GENCOS RAISE ALARM OVER 6TN DEBT BY POWER INDUSTRY

“GenCos deserve pity and not castigation, ridicule and victimisation. Trying to smear their image with such baseless and unfounded allegations is not only unfair but misleading to the Nigerian populace: giving the impression that the sector is not regulated. and that electricity market participants can do as they please” Dr. Joy Ogaji, CEO APGC

Nigeria's Electricity generation companies (GenCos) have raised their concerns following the huge greatest risk they are compelled to face in the electricity value chain to the extent that the industry is owing them over N6 trillion.

The GenCos, under the auspices of Association of Power Generating Companies APGC, made the disclosure following allegations of extortion, robbery and a grand deception levelled against them by Nigerian Labour Congress (NLC).

The APGC revealed that GenCos are entitled to about 60 per cent of the market receivables following their invoiced energy bills.

Even at that, they argued, the companies still face the greatest risk in the electricity value chain with an outstanding unpaid invoice of now over N6 trillion.

“GenCos deserve pity and not castigation, ridicule and victimisation. Trying to smear their image with such baseless and unfounded allegations is not only unfair but misleading to the Nigerian populace: giving the impression that the sector is not regulated. and that electricity market participants can do as they please” APGC, said.

To this effect, APGC refuted the insinuation that the proposed government’s support for the sector is a clandestine plan to “settle the boys” ahead of elections.

In a statement, Chief Executive Officer (CEO) of APGC, Dr Joy Ogaji, said that such a claim is baseless, offensive to the professionals working tirelessly in the sector and undermines the critical liquidity interventions needed to keep the lights on.

“It may be necessary for the NLC and its co-travellers to identify the tobbers and those engaged in the deception.

“We also strongly refute the insinuation that the proposed government support for the sector is a clandestine plan to “settle the boys” ahead of elections.

Such a claim is baseless, offensive to the professionals working tirelessly in the sector and undermines the critical liquidity interventions needed to keep the lights on. It may be necessary for the NLC and its co-travellers to identify the robbers and those engaged in the deception. But it certainly cannot be the GenCos who are working round the clock to ensure that electricity is generated in spite of the huge challenges associated with the business.

“The truth is that the power sector, over a decade after privatisation, remains hamstrung by severe liquidity challenges, which is visibly clear to everyone but calls for clarification too on the issues” Ogaji, said. 

Culled from NewsExpress