Power firms to shut down over 0.75% charges, decry N1trn debts

Electricity Generation Companies (GenCos) have threatened to shut down their power plants over the continuous imposition of a planned 0.75 percent gas supply administrative charge by the Nigerian Bulk Electricity Trading Plc (NBET).

They revealed this on Sunday through their group – the Association of Power Generation Companies (APGC). The Executive Secretary of APGC, Dr. joy Ogaji in a briefing recalled that the GenCos had rejected the imposition of the charge in September 2019, which NBET said for the purpose of paying gas invoices on behalf of the GenCos.

Ogaji also said the GenCos are owed over N1 trillion due to them for energy they had supplied to the Distribution companies (DisCos) through the NBET and that it deprives GenCos of the needed capital to operate efficiently.

APGC said despite writing to relevant stakeholders, only the Bureau of Public Enterprises (BPE) and the Gas Aggregation Company of Nigeria (GACN) had responded to join them in rejecting NBET’s stance on the administrative charge. However, the Nigerian Electricity Regulatory Commission (NERC) has not responded six weeks after, APGC noted.

“NBET has clearly threatened not to release payments due GenCos until they accede to NBET’s request, urging them to agree with the 0.75% administrative charge.

“This singular action by NBET, may lead to shutdown of power supply by GenCos, who have unanimously agreed to call the bluff of NBET,” the APGC scribe said.

The GenCos called for federal government’s intervention to review the professional conduct of NBET and ensure that business etiquettes are instilled.

The GenCos said NBET has failed to provide 100 percent payment for the energy they generate since February 2015 when NBET took over their invoice processing.

“We hereby reiterate our position strongly recommending to the government and other key stakeholders that the administration of the GenCos finances reverts back to the Market Operator (MO) while NBET focuses on engagements with new entrants or intending power project developers.”