Nigerian cities may face massive darkness with an imminent shutdown of 24 thermal powers by some Generation Companies (GenCos) over the introduction of a controversial charge. GenCos are planning to shutdown their activities because of a 0.75% ‘unregulated’ administrative charge for gas supply transactions.
This charge, according to Daily Trust, is being introduced by the Nigerian Bulk Electricity Trading Plc (NBET) and is hoped to be a condition for the generation companies to draw from the approved N600 billion intervention fund of the federal government to cushion the effect of liquidity in the power sector.
According to the report, if the GenCos carry out their threats, it could result in power cut generation capacity reduction to 5,266 out of the 6,691 megawatts published by the Independent System Operation (ISO) data on September 6, 2019.
The executive secretary of the Association of Power Generation Companies (APGC), Joy Ogaji, explained that the managing director of NBET, Marilyn Amobi, had met the GenCos which insisted on receiving a letter to the effect.
According to Ogali, GenCos get only 15% of their monthly energy invoices and this is lamentable. Added to the ‘unregulated’ charge being introduced by NBET, it means the power firms may quit operation.
“The time may just be right for GenCos to declare force majeure and release themselves of all market obligations. “Surely, GenCos will remain blameless.
Reviewed by Idris Bashir
on
September 24, 2019
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