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NDPHC Debunks Reported Plant Shutdown

by Newscoven
August 13, 2023
in Business, Energy | Oil & Gas
Reading Time: 4 mins read
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Niger Delta Power Holding Company (NDPHC) Limited has described as untrue a report that Eko and Aba Electricity Distribution Companies suffered outage because their supply plant shut down.

The company stated that the report, as contained in a news article published by some media outlets, print and online, was erroneous.

It stated this in a statement titled “RE- Eko, Aba Electricity Distribution Company Suffer Outages As Supply Plant Suffer Shuts Down”.

NDPHC further stated that it was astonishing that no attempt was made by any of the media outlets involved to seek for clarification and accurate information on the issue before coming out with the publication.

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It stated in the statement by its Media Adviser, Adesanya Adejokun, that many mistaken notions as contained in the narrative would have been corrected.

It asserted that it was not true 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”).

“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”),” Adejokun stated.

He said that electricity market is operating under a framework of bilateral agreements, noting that NDPHC’s sole cross-border customer is the Republic of Togo.

He added that the terms of bilateral agreement were in contrast to the claim that “…the rest of the power the NDPHC generates is exported to the Niger Republic, Togo, and the Benin Republic.”

NDPHC further emphasised the need for clarity in order to ensure accurate understanding among the reading public and customers.

The company described itself as 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,” Adejokun stated.

He cited a recent testimonial shared by a customer in an online medium, Sahara Reporters, on Eko DisCo as evidence of the tangible outcomes of the bilateral agreement.

Quoting the customer, Adejokun stated: ‘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.”

He further debunked what he described as an erroneous claim that the power outage extended till Tuesday, saying the problem was promptly resolved by Monday morning.

“Furthermore, it is essential to state 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, 6 August, 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. We are actively engaged with our partners to expedite the resolution of these issues and restore regular operations.

“Nevertheless, on 7 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 8 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),” Adejokun added.

He also stated 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.

The diversified allocation strategy, he stated ensured that the operational continuity of the two distribution remained intact, “even during the limited duration when NDPHC’s supply was momentarily disrupted due to circumstances beyond our control.”

The NDPHC Media Adviser said the multifaceted approach safeguarded against any complete interruption in the operations of Eko DisCo and Aba Power 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 organisational ethos.

“It consistently governs our operational paradigms and informs the tenor of our interactions with esteemed customers,” he added.

NDPHC therefore restated its call to the esteemed members of the Fourth Estate of the Realm to approach their reportage diligently.

It appealed to media professionals to engage in thorough fact-checking by liaising directly with the company whenever circumstances demanded.

“Rest assured, we are readily accessible and 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 mis-characterised 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,” Adejokun added.

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