being executed by its gas suppliers.

OPTIMUM TIMES reports that the gas suppliers of NDPHC are Seplat and Chevron Nigeria Limited (CNL), implying that should there be any disruption of operations  in the two companies, NDPHC power supply  will be affected.

In a statement at the weekend, the NDPHC Media Adviser, Adesanya Adejoku maintained that “This maintenance activity had a temporary impact on our operations, contributing to the temporary disruption in power supply.”

However, he disclosed that Eko DisCo and APLE also have alternate power supply source apart from NDPHC, as the two power distribution companies were connected to the national grid which is meant to ensure stability of power distribution even when disruption occurs in NDPHC due to unavoidable reasons.

He faulted reports insinuating that NDPHC exports its power supply to the Niger Republic, Togo, and the Benin Republic, saying that the only cross-border electricity purchase agreement it has is with Togo only.

According to Adejoku, “On the morning of August 6, 2023, NDPHC received immediate instructions from the Nigeria Gas Infrastructure Company (NGIC) at approximately 08:25 hours to initiate a shutdown.

“This directive was prompted by ongoing maintenance work being conducted at NGIC’s Gas
facilities. Regrettably, this maintenance work led to a significant reduction in the available gas quantity, reaching as low as 13MMscf. This quantity proved insufficient to adequately fuel our Gas turbine, which boasts a capacity of 125MW (ISO rating).

“Adding to these unforeseen circumstances, the Gas Aggregation Company of Nigeria (GACN) also communicated with NDPHC around 10:30 hours on the same day, August 6, 2023. Their notification outlined the challenges faced in gas supply along the Western axis pipeline. This pipeline is vital as it supplies gas to five of our power plants.

“These supply difficulties arose due to the ongoing maintenance efforts undertaken by Seplat and CNL, our esteemed gas suppliers. The culmination of these events critically impacted gas pressure, ultimately necessitating the shutdown of all our power plants.”

Adejoku assured that the NDPHC is conscious of its contractual obligations, adding that the power outage had since been resolved.

The full text of the statement reads below:

RE- EKO, ABA ELECTRICITY DISTRIBUTION COMPANY SUFFER
OUTAGES AS SUPPLY PLANT SHUTS DOWN

We have become aware of an erroneous news article that is being
disseminated through various print and online media outlets, titled “Eko,
Aba Electricity Distribution Company Suffer Outages as Supply Plant Shuts
Down.” Our initial reaction, upon reviewing the content, is a sense of
astonishment that such a narrative would be propagated without any
attempt to reach out to Niger Delta Power Holding Company Limited
(NDPHC) for the purpose of seeking clarification and obtaining accurate
information.

This straight forward action could have significantly enhanced the article, leading to a more informed and enlightened readership. The mistaken notion that “NDPHC has no access to gas from major suppliers such as Shell and ExxonMobil due to their preference for supplying generation companies (GenCos) like Abuja Electricity Distribution Company (“AEDC”) with whom they have established supply agreements would have been corrected. It is important to clarify that NDPHC and AEDC operate in distinct segments of the electricity industry and are not competitors in the gas supply/consumption market. NDPHC operates in the upstream sector
as an electricity producer and a consumer of gas, while AEDC operates downstream, procuring electricity from generators. In essence, NDPHC generates electricity and supplies it through Transmission to the Distribution Companies, primarily facilitated through the Nigeria Bulk Electricity
Trading PLC (“NBET”).

The electricity market operates under a framework of bilateral agreements,
and it is important to clarify that NDPHC’s sole cross-border customer is the Republic of Togo. This stands in contrast to the assertion that “…the rest of the power the NDPHC generates is exported to the Niger Republic, Togo, and the Benin Republic.” For the sake of clarity and to ensure accurate understanding among our valued readers and customers, it’s essential to emphasize that Niger Delta Power Holding Company Limited is a trailblazer in the realm of bilateral agreement initiatives with
Distribution Companies within the Nigerian Electricity Supply Industry
(NESI). Notably, the two mentioned Distribution Companies in the
article—namely, Eko Electricity Distribution Company (EKEDC) and Aba Power Limited Electric (APLE)—have actively contributed to the success of this pioneering approach. Importantly, this success model is now being adopted by the industry’s regulatory body, the Nigerian Electricity Regulatory Commission (NERC), leading to further advancements in the sector.

