- Laments huge power debts
AS the country’s weather condition spirals into dry season, the Generation Companies (GENCOs) have expressed readiness to ensure that it improves power generation notwithstanding through all power plants including its Hydro Power Plants companies across the country.
The Association of Power Generation Companies gave the assurance at the weekend, in a media chat with the Executive Secretary of the Association, Dr Joy Ogaji at the forum’s headquarters in Abuja.
Ogaji stated that there was little or nothing to be pessimistic about the availability of power during the dry season.
She stated that all mechanisms have been put in place to ensure optimal supply of power to the grid during the yuletide period and beyond.
“The Hydro GenCos are very much aware that due to the cessation of rain during the dry/ harmattan season, power supply is usually a challenge. Knowing this, adequate water conservation plans have been put in place to ensure optimal generation. This has been on-going and we intend to keep improving our efforts during this period of year.”
“Furthermore, we have serious engagements with the gas suppliers through the gas aggregator (GACN) to lessen related challenges within our control. We believe that this will ensure that our gas supply does not suffer any fatal disruption as necessary to balance the generation within this period.”
Ogaji who also lamented the huge power debt accrued in the power sector, said the activities of the GENCOS is almost grounded to a halt.
Her words: “This does not change the fact that we are almost grinding to a halt due to the heavy debt burden of over two hundred billion. We believe that government will expedite issue viable and sustainable solutions in this regard.
I may request the following from the media; assist to enlighten the public on the GenCos and the activities of APGC. Help us to educate the public on the hindrances and challenges GenCos are faced with in their businesses; let the public be aware that the privatisation is for good. We produce the electricity, if we are not paid how can we buy gas, maintain our machine, and pay our workers and other market participants?
“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,” she said.
Fielding more questions on the GenCos working relationship with its partners such as the distribution companies (DisCos) and the Nigerian Bulk Electricity Trading (NBET), Dr Ogaji stated that the GenCos currently do not have any contractual relationship with the Distribution Companies, our contract(power purchase agreement) with the Nigerian Electricity Bulk Trader (NBET).
She reiterated the importance of sanctity of contract and the binding nature of contracts in the electricity value chain.
She regrettably added that NBET has reneged in its part of the contract of fully paying the generation companies for power generated and supplied, which she said have adverse implications on the survival of the GenCos.
However, she, affirmed the right of the GenCos to seek alternative means of selling its power through the corridor of eligible customers (supplying electricity to syndicated customers in the country), saying GenCos right was legally protected in the EPSR Act 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. This is action of ours is in sync with the presidents directive that Nigerians think outside the box, GenCos are thinking outside the box as patriotic citizens,” she stated.