NDPHC Debunks False Media Report on EKO, ABA Distribution Company Outages due to Supply Plant Shuts Down
The Niger Delta Power Holding Company Limited (NDPHC), said it was 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.”
The 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 the company for the purpose of seeking clarification and obtaining accurate information.
This straightforward 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 Chevron Nigeria Limited (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.
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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.
