NERC says the reason TCN and DISCOS lost 47% of available electricity generation capacity in the first quarter of 2018 was as a result of acute shortage of gas. In its first-quarter report for 2018 just released, NERC disclosed that available generation capacity rose by 3% to 7,477MW relative to the last quarter of 2017.
“However, due to some factors… the increase in the available capacity did not translate into increase in output as total electricity generated during the first quarter of 2018 decreased by 2% from 8,705,606MWh recorded in the preceding quarter. The Figure shows that just 53% of the available capacity was utilised during the first quarter, a decrease of 1.4% from the capacity utilisation during the preceding quarter.
“This implies that approximately 47% of the available capacity was stranded during the first quarter of 2018 due to a combination of factors including inadequate gas supply, limitation in transmission and distribution networks, and water management.” According the commission, there was a noticeable increase in gas constraint during the quarter under review relative to the last quarter of 2017.
Flour Mill Seeks License For Power Generation – Naira Metrics
Flour Mills of Nigeria Plc has announced plans to proceed with the application for an Electric Generation License. According to a release signed by the company’s secretary, Umolu Joseph noted that new license is in compliance with section 70 (2) of the Electric Power Generation Sector Reform Act. The license will enable Flour Mills to obtain an embedded electricity generation license to operate a 70MW power plant to be located in Apapa.
Flour Mills will generate more revenue from this power project, boost its bottom-line; also the new power project will also reduce the operating cost of the company. Figures from its full year ended June 2018 shows it spent N3.7 billion as power cost as compared to N3.2 billion in 2017.
In its recently released financial results for the period ended June 30, 2018, the company’s revenue plummeted from N148 billion in June 2017 to N133 billion in June 2018. Profit before tax also dropped from N6 billion in June 2017 to N5 billion in June 2018. Profit after tax also plummeted from N4 billion in June 2017 to N3.6 billion in June 2018. The firm currently has over twelve thousand full and part-time employees, and has since been steering the green revolution in Nigeria with the use of locally sourced materials to develop and produce unique consumer products for local markets