Power generation companies (Gencos) has signified their intention to
declare force majeure on their operations, saying they were being unfairly
treated by the Nigerian Bulk Electricity Trading Company Plc (NBET).
The Gencos said in a statement that they would be forced to return the
power generation plants to the federal government and relieve their investors
of the obligation of generating electricity for Nigeria because NBET was making
it difficult for them to operate.
The Executive Secretary of the trade association of the Gencos– the
Association of Power Generation Companies (APGC), Dr. Joy Ogaji, said the NBET
was making demands on the Gencos which she claimed were unfair.
Ogaji, said the NBET claimed the Gencos were not making pro-rata payments
to their gas suppliers and in that regards decided to pay the gas suppliers by
itself but with a 0.75 per cent administrative charge.
According to Ogaji, the development would impact the operations of the
Gencos negatively as they would have no funds to run their plants.
She also said the Gencos were contesting the decision because the NBET did
not have the approval of the Nigerian Electricity Regulatory Commission (NERC)
to make such decisions.
According to her, each of the Gencos requires between 20 and 30 per cent of
its total revenue to meet its direct operating cost on a monthly basis and that
if NBETs directive on pro-rata payments is carried out, only six per cent of
the monthly invoice would be left for them. This, she stated was not enough to
pay Gencos’ staff alone.
“The said 0.75 per cent administrative charge is compulsory as it is a
Condition Precedent (CP) for Gencos to access the N600 billion the federal government
has approved for immediate payment to gas suppliers and Gencos.
