NDPHC Targets Businesses As Power Capacity Remains Underutilised

The Niger Delta Power Holding Company (NDPHC) is seeking to connect more manufacturers, businesses and large commercial electricity users to dedicated power supply as the company looks to improve the utilisation of its existing generation capacity.

The move is being pursued under the company’s Eligible Customer Programme, which allows qualifying electricity consumers to access dedicated supply under commercially agreed arrangements.

NDPHC Managing Director/Chief Executive Officer, Engr. Jennifer Adighije, disclosed the development during the commencement of the company’s Customer Service Week, urging businesses that meet the requirements of the programme to explore the dedicated supply option.

She said the arrangement was designed to provide eligible businesses with a more reliable electricity supply capable of supporting production and other commercial activities.

“To our existing customers, thank you for your trust. To businesses yet to join, power your growth with NDPHC’s Eligible Customer Programme, which offers dedicated power supply and mutually agreed commercial terms,” Adighije said.

The initiative comes against the backdrop of persistent challenges in Nigeria’s electricity market, where inadequate and unstable power supply continues to raise operating costs for manufacturers and other businesses, many of which depend on diesel-powered generators and other alternative sources when grid electricity is unavailable.

NDPHC has a generation portfolio comprising 10 power plants with 28 gas turbines and three steam turbines, representing installed generation capacity of approximately 4,000 megawatts.

However, installed capacity does not necessarily translate into electricity available to consumers, with gas supply constraints, plant availability, transmission limitations, distribution infrastructure, metering challenges and commercial bottlenecks affecting the amount of power that can ultimately reach businesses.

The company has consequently been focusing on the rehabilitation and optimisation of existing generation facilities, recovery of dormant capacity and improvements in gas supply as part of efforts to increase the utilisation of its power assets.

One of the recent developments was the return of the 450MW Alaoji Open Cycle Power Plant in Abia State to service after being out of operation since 2023 amid disputes linked to gas supply and metering.

The restoration of the Alaoji plant provides additional scope for improving the utilisation of existing generation infrastructure, although the availability of generation capacity alone does not guarantee consistent electricity supply to end users.

For manufacturers and other energy-intensive businesses, the challenge extends beyond generation. Transmission and distribution constraints can limit the amount of electricity delivered to industrial locations, while the cost and reliability of alternative power sources continue to weigh on production.

NDPHC’s Eligible Customer Programme is therefore aimed at creating a more direct commercial connection between available electricity generation and qualifying large consumers.

Under the programme, eligible businesses can enter structured supply arrangements based on their electricity requirements and mutually agreed commercial terms, potentially giving them greater predictability in planning their energy needs.

For large manufacturers, reliable electricity is closely linked to production planning, capacity utilisation and operating costs.

Frequent interruptions to supply can force businesses to switch to diesel or other self-generation sources, increasing the cost of production and affecting competitiveness.

However, the extent to which dedicated supply can address these challenges will depend on the availability of generation, gas, transmission and distribution infrastructure, as well as the terms governing individual supply arrangements.

NDPHC Executive Director, Strategy and Commercial, Hon. Patrick Obahiagbon, also highlighted the importance of customer-focused service delivery during the Customer Service Week programme.

The event was attended by members of the NDPHC Executive Management Team, including Executive Director, Generation, Engr. Abdullahi Kassim; Executive Director, Legal Services and Company Secretary, Dr. Steven Andzenge; and Executive Director, Networks, Engr. Bello Babayo Bello, alongside general managers, heads of departments and other staff.

NDPHC’s generation assets were developed largely under the National Integrated Power Project and are located across different parts of the country. The company has continued to pursue measures aimed at restoring dormant capacity and improving the operational performance of the plants.

The push to connect more businesses to dedicated supply therefore comes at a time when the power sector is seeking to translate Nigeria’s installed generation infrastructure into greater electricity output and more reliable supply to productive-sector consumers.

For NDPHC, increasing the number of qualifying businesses connected to structured supply arrangements could provide a mechanism for improving the commercial utilisation of available generation capacity.

For businesses, however, the critical consideration will remain the consistency, cost and quality of electricity delivered under the arrangements, particularly given the high energy costs already confronting manufacturers and other large commercial users.

The success of the initiative will ultimately depend on whether available generation can be consistently delivered to eligible customers through functioning transmission and distribution networks and supported by adequate gas supply and commercially sustainable agreements.