GenCos May Begin Direct Sale Of Generated Power To Heavy Consumers

Chiedu Ugbo

There are strong indications that electricity generation companies (Gencos) are considering the option of selling some of their generated power directly to heavy consumers.
Chiedu Ugbo, the Managing Director of Niger Delta Power Holding Company (NDPHC), made the disclosure in the October edition of Nextier Power Dialogue in Abuja, said the consideration is as a result of the  continued failure of distribution companies (Discos) to pay for electricity sold to them as at when due.
He said the option of direct sale to heavy electricity users like steel plants was being considered by the Gencos so as to ensure prompt collection of bills.
According to him, the option of a direct contract was considered so that none of the parties in the electricity production value chain would feel shortchanged, adding that Discos have often failed to adequately pay for whatever volume of power they get from them despite indications that these heavy buyers often pay their bills promptly.
However, he said the proposal would need the approval and declaration of the Minister of Power, Works and Housing, Babatunde Fashola because Nigeria’s power policy would not permit operators to independently choose who to sell their services or products to.
It will be recalled that the DisCos and GenCos have always blamed setbacks in the power generation value chain to the weak transmission network.
  • National mirror

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