Ngali Power Company, a leading electricity provider in South Sudan, has announced plans to withdraw from electricity plant operations in Yambio, Western Equatoria State, due to mounting financial difficulties. The company's decision has raised concerns about the continuity of power services and the need to expand electricity connections to more households. According to Ruzirampuhe David, Head of the Legal Department at Ngali Holding Ltd, the company has been operating at a loss due to insufficient revenue from electricity customers.
The company's financial struggles are attributed to the limited number of residents connected to the electricity grid, which has restricted its revenue base. Ngali Power Company intends to identify a new operator, establish necessary operating conditions, and submit a handover agreement to the government to ensure the facility continues functioning. This planned handover aims to prevent the power plant from being left unattended and support the continuation of electricity services in Yambio.
Western Equatoria State Caretaker Governor Badagbu Daniel Rimbasa met with Ngali Power Company representatives to discuss the planned withdrawal and possible arrangements for transferring management of the power plant to a new operator. The governor emphasized the need to expand electricity connections to residential areas, noting that many households remain outside the existing network despite the availability of the power plant.
The power plant was donated by the Egyptian government, but the electricity distribution network has not reached many parts of Yambio. Governor Badagbu urged the company and relevant authorities to explore affordable ways of expanding the network, including considering timber poles as an alternative to concrete electricity poles where technically and safely appropriate.
The proposal aims to reduce infrastructure costs and make it possible to connect more households to the electricity supply. The governor's position highlights the importance of ensuring that the investment in the power plant benefits a wider section of the population rather than serving only a limited number of customers.
The discussions reflect two interconnected challenges facing electricity services in Yambio: the financial sustainability of power generation and the limited reach of the distribution network. With relatively few households connected to the grid, the company says its income has not been sufficient to cover the cost of fuel needed to operate the plant.
A successful transition to a new operator will require clear operating arrangements and cooperation between the government and the company to prevent interruptions in service. The government and the company are expected to work together on the proposed handover arrangements and options for extending the electricity network to more residential areas.
Key points
- Ngali Power Company's financial difficulties are attributed to the limited number of residents connected to the electricity grid.
- The planned handover aims to prevent the power plant from being left unattended and support the continuation of electricity services in Yambio.
- The governor urged the company and relevant authorities to explore affordable ways of expanding the network.
