Power Generating Companies (GenCos) have agreed to shut down power production and supply over Nigerian Bulk Electricity Trading Company’s (NBET) proposed 0.75% administrative charge and a debt of over N1 trillion.
According to Punch, the Executive Secretary, Association of Power Generation Companies, Joy Ogaji, NBET’s insistence on imposing 0.75% administrative charge on the companies for payment of gas invoices and a debt of over N1 trillion owed them were the reasons for imminent power shutdown.
The Power Generation Companies have reportedly addressed all relevant stakeholders including the National Electricity Regulation Commission in a bid to stop the imposition of the charge by NBET. But NBET failed to yield to their pleas. The proposed shutdown could lead to widespread blackout.
“This singular action by NBET may lead to the shutdown of power supply by Gencos, who have unanimously agreed to call the bluff of NBET.
“It is clear from recent occurrences that NBET is not deterred. NBET has now reduced its role to blackmailing/threatening Genco investors/chairmen who have refused to concede to its illegal demand of a 0.75% charge on invoices paid to gas suppliers.
“NBET has clearly threatened not to release payments due to Gencos until they accede to its request, urging them to agree for a quid pro quo with the 0.75% administrative charge,” Joy Ogaji said.
Meanwhile, GenCos also owe their gas suppliers and have attributed the reason to NBET’s indebtedness to them.
“GenCos’ indebtedness to their gas suppliers was due to “No GenCo has any outstanding gas payment that is more than what NBET owes the Genco. Put differently, NBET is indirectly charging 0.7% for paying its debt to Gencos,” said Joy Ogaji.
NBET is licensed and regulated by the Nigerian Electricity Regulatory Commission to undertake bulk purchase and resale of electricity in the Transitional Electricity Market.
Download Nairametrics App for breaking news and market intelligence.