Gencos under the auspices of Association of Power Generation Companies (APGC) have said the Federal Government was now owing to the Gencos over N500 billion excluding interest, which had made paucity of cash the major challenge of the operators.
The APGC Executive Secretary, Dr. Joy Ogaji, who addressed journalists in Abuja on Tuesday said with this, the Genco, the supply sector of the industry can no longer perform required scheduled maintenance and also pay for gas supply as reported by World stage news.
She challenged the DisCos to open their account books for scrutiny, welcoming the request from the Nigeria Electricity Regulatory Commission (NERC) to escrow their accounts.
According to Ogaji, the request which the DisCos had condemned is “not just a welcomed development but also a wake-up call to all participants in the electricity market.”
She, however, explained that the electricity sector is a value -chain that needs to be remunerated as applicable covering the cost of generation, transmission, and distribution.
The Gencos, according to her, are entitled to “60% of markets remittance as they do not just generate power but also pay for gas supply and gas transportation. Transmission charge cost 11%, distribution gets 25% while the remaining 4% is meant for regulatory charges and NBET.
” The revenue referred to by the distribution companies are not their personal revenue but market funds to which they were made trustees to collect and remit.”
Ogaji revealed that the poor remittance of market funds by the DisCos has prevented the rest of the electricity value-chain from meeting up with their operations and also service their liabilities which includes gas payments.
The APGC said that Gencos, the supply sector of the industry, can no longer perform required scheduled maintenance and also pay for gas supply.