GenCos Threaten Nationwide Blackout Over 0.75% Charge

• GenCos Threaten Nationwide Blackout Over 0.75% Charge

The Nigerian Power Generating Companies (GenCos) have said they would shut down power generation if the Nigerian Bulk Electricity Trading Company imposed 0.75 percent administrative charge on power GenCos for payment of gas invoices.

The Executive Secretary, Association of Power Generation Companies, Joy Ogaji disclosed this during a media briefing in Abuja on Sunday.

She said the Nigerian Bulk Electricity Trading Company (NBET) that is presently owing power generating companies over N1 trillion is demanding an administrative charge of 0.75 percent for the payment of gas invoices from the money it owes GenCos.

Speaking to journalists on Sunday, Ogaji said, “This singular action by NBET may lead to the shutdown of power supply by Gencos, who have unanimously agreed to call the bluff of NBET.”

She explained that despite GenCos writing to relevant stakeholders including NERC, NBET continues to push for the 0.75 percent administrative charge.

Ogaji said, “It is clear from recent occurrences that NBET is not deterred. NBET has now reduced its role to blackmailing/threatening Genco investors/chairmen who have refused to concede to its illegal demand of a 0.75 percent charge on invoices paid to gas suppliers.

“NBET has clearly threatened not to release payments due to Gencos until they accede to its request, urging them to agree for a quid pro quo with the 0.75 percent administrative charge.”

The Executive Secretary stated that Gencos’ indebtedness to gas suppliers was as a result of NBET’s huge debt.

“No Genco has any outstanding gas payment that is more than what NBET owes the Genco. Put differently, NBET is indirectly charging 0.75 percent for paying its debt to Gencos.”

She, however, warned that power generating companies would not accept the new administrative charge.

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