The power Generating Companies (GenCos) are owing gas suppliers about N200 billion which has stalled the operations of some turbines in the country.
The Executive Secretary of the Association of Power Generation Companies (APGC), Dr Joy Ogaji at a briefing in Abuja yesterday disclosed that the GenCos are only operating few turbines to generate power based on the quantum of gas they can pay for immediately as the gas suppliers ceased to offer credit.
“To procure gas, we need money. Currently, GenCos are being owed N600 billion and owe gas companies nearly N200 billion. Most gas suppliers now say they can’t supply anymore until we pay.
“Most of them like Shell, Total now do pay-before-service and the electricity market is only remitting about 30 per cent. Most of the GenCos can’t operate all their machines; it depends on what they can pay. We are in that state, a precarious and pitiable one,” she stressed.
Ogaji also supported the declaration on Eligible Customers by the Minister of Power, Works and Housing, Mr Babatunde Fashola that certain customers who are willing and have the capacity can procure power directly from the GenCos without using the Distribution Companies (DisCos).
She said DisCos can now take extra power to improve supply beyond the daily allocation they get for their franchise areas. “DisCos are actually able to get power through this arrangement on the grid. Those DisCos who are willing to get additional power qualify as Eligible Customers as well.”
The APGC spokesperson said the declaration will boost liquidity in the power sector and stimulate more competition for the DisCos, the Transmission Company of Nigeria (TCN) and the GenCos to serve customers for the better.
The eligible customer directive is yet to commence as she said the Nigerian Electricity regulatory Commission (NERC) is working on the framework that will address registration process, tariff setting among others.
Power generation this week has dropped from 4,400mw (megawatts) to 3,914mw.
