Generation companies of Nigeria (GENCOS) have raised an alarm over an imminent shutdown of power generation across the country, following the indebtedness the Nigeria Bulk Electricity Trader (NBET). Joy Ogaji, Executive Secretary of the Association of Gas Generation Companies of Nigeria put the debt at over a trillion naira.
Ogaji, while addressing a press conference on Sunday in Abuja informed newsmen that apart from the rising debts which have forced about three gas generating companies to shut down, gas supply to power turbines across the country, the harsh economic environment in the country, was also compounding the generation companies’ woes.
According to the Executive Secretary, “Some of the Gas Suppliers are no more supplying gas. Some of you have noticed the epileptic power supply in recent times. If you check the market invoice of the Discos, July was about 15 percent. From that 15 percent we pay gas suppliers so what is left? A typical gas-generating company needs up to 30% of payment to enable its operation.”
“So when you are given 15% instead of 30%, and you have to pay gas suppliers, then tell me what is left.”
She noted further that, “As you have seen we heard the news that the federal government is working on releasing the N600bn power sector intervention fund. From that time, it is still news. If NBET’s excesses are not checked and this N600bn not released in time, whether we deliberately shut down or not, the machine will definitely shut down by itself.”
She pointed out further that the organisation had not got any response from the regulator, the Nigerian Electricity Regulatory Commission on the 0.75 charge which the NBET demanded from the GENCOS as administrative charge for the payment of gas invoice on their behalf, six weeks after sending a letter to that effect.
Ogaji expressed worry that the power sector was still suckling post privatisation, arguing that the market could move forward with his development which has not seen the sector independently operate without all manner of interventions. She described these interventions as a knee jerk approach to the development of the sector.
“From the first of February 2015 that NBET took over the bulk trader role till date, no GENCO has received 100 per cent of the payment. So the question is: why are we still with NBET? This marriage has to be dissolved,” she further stated.
HARRISON EDEH, ABUJA
