To allay fears associated with low electricity supply during dry season in Nigeria, the Association of Power Generation Companies (APGC), at the weekend, reiterated its commitment and readiness to improve power generation in all its power plants, including its hydro power stations across the country.
The power producers, however, blamed the government for dragging it into a debt trap of over N200 billion, which they say is almost crippling the Nigerian electricity supply industry.
The APGC disclosed this during a media chat hosted by Joy Ogaji, the association’s executive secretary, at its headquarters in Abuja.
“This does not change the fact that we are almost grinding to a halt due to the heavy debt burden of over N200 billion. We believe that government will expeditedly issue viable and sustainable solutions in this regard,” Ogaji stated.
According to her, “we suffer heavy indebtedness. This has badly stunted our business objectives and we crave your indulgence as media practitioners to please assist us to enable the general public be adequately informed and be involved in the electricity sector by paying for the services, we see them as our partners in progress.”
Ogaji also stated that currently, the Gencos do not have any contractual relationship with the Discos, but only with the Nigerian Electricity Bulk Trader (NBET) in the form of Power Purchase agreements (PPAs).
She reiterated the importance of sanctity of contract and the binding nature of contracts in the electricity value chain, and regretted that NBET has reneged in its part of the contract of fully paying Gencos for power generated and supplied, which she said has adverse implications on the survival of the energy producing firms.
Ogaji therefore affirmed the right of the Gencos to seek alternative means of selling its power through the corridor of eligible customers, which are syndicated high consuming customers, such as factories and other heavy energy users, across the country.
She insisted further that Gencos’ rights to do so were legally protected in the Electric Power Sector Reform Act (EPSR 2005).
“The Nigeria Electricity Act 2005 makes provision for Gencos to generate and sell electricity directly to Eligible Customers. Seeing that this is Statutory, yes, we are in the process of exploring the viability of this option to stay in business, if nothing changes,” Ogaji declared.
According to her, “if Discos who have contract with NBET have refused or are unable to pay for electricity taken and sold, we are not parties hence we cannot be debt collectors. NBET should put a firm and default proof mechanism to make the Discos pay.”
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