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Gas suppliers demand cash from GENCOs before Gas supply
GenCos are being owed N600 billion and owe gas companies nearly N200 billion. Most gas suppliers now say they can’t supply anymore until payments are made.
Construction work on the Zungeru power plant in Nigeria
The APGC's Executive Secretary, Dr Joy Ogaji stated at a press briefing in Abuja on Thursday, June 1, 2017, noted that the GenCos are only generating power through operating few power turbines.
According to a report in a local newspaper, Daily Trust, on Tuesday, May 30, 2017, 35 turbines were not operating across the 15 gas-fired GenCos in Nigeria. This situation has been reported to have led to decline in the power generation capacity of the country from 4,440 MegaWatts (MW) to 3914MW.
Dr Ogaji also noted that: “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.
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“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 lamented.
It would be recalled that the Minister of Power, Works and Housing, Mr Babatunde Fashola revealed that customers with capacity to purchase power directly from the GenCos can start doing so.
This move also received the acceptance of the APGC, and the body noted that it will increase the liquidity in the power sector and bring about healthy competition within the sector.
The Eligible Customers’ scheme is yet to commence as implementation framework is still being worked on by the Nigerian Electricity Regulatory Commission (NERC).
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