NDPHC is pleased to announce that the primary objective of the bilateral
agreement, aimed at enhancing Nigerians’ access to consistent and
dependable power supply, is yielding tangible outcomes. This is evident,
as highlighted in a recent Sahara Reporters’ article featuring a testimonial from a customer of Eko Disco. The customer acknowledged, “We were surprised that this outage had lasted so long because there has been a remarkable improvement in supply from Eko DisCo in the last two months.” It is important to clarify that the power outage was promptly
resolved by Monday morning, refuting the erroneous claim that it
extended until Tuesday. Furthermore, it is essential to address that the
outage was a direct result of scheduled maintenance on gas facilities conducted by our suppliers. This maintenance activity had a temporary impact on our operations, contributing to the temporary disruption in power supply.

On the morning of August 6, 2023, NDPHC received immediate
instructions from the Nigeria Gas Infrastructure Company (NGIC) at
approximately 08:25 hours to initiate a shutdown. This directive was
prompted by ongoing maintenance work being conducted at NGIC’s Gas
facilities. Regrettably, this maintenance work led to a significant reduction in the available gas quantity, reaching as low as 13MMscf. This quantity proved insufficient to adequately fuel our Gas turbine, which boasts a capacity of 125MW (ISO rating). Adding to these unforeseen circumstances, the Gas Aggregation Company of Nigeria (GACN) also communicated with NDPHC around 10:30 hours on the same day, August 6, 2023. Their
notification outlined the challenges faced in gas supply along the Western axis pipeline. This pipeline is vital as it supplies gas to five of our power plants. These supply difficulties arose due to the ongoing maintenance efforts undertaken by Seplat and CNL, our esteemed gas suppliers. The culmination of these events critically impacted gas pressure, ultimately necessitating the shutdown of all our power plants. We acknowledge the complex and interconnected nature of these challenges, and we are actively
engaged with our partners to expedite the resolution of these issues and restore regular operations.

Nevertheless, on the 7th of August 2023, NDPHC’s Omotosho Power Plant achieved synchronization with the grid, precisely at 07:47 and 08:04
hours. These actions were undertaken following explicit instructions and approvals received from the National Control Centre (NCC) and NGC, respectively. A thorough review of the NCC’s daily load allocation table for the 8th of August 2023 underscores NDPHC’s unwavering commitment to meeting its contractual obligations.

Specifically, we have consistently
fulfilled our responsibilities in supplying EKEDC and APLE with the
stipulated electricity capacities as delineated in the Power Purchase
Agreement (PPA). It is essential to highlight that in addition to the bilateral power purchase agreements established with NDPHC, both Eko DisCo and Aba Power are recipients of routine allocations directly from the national grid. This diversified allocation strategy ensures that their operational continuity remains intact, even during the limited duration when NDPHC’s supply was momentarily disrupted due to circumstances beyond our control. This multifaceted approach safeguards against any complete interruption in their operations during the few hours when NDPHC’s supply was temporarily affected.

Exemplifying our steadfast commitment to professionalism, we uphold this principle as a fundamental cornerstone of our organizational ethos. It consistently governs our operational paradigms and informs the tenor of our interactions with esteemed customers. In this context, we reiterate our earnest call to the esteemed members of the Fourth Estate to approach their reportage with a spirit of diligence. We extend an open invitation for them to engage in the practice of thorough fact-checking by liaising directly with us whenever circumstances warrant the coverage of stories pertaining
to our company. Rest assured, we are readily accessible, reachable either
by a simple phone call or an expeditious e-mail correspondence.

In the light of the above, we formally demand a retraction or, at the very
least, the publication of a rejoinder regarding the recent news article under consideration. We have carefully reviewed the content of the article and find several inaccuracies, misrepresentations, and omissions that mischaracterize the facts pertaining to the subject matter. As an entity deeply committed to transparency and accuracy, we believe it is imperative to rectify any misinformation that could potentially harm our reputation and mislead the public. We kindly urge you to take actionable steps for rectification, by either retracting the article in question or allowing us the
opportunity to present a factual rejoinder that provides a more accurate depiction of the situation.

Thank you.

-Adesanya Adejoku,
Media Adviser

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