FG’s unpaid debt to GenCos hits N500bn, N701bn intervention falls short, says GenCos

No Comments » May 29th, 2017 posted by // Categories: Energy Development Project



ENERGY

FG’s unpaid debt to GenCos hits N500bn, N701bn intervention falls short, says GenCos

The 26 electricity Generation Companies (GenCos) in Nigeria have revealed that the federal government is owing them about N500bn debt, just as they spend N36bn monthly to produce electricity.

The Executive Secretary, Association of Power Generation Companies (APGC), Dr. Joy Ogaji, said the GenCos were not consulted by the government on the Nigeria Bulk Electricity Trading Plc (NBET) N701bn fund meant to ease generation liquidity issues between January 2017 and 2019.

She hinted that the GenCos get over N36bn monthly invoice on gas and other services, and that the N701bn will not be enough for just two years of adequate power generation.

Ogaji said about N100bn of the debt was owed the GenCos between November 1, 2013 to January 2015 by the Market Operator, a section in the Transmission Company of Nigeria (TCN). The rest she said is being owed by NBET.

The GenCos spokesperson said the 11 Distribution Companies (DisCos) are trustees on revenue collection in the electricity market. They remitted only 30% of their monthly energy invoices in 2016, and that added to the liquidity constraints affecting power generation.

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