FOLLOWING a recent resolve by the 13 power Generation Companies (GenCos) to drag the Federal Government(FG) to court for allegedly giving “preferential treatment” to two competitors, the FG has threatened to defend its position.
The GenCos had accused the FG of granting preferential treatment to Azura Power West Africa Limited and Accugas Limited (seven energy) through the World Bank’s partial sovereign guarantee (PSG).
They said this is coming despite being on the verge of collapse, over debts in excess of N1 trillion.
However, the Minister of Power, Works and Housing, Babatunde Fashola at the 25th monthly power sector meeting, held in Uyo, Akwa-Ibom state capital on Monday said apart from seeking redress in the law court, the GenCos should also be ready to face the court of public opinion.
He said they had gone to court because the government was making 100% payment to a new GenCo who has a different contract with a Partial Risk Guarantee, which they do not have.
Fashola maintained that it was not an aberration for them to seek redress in court but stressed that prior to the court action, a meeting was held, where the GenCos tabled their demands.
“They must also disclose to both courts that they held a meeting with Government and tabled their demands, which Government promised to look into one week before they went to court.
“They must, in good conscience, tell the two courts whether one week was enough time, to go to court and whether this action at the time when the sector is making progress does not suggest an intention to blackmail Government and hold the citizen’s hostage,” he added.
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While noting that the court decision was a step too far, he said; “While they seek refuge in a court of law, they must be ready to face scrutiny in the court of public opinion.
“The court of public opinion is a court of conscience and morality. In the court of public opinion, they must be ready to tell the citizens how they felt when other groups went to court to stop the implementation of Tariffs approved by NERC in 2016.
“They must explain to this public court whether they went to court before the government approved a N701 Billion payment Assurance Guarantee to pay their monthly power bills.
“They must disclose to this court that they owed debts, from the pre-Buhari era, because their income had reduced to less than 50%.
“They must disclose to this court that they now receive about 80% income and that this Government is now paying them revenues collected from international customers from the Republics Benin, Niger and Togo, in Dollars, as against the Naira payment they used to receive.”
However, he stressed that; “I am not afraid of the law courts, and will meet you there to vigorously defend our position.”
Meanwhile, the Minister also disclosed that the FG has secured the World Bank approval for $486 Million TCN Transmission expansion funding.
“…. While progress is being made with the same bank for the Rural Electrification and Distribution Expansion Funding,” he added.
He noted the completion of Uyo, Calabar, Keffi, Karu, Abeokuta, Nasarawa sub-station transmission expansion to improve their capacity to supply power to the DisCos.